HB 5497 Michigan House · 2025-2026 Regular Session

Financial institutions: mortgage brokers and lenders; prohibition on certain mortgage lending practices; modify. Amends title & secs. 1 & 2 of 1977 PA 135 (MCL 445.1601 & 445.1602).

HB 5497 prohibits Michigan mortgage lenders from denying loan applications or altering terms (like interest rates or down payments) based on neighborhood racial/ethnic characteristics or building age - except for physical condition assessments. It sets minimum mortgage loan amounts ($10,000) and home improvement loan amounts ($5,000), with annual adjustments using the Consumer Price Index starting in 2028. Lenders must provide written reasons for denials and individually evaluate each application based on risk factors. The bill directly affects banks, credit unions, and mortgage lenders operating in Michigan, aiming to prevent discriminatory lending practices under the state’s mortgage law.

Issues: ✓ Housing

Bill status passed both 4 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Mar 2026

House Passage

Mar 2026

Senate Passage

Mar 2026

Governor

Introduced Feb 5, 2026 Last action Mar 24, 2026

Maddy AI version diff · 4 comparisons

What changed between versions

Substitute (H-4) → Substitute (H-1) - 2 · 2 edits

MINOR

The bill version was updated from Substitute (H-4) to Substitute (H-1), indicating a revision in the legislative drafting process. The most significant policy change involves the removal of a specific prohibition on minimum mortgage amounts, which previously capped loans at $10,000 and $15,000. This deletion allows credit granting institutions to set higher minimum mortgage amounts, expanding their lending flexibility.

Scope change

The bill's scope regarding minimum loan thresholds was expanded by removing previous dollar caps on mortgage amounts.

REQUIREMENT

Deleted a restriction that prevented credit institutions from imposing minimum mortgage amounts greater than $10,000 and $15,000.

TECHNICAL

Updated the bill header to reflect the new version number, changing from Substitute (H-4) to Substitute (H-1).

Floor votes · House Mar 19, 2026

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 24, 2026

Committee

REFERRED TO COMMITTEE ON FINANCE, INSURANCE, AND CONSUMER PROTECTION

upper

Mar 24, 2026

Upper · Passed

PASSED BY HOUSE WITH IMMEDIATE EFFECT

upper

Mar 19, 2026

Lower · Passed

passed; given immediate effect Roll Call #102 Yeas 72 Nays 29 Excused 0 Not Voting 9

lower

Mar 19, 2026

Lower · Passed

substitute (H-4) adopted

lower

Mar 18, 2026

Lower · Passed

substitute (H-1) adopted

lower

Mar 10, 2026

Committee

referred to second reading

lower

Mar 10, 2026

Lower · Passed

reported with recommendation with substitute (H-1)

lower

Feb 5, 2026

Committee

referred to Committee on Finance

lower

Feb 5, 2026

Introduced

introduced by Representative Rep. Bill Schuette

lower

1 primary · 0 co-sponsors