LANSING – In an effort to increase consumer protections and cut down on the number of home foreclosures in Michigan, State Representative Kate Ebli (D-Monroe) today voted for a plan that cracks down on unscrupulous mortgage lenders and increases accountability among lenders.
"Far too many unscrupulous lenders have taken advantage of homeowners by writing dishonest loans and laughing all the way to the bank," Ebli said. "They played a large part in the mortgage crisis that has hurt so many of Michigan's working families. Under this plan, lenders who hurt homeowners for their own financial gain will be strictly and severely punished."
The plan requires secondary mortgage loan officers, who are responsible for writing loans when a second mortgage is taken out on a home or property, to be licensed, and increases fines for unlicensed secondary mortgage lenders who engage in loan writing. Any unlicensed lender who writes a loan faces up to a year in jail and a fine of $15,000 – three times the fine under current law. The plan is part of House Democrats' ongoing effort to put an end to the foreclosure crisis plaguing Michigan. This bipartisan and bicameral effort will crack down on unscrupulous lenders and toughen the penalties for deceitful practices and violations of Michigan's Secondary Mortgage Loan Act.
Between January and October of this year, 117,218 homes went into foreclosure in Michigan, a four percent increase over the same period last year.
"With winter in full swing, our first priority must be keeping Michigan families in their homes," Ebli said. "This is an important and needed step, but much more must be done. By cracking down on lenders who put profit over people, we can keep homeowners in their homes, keep our communities strong and vibrant, and get Michigan moving forward."