DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES  
FINANCIAL INSTITUTIONS BUREAU  
MORTGAGE AND HOME IMPROVEMENT LENDING PRACTICES  
(By authority conferred on the commissioner of the financial institutions bureau by  
section 10 of Act No. 135 of the Public Acts of 1977, as amended, being  
S445.1610 of the Michigan Compiled Laws)  
R 445.1001 Definitions and explanation of terms.  
Rule 1. (1) As used in these rules and the act:  
(a) "Act" means Act No. 135 of the Public Acts of 1977, as amended, being  
S445.1601 et seq. of the Michigan Compiled Laws.  
(b) "Administrative procedures act" means Act No. 306 of the Public Acts of 1969,  
as amended, being S24.201 et seq. of the Michigan Compiled Laws.  
(c) "Branch office" or "service center" does not mean an electronic funds  
transfer facility or a branch or service center that is exclusively a drive-in branch or  
drive-in service center.  
(d) "Bureau" means the financial institutions bureau of the Michigan department  
of commerce.  
(e) "Contested case hearing" means a hearing conducted pursuant to chapter 4  
of the administrative procedures act, being SS24.271 to 24.281 of the Michigan  
Compiled Laws.  
(f) "Loan inquiry" means a request made in person or by telephone, letter, or  
other communication device that is related to the prospects of obtaining a mortgage  
loan or a home improvement loan from a credit-granting institution.  
(g) "Neighborhood," as defined in section 1(h) of the act, includes an area  
designated by a single zip code number under the zoning improvement plan of the  
United States postal service for any area located within a standard metropolitan  
statistical area that has not been assigned a census tract number as defined by the  
United States bureau of the census.  
(h) "Objections" means exceptions and written arguments made by a party  
adversely affected by a proposal for decision to a contested case hearing held pursuant  
to these rules.  
(2) A home improvement loan secured by a mortgage shall be considered a home  
improvement loan and not a mortgage loan.  
History: 1979 AC; 1995 AACS.  
R 445.1002 Forms, reports, and correspondence; providing requested  
copies.  
Rule 2. A credit-granting institution shall be deemed in compliance with section  
2(7) of the act if the copies of completed forms, reports, or correspondence  
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requested by an applicant are mailed within  
request.  
a
reasonable time after receipt of the  
History: 1979 AC; 1995 AACS.  
R 445.1003 Rescinded.  
History: 1979 AC; 1996 AACS.  
R 445.1004 Pamphlet or document required pursuant to section 2(10) of the  
act; availability.  
Rule 4. The pamphlet or document required to be made available pursuant to  
section 2(10) of the act shall be available where loan applications or loan inquiries are  
routinely received by the credit-granting institution and where the public may obtain a  
copy without the aid of an employee of the credit-granting institution.  
History: 1979 AC; 1995 AACS.  
R 445.1005 Notice to inquirers and loan applicants required by section 5 of  
the act; printing; type size requirements.  
Rule 5. The text of the written notice required by section 5 of the act shall be  
printed in 18-point or larger medium face type, and the heading shall be printed in 48-  
point or larger capital letter boldface type.  
History: 1979 AC; 1995 AACS.  
R 445.1006 Rescinded.  
History: 1979 AC; 1996 AACS.  
R 445.1007 Rescinded.  
History: 1979 AC; 1996 AACS.  
R 445.1008 Rescinded.  
History: 1979 AC; 1996 AACS.  
R 445.1009 Rescinded.  
History: 1979 AC; 1996 AACS.  
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R 445.1010 Rescinded.  
History: 1979 AC; 1996 AACS.  
R 445.1011 Affidavit required by section 6 of the act; form.  
Rule 11. The affidavit required by section 6 of the act shall be completed in a  
form prescribed by the commissioner.  
History: 1979 AC; 1995 AACS.  
R 445.1012 Rescinded.  
History: 1979 AC; 1996 AACS.  
R 445.1013 Rescinded.  
History: 1979 AC; 1996 AACS.  
R 445.1014 Rescinded.  
