MICHIGAN HOUSE BILL 5084

The Michigan legislature amended their Mortgage Loan Originator Licensing Act effective December 5, 2019.

An individual who is a registered loan originator will have temporary authority to act as a mortgage loan originator for a specified period without first obtaining a mortgage loan originator license, if all of the following apply:

• The individual becomes employed by an entity that is licensed or registered under the mortgage brokers, lenders and servicing licensing act, the secondary mortgage loan act, or the consumer financial services act;
• The individual has not had an application for a mortgage loan originator license denied or a mortgage loan originator license revoked or suspended in any state;
• The individual has not been subject to, or served with, a cease and desist order in Michigan or any other state;
• The individual has not been convicted or, or pled guilty or no contest to, a misdemeanor or felony that would preclude licensure;
• The individual has submitted a mortgage loan originator license application and the required fee, and has met the applicable surety bond requirements;
• The individual was registered in the NMLS as a mortgage loan originator during the 1-year period immediately preceding the date on which the information required for licensure is submitted;
• The individual is not subject to a prohibition order issued by the director of the Department of Financial Institutions (“director”),

An individual who is licensed as a mortgage loan originator in another state will have temporary authority to act as a mortgage loan originator in Michigan without first obtaining a license if all of the following apply:

• The individual meets the licensing requirements set by the department;
• The individual was licensed in another state during the 30-day period immediately preceding the date when the Michigan license application was submitted;

The period of temporary authority begins on the date when the license application is submitted, the required fee is paid, and the applicable surety bond provisions have been met, and ends on the earliest of the following dates:

• The date when the individual withdraws the application;
• The date when the director denies, or issues a notice of intent to deny, the application;
• The date when the director approves the application;
• The date that is 120 days from the date when the individual submits the application, if the application is listed on the NMLS as incomplete.

A person employing an individual who has temporary authority to act as a mortgage loan originator is subject to the applicable laws to the same extent as if the individual is licensed as a mortgage loan originator.

An individual with temporary authority to act as a mortgage loan originator in Michigan and who engages in residential mortgage loan origination activities is subject to all applicable laws to the same extent as if that individual is licensed as a mortgage loan originator.