The bill amends the 1977 PA 135, which regulates mortgage lending practices by credit granting institutions in Michigan. Key changes include a redefinition of the roles and responsibilities of state governmental officers and entities, replacing the previous commissioner of the financial institutions bureau. The bill introduces new definitions, such as "Consumer Price Index" and "Department," and modifies existing terms to clarify the scope of the law. It also establishes a framework for minimum mortgage and home improvement loan amounts, which will increase incrementally over the coming years, and mandates that these amounts be adjusted every five years based on the Consumer Price Index.

Additionally, the bill emphasizes the importance of non-discriminatory lending practices by prohibiting credit granting institutions from denying loan applications based on racial or ethnic characteristics or the age of the property. It requires institutions to provide written reasons for any loan denials or term variations and ensures that applicants have the right to inquire about loan prospects. The bill also mandates that institutions distribute pamphlets explaining their loan approval criteria and the rights of applicants, thereby enhancing transparency in the lending process.

Statutes affected:
Substitute (H-1): 445.1601, 445.1602
Substitute (H-4): 445.1601, 445.1602
House Introduced Bill: 445.1601, 445.1602
As Passed by the House: 445.1601, 445.1602