History: 1979 AC; 1996 AACS.  
R 445.1015 Rescinded.  
History: 1979 AC; 1996 AACS.  
R 445.1016 Rescinded.  
History: 1979 AC; 1996 AACS.  
R 445.1017 Rescinded.  
History: 1979 AC; 1996 AACS.  
R 445.1018 Rescinded.  
History: 1979 AC; 1996 AACS.  
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R 445.1019 Rescinded.  
History: 1979 AC; 1996 AACS.  
R 445.1020 Rescinded.  
History: 1979 AC; 1996 AACS.  
R 445.1021 Rescinded.  
History: 1979 AC; 1996 AACS.  
R 445.1022 Complaint; form; initiation of investigation pursuant to section  
8(1) of the act.  
Rule 22. (1) The commissioner shall prescribe a standardized complaint form and  
make it available to any individual who desires to file a written complaint alleging a  
violation of the act by a credit-granting institution.  
(2) The commissioner shall provide a copy of the complaint form prescribed  
in subrule (1) of this rule to each depository  
credit-granting institution. The  
commissioner shall provide a copy of the complaint form prescribed in subrule (1)  
of this rule to each nondepository credit-granting institution that makes a request  
and provides its name and address. A credit-granting institution may duplicate the  
complaint form in order to provide sufficient copies for use by its loan applicants  
or inquirers.  
(3) The complaint form shall be provided by  
a
credit-granting institution  
upon receipt of a written request mailed or delivered to any office of the credit-  
granting institution or upon a request made in person at the main office of the credit-  
granting institution in the area of the main office where loan applications or loan  
inquiries are routinely received.  
(4) An investigation pursuant to section 8(1) of the act shall be initiated if a  
written complaint is received by the  
bureau  
and  
is determined by the  
commissioner or a representative of the commissioner to contain sufficient information  
to constitute an allegation of a violation of  
the act by a credit-granting institution.  
History: 1979 AC; 1995 AACS.  
R 445.1023 Rescinded.  
History: 1979 AC; 1996 AACS.  
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R 445.1024 Investigation; location; written response; report of findings.  
Rule 24. (1) An investigation conducted pursuant to section 8(1) of the act may  
include an inspection of the books, records, papers, documents, or files of the credit-  
granting institution and may be conducted by either or both of the following means:  
(a) An on-site investigation at the office of the credit-granting institution  
where an application was submitted or loan inquiry was made that is the subject of a  
written complaint or at an office of the credit-granting institution where the  
commissioner or a representative of the commissioner reasonably believes the  
materials and information necessary to conduct an investigation are located.  
(b) By serving the chief executive officer of the credit-granting institution  
with a notice of investigation that requires a written response to an allegation of a  
violation of the act and submission of copies of all requested materials and  
information pertaining to the alleged violation.  
(2) An investigation conducted pursuant to subrule 1(b) of this rule shall be  
conducted as follows:  
(a) The notice of investigation shall contain a short, plain statement of the alleged  
violation of the act that enables the credit-granting institution to respond to each  
allegation with specificity and assemble all materials and information requested. A  
copy of the complaint form or written complaint shall be attached to the notice  
of investigation required by this rule.  
(b) Each question shall be responded to in writing and in a manner deemed  
sufficient by the commissioner or a representative of the commissioner, and all  
documentation requested in the notice prescribed by this rule shall be submitted, within  
20 days from the date of service of the notice of investigation. In the discretion of the  
commissioner, the time to submit materials and information may be extended not more  
than 10 days if the credit-granting institution provides written notice to the  
commissioner, within 15 days from the date of service, that it has made a good faith  
effort to comply with this rule.  
(c) The response shall be accompanied by a sworn affidavit signed by an officer  
of the credit-granting institution stating that all of the questions have been fully  
answered and all  
documentation  
requested  
has been submitted to the  
commissioner. If, in the discretion of the commissioner or a representative of the  
commissioner, the responses or documentation submitted are insufficient to conduct  
an investigation, an additional request for information may be made or an on-site  
investigation may be conducted, or both.  
