Michigan’s 90 Day Law Sunsets as Governor Gives Amended Foreclosure Package Final Consideration 

After weeks of contentious debate, the full House and Senate passed amended foreclosure reform bills before breaking for summer recess. The package of bills is designed to transition Michigan from the state’s 90-day pre-foreclosure law into the CFPB mortgage servicing laws, which become effective in January. As part of the package, those institutions subject to the national settlement would have to follow a new in-person meeting requirement.  Additionally, a new right of inspection would be created for properties after sheriff’s sale and during the redemption period, and if damage has occurred on a property or is imminent, a purchaser at sale could bring an action for summary possession and extinguish any remaining redemption period.

As observers await the governor’s decision on the package, however, the June 30 sunset for 90-day pre-foreclosure law has now passed, which means the program is repealed and the portions of the package attempting to extend the sunset to fill the gap until the CFPB rules become effective are likely moot. However, should all the bills in the package still be signed, the tie-barring language in the bills should still allow the in-person requirement for the national settlement banks and the right of inspection piece to become law.


Submissions to Monitor may be emailed. Bryan Laviolette is the editor of Monitor. Contact him by email or call (800) 262-6285, ext. 233. The newsletter of the Michigan Credit Union League is published Monday mornings or Tuesday mornings when Monday is a holiday. There is no Monitor the week after Christmas and the week after the Annual Convention and Exposition. The MCUL reserves the right to edit submissions for clarity and space.
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