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What Is the Surety Bond Requirement for a Michigan Mortgage Broker, Lender, or Servicer?

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Michigan 1st and 2nd Mortgage Brokers, Lenders, Servicers and Loan Originators are required to apply for a license through the National Mortgage Licensing System (NMLS) and obtain a Surety Bond based on the type of licensure needed.

License requirements are as follows for mortgage brokers, lenders and servicers:

Complete the license application and pay the license and NMLS fees.

Applicants will need to provide the following: A business plan, management chart, and organizational chart.

Financial statements either prepared by a CPA or unaudited signed by an executive officer. Mortgage brokers and/or lenders must show a minimum net worth of $25,000. Mortgage broker/lender/servicers must show a minimum net worth of $100,000 or more.

If applicable, provide a Trade Name/Assumed Name Registration Certificate if using a dba or trade name. Michigan does not limit the number of assumed names.

If business is a partnership, corporation, limited liability company, provide formation documentation and a Certificate of Authority or Good Standing Certificate.

A surety bond is required for licensure. The bond amount is as follows:

  • 1st Mortgage Broker/Lender License: $25,000 surety bond
  • 1st Mortgage Broker License: $25,000 surety bond if collecting fees prior to mortgage loan closing.
    • (A bond is not required if there is no collection of money prior to the mortgage loan closing.)
  • 1st Mortgage Broker/Lender/Servicer License: $125,000 surety bond
  • 2nd Mortgage Broker/Lender License: $25,000 surety bond
  • 2nd Mortgage Broker License: $25,000 suerty bond if collecting fees prior to mortgage loan closing.
    • (A bond is not required if there is no collection of money prior to the mortgage loan closing.)
  • 2nd Mortgage Broker/Lender/Servicer License: $125,000 surety bond
  • Individual Mortgage Loan Originator License: $10,000 - $50,000 surety bond depending on volume of loans originated (for non-sponsored loan originators)
  • Company Mortgage Loan Originator License: $50,000 - $250,000 surety bond depending on volume of loans originated
  • In lieu of a surety bond, a financial security of equal value may be filed with the State.

    Provide a list of names and address for the three primary institutions that loans will be written through.

    Applicants must provide legal documentation to support 100% of direct ownership (such as stock certificates, legal agreements, etc.). If there is indirect and direct ownership, provide detailed list that reflects 100% of the ownership.

    Provide a list of all licenses held in other states by the company or an individual (including insurance license, real estate license, etc.). Also provide a list of mortgage loan originators that the applicant will sponsor.

    Provide explanations for "yes" answers to the disclosure statements and derogatory marks on credit reports. Documentation can be submitted to support the explanations.

    Mortgage servicers must provide a description of the services that will be provided and whether it will service its own loans.

    How Much Will This Bond Cost?

    The premium that you pay for a Michigan Mortgage Broker, Lender, Servicer or Loan Originator Surety Bond is dependent on credit and the bond amount needed. Bond amounts over $50,000 will require business and personal financials.

    Have Questions?

    Contact our Surety Bond Specialists at:

    Phone: 1‑844‑432‑6637
    Emailinfo@suretygroup.com
    Fax:     404-351-3237
    Hours: 8:00-5:00 CST, Monday through Friday



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