FOR IMMEDIATE RELEASE 
December 18, 2008
Contact: Jason Moon  517-335-1700

LANSING- Office of Financial and Insurance Regulation (OFIR) Commissioner Ken Ross today applauded Governor Jennifer M. Granholm and the State Legislature for signing and passing a legislative package that strengthens the criminal background checks of mortgage loan officers. The package also amends the Secondary Mortgage Loan Act and the Mortgage Brokers, Lenders, and Servicers Licensing Act to bring about consistency between both acts. 

The Governor recently signed House Bills 6562 and 6618 and Senate Bills 1552-1555 that will ultimately help protect Michigan consumers from mortgage fraud and unfair lending practices. The package reinforces legislation that the Governor signed earlier this year that requires the state's mortgage loan officers to register with OFIR. Loan officers must now be registered beginning April 1, 2009.

"I applaud Governor Granholm and the State Legislature for working in a bipartisan manner on this successful legislation that strengthens our regulation of mortgage loan officers,” Ross said. “Effective regulation of loan officers is critical in our effort to protect Michigan consumers against unethical individuals, unfair lending practices and mortgage fraud.” 

The legislation strengthens OFIR’s regulation of Michigan mortgage loan officers by: 

• Expanding the criminal history check of loan officers by requiring a fingerprint check to be done by the Federal Bureau of Investigation in addition to the Michigan Department of State Police.
• Reinforcing that every loan officer operates within the restrictions of the loan officer registration process.
• Requiring secondary mortgage loan officers to take pre-registration education training, pass an exam, obtain registration with the State, pass a criminal history background check, and attend annual continuing education sessions, unless the loan officer is registered as a loan officer under the Mortgage Brokers, Lenders, and Servicers Licensing Act. 
• Increasing the fine from $5,000 to $15,000 for those engaging in the originating, brokering, making, or servicing of secondary mortgage loans without a license, registration, or loan officer registration.

To be registered as a loan officer, an individual must meet all of the following: 

• Completed a 24 hour loan officer pre-registration education course*.
• Passed the required Michigan loan officer examination.
• Completed and submitted with employer/sponsor attestation the loan officer registration application via the Nationwide Mortgage Licensing System (NMLS) and the Michigan specific loan officer application (Form FIS 2080).
• Paid the appropriate NMLS and loan officer registration fees.
• Has been fingerprinted and had an FBI and Michigan State Police criminal history check completed
• Has not been convicted of or pled no contest to a felony within the preceding 10 years.
• Has not been convicted of or pled no contest to a felony or misdemeanor which involves embezzlement, fraud, forgery, financial transaction, or securities.
• Has not been prohibited by the Commissioner.

* Loan officers that have been originating mortgage loans for 4½ out of the previous 5 years immediately preceding April 3, 2008, are not required to take the 24 hour loan officer pre-registration education course if the individual has submitted required documentation including the application and fees and passed the loan officer examination on or before April 1, 2009.

To view OFIR’s loan officer registration resource page, visit: http://www.michigan.gov/dleg/0,1607,7-154-10555_22535_51508---,00.html

To read about the loan officer registration package that the Governor signed earlier this year, visit: http://www.michigan.gov/dleg/0,1607,7-154-10555_22535_51508-189170--,00.html