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 requested by an  
applicant are mailed within a reasonable time after receipt of the request.  
History: 1979 AC; 1995 AACS.  
Page 1  
R 445.1003 Rescinded.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.  
R 445.1010 Rescinded.  
History: 1979 AC; 1996 AACS.  
Page 2  
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.  
R 445.1019 Rescinded.  
History: 1979 AC; 1996 AACS.  
Page 3  
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.  
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  
Page 4  
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.  
R 445.1026 Rescinded.  
History: 1979 AC; 1996 AACS.  
R 445.1027 Rescinded.  
History: 1979 AC; 1996 AACS.  
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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.  
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.  
Page 6  
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.  
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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