Michigan Mortgage Loan Originator Bond
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How much does a mortgage loan originator bond cost in Michigan?
Individual and company mortgage loan originators are required to obtain a loan originator surety bond in the state of Michigan to conduct business. The required bond amount for your business can be determined using our bond table below - all amounts are dependent on the quantity of loans originated during the previous year.
$10,000 mortgage loan originator bonds can be purchased instantly online for a $150 premium for a one-year term. All other MI loan originator bonds are subject to underwriting consideration. The price of an originator bond is dependent on the bond amount and a review of the applicant's credit history.
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.
Mortgage Industry Surety Bonds Available 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.
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