Ninety-Day Foreclosure Law Anticipated in House Banking Committee
When lawmakers return after the Thanksgiving holiday, the House Banking and Financial Services Committee is expected to discuss SB 1172, sponsored by Senate Banking Chairman Darwin Booher, R-Evart. As introduced, this bill would have extended the state 90-day pre-foreclosure workout law for two additional years beyond the current Dec. 31 sunset. In a recent Senate Banking Committee hearing, the MCUL and Community Bankers Association opposed the two-year extension as CU friendly lawmakers voted to amend the extension down to only six months, expiring on June 30, 2013. The new sunset should provide enough time to review the final CFPB mortgage servicing rules, which are due by Jan. 21, 2013. 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 plans to revisit this law early in the 2013 session to assess whether the state law is still needed in light of the pending CFPB requirements. The 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. The MCUL & Affiliates has been meeting with House Banking Committee members encouraging them to support the Senate passed version. For more information, click here to access the 90-Day Foreclosure Workout Period Issue Brief.
Mortgage Loan Definition Package Referred to House Banking Committee
SB 1283-1285, bills to amend the definition of "mortgage loan" in several statutes, were recently referred to the House Banking and Financial Services Committee. SB 1283, introduced by Sen. Mike Green, R-Mayville, would amend the definition of mortgage loan in the law that mandates licensure or registration for mortgage brokers, lenders, and servicers. SB 1284, introduced by Sen. Mike Nofs, R-Battle Creek, would amend the definition of "mortgage loan" in the law that regulates consumer mortgage lending. SB 1285, introduced by Sen. Jim Marleau, R-Lake Orion, would amend the definition of "mortgage loan" in the law that prohibits “redlining” and other practices in mortgage lending. 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 a report earlier this year containing 46 recommendations for improving Michigan's insurance and finance regulations, including rescinding four of the eight credit union act rules. The MCUL will continue to monitor the ARC package as it moves further through the legislative process. For more information, click here to access the ARC Recommendations Issue Brief.
Legislation Introduced To Create State Registry for Scrap Metal Thieves
HB 6027 was recently introduced by Rep. Maureen Stapleton, D-Detroit, to create a public registry for individuals convicted of scrap metal theft violations and prescribe regulatory and registration fees. The bill was recently referred to the House Committee on Regulatory Reform. Additional bills (HB 5490-5494) have been introduced to revise regulations on record keeping requirements, methods of payment and holding and tagging of specified items and prohibit dealers from buying commonly stolen property. The bills would also revise the state criminal statute on larceny, impose a new licensure mandate on scrap metal dealers and revise details of the law authorizing local government licensure of scrap metal dealers so it conforms to the new state licensure and regulations proposed by HB 5490-5493. The MCUL & Affiliates remains concerned with the stealing and reselling of scrap metal from foreclosed properties and will continue to monitor these bills.
Speaker Bolger and House Republicans Keep Majority, Greimel Named House Minority Leader
While their caucus was reduced from 64 to 59 seats, the Nov. 6th election results provided the House Republicans another two years of majority. House Speaker Jase Bolger, R-Marshall, was recently elected to return as Speaker of the House, Rep. Jim Stamas, R-Midland, will return as majority floor leader, and Rep. John Walsh, R-Livonia, will return as speaker pro tempore. Rep. Pete Lund, R-Shelby Twp., will serve as Caucus Whip, while Rep. Al Pscholka, R-Stevensville, will serve as caucus chair. Among the Democrats, Rep. Tim Greimel, D-Auburn Hills, was chosen by the Democratic caucus to serve as House minority leader and Rep. Rudy Hobbs, D-Lathrup Village, will serve as minority floor leader. The upcoming session will be Mr. Bolger’s third and last term in the House, but it will be Rep. Greimel’s first full term, as he is previously served a partial term created by a vacancy in his seat and is eligible to serve three full terms starting in January.