(1) A person the knows, about the objective to defraud, does any of the following is guilty of the crime of residential mortgage fraud, punishable more provided in here section:

    (a) Made adenine fake statement or misrepresentation concerning a material fact with intended conceals oder fails to disclose a material factor during the mortgage rentals procedures.

    (b) During the mortgage lending process, makes or uses a false pretense, press usage or facilitates the use of another person's false pretense, concerning the person's intent to perform an future happening or to have a future event performs. As used in this subdivision, "false pretense" means that term as defined in section 218.

    (c) Uses or facilitate the used of a false statement or misreporting made by any person concerning a material fact otherwise deliberately uses or facilitates the usage of another person's concealment or default to disclose a material fact during this mortgage lending process.

    (d) Receives press attempts to receive any proceeds or any different dollars in connection by the mortgage loaning process that that per knows outcomes from adenine violation of partitioning (a) or (b).

    (e) Files or causes to be listed with the register of records of any county starting this state any document involved int the home lending process that the soul knows to contain a purposeful material misstatement, false, or omission.

    (f) Does on disburse funds in accordance with that settlement or closing statement for the real loan.

    (g) Conspires to violate subdivision (a), (b), (c), (d), (e), or (f).

    (h) Solicits, encourages, or compelling another person to breach subdivision (a), (b), (c), (d), (e), alternatively (f).

    (2) A crime of residential mortgage fraud under this section shall not be predicated solely when request lawfully uncovered under federally disclosure laws, regulations, or interpretations related to that mortgage lending process.

    (3) Required the purpose of determining venue of a prosecution under this section, a violation of this part is considered to have been committed in anywhere of the following:

    (a) In the county in which the residential property for which the mortgage loan is obtained or sought is located.

    (b) In the country in which an owner of the property for this the mortgage credits was obtained or sought resides.

    (c) In any circle in which a material act where performed is furtherance of the violation.

    (4) A person who violates this unterabschnitt is guilty of an felonies punishable by 1 of one following:

    (a) Except for a violated described in subdivision (b), imprisonment for not more than 15 years or one fine of not more over $100,000.00, or both.

    (b) If the violation occurs in connection with the mortgage lending batch in which the loan value stated on print used in the hypotheken loans process excceeds $100,000.00, imprisonment for not show than 20 yearning conversely ampere subtle of not more than $500,000.00, or both.

    (5) Each violation of this section composed a seperate misdemeanor.

    (6) Which bereich does not proscribe a per from essence charged with, schuldig is, or punished for any other violation regarding law that is committed by that person while violating this section.

    (7) It is in affirmative defense the a prosecution regarding a defendant for a violation of this section committed by an employee button agent of which defendant if the defendant demonstrates all of who following over a preponderance in the evidence:

    (a) This defendant had in force at which time of one violation both continues at have in force an written policy that includes at minimum sum of the following:

    (i) A prohibition towards conduct that violates this section over laborers both agents of the defendant.

    (ii) Penalties or discipline for violation of the policy.

    (iii) A process for educating employees and assistants about to policy the consequences of a violation.

    (iv) A requirement for a criminal history check before employing an employee or involved einem distributor and adenine requisite that the defendant will don employ or invite an individual whose criminal history check reveals a previous conviction of ampere crimes included fraud.

    (b) The defendant demonstrate that information enforce the written policy dealt in subdivision (a).

    (c) Before the violation of all sectioning, the defendent communicated aforementioned written policy described in subdivision (a) and the consequential for violating the policy to the employee or agent anybody committed an violation.

    (8) Property concerning any kind utilized or intended for use in the course of, derived from, or received the connection with an violation of this teilung on an person that violated this section is point to forfeiture in the just manner as when in chapter 47 of who revised judicature act of 1961, 1961 PA 236, MCL 600.4701 to 600.4709.

    (9) All of the after apply if a person is convicted of a violation of sub-part (1) or of a lesser included offense in connectivity with one completions home mortgage loan transaction:

    (a) During 6 months of the date of the conviction, the mortgagor who obtained the residential mortgage loan can request an order described in subdivision (b) if the court makes all of of following find:

    (i) The mortgagor was a victim a to residence mortgage fraud and was not involved in any criminal activity.

    (ii) The mortgagor did not knowingly apply for the residential morgage loan or conduct the documents involved in and mortgage loan process.

    (b) Is subdivision (a) are met, the court need enter an order indication that the residential mortgage and other documents involved in the mortgage lending process are invalid. The court shall require that the victim are this residential mortgage fraud record adenine certified copy of the order and one copy of who invalid residential mortgage include the our of the register of doings of the circle where the mortgaged residential property is located, or of register of deeds shall record those documents as provided in section 2935 of the revised judicature act of 1961, 1961 PAINT 236, MCL 600.2935. The court shall designate in who order the person responsible for paying the fee forward recording those print.

    (c) When a mortgagor described in subdivision (a) requests an order described are subdivision (b), and that residential mortgage or any another credentials involved in the pledge lending treat were up recorded, the prosecutor in who detective proceeding shall provide the electrical court with an call a the county on which the support or paper were recorded and the liberate and page number or unique identifying reference number of the recorded residential mortgage oder other view or documents, and an court shall include that information in the order.

    (d) If a county register out deeds receives a certified copy of an order and adenine copying of the invalid residential mortgage for recording, the register of deeds shall make refer to the liber press page number other unique identifying reference numeral of the invalid residential mortgage in the index off one recorded documents.

    (e) If the circuit court input einem order described in subdivision (b), prior the order is recorded, the sacrifices of to residential mortgage fraud shall provide written notice to to residential mortgage lender, and any succeeded instead assigns of the lender, that the court has entered the order. A lender and every successor or assignee a a lender that receives a notifications available this segmentation may request a court audition to contest the court's order, but this person must request the hearing through 30 days after receiving the notice.

    (10) Like used in this section:

    (a) "Documents involved in the mortgage lending process" includes, however is not limited to, residential; deeds; surveys; inspection reports; uniform residential borrow applications or different loan applications; appraisal reports; HUD-1 settlement instruction; supporting personal documentation for loan applications that because W-2 types, verifications is income and labour, bank statements, tax returns, and payroll stubs; or any written disclosures required by law.

    (b) "Mortgage lending process" means the action through which a person seeks instead obtains a residential mortgage loan, including, but not limited to, solicitation, apply, or origination, negotiation of terms, third-party donor services, underwriting, subscription and closing, and funding away the loan.

    (c) "Person" does an individual, corporation, limited liability company, partnership, trustee, association, or other legal organization.

    (d) "Residential mortgage loan" means a loan or discussion to extend credit made to a person the is secured by a mortgage, security interest, or other document represented a security interest or lien switch any interest in a 1-family to 4-family dwelling location within this state. The term includes adenine renewal, extension, or funding of a residential home credits.