Michigan requires many different kinds of surety bonds to allow certain professionals, contract workers, and businesses to operate within the state. Specifically, Michigan requires bonding for:
All bonds listed above are required statewide. In each case, the bond coverage amount is set by a state regulatory authority, usually at a fixed value. However, in the case of the mortgage loan originator bond, the bond amount can vary from $10,000 to $250,000 depending on the loan volume of your business.
If you need a surety bond to comply with Michigan bonding regulations, we can help. NNA Surety Bonds has been providing reliable bond policies to companies and individuals across the United States since 1957. For more information about Michigan bond requirements, speak with one of our bond experts.
Collection agencies are required to obtain a surety bond by the Michigan Department of Licensing and Regulatory Affairs (LARA). The bond coverage amount is $5,000 for the first year of licensing. After your first year, the bond amount can range from $5,000 to $50,000, depending on your debt collections for the previous year. For approved applicants, the bond premium ranges from $100 to $500 based upon your credit rating.
The Michigan Department of Insurance and Financial Services requires first mortgage brokers and lenders to acquire a $25,000 bond in order to be licensed to do business. For approved applicants, the annual premium for this surety bond can be as low as $188. The term “first" here refers to the loan having first lien position on real property in Michigan.
If your company or sole proprietorship is also a loan servicer, the MI Department of Insurance and Financial Services requires a $125,000 bond. Approved applicants can pay an annual premium of $938 for this bond based on a credit check.
Mortgage loan originators in Michigan must post a bond in an amount determined by loan volume, according to the MI Department of Insurance and Financial Services. The bond coverage amount can range from $10,000 (for first-time individual licensees) to $250,000 (for sponsoring companies with loan volume exceeding $24 million). Note, this surety bond is for individual mortgage brokers/originators as opposed to mortgage companies.
Commonly known in other states as a motor vehicle dealer bond or car dealer bond, the $10,000 Michigan uniform vehicle dealer bond is required by the Michigan Department of State when you apply for your Michigan dealer license. Please note that in Michigan, this bond, including required coverage amounts and costs, is also the same as a vehicle broker bond. Annual premiums for this bond begin as low as $100 based on your credit rating.
|Bond Name||Coverage Amount||Cost|
|Collection Agency Bond||$5,000–$50,000||$100–$500*||MI Dept. of Licensing and Regulatory Affairs (LARA)|
|First Mortgage Broker Bond||$25,000||$188||MI Dept. of Insurance and Financial Services|
|First Mortgage Servicer Bond||$125,000||$938||MI Dept. of Insurance and Financial Services|
|Mortgage Originator Bond||$10,000–$250,000||Varies*||MI Dept. of Insurance and Financial Services|
|Uniform Vehicle Dealer Bond||$10,000||$100*||MI Dept. of State|
* Cost can vary depending on the bond amount required and your credit rating
Our detailed knowledge of Michigan bond requirements enables us to provide accurate quotes quickly. For guidance through the process of selecting surety bonds, whether you are starting a new business or renewing an existing policy, contact our experts today.