Mich. Comp. Laws » Michigan Compiled Laws / Chapter 445 / Act 173 of 1987
Michigan Compiled Laws

Mich. Comp. Laws § 445.1672 (2026)

Violations generally.

✓ current as of July 2026
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MORTGAGE BROKERS, LENDERS, AND SERVICERS LICENSING ACT


Act 173 of 1987


445.1672 Violations generally.

Sec. 22.

    It is a violation of this act for a licensee or registrant to do any of the following:

    (a) Fail to conduct the business in accordance with law, this act, or a rule promulgated or order issued under this act.

    (b) Engage in fraud, deceit, or material misrepresentation in connection with any transaction governed by this act.

    (c) Intentionally or due to gross or wanton negligence, repeatedly fail to provide borrowers material disclosures of information as required by law.

    (d) Suppress or withhold from the commissioner any information that the licensee or registrant possesses and that, if submitted, would have made the licensee or registrant ineligible for licensing or registration under this act or would have warranted the commissioner's denial of a license application or refusal to accept a registration.

    (e)  Fail to comply with 1966 PA 125, MCL 565.161 to 565.164, regulating the handling of mortgage escrow accounts by mortgagees.

    (f) Until proper disbursement is made, fail to place in a trust or escrow account held by a federally insured depository financial institution in a manner approved by the commissioner any money, funds, deposits, checks, drafts, or other negotiable instruments received by the licensee that the borrower is obligated to pay to a third party, including amounts paid to the holder of the mortgage loan, amounts for property taxes and insurance premiums, or amounts paid under an agreement that requires if the mortgage loan is not closed the amounts paid shall be refunded to the prospective borrower or if the mortgage loan is closed the amounts paid shall be applied to fees and costs incurred at the time the mortgage loan is closed. Fees and costs include, but are not limited to, title insurance premiums and recording fees. Fees and costs do not include amounts paid to cover costs incurred to process the mortgage loan application, to obtain an appraisal, or to receive a credit report.

    (g) Refuse to permit an examination or investigation by the commissioner of the books and affairs of the licensee or registrant, or has refused or failed, within a reasonable time, to furnish any information or make any report that may be required by the commissioner under this act.

    (h) To be convicted of a felony, or any misdemeanor of which an essential element is fraud.

    (i) Refuse or fail to pay, within a reasonable time, those expenses assessed to the licensee or registrant under this act.

    (j) Fail to make restitution after having been ordered to do so by the commissioner or an administrative agency, or fail to make restitution or pay damages to persons injured by the licensee's or registrant's business transactions after having been ordered to do so by a court.

    (k) Fail to make a mortgage loan in accordance with a written commitment to make a mortgage loan issued to, and accepted by, a person when the person has timely and completely satisfied all the conditions of the commitment before the expiration of the commitment.

    (l) Require a prospective borrower to deal exclusively with the licensee or registrant in regard to a mortgage loan application.

    (m) Take a security interest in real property before closing the mortgage loan to secure payment of fees assessed in connection with a mortgage loan application.

    (n) Except as provided under section 18e, knowingly permit a person to violate an order that has been issued under this act or any other financial licensing act that prohibits that person from being employed by, an agent of, or a control person of the licensee or registrant.

History: 1987, Act 173, Imd. Eff. Nov. 18, 1987 ;-- Am. 1996, Act 210, Imd. Eff. May 22, 1996 ;-- Am. 2002, Act 391, Imd. Eff. May 30, 2002

Compiler's Notes:

    For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.

Notes of Decisions
Cited in 9 cases (1 in the last 5 years), 1997–2025 · leading case: Thielen v. GMAC Mortg. Corp., 671 F. Supp. 2d 947 (E.D. Mich. 2009).
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Thielen v. GMAC Mortg. Corp., 671 F. Supp. 2d 947 (E.D. Mich. 2009). · cites it 4× “; (Count IV) fraudulent misrepresentation; (Count V) negligent misrepresentation; and (Count VI) violation of the Michigan Mortgage Brokers, Lenders, and Servicers Licensing Act (MMBLSLA), Mich. Comp. Laws § 445.1672 . (Compl. ¶¶ 19-54.”
Yaldu v. Bank of Am. Corp., 700 F. Supp. 2d 832 (E.D. Mich. 2010). · cites it 2× “Mich. Comp. Laws § 445.1661 . Additionally, the act prohibits a licensee or registrant from “[e]ngag[ing] in fraud, deceit, or material misrepresentation in connection with any transaction governed by this act.”
McCann v. U.S. Bank, N.A., 873 F. Supp. 2d 823 (E.D. Mich. 2012). · cites it 2× “; (8) declaratory relief— foreclosure barred by unclean hands; (9) breach of contract — implied duty of good faith and fair dealing; (10) violation of Michigan’s Brokers, Lenders, and Servicers Licensing Act under Mich. Comp. Laws § 445.1672 ; (11) violation of the Fan-Debt…”
Collins v. Citimortgage, Inc., 974 F. Supp. 2d 1034 (E.D. Mich. 2013). · cites it 3× “In her complaint, Collins raises the following nine claims; namely, (1) fraudulent misrepresentation; (2) violation of the Michigan Mortgage Brokers, Lenders, and Servicer Licensing Act, Mich. Comp. Laws 445.1672 et seq.; (3) breach of contract; (4) violation of the Federal Real…”
Noel v. Fleet Fin., Inc., 971 F. Supp. 1102 (E.D. Mich. 1997). “§ 445.1672. The Movants argue that Count Two must be dismissed as against them because “there is no underlying violation of federal law, nor is there any fraud or failure to disclose.”
Barkho v. Homecomings Fin., LLC, 657 F. Supp. 2d 857 (E.D. Mich. 2009). “Here, the Plaintiffs complaint contains vague and conclusory allegations without any factual predicate which ostensibly support his underlying claim. Moreover, he has not offered anything in his response which would supplement the allegations within the complaint or defend…”
Hanning v. Homecomings Fin. Networks, Inc., 436 F. Supp. 2d 865 (W.D. Mich. 2006). “§ 445.1672(b). For the reasons discussed immediately above, Plaintiffs’ assertions are contradicted by the record.”
Bruder v. Select Portfolio Servicing, Inc. (E.D. Mich. 2025). “But, as Defendant points out, no part of § 445.1672 contemplates a duty to act in good faith and fair dealing.”
Meoli v. Heartwell Mortg. Corp. (In Re Hoggard), 330 B.R. 595 (Bankr. W.D. Mich. 2005). “§ 445.1672(m) and § 493.74(2)(j). Likewise, in the Natural Resources And Environmental Protection Act (M.”
— Mich. Comp. Laws § 445.1672(b) — 1 case
Hanning v. Homecomings Fin. Networks, Inc., 436 F. Supp. 2d 865 (W.D. Mich. 2006). “§ 445.1672(b). For the reasons discussed immediately above, Plaintiffs’ assertions are contradicted by the record.”
— Mich. Comp. Laws § 445.1672(m) — 1 case
Meoli v. Heartwell Mortg. Corp. (In Re Hoggard), 330 B.R. 595 (Bankr. W.D. Mich. 2005). “§ 445.1672(m) and § 493.74(2)(j). Likewise, in the Natural Resources And Environmental Protection Act (M.”
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