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Mackinac Center for Public Policy
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2002 House Bill 6121

Public Act 660 of 2002

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1) Senator Scott's third statement  by Admin003 on December 18, 2002 
Senator Scott's third statement is as follows:
I want to remind my colleagues, as a member of the Banking and Financial Institutions Committee, we had much
testimony, and it wasn't just in the inner cities. We had testimony from around this state of people who, I would think,
were influential who really fell prey to predatory lending. Let's be careful. We do need to have information, and anyone
who is involved in this should have the time to find some time to give the information that is needed.
There were teachers, educators, who have fallen prey to predatory lending. There is a lot of fine print, and I want to
remind my colleagues that it is not just the inner cities; it is around this state. I would hope we would not pass this bill
at this time. We can work on a new bill next year.

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2) Senator Scott's second statement  by Admin003 on December 18, 2002 
Senator Scott's second statement is as follows:
I oppose this bill, House Bill No. 6121. The executive order passed last week cuts $53.1 million in payment to local
governments, money that is badly needed to pay for public safety programs. Now we are asked to deal another
legislative blow to the autonomy of local governments by passing House Bill No. 6121. This bill would forbid local
governments from enacting laws against predatory lending to protect their own citizens. Almost all predatory loans are
made to poor, minority, and older people in Michigan cities.
If this bill passes, the Legislature will be remembered for going against one of the majority party’s sacred principles:
Let local citizens govern themselves. We always scream when the federal government imposes some new rules of laws
that strike against Michigan's autonomy. Now we are asked to compound our own hypocrisy by passing House Bill
No. 6121.
I'd ask you to vote against this bill because it pre-empts the rights of local governments to protect their own citizens
against predatory lending. We can do better next year, and hopefully, will be willing to work on this bill. We want
something that will protect the majority of the citizens in this state. I ask you to vote against this bill.

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3) Senator Scott's "journal statement "  by Admin003 on December 18, 2002 
Senator Scott's first statement is as follows:
My substitute I am offering would establish greater consumer protection against predatory lending practices. The
substitute would prohibit repeated refinancing, or flipping, of high-cost loans, requiring counseling for first-time
borrowers on the advisability and the appropriateness of a home loan and prohibit lending against consideration of the
borrowers ability to pay. It would also require additional disclosure to better inform borrowers of the term of the loan
and provide victims of predatory lending with a private right of action so that they may pursue relief.
For too long the state has allowed financial predators to prey on vulnerable citizens. It is time to pass tough and
meaningful legislation to crack down on these abusive practices. I would ask my colleagues to vote against this.

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