The bill amends the Consumer Financial Services Act, specifically sections 2 and 6, to update definitions and requirements related to licensing and surety bonds for financial service providers in Michigan. Notably, the term "Bureau" is redefined to refer to the "department of insurance and financial services," replacing the previous designation of the "office of financial and insurance services." Additionally, the definitions of "financial licensing acts" have been expanded to include specific acts such as the regulatory loan act and the money transmission services act, while removing references to the sale of checks act. The bill also clarifies the roles of the commissioner and the requirements for applicants seeking licenses under this act.

In terms of surety bonds, the bill stipulates that applicants must provide a bond or letter of credit of not less than $500,000, with specific provisions for those offering money transmission services. The bill emphasizes that claims against these bonds must be prioritized to protect the public interest, allowing the commissioner to file claims on behalf of affected individuals. Furthermore, it establishes that claims must relate to mortgage loans secured by real property in Michigan and sets limits on the amount of claims based on actual fees paid to the licensee. The enactment of this bill is contingent upon the passage of Senate Bill No. 739.

Statutes affected:
Senate Introduced Bill: 487.2052, 487.2056