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How Much Does a Michigan Mortgage License Bond Cost?
In Michigan, the cost of a mortgage broker or broker/lender license bond is between $250 and $2,500. Other types of mortgage industry surety bonds cost from $1,000 to $25,000. These costs are based on bond amounts of $10,000 to $250,000.
Instead of paying the full bond amount, your bond can be purchased through a surety company at a premium. Our authorized Michigan surety company offers bond rates between 1% and 10%. The applicant’s credit rating, fixed and liquid assets, and professional resume determine the rate.
With a credit score of 700 or higher, the applicant qualifies for a rate of 1% to 3%. With a 600 to 699 score, the premium rate ranges between 3% and 5%. A premium rate of 5% to 10% applies to lower credit scores.
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Surety Bond Cost Based on Credit Score |
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|
Surety Bond Name |
Surety Bond Amount |
Over 700 |
Between 600 - 699 |
Below 599 |
|
Michigan Mortgage Broker/Lender Bond |
$25,000 |
$250 - $750 |
$750 - $1,250 |
$1,250 - $2,500 |
|
Michigan Mortgage Broker/Lender/Servicer Bond |
$125,000 |
$1,250 - $3,750 |
$3,750 - $6,250 |
$6,250 - $12,500 |
|
Michigan Mortgage Loan Originator Bond - Individual |
$10,000 |
$100 - $300 |
$300 - $500 |
$500 - 1,000 |
|
Michigan Mortgage Loan Originator Bond - Individual |
$10,000 |
$100 - $300 |
$300 - $500 |
$500 - 1,000 |
|
Michigan Mortgage Loan Originator Bond - Individual |
$25,000 |
$250 - $750 |
$750 - $1,250 |
$1,250 - $2,500 |
|
Michigan Mortgage Loan Originator Bond - Individual |
$50,000 |
$500 - $1,500 |
$1,500 - $2,500 |
$2,500 - $5,000 |
|
Michigan Mortgage Loan Originator Bond - Company |
$50,000 |
$500 - $1,500 |
$1,500 - $2,500 |
$2,500 - $5,000 |
|
Michigan Mortgage Loan Originator Bond - Company |
$150,000 |
$1,500 - $4,500 |
$4,500 - $7,500 |
$7,500 - $15,000 |
|
Michigan Mortgage Loan Originator Bond - Company |
$250,000 |
$2,500 - $7,500 |
$7,500 - $12,500 |
$12,500 - $25,000 |
How to Get a Michigan Mortgage License Bond
1. Apply for Your Surety Bond Online
With our short online application, applying for your new surety bond only takes a few minutes. We have been servicing Michigan’s surety needs for over a decade, and our bond experts are happy to answer your questions about the application.
Ella needed a mortgage broker bond to get licensed in Michigan, and she recently contacted us because of our fast, easy process. From applying online and receiving her bond quote instantly to making the premium payment online, Ella set up her bond quickly and finalized her mortgage broker license application.
2. Review Your Bond Quote
When you choose our trusted surety company for your mortgage license bond, you will not wait long for a quote. Our customers usually receive an instant quote after applying. For more challenging situations, we provide bond quotes within 48 hours.
3. Pay Your Bond Premium Online
To wrap up your bond purchase, simply make your premium payment online. Your bond will be prepared quickly and emailed directly to you. Upon request, our team can mail the bond to you as well.
We actively support our valued customers with their bond purchase. Whether you need assistance with your application or have other questions, we are available to help. For assistance from our bond experts, please contact us or call us at (877) 514-5146.
Start your surety bond application. 100% money-back guarantee!
Mortgage Broker, Lender, Servicer and Originator License Bond Requirements in Michigan
The Michigan Office of Consumer Finance is the authority for mortgage broker, lender, servicer and originator licenses. Licensing bond requirements apply to those working with both first and second mortgages. Registrants for second mortgage brokers, lenders and servicers also must be bonded.
The bond requirement is $25,000 for mortgage brokers and lenders. In the case of mortgage brokers, this applies only when loan fees are collected prior to closing. A mortgage broker, lender & servicer license requires a $125,000 bond.
The loan originator's bond requirement is $10,000 for first-time applicants, and for others, it's based on loan volume, ranging from $10,000 to $50,000 for individuals:
|
Michigan Mortgage Loan Originator Bond - Individual |
|
|
Loan Origination Amount |
Surety Bond Amount |
|
up to $12 million |
$10,000 |
|
$12 to $24 million |
$25,000 |
|
over $24 million |
$50,000 |
And ranging $25,000 to $125,000 for companies:
|
Michigan Mortgage Loan Originator Bond - Company |
|
|
Loan Origination Amount |
Surety Bond Amount |
|
up to $12 million |
$50,000 |
|
$12 to $24 million |
$150,000 |
|
over $24 million |
$250,000 |
To maintain the surety bond, the premium must be paid annually. To assist with your bond’s maintenance, we will contact you annually with payment instructions.
The Department of Insurance and Financial Services is the obligee. The bond is continuous, and it may be canceled by the surety. To do so, the obligee must provide the principal and the Department of Insurance and Financial Services with a 60-day written notice.
We can help you get the necessary bond for your Michigan mortgage broker license. For additional assistance, contact the Department of Insurance and Financial Services at (517) 284-8800.
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What Our Clients Have To Say?
Quick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!
Quick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!
