Mortgage Pre-emption Law Passed in Michigan

A bill that would pre-empt any laws enacted by Michigan municipalities to regulate the activities of the state’s mortgage industry was passed Dec. 12 by the state senate.Gov. John Engler has indicated that he will sign the bill, which had already been passed by the Michigan House of Representatives, said Anthony Kellum, president of the Michigan Mortgage Brokers Association. “That is good news for us and for consumers,” Mr. Kellum told MortgageWire. The bill also addresses another practice that has become widespread among municipalities -- prohibiting lenders defined as predatory from doing business with them. Municipalities would also be prohibited from collecting information from financial institutions about their loans, applicants, and deposits. The state bill would require financial institutions to comply with all state and federal laws applicable to their businesses.