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What is the effective date of the new loan officer registration law? |
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April 3, 2008. |
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What is the effective date requiring loan officer registration? |
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Loan officer registration is not required until January 1, 2009 |
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Is this a new “stand alone law” or is it an amendment of current statute? |
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The new loan officer registration law is an amendment of current statute – The Mortgage Brokers, Lenders, and Servicers Licensing Act, 1987 PA 173, MCL 445.1651 et seq. The new loan officer registration consists of several bills/Public Acts. |
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What are the bill/Public Act numbers of the new loan officer registration law |
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The Enrolled Public Acts, accessible at www.legislature.mi.gov are:
- HB 4596/PA 72
- HB 5287/PA 59
- HB 5288/PA 60
- HB 5289/PA 61
- HB 5290/PA 62
- HB 5291/PA 63
- SB 826/PA 64
- SB 827/PA 65
- SB 828/PA 66
- SB 829/PA 67
- SB 830/PA 68
- SB 831/PA 69
- SB 832/PA 70
- SB 833/PA71
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Is a loan officer the same as a loan officer registrant? |
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No, a loan officer is an individual that has not received a loan officer registration certificate. |
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What is a loan officer? |
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A loan officer is an individual that is authorized to originate mortgage loans for a Licensee or Registrant without a mortgage loan registration and without compensation. |
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For what time period may a loan officer operate without a loan officer registration? |
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An individual may operate as a loan officer for 90 days after his or her employing Licensee or Registrant conducts a criminal records check and submits the results of the criminal records check with proper notification to OFIR.
An individual may operate as a loan officer beyond the 90-day period if the individual has submitted a complete loan officer registration application and operating fee which has been accepted and is pending with OFIR. |
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Are there requirements for an individual to qualify as a loan officer?
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The individual has not been convicted of, or pled no contest to a felony or misdemeanor involving embezzlement, forgery, fraud, a financial transaction, or securities.
The individual has not been convicted of, or pled no contest within the 10-year period preceding the date of the completed and submitted loan officer registration application, to a felony other than a felony involving embezzlement, forgery, fraud, a financial transaction, or securities. |
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Is a loan officer or loan officer registrant the same as a Licensee or a Registrant? |
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No. Licensees and Registrants are mortgage brokers, lenders, or servicers. |
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Can a loan officer registrant originate mortgage loans for more than 1 Licensee or Registrant? |
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A loan officer registrant is required to originate exclusively for only 1 Licensee or Registrant; however if a loan officer registrant is also licensed or registered as a mortgage broker, mortgage loans originated by the loan officer registrant may be brokered to more than one mortgage brokers, lenders or servicers. |
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If an entity is currently licensed or registered as a mortgage broker, lender, or servicer, is it still necessary to apply for and received a loan officer registration? |
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No. The bills make reference to employee or agent of a licensee or registrant; therefore, the previous requirement that an individual is exempt from licensure or registration no longer applies beginning January 1, 2009. |
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Is a loan officer required to be an “employee” of a licensee or registrant after December 31, 2008? |
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No. The bills make reference to employee or agent of a licensee or registrant; therefore, the previous requirement that an individual is exempt from licensure or registration no longer applies beginning January 1, 2009. |
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If I am an “employee” of a Licensee or Registrant and I intend to originate mortgage loans, do I still need a loan officer registration? |
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Yes, beginning January 1, 2009. |
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Can the Commissioner waive the requirements of Section 2a of the Act? |
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Yes. The Commissioner may waive any of the requirements of Section 2a for a loan officer registration if the individual has a valid, similar license or registration from another state. The State from which the individual has the license or registration must have a reciprocal agreement with the Commissioner. |
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Does the new law authorize a loan officer registrant to originate subordinate mortgage loans?
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No. The new law does not amend the Secondary Mortgage Loan Act. An individual originating subordinate mortgage loans must be individually licensed or registered as a mortgage broker pursuant to the Secondary Mortgage Loan Act or be an employee currently, and after December 31, 2008. |
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Who will be required to register as a loan officer registrant? |
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Beginning January 1, 2009, any individual that originates a mortgage loan that receives any compensation, commission, fee, points, or other remuneration or benefits from a Licensee or Registrant. |
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Who is required to submit the loan officer registrant application – the current Licensee or Registrant employer or the individual requesting to be the loan officer registrant?
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The Licensee or Registrant employer is required to submit the loan officer registrant application. |
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Where can I find the loan officer registrant application? |
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Michigan loan officer applications are not available at this time and will not be available for use until at least August 2008. Please continue to check the OFIR website for the application. |
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Is an individual “automatically” registered if the individual submits an application and the registration fee to the Commissioner? |
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No. An individual to “apply” and receive a registration from the Commissioner; therefore, an individual is not registered simply by submitting the documentation. |
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Is the Commissioner required to issue a loan officer registration certificate? |
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The Bills do not specifically mention the word “certificate”; however, the Bills make several references to the issuance of a loan officer registration, and furthermore describe how to surrender a loan officer registration, including a loan officer registration that has been, “…destroyed or lost…” It is the intention of OFIR to issue a paper “registration” certificate. |
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What fees will be required of loan officer registrants to apply for and renew a loan officer registration? |
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Transfer
Application
Renewal
Amendment
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Has not yet been determined by the Commissioner.
Has not yet been determined by the Commissioner.
Has not yet been determined by the Commissioner.
Has not yet been determined by the Commissioner. |
| Please continue to check the OFIR website for fee information. |
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Is there a ½ year or pro-rated fee for loan officer registrant?
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No. A ½ year fee only applies to a licensee or registrant. |
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Will fees collected and credited to the new MBLSLA Fund under the Mortgage Brokers, Lenders, and Servicers Licensing Act be restricted and carried over to the next fiscal year? |
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Yes. All fees collected and credited to the new MBLSLA are restricted, with excess funds carried over to the next fiscal year. Excess funds will not revert to the General Fund. |
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What is the registration period for a loan officer registrant? |
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Beginning January 1, 2009, the registration period will be January 1 through December 31. |
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What are the bonding requirements for a mortgage loan officer registrant? |
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No bonding is required of a loan officer registrant. |
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What are the net worth/financial Statement requirements for a mortgage loan officer registrant? |
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No minimum net worth or liquidity required of a loan officer registrant applicant.
No financial statement required of a loan officer registrant applicant. |
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