The Michigan Mortgage Loan Originator Bond, is a type of surety bond and is required by the Office of Financial and Insurance Regulation as part of the license application. While the license application is administered by the Nationwide Mortgage Licensing System (NMLS), the bond itself is filed manually with the Michigan Department of Financial and Insurance Services. 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 the 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.
Who Is Required To Have This License?
Licensed mortgage loan originator” means a mortgage loan originator who holds a valid license issued by the commissioner under this act.
This license is required of any individual, who for compensation or gain or in the expectation of compensation or gain takes a residential mortgage loan application, offers or negotiates terms of a residential mortgage loan, and who is not an employee of a depository financial institution or a subsidiary of a depository financial institution.
To obtain the required license one must provide a Michigan Mortgage Loan Originator Bond.
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:
Bond Amount: Required – as determined below:
- $10,000 – if the individual is applying for a loan originator license for the first time.
- $10,000 – if the individual is currently licensed as a loan originator that did not close any mortgage loans in the preceding calendar year, or the sum of the principal amounts of mortgage loans closed by the mortgage loan originator in the preceding calendar year is less than $12,000,000.
- $25,000 – if the sum of the principal amounts of mortgage loans closed by the licensed mortgage loan originator in the preceding calendar year is $12,000,000 or more and less than $24,000,000.
- $50,000 – if the sum of the principal amounts of mortgage loans closed by the mortgage loan originator in the preceding calendar year is $24,000,000 or more.
There are 2 Michigan Mortgage Loan Originator Bond forms, one for Individuals and the other for the sponsoring company.
How to Obtain this Surety Bond
At Surety1.comm we make it easy to obtain the required Michigan Mortgage Loan Originator Bond. Our simple 3 step process is:
- Apply for the bond using our easy to navigate and secure online application1.
- Review your free, no obligation quote from one of our surety bond professional agents, usually within one business day.
- Sign some paperwork and make payment (all major credit cards accepted).
(1) The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
Once these steps have been completed, the surety bond will be shipped via tracible mail (overnight shipping is available). After the bond is signed by the bond principal (license applicant), it needs to be submitted to the DIFS.
DIFS – Consumer Finance
PO Box 30220
Lansing MI 48909-7720
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