LANSING—Sen. Darwin Booher’s legislation to maintain the composition of an important board overseeing many mortgage issues is on its way to the governor to be signed.
“Homeownership is at the heart of the American Dream, and I am proud that Michigan has taken the lead to preserve that dream with several bipartisan initiatives, such as new laws to combat mortgage fraud,” said Booher, R-Evart. “The Mortgage Industry Advisory Board was created to communicate and review mortgage industry issues and to make recommendations about how we can best serve and protect Michigan homeowners.
“This reform is needed to maintain the makeup of the board due to a merger last year of two associations with authority to suggest candidates for appointment to the board.”
Under current law, both the Michigan Mortgage Brokers Association and the Michigan Mortgage Lenders Association (MMLA) submit three suggestions to the Office of Financial and Insurance Regulation commissioner, who then appoints two suggestions of each association to the board.
Last year, the two associations merged.
Senate Bill 19 reflects this merger and gives the remaining organization, MMLA, the ability to provide at least six suggestions, of which three must be affiliated with a licensed or registered broker.
“Mortgage fraud and faulty foreclosure proceedings affect us all,” said Booher, chair of the Senate Banking and Financial Institutions Committee. “These actions devastate families and impact our communities through reduced property values. It is important to ensure that this board can continue to effectively do its job to make sure we have a fair and open mortgage system.”