Bill > HB5497

This bill modifies existing Michigan law that prohibits certain mortgage lending practices by financial institutions. It updates definitions for terms like "commissioner" (now "director") and adds definitions for "Consumer Price Index," "department," and "director." Crucially, it revises the minimum mortgage and home improvement loan amounts that institutions can impose, with these minimums increasing over time and subject to future adjustments based on inflation. The bill also clarifies that loan applications must be individually considered based on lending risks and requires institutions to provide written reasons for denying or altering loan terms, aligning with federal equal credit opportunity laws. Additionally, it mandates that financial institutions make publicly available a pamphlet explaining their loan application criteria and file a copy of this pamphlet with the department.