MI SB1518

Creates a new crime of residential mortgage fraud under Michigan law, with prosecution requiring knowing intent to defraud during the mortgage lending process.

Establishes criminal penalties of up to 15 years imprisonment and/or $100,000 fine for residential mortgage fraud; increases to 20 years imprisonment and/or $500,000 fine if the stated loan value exceeds $100,000.

Prohibits false statements, misrepresentations, concealment of material facts, use of others' false statements, receipt of proceeds from violations, filing fraudulent documents with county registers, failing to disburse funds per loan commitments, and conspiracy to commit these acts.

Allows borrowers to rescind mortgage transactions within 6 months of a lender's conviction under this section by providing written notice and recording notice with the county register of deeds.

Property used in or derived from residential mortgage fraud violations is subject to forfeiture; violations can be prosecuted in any county where the property is located, where an owner resides, or where a material act occurred in furtherance of the violation.