This bill amends the Consumer Financial Services Act by updating the requirements for applicants seeking a license to provide financial services, particularly in money transmission. It mandates that applicants must furnish a surety bond or letter of credit to secure their obligations, with a minimum principal amount set at $500,000. The bill specifies that if the applicant intends to provide money transmission services, the bond amount must align with the requirements outlined in the Money Transmission Modernization Act. Additionally, the surety bond must be payable to the state of Michigan and remain in effect for the duration of the licensure period.

The bill also clarifies the process for filing claims against the surety bond or letter of credit, allowing the commissioner to prioritize claims that protect the public interest. It specifies that claims can be filed by individuals such as loan applicants, borrowers, and residents who purchase money transmission services. Furthermore, it establishes that claims must involve specific types of mortgage loans and limits the claim amount to actual fees paid to the licensee. The bill stipulates that the commissioner must be paid in full for any fines and fees before other claimants receive payment, and it includes provisions for prorating claims if they exceed the bond amount. The amendments are set to take effect on January 1, 2026, contingent upon the enactment of another related bill.

Statutes affected:
House Introduced Bill: 487.2056