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).
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.
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.
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.
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.
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.