Michigan 1st Mortgage Broker Bond
Flat Rates & No Credit Check
| Bond Amount Required | Bond Term | Annual Premium |
| $25,000 | 1 Year | $150 |
Michigan regulates first mortgage brokers under the Mortgage Brokers, Lenders, and Servicers Licensing Act. A mortgage broker that receives funds from a prospective borrower before the mortgage loan closes must provide $25,000 in proof of financial responsibility. A corporate surety bond is one permitted method.
Cost of the Michigan 1st Mortgage Broker Bond
NNA Surety currently lists the $25,000 Michigan 1st Mortgage Broker Bond at an annual premium of $150, confirming the supplied product pricing. Complete this form.
Who Needs the $25,000 Bond?
The $25,000 financial-responsibility requirement applies to a Michigan mortgage broker that receives funds from a prospective borrower before closing. The current NMLS Michigan 1st Mortgage Broker checklist states that an applicant that does not receive borrower funds before closing may complete the Michigan exemption declaration instead of providing the $25,000 company bond.
This distinction is important: the $25,000 bond should not be described as mandatory for every Michigan 1st Mortgage Broker regardless of whether the broker handles borrower funds before closing.
How the Michigan 1st Mortgage Broker Bond Works
The corporate surety bond is a form of proof of financial responsibility required under MCL 445.1654. It is payable to the Michigan regulator, must be executed by an approved corporate surety, and must remain effective through at least the license expiration date.
Principal: Michigan 1st Mortgage Broker license applicant/licensee
Obligee: Michigan Department of Insurance and Financial Services / Commissioner
Surety: Corporate surety approved by the Michigan regulator
Learn about the surety bond claim process for general information about surety claims and principal reimbursement obligations.
License Term and Electronic Filing
Michigan DIFS states that 1st Mortgage licenses expire December 31 each year. Renewal is handled through NMLS, and Michigan uses NMLS Electronic Surety Bond tracking for required company bonds. The supplied one-year product term is consistent with the annual licensing cycle.
How to Get the Michigan 1st Mortgage Broker Bond
- Confirm whether the applicant will receive funds from prospective borrowers before closing.
- If the bond requirement applies, obtain the $25,000 company surety bond.
- Complete the online bond application.
- Complete underwriting and pay the $150 annual premium.
- Have the surety submit the Electronic Surety Bond through NMLS as required by Michigan DIFS.
Review the Michigan DIFS Mortgage Brokers, Lenders, and Servicers licensing page for current licensing resources.
Important Exemption Note
A broker that does not receive funds from prospective borrowers before closing may qualify to file Michigan's Exemption Declaration instead of the $25,000 company surety bond. Confirm the applicant's business activities before presenting the bond as mandatory.
Get Your Michigan 1st Mortgage Broker Bond
Start your Michigan 1st Mortgage Broker Bond application online. For assistance, call 855-215-2160.