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HB 6201

Financial institutions: mortgage brokers and lenders; distribution of certain fund proceeds; revise. Amend secs. 8 & 32 of 1987 PA 173 (MCL 445.1658 & 445.1682). TIE BAR WITH: HB 6177'26

2025-2026 Regular Session Introduced by Mark Tisdel

The bill creates a dedicated funding framework and conservatorship tool to strengthen Michigan's mortgage licensing, enforcement, and loan servicing oversight.

bill electronically reproduced 07/03/2026
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Bill Summary · HB 6201

Overview

HB 6201 (Michigan 2025-2026) is a proposed amendment to the Mortgage brokers, lenders, and servicers licensing act (1987 PA 173). The bill focuses on adjusting licensing/registration fees, funding mechanisms for the regulatory office, and conservatorship authority for licensees/registrants that service mortgage loans. It is tied to HB 6177.

Purpose and intent

  • Modernize and finance the administration, enforcement, and supervision of mortgage brokers, lenders, and servicers.
  • Establish a dedicated funding framework (MBLSLA fund) to support the Office of Financial and Insurance Regulation (OFIR) activities related to this act, the Secondary Mortgage Loan Act, and the Mortgage Loan Originator Licensing Act.
  • Create/clarify a conservatorship mechanism to address licensees/registrants that fail to service mortgage loans properly.

Key provisions and changes

  1. Fees and funding (Section 8)
  2. Applicants for initial licensure (and first renewals after suspension/revocation) must pay a license investigation fee and an annual operating fee.
  3. Registrants renewing a registration or filing a renewal must pay an annual operating fee.
  4. If the license/registration becomes effective within 6 months of expiration, the annual operating fee is halved.
  5. The commissioner director must annually set a schedule of fees to cover anticipated costs, with specifics:
    • Investigation fee: $400 to $1,000.
    • Annual operating fee: based on the number of closed loans brokered, number of loans closed, and the dollar volume serviced as of the prior December 31. Historical range cited: $250 to $2,500 (with potential increases limited to/within CPI-like growth over time, subject to annual caps and the described rate changes).
    • License or registration amendment/reissuance fee: $15 to $200.
    • Reimbursable expenses for out-of-state travel, lodging, meals, and costs for independent investigators.
  6. Fees are nonrefundable.
  7. Delinquent fees/penalties may be pursued by the Attorney General.
  8. Late renewal penalties: $25 per day or up to $1,000, whichever is less.
  9. The MBLSLA fund is created in the general fund as a restricted account to receive all fees under this act and related acts, plus other specified fees. Funds are used to support OFIR administration and enforcement, and related regulatory obligations. Money in the fund generally carries over year-to-year.

  10. Six months after the residential mortgage licensing and supervision act takes effect, money in the MBLSLA fund transfers to the Residential Mortgage Administration Fund and the MBLSLA fund is closed.

  11. Conservatorship authority (Section 32)

  12. The commissioner director may appoint a conservator for a licensee/registrant if it is determined that the entity is not servicing loans in accordance with law/servicing contracts due to intentional actions or gross/wanton negligence.

  13. A conservator may be an OFIR examiner or another competent, disinterested person; the conservator is reimbursed from the licensee/registrant assets and such expenses are charged to the conservatorship.

  14. The conservator has control of all affairs and records; the licensee may transfer servicing rights to a commissioner-approved party.

  15. The conservator must act to ensure servicing compliance.

  16. Termination of conservatorship may occur if safe and in the public interest, with terms set by the commissioner director.

  17. Expenses related to conservatorships are deposited in a revolving fund, used to reimburse OFIR for conservator costs, and then transferred to the Residential Mortgage Conservator Fund after the residential mortgage licensing and supervision act takes effect.

  18. The revolving fund (and related transferred funds) is closed six months after the effective date of the residential mortgage licensing and supervision act.

  19. Definitions

  20. The term “department” refers to the Department of Insurance and Financial Services.

  21. The term “director” refers to the director of the department.

  22. Enactment condition

  23. The act’s amendments take effect only if HB 6177 (related measure) is enacted into law.

Who is affected

  • Mortgage brokers, lenders, and servicers licensed or registered under the Michigan act.
  • Applicants for initial licenses and individuals/entities seeking renewals.
  • Current licensees/registrants who service mortgage loans.
  • OFIR (Office of Financial and Insurance Regulation) and the broader regulatory framework governing mortgage lending, secondary mortgage loans, and mortgage loan originators.
  • Consumers through the potential tightening of loan servicing oversight and enhanced regulatory oversight mechanisms.

Procedural and timeline aspects

  • Effective date contingent on passage of HB 6177.
  • Fee schedules to be established annually by the director, with specific minimum/maximums and annual CPI-based adjustments.
  • Six-month transition window after the residential mortgage licensing and supervision act takes effect for certain fund transfers and fund closures.
  • Penalty and enforcement provisions apply to nonpayment of fees and delinquent reporting.

Potential implications

  • Increased regulatory funding stability via the MBLSLA fund, reducing reliance on general funds.
  • More stringent oversight of mortgage loan servicing, with a formal conservatorship tool to address noncompliant licensees/registrants.
  • Fees for licensees/registrants may adjust over time, potentially affecting operating costs for licensees, especially smaller entities.
  • Clear procedural path for transferring servicing rights during conservatorship, while prioritizing compliance with loan terms and consumer protection.

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

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