Four bills amending the Mortgage Brokers, Lenders, and Servicers Licensing Act (the “Act”) were signed by the Governor on April 2nd and became effective April 3rd.

SB 828 will add or revise various definitions, including the following terms: "loan officer," "loan officer registrant," "originate," "register," "control person," and "person."
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SB 831 includes references to a “loan officer registrant” and to a “loan officer” registration in various provisions of the Act.
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SB 832 prohibits a loan officer registrant from, among other things, engaging in fraud, deceit, or material misrepresentation in connection with any transaction governed by the Act, or intentionally, or due to gross or wanton negligence, repeatedly failing to provide borrowers with any material disclosures or information required by law.
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Lastly, SB 833 amends the Act to revise the criminal penalty for an owner, partner, member, officer, trustee, employee, agent, broker, or other person, or a representative acting on the person's authority, who willfully or intentionally engages in certain acts specified in the bill. Further, it would increase the fine for a violation of the Act from a maximum of up to $5,000 to a maximum of up to $15,000, and would reduce the maximum time of imprisonment from up to three years to up to one year. The penalty also would apply to a person who acted as a loan officer in Michigan without a loan officer registration required under the Act.
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(Reprinted with permission from Buckley Kolar, LLP and then updated)