Michigan 2nd Mortgage Broker, Lender, and Servicer Bond
Flat Rates & No Credit Check
| Bond Amount Required | Bond Term | Annual Premium |
| $125,000 | 1 Year | $750 |
Michigan regulates second mortgage brokers, lenders, and servicers under the Secondary Mortgage Loan Act. An applicant acting as a mortgage servicer must provide $125,000 in proof of financial responsibility. A corporate surety bond is one permitted method of satisfying this requirement.
Cost of the Michigan 2nd Mortgage Broker, Lender, and Servicer Bond
NNA Surety currently lists the $125,000 Michigan 2nd Mortgage Broker, Lender, and Servicer Bond at $750 for a one-year term. NNA states that no credit check or financial documents are required for this product. Complete this form.
Why Is the Bond Amount $125,000?
Michigan's Secondary Mortgage Loan Act establishes two financial-responsibility levels. A broker that receives borrower funds before closing, or a lender, is subject to a $25,000 amount. A servicer is subject to a $125,000 amount. Because this product includes servicing authority, the applicable bond amount is $125,000.
How the Michigan 2nd Mortgage Bond Works
The bond is conditioned on the licensee or registrant conducting business in accordance with the Secondary Mortgage Loan Act and applicable rules, and on payment of money that becomes due to borrowers, secondary mortgage loan applicants, and the Michigan regulator.
Principal: Michigan 2nd Mortgage Broker/Lender/Servicer 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 and riders are submitted electronically through NMLS.
How to Get the Michigan 2nd Mortgage Broker, Lender, and Servicer Bond
- Complete the online bond application through the NNA/Propeller affiliate link.
- Provide the requested business and personal information. NNA states that no credit check or financial documents are required for this product.
- Pay the $750 annual premium.
- Receive the bond and complete the applicable NMLS electronic surety bond process.
- Maintain qualifying coverage for the duration of the Michigan license or registration.
Review the Michigan DIFS 2nd Mortgage License/Registration FAQ and Michigan Secondary Mortgage Loan Act for current requirements.
Get Your Michigan 2nd Mortgage Broker, Lender, and Servicer Bond
Start your Michigan 2nd Mortgage Broker, Lender, and Servicer Bond application online. For assistance, call 855-215-2160.