MI HB4543

Requires foreclosing parties to serve borrowers with a written notice at least 30 days before commencing foreclosure, containing default reasons, amount owed, contact information for the mortgage holder/servicer, and borrower rights including the right to request a modification meeting and contact housing counselors.

Establishes a 90-day moratorium on foreclosure proceedings if the borrower requests a meeting to negotiate loan modification, and prohibits foreclosure if borrower and lender reach a modification agreement and borrower complies with its terms.

Requires lenders to evaluate borrowers for loan modifications using programs targeting a housing debt-to-income ratio of 38% or less, with modification options including interest rate reduction (minimum 3% for 5+ years), loan term extension (up to 40 years), principal deferral (up to 20%), or fee elimination.

Restricts housing counselor duties under the foreclosure process to those on a list developed by the Michigan State Housing Development Authority approved by HUD or MSHDA, with criminal penalties for unauthorized practice, except for licensed attorneys providing mortgage assistance.

Repeals sections 3205a-3205d effective December 31, 2012, with provisions applying only to foreclosures where the initial notice is mailed on or after February 1, 2012, and contingent on concurrent enactment of HB 4542 and HB 4544.