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Michigan Mortgage Loan Originator (MLO) License Surety Bonds
The Mortgage Loan Originator Licensing Act 2009 provides for the licensing and regulation of individuals and companies originating mortgage loans in the state of Michigan. Prior to operating in this capacity, the licensee must register with the state and follow their licensing requirements which includes, posting a Mortgage Loan Originator surety bond for the protection and to the benefit of the state or any person(s) who may have a cause of action against the above Principal under the provisions of Act No. 75, Public Acts of 2009, as amended. Actions like fraud, deceit, or material misrepresentation in connection with any transaction governed by this act would be covered under the terms of the surety bond.
What is a Mortgage Loan Originator?
A mortgage loan originator is an individual who for a fee takes a residential mortgage loan application and/or offers or negotiates terms to secure a residential mortgage loan, who is not an employee of a depository financial institution or a subsidiary of a depository financial institution.
What amount MLO Surety bond do I need in the state of Michigan?
There are 2 separate bond requirements for Mortgage Loan Originators in the state of Michigan:
- FIS 2135, which is for Individuals that are not covered under a sponsored company.
- FIS 2137, which is for sponsoring companies which will cover multiple MLO's.
The bond requirements for individuals who are not covered under a sponsored company are as follows:
| Bond Amount Required | Total Loans Originated (per calendar year) |
| $10,000 | Initial licensing or less than $12 million |
| $25,000 | $12 million - $24 million |
| $50,000 | $24 million or more |
The bond requirements for sponsoring companies are as follows:
| Bond Amount required | Total Loans Originated (per calendar year) |
| $50,000 | $0 - $12 million |
| $150,000 | $12 million - $24 million |
| $250,000 | $24 million or more |
How much does a Michigan Mortgage Loan Originator bond cost?
Surety bond rates can fluctuate for a number of reasons: creditworthiness, financial strength and experience will typically be the deciding factors. MLO bonds in the state of Michigan start at 1% of the required bond amount for qualifying accounts. Rates can go higher if there are issues with the applicants credit or financial strength. Applicants with credit issues are no problem as we have programs that will still provide an approval for an increased fee. Let our professionals get the bond you need at the best price by completing our online application today!