Allows prepayment penalties on certain mortgage loans made for business purposes in Michigan.

This bill amends Michigan's consumer credit laws to allow lenders to impose prepayment penalties on certain mortgage loans made for business purposes. Specifically, it allows lenders to charge a prepayment fee or penalty of up to 1% of the amount of any prepayment made within 3 years of the loan date, or any prepayment fee or penalty thereafter. The bill also allows lenders to require borrowers to maintain an interest-bearing account for biweekly payments.

Allows prepayment penalties on certain mortgage loans made for business purposes in Michigan.

This bill amends Michigan's consumer credit laws to allow lenders to impose prepayment penalties on certain mortgage loans made for business purposes. Specifically, it allows lenders to charge a prepayment fee or penalty of up to 1% of the amount of any prepayment made within 3 years of the loan date, or any prepayment fee or penalty thereafter. The bill also allows lenders to require borrowers to maintain an interest-bearing account for biweekly payments.