The bill amends sections 219e and 219f of the Michigan Penal Code to enhance regulations surrounding the unauthorized preparation and submission of loan applications and extensions of credit. It establishes that individuals are prohibited from preparing or submitting such applications in another person's name without authorization, as well as from receiving or possessing applications or instruments related to loans that they know were obtained unlawfully. Violators of these provisions face felony charges, with penalties including imprisonment for up to four years and fines. The bill also clarifies that certain financial institutions and their employees are exempt from these prohibitions if they act without prior knowledge of the violations.

Additionally, the bill updates the definition of "financial institution" to include various licensed entities and introduces new provisions regarding the forwarding of loan applications. It specifies that individuals who receive or forward applications or instruments without knowledge of their unlawful nature are not subject to penalties. The amendments also replace outdated terminology, such as changing "credit reporting bureau" to "credit reporting agency," and introduce new licensing requirements for mortgage-related entities. The enactment of this bill is contingent upon the passage of House Bill No. 6177.

Statutes affected:
House Introduced Bill: 750.219