How much does a mortgage loan originator bond cost in Michigan?
The cost of your Michigan mortgage loan originator bond is based on the amount of the bond, which is determined by the quantity of loans originated during the previous year. If you are a first-time licensee doing under $12 million in loan volume a year, you may qualify to purchase a $10,000 bond instantly for as little as $150.
If you are doing more than $12 million in loan volume a year, your bond will be subject to underwriting consideration and your bond cost will be determined based on your credit history. Applicants with strong financial credentials can expect to pay 1-3% of the required bond amount.
Applicants with less-than-stellar credit can still qualify for the bond they need when they work with SuretyBonds.com.
|Bond Type||Bond Amount||Cost|
|$10,000 Mortgage Loan Originator Bond Individual first-time licensee or loan volume is less than $12 million||$10,000||$150|
|$25,000 Mortgage Loan Originator Bond Individual whose loan volume between $12 million-$24 million||$25,000||$375|
|$50,000 Mortgage Loan Originator Bond Individual whose loan volume exceeds $24 million||$50,000||$750|
|$50,000 Mortgage Loan Originator Bond Company whose loan volume is less than $12 million||$50,000||Starts at $500|
|$150,000 Mortgage Loan Originator Bond Company whose loan volume is between $12 million-$24 million||$150,000||Starts at $1,500|
|$250,000 Mortgage Loan Originator Bond Company whose loan volume exceeds $24 million||$250,000||Starts at $2,500|
If you’re ready to get bonded, call SuretyBonds.com at 1 (800) 308-4358 or fill out our online bond request form. Our experts will walk you through the bonding process and provide you with a free surety bond quote quickly and easily!
Why are mortgage loan originators bonded?
Michigan mortgage loan originator surety bonds ensure that the mortgage loan originator will conform to and comply with each provision of the Michigan Mortgage Loan Originator Licensing Act. For example, the act specifically prohibits mortgage loan originators from engaging in fraud, deceit, or material misrepresentation in regard to mortgage transactions, as well as failing to disclose information to borrowers as required by law.
Any consumer who suffers a financial loss as a result of a Michigan mortgage professional’s unethical and unlawful behavior can make a claim against the mortgage originator’s bond. The state can also make a claim against the bond to recoup losses. The principal would be required to reimburse the surety for any claims paid out.
Loan originator bonds are required by the Michigan Office of Insurance and Financial Regulation and they expire annually on December 31. It is unlawful to include a cancellation clause in this bond, which releases the principal and the surety from the bond before the expiration date.
If you’re ready to get the bond you need, submit a bond request, and one of our experts will contact you right away!
How do I get licensed as a Michigan mortgage loan originator?
The process to get licensed as a mortgage loan originator in the state of Michigan must be completed using the National Mortgage Licensing System (NMLS) database and includes the following steps:
complete at least 20 hours of pre-licensure education approved by NMLS
pass either the SAFE test or the National Test Component with Uniform State content
pay licensing fees
submit Individual Form (MU4)
authorize NMLS to conduct a criminal background and credit report check
answer disclosure questions
provide a company sponsorship and your employment history
Once you’ve finished the above steps for obtaining a mortgage loan originator license, you are required to mail proof of a surety bond purchase to the Michigan Department of Financial and Insurance Services. Applicants must know their National Mortgage Licensing System identification number in order to properly fill out the Michigan mortgage loan originator surety bond form.
The commissioner of Michigan has the right to revoke the license and surety bond if, after a thorough investigation, it is determined that the experience, character, business reputation and general fitness of the applicant and its employees, partners and affiliates do not meet the standards required by law.
SuretyBonds.com is prepared to offer you a mortgage loan originator bond quote at no cost through our expedited bonding process!
Mortgage Industry Surety Bonds Avaiable Nationwide
Many states have their own surety bond requirements for mortgage professionals. This means mortgage professionals who work in several states often have multiple surety bonds. Use the map below to learn more about mortgage bonds in other states.
Or, choose your state from the list below:
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- Washington D.C.
- West Virginia