Michigan Mortgage License Bonds

Michigan Mortgage License Bonds

The Department of Insurance and Financial Services (DIFS) manages the licensing of mortgage brokers, lenders, servicers, and mortgage loan originators, as well as the sponsoring of mortgage loan originators in the State of Michigan. 

To qualify for and maintain a license, a surety bond is required by the DIFS—either a First Mortgage Broker/Lender/Servicer Bond, Secondary Broker/Lender/Servicer Bond, Mortgage Loan Originator Bond (Individual), or a Mortgage Loan Originator Bond (Sponsoring Company). 

QUOTE

Jet Insurance Company provides the surety bonds listed above to act as a financial assurance to the DIFS that the mortgage professional will abide by the regulations of their license. If the licensee commits a violation that causes financial damages, funds from the bond may be used as a means of restitution for the claimant. 

What Is Jet’s Lowest Price for a Mortgage License Bond?

According to the DIFS, both the First and Second Mortgage Broker/Lender/Servicer Bond limits are determined by the specific license type of the applicant. A $25,000 limit is required of mortgage brokers and lenders, while a $125,000 limit is mandated of mortgage servicers.

At Jet, prices for surety bonds are a small fraction of the bond’s limit and are based on a soft credit check of the applicant. So let’s say you are seeking a license as a mortgage broker, this means you will be required to hold a $25,000 bond limit. In this case, Jet’s rates start at $94 for a one-year term or just $9 per month. 

Bond LimitMonthly1-Year
$25,000$9$94
$125,000$47$469
MI First and Second Mortgage Broker, Lender, and Servicer Bonds Pricing

As for the Mortgage Loan Originator Bond (Individual), the bond limit is determined by the DIFS and is based on the qualifications found in the following form FIS 2135. If you qualify for the minimum $10,000 limit, Jet’s rates start at an affordable $50 for a one-year term or $5 a month. 

Additional bond limits and Jet’s preferred tier rates can be found in the following price chart. 

Bond LimitMonthly1-Year
$10,000$5$50
$25,000$9$94
$50,000$19$188
MI Mortgage Loan Originator-Individual Bond Pricing

Similarly to the surety bond above, the amount of the Mortgage Loan Originator Bond (Sponsoring Company)is determined by the DIFS and is based on the qualifications found in the following form FIS 2137. Let’s say you are seeking a $50,000 limit, Jet’s rates are available at $188 for a one-year term or you can choose to make a convenient payment of $19 per month.

Further examples of required bond limits and Jet’s preferred tier rates can be viewed in the chart below. 

Bond LimitMonthly1-Year
$50,000$19$188
$150,000$56$563
$250,000$94$938
MI Mortgage Loan Originator-Company Bond Pricing

Michigan Mortgage License Bonds Details

The Michigan Department of Insurance and Financial Services utilizes the Nationwide Multistate Licensing System and Registry (NMLS) for the administration of mortgage broker, mortgage lender, mortgage servicer, and mortgage loan originators licenses, as well as the filing of surety bonds. So once you purchase one of the various Michigan Mortgage License Bonds with Jet, it must be filed with the NMLS. 

Jet can handle filing your bond for you! We just need you to grant us permission to act as your designated surety company with the NMLS (Jet Insurance Company NAIC #16379). If you are unsure how to do this, the NMLS breaks it down within the Electronic Surety Bond for Licensees webpage.

In Michigan, mortgage licenses expire on December 31st of each year (renewals are due by December 15th). To ensure you experience a seamless license renewal with the DIFS, select the renewal button at the bottom of the page for more information. 

If you are in need of further details on the mortgage industry, licensure processes in multiple states, and applicable surety bond regulations, take a look at Jet’s comprehensive Mortgage License Bonds Guide.

How to Renew My Bond

For annually-purchased bonds, see Jet’s process to renew your bond. Hint- it’s simple.

How to Cancel My Bond

See the details surrounding cancelling your bond (a 60-day cancellation clause applies).

Bond Claim Process

Mortgage professionals need to be aware of what causes a claim and what happens after a claim is made.

Michigan First Mortgage Broker/Lender/Servicer Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: