MI SB0043

Establishes the crime of residential mortgage fraud with penalties of up to 15 years imprisonment or $100,000 fine, or up to 20 years imprisonment or $500,000 fine if the loan value exceeds $100,000.

Criminalizes knowingly making false statements, misrepresentations, or concealing material facts during the mortgage lending process, including filing fraudulent documents with county registers of deeds.

Provides an affirmative defense for defendants if they maintain a written anti-fraud policy, conduct criminal background checks on employees and agents, and enforce the policy consistently.

Allows victims of residential mortgage fraud to request court orders invalidating fraudulent mortgages and other documents, which must be recorded with the county register of deeds within 6 months of conviction.

Takes effect January 1, 2012 and applies to residential mortgage loans secured by 1-family to 4-family dwellings in Michigan.