A Michigan 1st Mortgage Broker/Lender Bond is required by the State of Michigan Department of Insurance and Financial Services. It is a type of surety bond and required to the required license. The licensing is processed through the Nationwide Mortgage Licensing System (NMLS). The license application and more information on license requirements can be found there. The license is required of:
Any sole proprietor or company who, directly or indirectly, makes or offers to make 1st lien mortgage loans. This includes any sole proprietor or company that closes 1st lien mortgage loans in its own or assumed name.
1st lien mortgage loan means a loan secured by a 1st lien position mortgage on real property located in Michigan and used, or improved for use, as a dwelling and designed for occupancy by 4 or fewer families or a land contract covering real property located in this state used, or improved for use, as a dwelling and designed for occupancy by 4 or fewer families.
The condition of the Michigan 1st Mortgage Broker/Lender Bond provides that the broker will comply with the provisions of Act No. 125 of the Michigan Public Acts of 1981, as well as the regulations set forth by the Department of Insurance and Financial Services of the State of Michigan. The surety bond protects the State and the public if the principal (licensee) violates the terms of the bond.
License Fees and Requirements:
- Michigan 1st Mortgage Broker/Lender Bond in the amount of $25,000.
- Minimum net worth of $25,000 if collecting fees prior to mortgage loan closing
- Minimum net worth of $15,000 if NOT collecting fees prior to mortgage loan closing
- FBI Criminal Background Check
- Credit Check
- MU1 (Company Form)
- Disclosure Questions
- Financial Statements
- Certificate of Authority/Good Standing Certificate
How to obtain a Michigan 1st Mortgage Broker/Lender Bond
At surety1.com we make it easy to obtain the required surety bond. Our simple 3 step process is:
- Apply for the bond using our easy to navigate and secure online application. 1
- Review the free, no obligation quote from one of our surety bond professional agents, usually within 1 business day
- Sign some paperwork and make payment (all major credit cards accepted).
That’s it. Once these 3 simple steps are completed, the Michigan 1st Mortgage Broker/Lender Bond will be filed electronically by Surety1.com with directly with the NMLS.
1 The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Surety1.com is the premier online provider of surety bonds nationwide since 2003. We also maintain an A+ rating from the Better Business Bureau.
Click to Visit our State-by-State Guide to Mortgage industry Surety Bonds