The bill amends the 1977 PA 135, which regulates mortgage lending practices by credit granting institutions in Michigan. Key changes include the redefinition of roles and responsibilities, shifting from the "commissioner of the financial institutions bureau" to "certain state governmental officers and entities." The bill also updates the terminology used throughout the act, such as changing "prescribe" to "provide for," and introduces new definitions, including "Consumer Price Index" and "Department," which refers to the department of insurance and financial services.

Additionally, the bill modifies provisions regarding loan applications, including the minimum mortgage and home improvement loan amounts, which are increased from $10,000 to $50,000 and from $1,000 to $5,000, respectively. It mandates that credit granting institutions must individually consider each loan application based on a factually supportable analysis of lending risks. Furthermore, it requires institutions to provide written statements for denied applications and to make available pamphlets explaining their loan approval criteria. The bill also stipulates that these minimum amounts will be adjusted annually based on the Consumer Price Index starting January 1, 2028.

Statutes affected:
House Introduced Bill: 445.1601, 445.1602