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HB 6190

Financial institutions: mortgage brokers and lenders; consolidation of certain licensing statutes related to residential mortgages; make conforming changes in the credit reform act. Amends sec. 2 of 1995 PA 162 (MCL 445.1852). TIE BAR WITH: HB 6177'26

2025-2026 Regular Session Introduced by Greg Alexander and 3 co-sponsors

Aligns and broadens Michigan mortgage licensing by updating definitions under the Credit Reform Act and tying its effect to HB 6177.

bill electronically reproduced 07/03/2026
#financialinstitutions:mortgagebrokersandlenders
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Bill Summary · HB 6190

Overview

HB 6190 (Michigan, 2025-2026) proposes conforming amendments to the Credit Reform Act (1995 PA 162), specifically updating definitions and tying the bill to HB 6177. The legislation is introduced in the Michigan House and referred to the Committee on Finance. It appears to consolidate or align licensing statutes related to residential mortgages and place formal changes within the Credit Reform Act framework.

Main purpose and intent

  • Align and consolidate licensing and regulatory terminology for mortgage lending and related financial services.
  • Make conforming changes to the Credit Reform Act to reflect current and upcoming licensing regimes, particularly those associated with residential mortgages.
  • Tie in HB 6177, indicating interdependent or companion changes necessary for the intended reform.

Key provisions and changes

  • Amends Section 2 of the Credit Reform Act (MCL 445.1852) to adjust defined terms used in the act.
  • Redefines or clarifies several key terms to ensure clarity for regulated lenders, borrowers, and related entities:
    • Borrower: defined as a person who obtains an extension of credit from a regulated lender.
    • Commissioner: head of the Financial Institutions Bureau within the Department of Insurance and Financial Services.
    • Credit card arrangement, credit sale, depository institution, excessive fee or charge, extension of credit, and person: defined with specific scope.
    • Regulated lender: broad category including depository institutions, certain state-licensed finance entities (under specified acts), secondary mortgage loan acts, and entities subject to the residential mortgage licensing and supervision acts, among others.
  • Specifies types of lenders and licensing regimes that qualify as “regulated lenders,” including:
    • Depository institutions (banks, savings institutions, credit unions).
    • Licensees under specific Michigan acts related to consumer financial services, home improvement finance, motor vehicle sales finance, and regulatory loan acts.
    • For a period (six months after the effective date) and thereafter, entities subject to residential mortgage licensing and supervision acts.
  • Includes a provision that the act’s enactment is contingent on HB 6177 becoming law (a tie-bar provision), indicating that HB 6190’s effective implementation depends on the companion bill.

Who would be affected

  • Regulated lenders operating in Michigan, including:
    • Banks, savings institutions, credit unions.
    • Licensees under consumer financial services and related acts.
    • Sellers under the home improvement finance act.
    • Entities subject to the motor vehicle sales finance act and related licensing regimes.
    • Firms operating under the upcoming or current residential mortgage licensing and supervision acts.
  • The Department of Insurance and Financial Services (and its Financial Institutions Bureau) as the responsible regulator (referred to as the Commissioner).
  • Borrowers and consumers engaging in extensions of credit from regulated lenders, with definitions clarifying what constitutes an extension of credit and related terms.

Procedural and timeline aspects

  • Introduced on July 3, 2026, and referred to the House Committee on Finance.
  • Contains a tie-bar requiring HB 6177 to be enacted for HB 6190 to take effect.
  • The exact effective dates are not specified in the text provided beyond the tie-bar; the six-month reference indicates a staged approach to certain regulatory classifications around the residential mortgage licensing regime.

Practical impact

  • Provides clearer definitions to improve enforcement, supervision, and consistency across licensing statutes related to residential mortgages.
  • Facilitates smoother regulatory oversight by aligning terms across multiple licensing acts under the Credit Reform framework.
  • Potentially broadens or solidifies the pool of regulated lenders subject to Michigan’s mortgage licensing and supervision regime, with a transitional six-month period for certain classifications.

Compiled from official sources — confirm details with the bill’s official record.

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