The proposed "Residential Mortgage Licensing and Supervision Act" aims to create a comprehensive regulatory framework for mortgage brokers, lenders, servicers, and loan originators in Michigan. Key provisions include mandatory licensing for these entities, with specific exemptions, and the establishment of the Department of Insurance and Financial Services as the governing body. The bill outlines rigorous licensing requirements, including background checks, financial responsibility, and the necessity for a unique identifier for licensed individuals. It also prohibits misleading terms related to banking affiliations and mandates that mortgage loan originators complete prelicensing education and testing. Additionally, the bill introduces temporary authority for registered mortgage loan originators from other states to operate while their applications are processed.

The legislation further enhances regulatory oversight by granting the director broad powers to supervise and enforce compliance, including conducting examinations and issuing subpoenas. It establishes a residential mortgage industry advisory board to provide guidance and support, and creates two funds to support the act's administration. The bill also outlines specific conduct requirements for licensees, including risk management and information security standards, and establishes penalties for violations. Notably, it includes provisions for summary suspension of licenses in cases of fraud or misconduct, ensuring due process for affected individuals. Overall, the act seeks to improve consumer protection and accountability within the residential mortgage industry while repealing several existing acts related to mortgage licensing.