Michigan has updated its mortgage loan originator (MLO) licensing provisions to expressly exempt from licensure certain individuals involved in loss mitigation and modification services. The revision makes Michigan law consistent with applicable federal law, which exempts loss mitigation employees from licensing under the federal SAFE Act.

Specifically, the law exempts any individual who acts as, or is an employee of, a mortgage servicer that offers or negotiates the terms of residential mortgage loans for the purpose of renegotiating, modifying, replacing, or subordinating the principal of existing residential mortgage loans. Note that the exemption does not apply to any such individual who offers or negotiates the terms of a residential mortgage loan transaction that constitutes a refinancing under 12 CFR 1026.20(a) or that obligates a different consumer to pay the existing residential mortgage loan.

The provision is effective immediately.