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Michigan Mortgage Loan Originator Bond

Bond Requirements and Online Application

The Michigan Mortgage Loan Originator Bond is required by the Office of Financial and Insurance Regulation. The bond ensures that the bond holder will conform to and comply with each and every provision of Act No. 75, Public Acts of 2009, and all rules and regulations lawfully enforced by theMichigan Mortgage Loan Originator Bond Commissioner of the Office of Financial and Insurance Regulation of the State of Michigan.  The bond amount varies with the minimum amount being $10,000. The minimum bond amount for a sponsor is $50,0000.  The bond is in place to protect the public and the State of Michigan, it is not “insurance” for the benefit of the mortgage originator.

What is a Mortgage Loan Originator in Michigan?

Licensed mortgage loan originator” means a mortgage loan originator who holds a valid license issued by the commissioner under this act.

Mortgage loan originator” means an individual who originates residential mortgage loans and meets all of the following:

  • Is not an individual engaged solely as a loan processor or underwriter except as otherwise provided in section 5(3).
  • Is not a person who only performs real estate brokerage activities and is licensed or registered under the laws of this state, unless the person is compensated by a lender, a mortgage broker, or other mortgage loan originator or by any agent of a lender, mortgage broker, or other mortgage loan originator.
  • Is not a person solely involved in extensions of credit relating to timeshare plans, as that term is defined in 11 USC 101(53D).
  • “Originate” means do any of the following for compensation or gain, or in the expectation of compensation or gain, in connection with a residential mortgage loan:
    • Take a residential mortgage loan application.
    • Offer or negotiate terms of a residential mortgage loan.

What Size Michigan Mortgage Loan Originator Bond Do I need?

Each non-sponsored mortgage loan originator must provide to the commissioner a surety bond that meets the requirements below:

  •  If the mortgage loan originator did not originate any mortgage loans in the preceding calendar year, or the sum of the principal amounts of mortgage loans originated by the mortgage loan originator in the preceding calendar year is less than $12,000,000.00, as determined by the commissioner, $10,000.00.
  • If the sum of the principal amounts of mortgage loans originated by the mortgage loan originator in the preceding calendar year is $12,000,000.00 or more and less than $24,000,000.00, as determined by the commissioner, $25,000.00.
  • If the sum of the principal amounts of mortgage loans originated by the mortgage loan originator in the preceding calendar year is $24,000,000.00 or more, as determined by the commissioner, $50,000.00.

If a mortgage loan originator is an employee or exclusive agent of a sponsor and that sponsor provides the commissioner with a surety bond that  the commissioner may accept that surety bond in lieu of the mortgage loan originator’s surety bond . The amount of a surety bond provided under this subsection will cover all the sponsor’s mortgage loan originators in 1 Michigan Mortgage Loan Originator Bond of the following amounts:

  • If the sum of the principal amounts of mortgage loans closed or modified by the sponsor in the preceding calendar year is less than $12,000,000.00, as determined by the commissioner, $50,000.00.
  • If the sum of the principal amounts of mortgage loans closed or modified by the sponsor in the preceding calendar year is $12,000,000.00 or more and less than $24,000,000.00, as determined by the commissioner, $150,000.00.
  • If the sum of the principal amounts of mortgage loans closed or modified by the sponsor in the preceding calendar year is $24,000,000.00 or more, as determined by the commissioner, $250,000.00

How much does a Michigan Mortgage Loan Originator Bond cost?

While we cannot provide a firm quote without an application, the premium for this type of bond can be as low as 3/4% of the bond amount, subject to the minimum premium. Surety1 offers an easy to use, online application and it is free to apply and receive a free, no obligation quote. We are rated A+ by the Better Business Bureau .  Surety1 has been providing Michigan Mortgage Originator Bonds since 2003.

 

How to Get Your Michigan Mortgage Loan Originator Bond

1. Complete an online application. It's free and no-obligation. 2. One of our surety experts will contact you with a firm quote and an agreement to sign. 3. Provide payment and your signed agreement, and then you will receive your Michigan Mortgage Loan Originator Bond!   If you have any questions, please call us at 877-654-2327.
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