How our department monitors insurance market practices
Insurance Company Contract and Rate Filings
DIFS Prohibition Orders for Consumer Finance and Credit Union.
Licensing - Consumer Finance and Mortgage
Consumer Finance and Mortgage Forms
BIDCO and Anti-Redlining Forms.
Statutes, Rules and Regulations
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The Mortgage Brokers, Lenders, and Servicers Licensing Act (MBLSLA), section 21(2), MCL 445.1671, requires the licensee/registrant to retain all first mortgage loan documents, in its possession or control, until the mortgage loan is transferred or assigned, or for a period of 3 years from the date of closing, whichever occurs first. Therefore, if the licensee/registrant acts only as the broker, it must retain all documents, in its possession or control, related to the first mortgage transaction for 3 years from the date of closing.
For loans where the licensee/registrant acts as the lender, and the loan is transferred or assigned, the MBLSLA requires the licensee/registrant to retain copies of the promissory note, mortgage, land contract, truth-in-lending disclosure statements, and settlement statements for 3 years after the date the mortgage loan is transferred or assigned.
The MBLSLA further requires all other books, accounts, records, and documents pertaining to the licensee/registrant's business be maintained for not less than 3 years after the conclusion of the fiscal year of the licensee/registrant in which the book, account, record, or document was created.
The Secondary Mortgage Loan Act (SMLA), section 18, MCL 493.68, has document retention requirements similar to the MBLSLA. Documents kept pursuant to the SMLA are required to be maintained for a period of 2 years from date of closing, transfer or assignment, or conclusion of fiscal year in which they were created.
The MBLSLA and SMLA requires the licensee/registrant to retain all documents pertaining to a rejected application for a mortgage loan for the period of time required by state and federal law. DIFS interprets rejected applications to include withdrawn applications. The Mortgage Lending Practices Act of 1977 and Regulation B require documents relating to denied/withdrawn applications be retained for a period of 25 months.
