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HB 6203

Financial institutions: mortgage brokers and lenders; deposit of certain fees under the mortgage loan originators licensing act; revise place of deposit. Amends sec. 19 of 2009 PA 75 (MCL 493.149). TIE BAR WITH: HB 6177'26

2025-2026 Regular Session Introduced by Mark Tisdel

The bill modernizes and funds Michigan’s mortgage licensing system by tying annual MLO fees to OFIR’s costs and depositing them into MBLSLA, contingent on HB 6177.

bill electronically reproduced 07/03/2026
#financialinstitutions:mortgagebrokersandlenders
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Bill Summary · HB 6203

Overview

HB 6203 (2025-2026, Michigan) would amend the Mortgage Loan Originator Licensing Act of 2009 to revise provisions related to the deposit of certain fees and the funding of the regulating bureau. The measure ties its effective date to HB 6177 and adjusts how fees are set, collected, and deposited to support the Office of Financial and Insurance Regulation (OFIR) within the Michigan Department of Insurance and Financial Services (DIFS).

Main purpose and intent

  • Modernize and codify how annual operating fees and other charges for mortgage loan originators (MLOs) are set, collected, and used to fund OFIR’s administration and enforcement of the act.
  • Ensure that fee levels are sufficient to cover anticipated enforcement costs, but not excessive.
  • Align fee deposits with designated funds (MBLSLA and related residential mortgage funds) and clarify penalties for late payments and noncompliance.

Key provisions and changes

  • Initial application fees: When applying for an MLO license, applicants must pay an annual operating fee to the commissioner director (OFIR official).
  • Fee schedule (annual): The director must annually establish a schedule of fees to cover anticipated costs of administering and enforcing the act. Components include:
    • (a) An annual licensee fee for each licensed MLO, amount set by the director to cover administration and enforcement costs.
    • (b) A fee for amending or reissuing an MLO license, between $15 and $200 (inclusive).
    • (c) Reimbursable travel, lodging, and meal expenses for OFIR employees (and costs for independent investigators) incurred during out-of-state examinations or investigations of an MLO.
  • Nonrefundable fees: Fees collected under the act are nonrefundable.
  • Enforcement and penalties:
    • Delinquent fees or penalties may be pursued by the Attorney General with interest and costs.
    • Penalty for failing to submit required reports (under section 33(3)) is $25 per day or up to $1,000, whichever is less.
    • Renewal fee delinquency penalties: $25 per day or up to $1,000, whichever is less, if renewal fees aren’t paid by December 31.
  • Money disposition: All funds from the described fees must be deposited into the MBLSLA fund, which is a restricted fund associated with the Mortgage Brokers, Lenders, and Servicers Licensing Act (MBLSLA) and the Residential Mortgage Administration/ Supervision funds (as applicable).
  • Definitions: Clarifies terms—“Department” means the Department of Insurance and Financial Services; “Director” refers to the director of that department.
  • Effective date: The act’s enactment is contingent on HB 6177 (the tie-bar provision), meaning this bill would not take effect unless HB 6177 becomes law.

Who is affected

  • Mortgage loan originators (MLOs) who hold or seek licensure under the Michigan act.
  • Employers and sponsors of MLOs (as they fund and manage the annual licensee fees and renewal costs).
  • OFIR/DIFS, which administers and enforces the act, including exam/investigation activities.
  • Stakeholders in the MBLSLA and related residential mortgage funds that receive deposited fees.

Procedural and timeline aspects

  • Introduction and referral: Introduced July 3, 2026, to the Michigan House Finance Committee.
  • Tie-bar: This bill is tied to HB 6177; it does not take effect unless HB 6177 is enacted.
  • Fee-setting process: The director must annually establish the fee schedule; no fixed amounts are set in the bill beyond the ranges (e.g., $15–$200 for license amendments/reissuances).
  • Penalties and nonrefundable structure: Establishes specific delinquency penalties and nonrefundable nature of fees, with enforcement provisions for delinquent payments.

Potential impacts and considerations

  • Costs to MLOs: Annual operating fees and potential amendment/reissuance costs could affect licensing expenses and business costs for individuals and firms.
  • Regulatory funding: Aligns revenue with OFIR’s enforcement and administration costs, potentially improving budgeting sufficiency and accountability.
  • Administrative efficiency: Tiered penalties and defined deposit funds may enhance compliance and financial management within the licensing framework.
  • Policy alignment: The tie-bar to HB 6177 indicates broader legislative alignment on licensing and funding mechanisms.

If you’d like, I can provide a side-by-side comparison with current law or highlight potential fiscal implications based on hypothetical fee levels.

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

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