Michigan Loan Originator and Broker Bonds
What is a Michigan Mortgage Loan Originator or Broker Bond?
Mortgage Broker, Lender, Loan Originator and Servicer Bonds are required as part of the licensing process for Michigan mortgage professionals in order to comply with provisions of the Michigan Mortgage Loan Originator Licensing Act. The bonds ensure that the bonded party will comply with the rules, regulations and guidelines established by the state of Michigan and the Director, Department of Insurance and Financial Services of the State of Michigan. The bond is conditioned upon the principal's compliance with the provision of Michigan Act No. 173, Public Acts of 1987. Furthermore, the bond guarantees payment of monies due to the state or any person by virtue of the provisions of the Act. Typically, mortgage professionals will be required to apply for surety bonds in each state in which they operate and mortgage bond amounts and obligations vary by state. As a leading mortgage bond provider, Surety Bonds Direct is here to help you through this process.
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Why is a Michigan Mortgage Broker Bond Required?
The Mortgage Surety Bond conditions include compliance with all provisions of the Michigan Mortgage Licensing Acts, and all rules and regulations lawfully promulgated thereunder by the Director, Department of Insurance and Financial Services of the State of Michigan. The bonded principal is also obligated to pay all monies that may become due or owing to the State and to such person or persons as required by virtue of provisions of the Act.
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Mortgage Loan Officer Bond Amounts
- $10,000 if you are applying for a loan originator license for the first time.
- $10,000 if you are 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.