The bill amends the Consumer Financial Services Act, specifically updating sections 2, 6, and 9. Key changes include the redefinition of terms such as "Bureau," which is now referred to as the "department of insurance and financial services," and the introduction of new licensing categories and requirements for applicants. The bill specifies that applicants must provide a surety bond or letter of credit of not less than $500,000, with additional stipulations for those providing money transmission services. It also clarifies the obligations of licensees regarding compliance with financial licensing acts and the conditions under which claims can be made against their bonds or letters of credit.

Furthermore, the bill introduces a transitional period for certain licensing requirements related to mortgage activities, allowing for a grace period of six months after the effective date of the residential mortgage licensing and supervision act. This includes stipulations on the employment of loan officers and mortgage loan originators, ensuring that only licensed individuals can engage in these roles. The amendments aim to enhance regulatory clarity and consumer protection within the financial services sector in Michigan.

Statutes affected:
House Introduced Bill: 487.2052