February 2008 Field Report -
Southeast Michigan
By: Brad Ward – Director of Public Policy & Legal Affairs
Combating mortgage fraud and the rising foreclosure rate in Michigan have both been constant themes when visiting local associations. Fortunately, the MAR has been working with legislative leaders in both the House and Senate to address these issues.
Legislation to strengthen the regulation of the mortgage loan industry in Michigan passed the House last week. This bipartisan, bicameral legislative package provides licensing and education requirements, along with mandatory background checks for mortgage loan officers in Michigan. It also allows the Office of Financial and Insurance Services (OFIS) to keep better track of individuals within the industry as they may move around. Given increased real estate fraud and foreclosures in this state, the passage of these bills is a big step forward in addressing the root of these problems. This legislative package represents a compromise from many facets of the real estate community, including banks, credit unions and mortgage brokers. The bills now move on to the Senate. The MAR Public Policy staff continues to meet with Senate leadership in stressing the importance of the passage of these bills as a positive step in halting mortgage fraud, while keeping industry standards high.
Copper theft has been on the rise at an alarming pace in recent years. Given the value copper fetches, buildings and homes have been ravaged, costing owners and landlords thousands of dollars. Copper theft has been devastating on the real estate community, especially in this time of rising foreclosures. Copper pipes and wire are being stripped from vacant homes and buildings on the market, leaving behind extensive damage and costly repairs.
Recently, legislation has been introduced in the Senate taking aim at regulating and licensing second hand dealers who buy copper. Senate Bills 1113, 888, 720, and 1089 contain provisions and requirements of secondhand and junk dealers. Among the legislative provisions are:
• Prohibiting a secondhand or junk dealer license from being issued to someone who did not have an actual business location.
• Requiring a dealer's records to include the weight, amount, and number of articles purchased or exchanged.
• Requiring a dealer to provide his or her records to a law enforcement agency within 24 hours of a request.
• Prescribing a criminal penalty for buying or selling stolen construction materials.
• Requiring a dealer to make a copy of the driver license or State identification card of a person from whom the dealer purchased or received items, and include the copy in the dealer's weekly report to the police.
Currently, these bills are in the Senate Economic Development and Regulatory Reform Committee. The Senate sponsors would like our official support of these bills. The MAR Public Policy Committee is scheduled to meet early next month to analyze the legislation.
As always, I am available for any questions or concerns. Please email me if I can be of any assistance at bward@mirealtors.com.
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