MI HB5552

Allows lenders to charge prepayment fees on mortgage loans secured by single-family dwellings when the loan is made primarily for business purposes, removing the current restriction that limits prepayment penalties to 1% within the first 3 years for all such loans.

Reorganizes existing consumer protections by separating the prohibition on prepayment penalties (for personal, family, or household loans) from the prohibition on blocking prepayment entirely, which continues to apply to all loans.

Updates statutory citation formats throughout the bill, changing references from older Michigan Compiled Laws citation styles to current MCL format and updating federal code citations.

Modernizes language by replacing outdated terms like "shall" with "must" or "does" and "which" with "that" throughout the interest rate statute.

Maintains all existing protections for consumer mortgage loans, including the 1% maximum prepayment penalty within 3 years and no penalties thereafter for loans made for personal, family, or household purposes.