Michigan: Seller financer is a “mortgage lender”
Land Contracts are specifically covered by the Michigan Mortgage Brokers, Lenders, and Servicers Licensing Act [MBLSLA ] and, unless otherwise exempt, a business entity that brokers, makes loans on, or services land contracts is required to obtain the appropriate license or registration under the act. The seller providing the seller financing is a “mortgage lender” as defined under Section 1a(q) of the MBLSLA. The seller must be licensed as a lender unless a licensing exemption in Section 25 of the MBLSLA applies An exemption for lenders with limited activity is provided in Section 25(g), which states “This act does not apply to the following: (g) A mortgage lender that in the aggregate with any affiliates makes 10 or fewer mortgage loans in a 12 –month period from January 1 to December 31.”
