Presentation on theme: "MCUL – Key State Issues Blight Penalties: Senate Bills 35-39 would create additional criminal and civil penalties for accumulated blight tickets issued."— Presentation transcript:
MCUL – Key State Issues Blight Penalties: Senate Bills 35-39 would create additional criminal and civil penalties for accumulated blight tickets issued by qualified municipalities. At MCUL’s urging, the Senate Judiciary Committee has exempted financial institutions and GSEs from the new penalties. With the carve out, credit unions and their officials will be protected from unnecessary civil sanctions and criminal liability related to blight they did not cause and are trying to correct. The bills have been signed into law by the Governor. Inspection of Foreclosed Homes: Following passage of the timed repeal of the state 90-day workout law and implementation of a new right to inspect homes that are purchased at foreclosure sales during the redemption period, HB 5527 was introduced to: place common-sense parameters on inspections to protect borrowers and institutions and better define “damage”; fix provisions on the right to cure damage; narrow the universe of parties allowed to redeem; and provide legal presumptions to reinforce accountability for borrowers that abandon property in redemption. The bill has been signed into law by the Governor. Card Skimming: House Bills 5050-5054 harmonize existing criminal sanctions for card skimming into one felony provision, tweak jurisdictional statutes to ease prosecution for skimming offenses, and to criminalize the sale or possession of skimming devices. Credit unions lose tens of thousands annually to skimming, impacting members and the share insurance fund. The bills have been signed into law by the Governor. Uniform Commercial Code (UCC) Article 9 Penalties: Senate Bill 551 reforms the penalties for non-compliance with Article 9’s provisions, which deal with secured transactions – for certain consumer goods transactions, existing penalties can be extremely high, with no rational tie to the underlying problem, and have given rise to potential class actions in other states. Senate Bill 551 would place more common sense parameters on statutory penalties, allow deficiencies to offset the penalties, and clarify errant case law on allowing pursuit of deficiency when an error has been made. The bill has been signed into law by the Governor.
MCUL – Key State Issues Recording Process / Certified Copies in Lieu of Lost Documents: House Bills 4638-4640 have been introduced to rectify a U.S. Bankruptcy Court decision that disallowed the practice of using a copy of a lost document certified by an affidavit to satisfy recording requirements and preserve chain of title on properties. Passage of the legislation will also shore up any lingering questions on the veracity of electronic signatures for electronically recorded documents. The bills have passed the House and have been reported by the Senate Banking & Financial Institutions Committee. Homestead Exemption (PRE) on Foreclosed Properties: House Bills 4135 and Senate Bills 532 have been introduced to allow financial institutions to realize the benefits of the PRE on foreclosed properties for up to three years. Current law allows institutions to file and claim the exemption, but they still must pay the higher-rate, non-PRE tax through a different route. Passage of the legislation would provide relief from the additional 18 mills of non-PRE tax, on properties where credit unions already have to pay back taxes, repair costs, and carrying costs until the home is re-sold. SB 532 has been reported by the Senate Finance Committee, and HB 4135 has passed the House and also been reported by the Senate Finance Committee. Campaign Finance Reporting Relief Threshold: For over a decade, MCUL state PAC fundraising has been hampered by MCFA requirements for specific donor information reporting for any donation, no matter how small. Senate Bill 661 has been amended to provide absolute clarity that MCULAF may solicit from credit union members, and to provide relief from reporting formats for required information on small donations, which may enable more aggressive grassroots fundraising. The bill has been signed into law by the Governor.
MCUL – Key State Issues Electronic Vehicle Titling and Lien Release: The Secretary of State has initiated Senate Bills 915-918 to centralize and make electronic Michigan’s system for title-holding for vehicles (cars, boats, manufactured, etc.) and for lien checking and release. The measure should help significantly with regard to fraud prevention and detection rooted in the current paper-based system where owners hold the actual title document on lien-encumbered collateral. The bills have passed the Senate. Squatting: House Bills 5069-5071 have been introduced to provide relief to landlords executing self-help eviction from liability where the targets are squatters, make squatting a felony, and amend the criminal matrix to account for penalties. Squatting is a serious blight-related problem, and the legislation provides a start for discussions on how to curb the issue. The bills have passed the House, and have been reported by the Senate Judiciary Committee. Scrap Metal Reforms: House Bills 4593 and 4595 would create tougher standards for the scrap metal industry with regard to purchase and payment on scrap material, to help curtail a serious and growing issue with metal theft. The bills have been signed into law by the Governor. In addition to the specific items mentioned above, MCUL will also be working on several miscellaneous defensive measures, including restrictions on ATM benefits dispensed through bridge cards by machines located at liquor stores or adult entertainment establishments (enacted); heightened requirements for notaries engaged in real property transactions; various reforms to Michigan’s Uniform Commercial Code Articles 3, 4, and 4a (enacted); anti-”patent trolling” legislation; accountability for retailers in a data breach situation; CUSO mortgage origination clarifications; and joint account disclosures.