MI SB0462

Establishes the "Mortgage Loan Originator Licensing Act" requiring individuals to obtain and maintain annual licenses from the Commissioner of Financial and Insurance Regulation to originate mortgage loans on dwellings in Michigan, effective July 31, 2010.

Requires applicants to complete prelicensing education (minimum 20 hours including federal law, ethics, and nontraditional mortgage training), pass a written test with 75% score, undergo FBI criminal history checks, and meet financial responsibility standards before licensure.

Mandates annual continuing education (minimum 8 hours) for license renewal and establishes surety bond requirements ranging from $10,000 to $50,000 based on annual mortgage loan volume closed.

Exempts registered mortgage loan originators employed by depository institutions and federal banking agencies, family member transactions, residential property sales by owners, and licensed attorneys performing ancillary representation.

Grants the commissioner authority to deny, suspend, or revoke licenses, impose civil fines up to $25,000 per violation, issue cease-and-desist orders, and require restitution for violations; establishes fraud prohibition orders with potential 5-year suspensions.