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Rep. Berman testifies on pair of bills in House Financial Services Committee
RELEASE|March 7, 2019

Plans address cryptocurrency, foreclosure processes

State Rep. Ryan Berman, of Commerce Township, recently testified on his legislation protecting those wishing to re-purchase their foreclosed properties and updating the Michigan Penal Code to reflect technological advancements.

House Bill 4105, part of a bipartisan package, expands the embezzlement definition within state law to include cryptocurrency to protect Michigan consumers.

Cryptocurrency first started to appear in the United States in the early 1990s, but its popularity has taken off due to a surge in online business and the ease and unregulated nature of online exchange. Several major merchants across the country now accept digital forms of currency. Cryptocurrency is not officially recognized as a form of money, so loopholes have naturally arisen within the law – which specifically defines a transfer of money in certain crimes.

“My bill does not add any additional crimes or penalties. It merely updates the definition to add specificity so if there is intent to do wrong with a digital form of currency involved, we have a way to administer justice in Michigan,” said Berman, who serves on the House Financial Services Committee.

Berman’s other bill, HB 4226, sets a fee limit that can be charged to original owners of foreclosed properties when assisting with calculating the amount needed to redeem the property.

Current law allows for a redemption period for a property sold at foreclosure during which a former owner may regain ownership. This is done by paying a fee to the person who bought the property at a foreclosure sale. That total takes several things into account, including the entire amount of the original sale, mortgage interest accrued since the sale, assessments of liens, existing back taxes and other miscellaneous fees.

Berman explained when testifying before the committee that a third party can be hired to calculate the fee.

“That third party has the ability now to charge any amount and that amount has to be paid for the process of re-attaining the property to continue. There’s no way to negotiate the amount and these are homeowners that in many cases are already going through financial hardships.”

Berman’s plan sets an upfront limit of $200 for the assistance fee.

“This is a simple, uniform limit that can make the process work more smoothly and fairly,” Berman said.

The proposals remain under consideration in the House Financial Services Committee.

PHOTO INFORMATION: State Rep. Ryan Berman, of Commerce Township, offers testimony before the House Financial Services Committee on Wednesday, March 6.

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