Our Lead Story:

Small Claims Court Act Signed, Banking Chairs Host Foreclosure Settlement Workgroup 

Governor Signs MCUL-Supported Small Claims Court Legislation
Introduced by Sen. Tonya Schuitmaker, R-Lawton, MCUL-supported legislation to raise the small claims court threshold has been signed into law, becoming Public Act 142 of 2012. After much negotiation in the Senate, House and with Gov. Rick Snyder’s administration, the final version will raise the threshold to $5,000 beginning on Sept. 1 and then it will be increased every three years by $500 until 2024, taking the amount to $5,500 by 2015; $6,000 by 2018; $6,500 by 2021; and, finally $7,000 by 2024. For more information, click here to obtain the Small Claims Court Threshold Issue Brief.

State Banking Chairs host Foreclosure Settlement Workgroup
Banking Committee Chairs Sen. Darwin Booher, R-Evart, and Rep. Marty Knollenberg, R-Troy, recently hosted a workgroup to hear from interested parties on how lawmakers should allocate the $97 million in foreclosure settlement money. The funds are part of the $25 billion mortgage fraud settlement that took place between the nation’s attorneys general and the country’s five largest mortgage servicers due to improper lending and foreclosure. The MCUL & Affiliates attended the workgroup and recommended using the money on foreclosure counseling, education and prevention by working with MSHDA and debt solution groups such as GreenPath, Accel and MSHDA. We also encourage strong diligence in detecting fraud and creating penalties to those borrowers who commit fraud when falsely filing a claim to obtain settlement money or in matters of strategic foreclosure. For more information, click here to obtain the Foreclosure Settlement Funds Issue Brief.