Mortgage brokers and lenders in Michigan are regulated by the state’s Office of Financial and Insurance Services.
One of the prerequisites for licensing is that a broker/lender furnish the state with evidence of having filed a surety bond in one of two amounts.
AmeriPro Surety Bonds offers this surety bond as both a new (first time) or renewal surety bond.
Once purchased, your mortgage broker/lender surety bond will be filed electronically with the commissioner.
Michigan Mortgage Broker/Lender Bond: Amount Required And From Whom
If you, as a mortgage broker or lender, will accept money from customers before closing loans, you are required to furnish, electronically, a $25,000 surety bond.
If you are a 2nd mortgage broker/lender, then you will be required to obtain a $125,000 surety bond.
The premium for the Michigan mortgage broker/lender bond will, of course, depend on the amount of the surety bond you are purchasing ($25k or $125k), information provided on your surety bond application (the $125, because of its amount, is a more detailed application), and your credit score.
As a broad and very general rule, an applicant with good credit may pay as little as under $400 for the $25,000 surety bond; and potentially just under $2,000 for $125,000.
However, we emphasize that the amount that you will pay may differ substantially from these figures.
Once issued, the bond is active until December 31st of the year in which the bond is issued.
A current and active surety bond must always remain on file as a condition of licensing.
The Michigan mortgage broker/lender bond is a financial guarantee required of you, but for the benefit of the state of Michigan and its residents.
Specifically, the bond is a financial guarantee that you will be in compliance with all statutes regulating your professional conduct, and that, moreover, you will pay any monies that are due (445.1654 #2)
More generally, the bond protects against acts of theft, fraud, negligence committed by your company or any agents and employees who act on your behalf.
The benefit, again, is for the commissioner and the people of the state of Michigan, not your brokerage/lending firm.
AmeriPro Surety Bonds is a surety bonds only agency. We provide license and permit, contractor, court, and fiduciary surety bonds throughout Michigan.
Our agency also provides surety bonds nationwide.
Please call AmeriPro Surety Bonds today at:
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