CU Leaders Testify Before Senate Banking Committee on 90-Day Delay Legislation
The Senate Banking and Financial Institutions Committee recently reported out SB 1172, sponsored by Senate Banking Chairman Darwin Booher, R-Evart. As introduced, the bill would have extended the state 90-day pre-foreclosure workout law for two additional years beyond its Dec. 31, 2012, sunset. However, committee members voted to amend the legislation to provide for a six month extension only, expiring on June 30, 2013. As amended, this should provide enough time to receive and review the final rules on mortgage servicing issued by the federal Consumer Financial Protection Bureau, which are due in January. The initial CFPB offering on servicing, as proposed for public comment, includes requirements similar in scope and intent to the Michigan 90-day law. Assuming passage of the amended bill in the House, the Senate Banking and Financial Institutions Committee will prioritize this review early in the 2013 session, to assess whether the state law is still needed in light of the pending federal requirements. Sara Dolan (MSUFCU), David Harris (Genisys CU) and Alina White (Mortgage Center) joined MCUL & Affiliates in testifying on the legislation. MCUL & Affiliates was prepared to oppose the legislation as introduced, but supported the amendment offered by Sen. Mike Nofs, R-Battle Creek, to reduce the extension timeframe and review the pending federal requirements. For more information, click here to obtain the 90-Day Foreclosure Workout Period Issue Brief.
ARC Savings and Loan Recommendations Advance to Senate Committee
Legislation that would repeal the Michigan Savings and Loan Act and revise other citations was passed by the full state House of Representatives advancing them to the Senate Banking and Financial Institutions Committee. The main bill, HB 5835 sponsored by Rep. Jeff Farrington, R-Utica, would repeal the Michigan Savings and Loan Act of 1980. HB 5836, sponsored by Rep. Nancy Jenkins, R-Clayton, would revise citations in the electronic funds transfer terminal statute; HB 5837, sponsored by Rep. Kevin Cotter, R-Mount Pleasant, would revise citations in the handling and processing of food stamps act; HB 5838, sponsored by Rep. Matt Huuki, R-Atlantic Mine, would revise citations in the exemption of association shares from levy and sale; and, HB 5863, sponsored by Rep. Ray Franz, R-Onekama, would revise citations in the motor vehicle sales finance statute to reflect the repeal of the Act. These bills are a result of recommendations from the Insurance and Finance Administrative Rules Committee of the state Office of Regulatory Reinvention. The ARC released its report containing 46 recommendations for improving Michigan's insurance and finance regulations, including rescinding several rules regarding credit unions. The MCUL & Affiliates did not take a position on these bills, but will continue to monitor the ARC recommendation package as it moves through the legislative process.
Mortgage Loan Definition Bills Reported From Senate
The full Senate recently reported out SB 1283-1285, bills to amend the definition of "mortgage loan" in several statutes. SB 1283 would amend the definition of “mortgage loan” in the law that mandates licensure or registration for mortgage brokers, lenders, and servicers, SB 1284 would amend the definition of "mortgage loan" in the law that regulates consumer mortgage lending and SB 1285 would amend the definition of "mortgage loan" in the law that prohibits “redlining” and other practices in mortgage lending. SB 1282, a Senate version of the ARC recommendation legislation aimed at eliminating treble damages related to negotiable instrument fraud was pulled from consideration from the recent committee hearing, as the Michigan Department of Licensing and Regulatory Affairs continues to work on language in the bill. The MCUL & Affiliates will continue to monitor these bills.
Credit Union Week Resolution Adopted
On their single day of session in October, the Senate adopted Senate Resolution 179 introduced by Senate Banking and Financial Institutions Committee Vice Chairman Mike Nofs, R-Battle Creek, declaring Oct. 15-19, as Credit Union Week in the state of Michigan. He recognized in front of the full Senate that credit unions have a proud tradition of innovation and leadership among the nation’s credit unions and they are rooted in the communities in which they serve. He further expounded that they do this voluntarily because as not-for-profit, member-owned financial cooperatives, credit unions recognize that social responsibility is an integral part of their mission. He let members know that credit unions in Michigan continually demonstrate their ability to improve the lives of individuals, families, and communities, and they have done so for generations, following the credit union philosophy of "People Helping People.”