HB 5552 Michigan House · 2025-2026 Regular Session

Consumer credit: interest rates; prepayment penalties on certain mortgage loans made for business purposes; allow. Amends sec. 1c of 1966 PA 326 (MCL 438.31c).

HB 5552 amends Michigan's interest rate law to allow lenders to charge higher interest rates on mortgage loans made primarily for business purposes, removing state rate limits for these loans. It also prohibits prepayment penalties exceeding 1% of the loan amount for personal/family home loans within the first three years, with no penalties allowed after that period. The bill sets a maximum 11% annual interest rate for certain other mortgage types, including purchase money mortgages and second mortgages, inclusive of all finance charges. This affects lenders and borrowers involved in business-purpose mortgages, personal/family home loans, and specific second mortgages under Michigan law.

Bill status passed both 4 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Jun 2026

House Passage

May 2026

Senate Passage

Jun 2026

Governor

Introduced Feb 19, 2026 Last action Jun 2, 2026

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What changed between versions

House Introduced Bill → As Passed by the House · 5 edits · May 21, 2026

MODERATE

The bill was restructured from a committee referral document into a formal enacted law. It clarifies interest rate rules for various loans, including those secured by real property, mobile homes, and purchase money mortgages, while adding specific exemptions for federally insured loans and trust plans. The text also introduces new definitions for 'affiliate' and 'regulated depository financial institution' to support biweekly payment provisions.

Scope change

The bill's scope expanded from a draft introduction to a full statutory enactment, adding specific definitions and exemptions that were missing in the original draft.

DEFINITION

Added new definitions for 'affiliate' and 'regulated depository financial institution' to clarify who can require interest-bearing accounts for biweekly loan payments.

EXEMPTIONS

Explicitly exempted loans insured or guaranteed by the federal government and certain trust plans from the act's interest rate limitations.

REQUIREMENT

Reorganized the text to clearly list lender restrictions on deposits, fees, and prepayment penalties for single-family home loans.

ENFORCEMENT

Added a provision allowing parties to seek injunctive court orders to enforce their rights under the act.

TECHNICAL

Removed committee referral text, page numbers, and internal tracking codes, replacing them with the standard 'The People of the State of Michigan Enact' language.

Floor votes · House May 21, 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

Jun 2, 2026

Committee

REFERRED TO COMMITTEE ON FINANCE, INSURANCE, AND CONSUMER PROTECTION

upper

Jun 2, 2026

Upper · Passed

PASSED BY HOUSE WITH IMMEDIATE EFFECT

upper

May 21, 2026

Lower · Passed

passed; given immediate effect Roll Call #164 Yeas 81 Nays 26 Excused 0 Not Voting 3

lower

Mar 17, 2026

Committee

referred to second reading

lower

Mar 17, 2026

Lower · Passed

reported with recommendation without amendment

lower

Feb 19, 2026

Committee

referred to Committee on Finance

lower

Feb 19, 2026

Introduced

introduced by Representative Rep. Mark Tisdel

lower

1 primary · 3 co-sponsors