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HB 6193

Financial institutions: mortgage brokers and lenders; consolidation of certain licensing statutes related to residential mortgages; make conforming changes in the consumer financial services act. Amends secs. 2, 6 & 9 of 1988 PA 161 (MCL 487.2052 et seq.). TIE BAR WITH: HB 6177'26

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

HB 6193 unifies mortgage broker, lender, and servicer licensing under a single framework with bonding protections and a defined transition to a centralized residential mortgage lic

bill electronically reproduced 07/03/2026
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Bill Summary · HB 6193

Overview

HB 6193 (Michigan 2025-2026) aims to consolidate and harmonize licensing statutes for residential mortgage activities by amending the Consumer Financial Services Act (1988 PA 161). The bill sets up a framework to unify mortgage broker, lender, and servicer licensing under a single act, with transitional provisions tied to the new residential mortgage licensing and supervision act. It includes changes to definitions, bonding requirements, compliance expectations, and certain employment restrictions during a transition period. The measure is tied to HB 6177.

Main purpose and intent

  • Create a unified licensing framework for mortgage-related activities (brokers, lenders, servicers) by amending the Consumer Financial Services Act and aligning with a forthcoming residential mortgage licensing and supervision act.
  • Establish clear transitional rules, duties, and financial protections to the public as activities move under a single residential mortgage licensing regime.
  • Ensure appropriate consumer protections (bonding, claims priority, and fee handling) while reducing duplicative regulatory requirements.

Key provisions and changes

  • Definitions (Sec. 2):
    • Clarifies terms such as Applicant, Bureau/Commissioner, Licensee, Class I and II licenses, control persons, depository institutions, and the scope of “financial licensing acts.”
    • Introduces conditions for Class II licenses, with temporary limitations on certain activities for a defined post-enactment period.
  • Bonding and financial security (Sec. 6):
    • Applicants for licenses must furnish a surety bond or letter of credit, with a baseline principal amount of at least $500,000 (subject to adjustments if money transmission is involved, per the Money Transmission Services Act).
    • Bonds/credits payable to the state, for the benefit of the people, and maintainable for the licensure period.
    • The commissioner has priority to pay claims, including against the bond/letter of credit, with pro rata distributions if claims exceed the bond amount.
    • Claims can be filed by: loan applicants, loan servicing customers, borrowers, and residents purchasing money transmission services; and specific time-bound categories tied to transitional acts.
  • Claims and payment prioritization (Sec. 6):
    • Prioritized payment of fines, fees, investigations, and distribution costs before other claim disbursements.
    • 6-month window for filing certain claims related to transitional mortgage acts, focusing on dwelling-secured loans/transactions in-state.
  • Compliance requirements and exemptions (Sec. 9):
    • Licensees must generally comply with the broader Financial Licensing Acts, but are exempt from certain procedural aspects (application/licensing procedures, fee payments, surety bonds, denial/suspension/revocation, record-keeping, and reporting) for the transitional period and specific activities.
    • Post-transition, licensees may enter into certain installment or home improvement contracts, subject to act compliance.
    • Employment restrictions during the first 6 months after the act’s effective date: mortgage brokers/lenders may not hire unlicensed loan officers; similarly for secondary mortgage loan officers; and, beginning then, mortgage loan originators must be licensed under the new act.
    • “Employ” is defined to reflect an employee relationship for tax compliance purposes.

Who is affected

  • Mortgage brokers, lenders, and servicers operating in Michigan.
  • Applicants seeking licenses under the current framework who would transition to the new residential mortgage licensing regime.
  • Loan officers and mortgage loan originators, who face temporary licensing requirements during the transition.
  • Consumers and borrowers who interact with mortgage-related services, due to enhanced bonding and claim protections.

Procedural and timeline notes

  • The act is introduced July 3, 2026, and referred to the Finance Committee.
  • Final effectiveness is contingent on enactment of HB 6177 (as specified in the enacting section), implying a synchronized implementation with the companion bill.
  • Provisions describe temporary (6-month) transition windows after the effective date for certain licensing and servicing activities.

Overall, HB 6193 seeks to streamline Michigan’s licensing regime for residential mortgage activities, bolster financial protections via bonding and claims processes, and set a clear transition path to a centralized residential mortgage licensing framework.

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

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