The State of Michigan requires any sole proprietor or company who conducts business as a mortgage broker to be licensed through the Michigan Department of Insurance and Financial Services (DIFS). Per Michigan law, there are two types of broker licenses: 1st Mortgage Broker License and 2nd Mortgage Broker License. License applications are submitted through the Nationwide Mortgage Licensing System (NMLS), and additional requirements for Michigan can be found on the NMLS website. Licensing costs for both types of licenses are $1,050, including the NMLS processing fees, and all fees paid through the NMLS are not refundable.
As part of the licensing requirements for both types of licenses, brokers must submit a $25,000 Electronic Surety Bond through the NMLS website. This bond guarantees that the principal (mortgage broker) complies with all provisions of Michigan law and protects individuals and the state from loss or damages. If a consumer or the state incurs any losses or damages due to the principal’s failure to comply with Michigan law, a claim may be filed against the surety bond. All damages paid out by the surety must be reimbursed by the principal.
Pacific Surety is proud to offer industry low rates and quick turnaround time for quoting of Michigan Mortgage Broker bonds. Feel free to complete our simple application to obtain an approval within hours.