Michigan 2nd Mortgage Broker Bond
Flat Rates & No Credit Check
| Bond Amount Required | Bond Term | Annual Premium |
| $25,000 | 1 Year | $150 |
Michigan regulates second mortgage brokers under the Secondary Mortgage Loan Act. A broker that receives funds from a prospective borrower before the closing of a secondary mortgage loan must provide $25,000 in proof of financial responsibility. A corporate surety bond is one permitted method.
Cost of the Michigan 2nd Mortgage Broker Bond
NNA Surety currently lists the $25,000 Michigan 2nd Mortgage Broker Bond at an annual premium of $150, confirming the supplied product pricing. Complete this form.
Who Needs the $25,000 Bond?
Under Michigan's Secondary Mortgage Loan Act, the $25,000 proof-of-financial-responsibility requirement applies to a broker that receives funds from a prospective borrower before the closing of the secondary mortgage loan. The requirement also applies to a lender, but this PDP is specifically for the broker product.
Because the statute ties the broker requirement to handling borrower funds before closing, this bond should not be presented as universally required for every Michigan second mortgage broker without confirming the applicant's activities and licensing status.
How the Michigan 2nd Mortgage Broker Bond Works
The corporate surety bond serves as proof of financial responsibility. It is payable to the Michigan regulator, must be executed by an approved corporate surety, and cannot expire before the applicable license or registration expires.
Principal: Michigan 2nd Mortgage Broker licensee or registrant
Obligee: Michigan Department of Insurance and Financial Services / Director
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 2nd Mortgage licenses and registrations expire December 31 each year and must be renewed annually. Michigan uses NMLS Electronic Surety Bond tracking, so required company bonds, riders, and related surety filings are submitted electronically through NMLS.
How to Get the Michigan 2nd Mortgage Broker Bond
- Confirm the applicant's Michigan second mortgage broker licensing or registration status.
- Determine whether the broker receives funds from prospective borrowers before closing and therefore must provide $25,000 in proof of financial responsibility.
- 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.
Review the Michigan DIFS 2nd Mortgage License/Registration FAQ for current renewal and electronic surety bond instructions.
Important Applicability Note
The $25,000 amount is accurate for the statutory broker financial-responsibility requirement when the broker receives borrower funds before closing. Confirm the applicant's activities before describing the bond as mandatory in every case.
Get Your Michigan 2nd Mortgage Broker Bond
Start your Michigan 2nd Mortgage Broker Bond application online. For assistance, call 855-215-2160.