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HB 6202

Financial institutions: mortgage brokers and lenders; deposit of certain fees under the secondary mortgage loan act; revise place of deposit. Amends sec. 6a of 1981 PA 125 (MCL 493.56a). TIE BAR WITH: HB 6177'26

2025-2026 Regular Session Introduced by Mark Tisdel

Michigan HB 6202 updates fees, licenses, and annual financial reporting for secondary mortgage loan act licensees, with a tie to HB 6177.

bill electronically reproduced 07/03/2026
#financialinstitutions:mortgagebrokersandlenders
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Bill Summary · HB 6202

Overview

  • Jurisdiction: Michigan
  • Session: 2025-2026
  • Bill: HB 6202
  • Title: Financial institutions: mortgage brokers and lenders; deposit of certain fees under the secondary mortgage loan act; revise place of deposit. Tie Bar with HB 6177
  • Introduced: July 3, 2026 (Rep. Tisdel). Referred to Committee on Finance.
  • Purpose: Amend the Secondary Mortgage Loan Act to adjust registration/licensing requirements, fees, reporting, and related administrative provisions; ties to HB 6177 for enactment.

What the bill would do

  • Update registration/licensing terms

    • Registrations/licenses expire annually on December 31 unless renewed.
    • Renewal requires filing an application and paying the annual operating fee by a date set by the director.

  • Annual financial reporting

    • Licensees/registrants must deliver a financial statement within 90 days after the close of their fiscal year.
    • Formats acceptable for the statement include:
    • A form prescribed by the director
    • A substantially similar form certified true and complete by the licensee
    • An independently prepared and CPA-certified format

  • Exemption for certain licensees/registrants

    • Registrants that are licensees under the Mortgage Brokers, Lenders, and Servicers Licensing Act (1987 P.A. 173) and timely file the financial statement required under that act are exempt from the subsection (2) annual financial statement filing.

  • Initial filing and investigation fees

    • At initial license application and first license after suspension/revocation, applicants pay an investigation fee plus the annual operating fee.
    • Renewals for un-suspended/unrevoked licenses require only the annual operating fee.

  • Half-year initial fee option

    • If the initial license has an effective date of July 1 or later, the initial annual operating fee is half the standard amount.

  • Fee schedule and determinants

    • The director must establish a fee schedule to cover the anticipated costs of administering/enforcing the act, not to exceed them.
    • Fees may include:
    • Investigation fee for applicants: $400 to $1,000
    • Annual operating fee: calculated based on the number of secondary mortgage loans brokered/closed and the dollar volume of loans serviced, using data from the previous year
    • Amending/reissuing license: $15 to $200
    • Reimbursed travel, lodging, and meals for out-of-state examinations, plus costs for independent investigators
    • Fees are deposited into the MBLSLA fund (a restricted account linked to Michigan’s mortgage licensing framework).

  • Penalties and noncompliance

    • Fees are nonrefundable.
    • Delinquent fee/penalty actions may be pursued by the Attorney General.
    • Late reporting penalties: $25 per day or up to $1,000, whichever is less.
    • Late renewal penalties: $25 per day or up to $1,000, whichever is less.
    • Failure to submit required reports: penalties apply as described.

  • Reporting and enforcement

    • Licensees/registrants must file annual reports with required business/operational information as determined by the director; special reports may also be required.
    • Reports must be signed and verified; false statements constitute a felony (up to 15 years in prison).

  • Definitions and application

    • “Department” refers to the Department of Insurance and Financial Services.
    • “Director” refers to the department’s director.

  • Enactment condition (tie bar)

    • This amendment does not take effect unless HB 6177 (also part of the 103rd Legislature) is enacted into law.

Who would be affected

  • Mortgage brokers, lenders, and servicers operating under the secondary mortgage loan act in Michigan.
  • Entities currently licensed/registered under the act, and new applicants for licenses/registrations.
  • Licensees/registrants under the Mortgage Brokers, Lenders, and Servicers Licensing Act that file timely financial statements may be exempt from some reporting requirements.

Key procedural and timeline aspects

  • Annual expiration: December 31 for licenses/registrations.
  • Renewal: Must be filed and paid by a date set by the director.
  • Financial statements due: Within 90 days after fiscal year end.
  • Initial license fees: Investigation fee plus annual operating fee; if July 1 or later, half-year initial operating fee.
  • Fee schedule: Establishes ranges for investigation, annual operating, amendments/reissues, and travel/expense reimbursements; updates determined by annual cost estimates.
  • Penalties: Late fees for fines, annual renewals, and reporting; potential felony for false statements.
  • Funding: Fees deposited into MBLSLA fund (restricted account associated with mortgage licensing/enforcement).
  • Enactment condition: Requires passage of HB 6177 to take effect.

Potential impact

  • Increased administrative and compliance costs for licensees, particularly around annual operating fees tied to loan activity and servicing volume.
  • Enhanced financial transparency through annual reporting, with options for CPA-certified formats.
  • Possible penalties for noncompliance, encouraging timely filings and fee payments.
  • Interaction with existing Michigan mortgage licensing framework through the MBLSLA fund and tie bar to HB 6177.

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

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