HB 6448 Summary

• Establishes the "Student Loan Servicer Licensing Act" requiring persons to obtain a license from the Department of Insurance and Financial Services to service student education loans in Michigan.

• Applicants must submit financial statements audited by a certified public accountant, criminal history information, and pay a $1,000 license fee plus $800 investigation fee to the director.

• Exempts depository institutions (banks, credit unions, savings banks) and their wholly-owned subsidiaries from licensing requirements.

• Prohibits licensed servicers from engaging in fraud, deceptive practices, misapplying payments, providing inaccurate credit information, or failing to comply with federal student loan servicing laws.

• Grants the director authority to investigate, examine, and suspend or revoke licenses for violations, impose fines up to $3,000 per violation, and require restitution; requires annual reporting to legislature on implementation.