2007 House Bill 5308: Impose new subprime mortgage regulations

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Introduced by Rep. Mary Valentine (D) on October 11, 2007, to establish that brokers in secondary market are subject to the provisions of House Bill 5295 and related bills establishing new regulations on subprime and other real estate loans. The bill is part of a subprime home loan regulation package comprised of House Bills 5287 to 5310.
- Referred to the House Banking and Financial Services Committee on October 11, 2007.
  - Reported in the House on June 17, 2008, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.
- Substitute offered in the House on June 18, 2008, to replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described. The substitute passed by voice vote in the House on June 18, 2008.
- Amendment offered by Rep. Phil Pavlov (R) on June 18, 2008, to tie-bar the bill to a package of Republican bills limiting the imposition of some special assessments, increasing penalties for mortgage fraud, and repealing the .75 percent real estate transfer tax (House Bills 4264, 4409 - 4411, 5642-5647, 6128 and 6129). "Tie-bar" means this bill cannot become law unless those ones do also. The amendment failed by voice vote in the House on June 18, 2008.
Passed 81 to 27 in the House on June 18, 2008, to establish that brokers in secondary market are subject to the provisions of House Bill 5295 and related bills establishing new regulations on subprime and other real estate loans. The bill is part of a subprime home loan regulation package comprised of House Bills 5287 to 5310.
Who Voted "Yes" and Who Voted "No"
Received in the Senate on June 24, 2008.
- Referred to the Senate Banking and Financial Institutions Committee on June 24, 2008.

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1) "no vote explanation" by Admin003 on June 27, 2008
Rep. Robertson, having reserved the right to explain his protest against the passage of the bill, made the following statement:

“Mr. Speaker and members of the House:

I must vote NO on HB 5295 and the associated bills in this package HB 5294, HB 5296, HB 5299, HB 5307 and HB 5308. While I support effort to improve the lending climate in Michigan and protect consumers from unscrupulous brokers and lenders, this bill is flawed. This legislation places unworkable regulation on the fees charged by brokers and lenders, It also contains language which is so subjective that it would require omniscience on the part of brokers in determining a borrowers ability to pay. It would subject brokers to legal liability which would make it all but impossible for honest law-abiding brokers to offer loans to homebuyers. Like so much legislation which emanates from the other side of the aisle, this legislation will hurt the very people it is intended to help. Loans for people with less than perfect credit will be even more difficult to obtain and place the dream of home ownership further out of reach. Borrowers with excellent credit, income and employment seeking conforming loans would be hurt by this legislation. The measures we have taken to provide for loan officer licensure, provide greater penalties for assessment fraud and coercion of fraud, coupled with greater resources in the Office of Financial and Insurance Regulation (OFIR) will go a very long way to addressing the current mortgage lending/crisis. These bills miss the target.”

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2) 2007 House Bill 5308 (Impose new subprime mortgage regulations ) by admin on January 1, 2001
Introduced in the House on October 11, 2007, to establish that brokers in secondary market are subject to the provisions of House Bill 5295 and related bills establishing new regulations on subprime and other real estate loans. The bill is part of a subprime home loan regulation package comprised of House Bills 5287 to 5310

The vote was 81 in favor, 27 opposed and 2 not voting

(House Roll Call 549 at House Journal 60)

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