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HB 6181

Financial institutions: mortgage brokers and lenders; consolidation of certain licensing statutes related to residential mortgages; make conforming changes in 1995 PA 280. Amends sec. 1 of 1995 PA 280 (MCL 129.221). TIE BAR WITH: HB 6177'26

2025-2026 Regular Session Introduced by Parker Fairbairn and 1 co-sponsor

Redefines what counts as a credit card and related payment devices for Michigan mortgage licensing, aligning definitions with a future supervising act.

bill electronically reproduced 07/03/2026
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Bill Summary · HB 6181

Overview

HB 6181 (2025-2026, Michigan) is a conforming amendment bill tied to HB 6177. Introduced July 3, 2026, it would amend 1995 PA 280 to modify definitions related to “credit card” and “financial transaction device” in the context of a broader update to residential mortgage licensing and supervision. The measure includes a tie-bar requiring HB 6177 to become law before HB 6181 takes effect.

Purpose and Intent

  • Align and consolidate licensing statutes affecting residential mortgages and related financial transactions.
  • Update definitions used in the act governing mortgage brokers, lenders, and servicers to reflect current payment technologies and licensing regimes.
  • Ensure consistency with the forthcoming residential mortgage licensing and supervision act by adjusting what qualifies as a credit card and related arrangements under the act.

Key Provisions

  • Amends Section 1 (MCL 129.221) of 1995 PA 280, focusing on definitions critical to licensing and regulatory oversight.
  • Redefines or clarifies:
    • “Credit card” to include cards issued by:
    • Licensed entities under 1984 PA 379 (state consumer finance entities).
    • Licensees under the consumer financial services act (1988 PA 161).
    • For up to 6 months after the effective date of the residential mortgage licensing and supervision act, by depository financial institutions under a credit card arrangement.
    • From the effective date of the residential mortgage licensing and supervision act, by depository institutions under a credit card arrangement.
    • “Credit card arrangement” as an unsecured line of credit for purchases accessed via a credit card.
    • “Financial transaction device” to include electronic funds transfer cards, credit cards, and debit cards.
    • “Governing body” and “Local unit” to cover a broad array of local political subdivisions and education districts.
  • Enacting clause notes that the amendments take effect only if HB 6177 is enacted into law (tie bar).

Who/What is Affected

  • Mortgage brokers, lenders, and servicers operating in Michigan, and the entities they license under the 1995 act.
  • Local units of government and school districts defined as “local units,” due to the broader definitional scope.
  • Financial institutions and card networks involved in credit card arrangements and electronic payment instruments, particularly as they relate to mortgage licensing requirements.

Procedural and Timeline Aspects

  • Tie bar: The bill’s effective date depends on the enactment of HB 6177 (request no. H05171'25) from the same legislative session.
  • Introduced and referred to the Senate Committee on Finance on July 3, 2026, with sponsor support from Rep. Parker Fairbairn and Rep. Mark Tisdel.

Practical Impact

  • Creates preparatory alignment for a forthcoming comprehensive residential mortgage licensing regime.
  • Clarifies which payment instruments fall under the regulatory framework as licensing and supervision statutes are consolidated.
  • May affect compliance obligations of lenders and brokers in processing credit card-based transactions linked to mortgage-related activities, and how these transactions are regulated at the state level.

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

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