HB 6518 Summary

• Establishes the crime of residential mortgage fraud in Michigan, making it a felony to knowingly defraud in connection with residential mortgage lending by making false statements, concealing material facts, or using another person's misrepresentations during the mortgage process.

• Prohibits receiving proceeds from mortgage fraud, filing fraudulent documents with county registers of deeds, failing to disburse funds according to loan commitments, and conspiring to commit any of these offenses.

• Establishes penalties of up to 15 years imprisonment or $100,000 fine for standard violations, and up to 20 years imprisonment or $500,000 fine for violations involving loan amounts exceeding $100,000.

• Allows borrowers to rescind mortgage transactions within 6 months after a lender's conviction for residential mortgage fraud by providing written notice and recording it with the county register of deeds.

• Permits prosecution in any county where the mortgaged property is located, where an owner resides, or where a material act furthering the violation occurred; subjects property used in or derived from the fraud to forfeiture.