MI SB0932

Requires mortgage brokers and lenders to disclose to borrowers at application whether they may assign, sell, or transfer mortgage loan servicing at any time during the loan term.

Mandates written notice to borrowers at least 15 days before servicing transfer (or within 30 days in cases of contract termination for cause, bankruptcy, or conservatorship proceedings), including transferee contact information, payment transition dates, and effects on insurance coverage.

Exempts transfers from timing requirements if lender provides notice at loan closing disclosing the intent to transfer servicing.

Allows borrowers, prosecutors, and the attorney general to sue for violations, recovering actual damages or $250 minimum for general violations, or actual damages or $1,500 minimum for notification violations, plus attorney fees and costs.

Permits licensees to limit damages to actual damages only if they establish the violation was not willful, intentional, or the result of gross or wanton negligence.

Effective date: July 31, 2010.