Housing

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.

HB 4341 amends the State Housing Development Authority Act of 1966. It adds a new section that restricts eligibility for services, grants, or participation in programs under the act. Unless otherwise provided by federal law, individuals must be either a United States citizen or a "qualified alien" to receive these benefits. The bill defines "qualified alien" by referencing an existing federal statute (8 USC 1641).