Financial institutions: mortgage brokers and lenders; consolidation of certain licensing statutes related to residential mortgages; make conforming changes in 1966 PA 326. Amends sec. 1c of 1966 PA 326 (MCL 438.31c). TIE BAR WITH: HB 6177'26

HB 6186 amends Michigan's existing mortgage interest laws to clarify and update rules regarding rates and fees for residential loans. The bill primarily affects lenders, mortgage brokers, and borrowers by reinforcing restrictions on prepayment penalties, limiting upfront fees, and capping interest rates at 11% per annum for certain types of loans, such as those made by unqualified lenders or second mortgages. It also ensures that interest is calculated only on unpaid balances and prohibits interest from being added or deducted in advance. By updating the 1966 statute, the legislation aims to maintain consumer protections while aligning the law with current lending practices.