Public Act 67 of 2012

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• Introduced by Sen. Arlan Meekhof (R) on February 29, 2012, to clarify that mortgage loan contracts that contain “non-recourse loan provisions” cannot be made into a recourse loan by a “post closing solvency covenant" or other device. Practically all residential mortgages are “non-recourse” loans, meaning that although the lender can take back the home, he can’t go after (“have recourse to”) a delinquent borrower’s other property or income.
  • Referred to the Senate Economic Development Committee on February 29, 2012.
    • Reported in the Senate on March 1, 2012, with the recommendation that the bill pass.
  • Amendment offered in the Senate on March 6, 2012, to clarify that the bill provisions affect existing "non-recourse" loans as well as future ones, and make other technical changes. The amendment passed by voice vote in the Senate on March 6, 2012.
• Passed 33 to 5 in the Senate on March 7, 2012.
  Who Voted "Yes" and Who Voted "No"
• Received in the House on March 7, 2012.
  • Referred to the House Commerce Committee on March 7, 2012.
    • Reported in the House on March 13, 2012, without amendment and with the recommendation that the bill pass.
• Passed 97 to 12 in the House on March 20, 2012, to clarify that mortgage loan contracts that contain “non-recourse loan provisions” cannot be made into a recourse loan by a “post closing solvency covenant" or other device. Practically all residential mortgages are “non-recourse” loans, meaning that although the lender can take back the home, he can’t go after (“have recourse to”) a delinquent borrower’s other property or income.
  Who Voted "Yes" and Who Voted "No"
• Signed by Gov. Rick Snyder on March 29, 2012.