(3) At the conclusion of an investigation pursuant to section 8(1) of the act and  
these rules, the commissioner or a representative of the commissioner shall issue a  
written report of findings to be served on the complainant and the chief executive  
officer of the credit-granting institution.  
History: 1979 AC; 1995 AACS.  
R 445.1025 Rescinded.  
History: 1979 AC; 1996 AACS.  
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R 445.1026 Rescinded.  
History: 1979 AC; 1996 AACS.  
R 445.1027 Rescinded.  
History: 1979 AC; 1996 AACS.  
R 445.1028 Rescinded.  
History: 1979 AC; 1996 AACS.  
R 445.1029 Rescinded.  
History: 1979 AC; 1996 AACS.  
R 445.1030 Violation of act; fine; recommendation in proposal for  
decision.  
Rule 30. (1) If after an investigation the commissioner, or a representative  
of the commissioner concludes that the credit-granting institution has violated the  
act, the report of findings shall contain a recommendation stating whether a fine  
should be imposed pursuant to section 12 of the act.  
(2) If the report of findings contains a conclusion that the act has been violated,  
recommends the imposition of a fine, or both, a notice of opportunity for a contested  
case hearing shall accompany the report of findings served on the chief executive  
officer of the credit-granting institution.  
History: 1979 AC; 1995 AACS.  
R 445.1031 Rescinded.  
History: 1979 AC; 1996 AACS.  
R 445.1032 Rescinded.  
History: 1979 AC; 1996 AACS.  
R 445.1033 Rescinded.  
History: 1979 AC; 1996 AACS.  
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R 445.1034 Rescinded.  
History: 1979 AC; 1996 AACS.  
R 445.1035 Contested case hearing; parties.  
Rule 35. Parties to a contested case hearing held pursuant to these rules shall be  
the credit-granting institution through its designated representative or representatives  
and the bureau.  
History: 1979 AC; 1995 AACS.  
R 445.1036 Contested case hearing; proposal for decision; objections; final  
decision; rehearing; judicial review.  
Rule 36. (1) A proposal for decision of a contested case hearing held pursuant to  
these rules shall be served on the chief executive officer of the credit-granting  
institution or any other party.  
(2) The proposal for decision shall become the final decision of the bureau  
unless either of the following provisions is complied with:  
(a) Within 20 days from the date of service, or within  
a
period  
the  
commissioner may authorize, an adversely affected party files objections with the  
commissioner, who shall do either of the following:  
(i) Review the hearing record, proposal for decision, and objections and within a  
reasonable time after the review, issue the final decision and final order of the bureau.  
(ii) Order a hearing over which the commissioner presides and which is limited in  
scope to the issues raised in the objections, review the hearing records, and  
proposal for decision, and within a reasonable time after the review issue the final  
decision and final order of the bureau.  
(b) After the expiration of the time allowed by this rule for the filing of objections  
during which no objections are filed and within 40 days from the date of service, the  
commissioner provides notice to the parties that he or she will review the hearing record  
and proposal for decision, and within a reasonable time after the review issue the final  
decision and final order of the bureau.  
(3) Before a party may seek judicial review of a final decision and final order  
of the bureau, a motion requesting a rehearing shall be made to the commissioner in  
accordance with the administrative procedures act and a ruling on the motion shall be  
made.  
(4) Any objection that has not been raised before the commissioner shall not be  
considered by a court, unless the failure or neglect to raise the objection is excused  
because of extraordinary circumstances.  
History: 1979 AC; 1995 AACS.  
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R 445.1037 Payment of fine.  
Rule 37. If a fine is to be assessed against a credit-granting institution, it  
shall be payable to the "State of Michigan" for deposit in the general fund and shall be  
paid within 30 days from the date of the order, unless stayed by further order of the  
commissioner or an order of the circuit court that has jurisdiction over the matter.  
History: 1979 AC; 1995 AACS.  
R 445.1038 Rescinded.  
History: 1979 AC; 1996 AACS.  
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;