Housing (Mortgages)

This bill amends Michigan zoning laws to allow cities to deny zoning permits to individuals who owe fines or court costs from administrative hearings. However, it creates an exemption for specific entities, including government housing agencies, financial institutions, and licensed mortgage servicers, preventing these groups from being blocked due to such delinquencies. The legislation also ensures that a permit cannot be denied if the applicant is trying to fix the specific blight issue that originally caused the unpaid fine. This change aims to prevent financial penalties from hindering the ability of regulated lenders and housing authorities to process necessary zoning requests.

HB 6177 establishes the Residential Mortgage Licensing and Supervision Act to create a comprehensive regulatory framework for mortgage brokers, lenders, servicers, and loan originators in Michigan. The bill mandates that these entities and their key personnel obtain state licenses while prohibiting specific unethical conduct related to residential loans. It empowers the Department of Insurance and Financial Services to enforce rules, impose penalties, and appoint conservators when necessary, and it creates a new advisory board to oversee the industry. Additionally, the legislation defines various roles and exemptions to clarify who must be licensed versus who is exempt from these requirements.

HB 6192 amends Michigan's Debt Management Act to strengthen the state director's authority to investigate and punish mortgage brokers and lenders who engage in fraud. The bill allows the director to issue immediate suspensions or permanent prohibitions against individuals found guilty of fraud, dishonesty, or felony convictions involving financial misconduct. It establishes a formal process where accused individuals receive written notice, have the right to a hearing within 60 days, and can apply to have an order lifted after five years. Additionally, the law clarifies that violating a final prohibition order is a misdemeanor punishable by up to one year in jail or a fine of $5,000. This legislation is tied to another bill, HB 6177, and will only become effective if that companion bill is also passed.

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.

HB 5865 establishes a new annual property tax specifically for properties that were previously owned by land banks and sold to clear title issues. This tax is designed to generate revenue for the state and the specific land bank authority that originally sold the property, with funds split evenly between general local taxes and the land bank for future cleanup efforts. The bill includes an exemption for properties located in designated HOPE zones or Renaissance zones, ensuring these areas remain financially supported. Additionally, the tax is treated as a lien on the property, subject to the same collection fees, interest, and foreclosure processes as standard delinquent property taxes.

HB 5661 amends the Michigan State Housing Development Authority Act to clarify and expand the administrative powers of the Michigan State Housing Development Authority (MSHDA) in managing the state's home loan and housing assistance programs. The bill does not create new funding or change eligibility requirements for existing programs but instead updates the legal authority under which MSHDA operates. Key provisions allow the authority to conduct housing studies, collect fees for loans and publications, salvage usable housing from demolition projects, and manage mortgage loans and foreclosures with specific flexibility for property acquisition and resale. The legislation also authorizes MSHDA to accept gifts and grants from various levels of government and to invest reserve funds in state or federal obligations. This bill is tied to HB 5660 and was introduced in March 2026, with no changes to the specific programs themselves, only to the operational framework governing the authority.

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.

SB 702, the "Medical Debt Protection Act," limits how medical debt can be collected in Michigan. It prohibits interest or late fees for 90 days after a bill is due and caps annual interest at 3%. The bill bans wage garnishment, foreclosure, and other aggressive collection tactics for patients eligible for financial assistance under a healthcare facility’s policy. It also restricts selling medical debt to third parties without strict safeguards, requiring debt buyers to follow specific rules and return debt if a patient qualifies for financial help. The law directly affects patients with medical debt, large healthcare facilities, and medical debt collectors.