House Banking Committee Advances ARC Legislation to Full Senate
Legislation that would repeal the Michigan Savings and Loan Act and revise other citations was recently reported out of the House Committee on Banking and Financial Services advancing to the full House. Introduced by Rep. Jeff Farrington, R-Utica, H.B. 5835 is the main bill that would repeal the Michigan Savings and Loan Act of 1980. H.B. 5836 would revise citations in the electronic funds transfer terminal statute, H.B. 5837 would revise citations in the handling and processing of food stamps act, H.B. 5838 would revise citations in the exemption of association shares from levy and sale and H.B. 5863 would revise citations in the motor vehicle sales finance statute to reflect the repeal of the act. This legislation is a result of the recommendations from the Insurance and Finance Administrative Rules Committee. The Office of Regulatory Reinvention released its report containing 46 recommendations for improving Michigan's insurance and finance regulations, including rescinding several rules regarding credit unions.
Senate Banking Committee to Discuss 90-Day Delay
The Senate Banking and Financial Institutions Committee chaired by Sen. Darwin Booher, R-Evart, is expected to discuss the 90-day pre-foreclosure workout period. SB 1172 that was introduced by Sen. Booher would extend the sunset for two more years, expiring on Dec. 31, 2014. MCUL & Affiliates has been meeting with key lawmakers in an effort to find reforms that make the process less burdensome on community lenders. One idea the MCUL has been advocating for is similar to the amendment lawmakers in Oregon added to their foreclosure mediation legislation that exempts lenders with fewer than 250 foreclosures during the last 12-month period from all provisions in the bill. Effectively, the exemption applies to all Oregon credit unions, since none of them have close to that number of foreclosures. The MCUL & Affiliates is looking to apply this exemption to the owner and not the servicer. These parties would be responsible for filing an affidavit with OFIR. For more information, click here to obtain the 90-Day Foreclosure Workout Period Issue Brief.
Small Claims Court Threshold now $5,000
Introduced by Sen. Tonya Schuitmaker, R-Lawton, MCUL-supported legislation to raise the small claims court threshold took effect Sept. 1. Public Act 142 of 2012 raises the threshold to $5,000 beginning on Sept. 1 and then it would 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. The MCUL & Affiliates strongly supported increasing the small claims court threshold knowing many more people could benefit from the speed, efficiency and lower costs inherent with the small-claims process. For more information, click here to obtain the Small Claims Court Threshold Issue Brief.