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HB 6189

Financial institutions: mortgage brokers and lenders; consolidation of certain licensing statutes related to residential mortgages; make conforming changes in the consumer mortgage protection act. Amends sec. 2 of 2002 PA 660 (MCL 445.1632). TIE BAR WITH: HB 6177'26

2025-2026 Regular Session Introduced by Bill Schuette and 1 co-sponsor

HB 6189 consolidates residential mortgage licensing to unify regulation for lenders, brokers, and servicers, aligning with HB 6177 under a single supervised framework.

bill electronically reproduced 07/03/2026
#financialinstitutions:mortgagebrokersandlenders
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Bill Summary · HB 6189

Bill Summary — HB 6189 (Michigan, 2025-2026)

Purpose and intent

  • HB 6189 amends the Consumer Mortgage Protection Act (2002 PA 660) to consolidate and harmonize licensing-related statutes governing residential mortgages.
  • The bill is designed to align and streamline regulation of mortgage brokers, lenders, and related entities, and it references tying the bill with HB 6177, indicating coordination with broader reform of licensing/supervision in residential mortgages.

Key provisions and changes

  • Definitions (Sec. 2) clarified and updated for consistency with the broader licensing framework:
    • "Commissioner" or "director": Director of the Department of Insurance and Financial Services.
    • "Depository institution": Bank, savings and loan association, savings bank, or credit union chartered under state or federal law.
    • "Home improvement installment contract": Agreement for goods or services to improve a principal dwelling (in-state, up to 4-family occupancy) with installment payments.
    • "Mortgage loan": Loan or contract secured by a first or subordinate mortgage or lien on a borrower’s principal dwelling (4 or fewer families). Specifically excludes:
    • Loans to acquire the principal dwelling
    • Reverse mortgages
    • Open-end credit plans (revolving/variable advances)
    • Loans where proceeds are not used primarily for personal, family, or household purposes
    • "Person": Any individual or legal entity.
    • "Reverse-mortgage": Nonrecourse loan with lien securing advances, payable after borrower death or occupancy cessation.
    • "Regulated lender": Broad category including depository institutions and various licensees/registrants under multiple acts (consumer financial services acts, secondary mortgage loan act, mortgage brokers/lenders/servicers licensing act, home improvement finance act, etc.), with overlap to a set of statutes that appear to be part of the proposed consolidated framework.
    • "State and federal laws": Coverage of applicable state and federal mortgage-related statutes, including but not limited to Truth in Lending, RESPA, ECOA, Fair Housing, FCRA, Homeowners Protection Act, FDCPA, Dodd-Frank, and the acts listed in the regulation framework.
  • Licensing and supervision framework:
    • The definitions indicate a move toward a unified set of licensing/supervision requirements for residential mortgage activities, potentially consolidating multiple existing licensing regimes under a single framework (as implied by the tie to HB 6177 and the reference to a residential mortgage licensing and supervision act and related acts).
  • Enacting clause:
    • The act’s effective date depends on the enactment of HB 6177, signaling legislative coordination between the two bills.

Who would be affected

  • Mortgage brokers, lenders, and servicers operating in Michigan, including:
    • Regulated lenders under the expanded definition (banks, credit unions, and various licensees/registrants).
    • Entities subject to state and federal mortgage laws (e.g., Truth in Lending Act, RESPA, ECOA, Fair Housing, FCRA, etc.).
    • Sellers under the home improvement finance act.
    • The Michigan Department of Insurance and Financial Services (as the administering regulatory body, via the director/commissioner).
  • Consumers taking out residential mortgage loans or home improvement loans would be indirectly affected through standardized licensing, supervision, and compliance requirements.

Procedural and timeline aspects

  • Status: Introduced July 3, 2026, and referred to the Committee on Finance.
  • Tie-bar: The act expressly ties its effective date and implementation to HB 6177; HB 6189 does not take effect unless HB 6177 is enacted into law.
  • Next steps in the legislative process would include committee consideration, potential amendments, and floor action in the Michigan House, followed by Senate consideration and potential gubernatorial action.

Potential impact and considerations

  • Pros:
    • Greater regulatory consistency across residential mortgage activities.
    • Potentially clearer compliance pathways for industry participants.
    • Strengthened alignment with consumer protection laws and supervisory oversight.
  • Cons/uncertainties:
    • The exact scope, rules, and standards to be implemented under the consolidated licensing regime are not detailed in the text provided; future amendments or the companion HB 6177 would define specifics.
    • Transitional rules for existing licensees and how current licensing status would map to the new framework would be a key implementation issue.

Note: This summary reflects the language and scope presented in HB 6189 as introduced. Final content and impact depend on the enacted text, any amendments, and the interplay with HB 6177.

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

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