The Michigan Mortgage Servicer Bond is required by the Department of Insurance and Financial Services. This is a type of surety bond and the bond amount is $125,000. There is a separate license for Mortgage Broker/Lender/Servicer Licenses, each requiring a Michigan Mortgage Servicer Bond. The application for license is administered by the Nationwide Mortgage Licensing System (NMLS) and the surety bond is filed electronically with the NMLS.
What is a Mortgage Servicer?
According to the state of Michigan, a mortgage servicer is:
Any sole proprietor or company who, directly or indirectly, services or offers to service subordinate mortgage loans. “Service” means the collection or remittance for a lender, note owner, or note holder or a licensee’s own account of 4 or more installment payments of the principal of, interest of, or an amount placed in escrow under a secondary mortgage loan, mortgage servicing agreement, or an agreement with a mortgagor.
Entities that are FHLMC, FNMA, or GNMA approved servicers do not need to obtain this license.
What are other licensing requirements to become a Mortgage Servicer?
Individuals can apply for a license on the Nationwide Multistate Licensing System and Registry (NMLS) website. Payment of the $1,000 application fee and the $450 investigation fee per application must be submitted. In addition, applicants mush show a minimum net worth of $100,000. Before receiving a Mortgage Servicer license a criminal background check will be conducted.
How to obtain a Michigan Mortgage Servicer Bond
At surety1.com we make it easy to obtain your surety bond. Our process is as follows:
- Apply for the bond using our easy to navigate and secure online application form 1
- Receive your free, no obligation quote from one of our surety bond professional agents2
- Sign some documents and make payment (all major credit cards accepted)
Once these steps have been completed, the Michigan Mortgage Servicer Bond will be filed electronically 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.
2. Given the size of the surety bond, additional underwriting information may be required to obtain the most competitive rate for the bond. Your agent will work with you during this process.
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.