Section 445.1601 - Definitions. - Michigan Statutes

MORTGAGE LENDING PRACTICES (EXCERPT)
Act 135 of 1977

445.1601 Definitions.

Sec. 1.

As used in this act:

(a) “Annual percentage rate” means the rate as computed under the federal truth in lending act, 15 U.S.C. 1601 to 1677.

(b) “Commissioner” means the commissioner of the financial institutions bureau of the department of commerce.

(c) “Credit granting institution” means a state or nationally chartered bank, a state or federally chartered savings and loan association, a state or federally chartered credit union, Michigan state housing development authority, or a business entity making or purchasing mortgage loans, which has a main office, branch office, or service center doing such business within the state of Michigan.

(d) “Home improvement loan” means a loan secured or unsecured to be used for the purpose of repairing, rehabilitating, or remodeling an existing residential dwelling designed for occupancy by 4 or fewer families, as stated by the borrower in the loan application and as recorded on the books of the credit granting institution.

(e) “Loan application” means a written application for a mortgage loan or home improvement loan.

(f) “Loan contract” means a contract for a mortgage loan or home improvement loan.

(g) “Mortgage loan” means a loan secured by a mortgage on real property designed for occupancy by 4 or fewer families, including individual units of condominiums and cooperatives, a refinancing of an existing mortgage loan on real property designed for occupancy by 4 or fewer families involving an increase in the outstanding balance of the principal due, or a loan secured by a junior lien on real property designed for occupancy by 4 or fewer families undertaken for any purpose. Mortgage loan does not include construction financing, purchase of an interest in a pool of mortgage loans, or an extension of the maturity of an existing mortgage loan not involving an increase in the unpaid principal due.

(h) “Neighborhood” means either of the following:

(i) A census tract as defined by the United States bureau of the census in census of population, if located within a standard metropolitan statistical area as defined by the United States office of management and budget.

(ii) An area which is designated by a single zip code number under the zoning improvement plan of the United States postal service, if located outside a standard metropolitan statistical area as defined by the United States office of management and budget.

History: 1977, Act 135, Eff. July 1, 1978