License-Type Bond Amounts
Bond amounts are set by license type: $25,000 for broker or broker/lender, $125,000 for combined broker/lender/servicer. MLO bonds range from $10,000 to $250,000 based on volume.
Michigan DIFSAct 173 & Act 125Same-Day Issuance
Michigan Mortgage Broker Surety Bond
Secure your Michigan first or second mortgage broker license with a surety bond from Surety One, Inc. — the nationwide leader in mortgage industry surety bonds. Company bonds from $25,000, MLO bonds from $10,000. Premiums individually determined by credit and financial review.
MI Mortgage Broker / Lender Bond
$25K – $125K
By license type • MLO bonds from $10K • Premium based on credit
Broker or Broker/Lender$25,000
Broker/Lender/Servicer$125,000
MLO (Individual)$10,000 – $50,000
PremiumBased on Credit
ObligeeMI DIFS
TurnaroundSame Day
Get Your Free Quote
Understanding Your Bond
What Is a Michigan Mortgage Broker Surety Bond?
A Michigan mortgage broker surety bond is a three-party agreement required by the Michigan Department of Insurance and Financial Services (DIFS), Consumer Finance Section, as a condition of licensure. Michigan maintains a parallel dual licensing system for first and second mortgage activities, each with its own statutory framework and bond requirements.
The Mortgage Brokers, Lenders, and Servicers Licensing Act (Act 173 of 1987) governs first mortgage licenses, while the Secondary Mortgage Loan Act (Act 125 of 1981) governs second mortgage licenses. Both require compliance with MCL Section 445.1654 and mandate surety bonds for most license types.
Michigan is unique in that mortgage brokers who do not collect pre-closing funds from borrowers may submit an exemption declaration instead of a bond. However, combination licenses (broker/lender or broker/lender/servicer) always require a bond.
The Three Parties
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PrincipalThe mortgage broker, lender, servicer, or loan originator who purchases the bond and must comply with Act 173 (first mortgage) or Act 125 (second mortgage).
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ObligeeThe State of Michigan, Department of Insurance and Financial Services (DIFS) — the entity requiring the bond and overseeing consumer finance licensing.
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SuretySurety One, Inc. — the company that underwrites and issues the bond, guaranteeing the principal's compliance with Michigan licensing law.
Important: Dual Licensing System
Michigan maintains separate first and second mortgage license categories. If you conduct both first and second mortgage activities, you may need bonds under both Act 173 and Act 125. Surety One issues all Michigan mortgage bond types and can coordinate your complete bonding package.
Bond Amount Requirements
Michigan Mortgage Bond Amounts by License Type
Bond amounts are identical for parallel first and second mortgage license types. The same amounts apply under both Act 173 and Act 125.
Company License Bonds (1st & 2nd Mortgage)
| License Type | Bond Amount | Notes |
|---|---|---|
| Mortgage Broker/Lender | $25,000 | Required for all applicants |
| Mortgage Broker (only) | $25,000 | Required only if collecting pre-closing funds; otherwise file exemption declaration |
| Mortgage Broker/Lender/Servicer | $125,000 | Combined license — bond always required |
Mortgage Loan Originator — Individual Bond
| Loan Volume (Prior 12 Months) | Bond Amount |
|---|---|
| First-time applicant or no closings in prior 12 months | $10,000 |
| Total closed loans under $12,000,000 | $10,000 |
| $12,000,000 – $24,000,000 | $25,000 |
| Over $24,000,000 | $50,000 |
Mortgage Loan Originator — Company (Sponsoring) Bond
| Total MLO Loan Volume (Prior 12 Months) | Bond Amount |
|---|---|
| Under $12,000,000 | $25,000 |
| $12,000,000 – $24,000,000 | $50,000 |
| $24,000,001 – $36,000,000 | $75,000 |
| $36,000,001 – $60,000,000 | $125,000 |
| Over $60,000,000 | $250,000 |
Financial Security Alternative
Michigan allows applicants to file a financial security of equal value in lieu of a surety bond. However, a surety bond typically requires a much smaller upfront outlay — only a fraction of the bond amount as a premium. Apply now or call (800) 373-2804.
Michigan Licensing Requirements
Key Bond & Licensing Requirements
Michigan's dual first/second mortgage system creates a complex licensing landscape. Here are the essential bonding requirements.
DIFS Consumer Finance
The obligee is the Michigan DIFS, Consumer Finance Section. Mailing: P.O. Box 30220, Lansing, MI 48909-7720. Overnight: 530 W. Allegan St., 7th Floor, Lansing, MI 48933.
Act 173 & Act 125
First mortgage bonds under the Mortgage Brokers, Lenders, and Servicers Licensing Act (Act 173 of 1987). Second mortgage bonds under the Secondary Mortgage Loan Act (Act 125 of 1981).
Financial Documentation
Applicants must provide a business plan, management chart, organizational chart, and financial statements (CPA-prepared or unaudited signed by executive officer).
NMLS Electronic Bond Filing
All surety bonds are submitted through the NMLS electronic surety bond (ESB) function. Do not mail original bonds to DIFS. Michigan fully participates in the NMLS ESB program.
December 15 Renewal Deadline
Michigan licenses expire December 31 each year. Renewals must be completed by December 15. Quarterly Mortgage Call Reports (MCR) must be filed through the NMLS.
Consumer Protection
What Does This Bond Protect Against?
The Michigan mortgage broker surety bond guarantees faithful compliance with all provisions of the applicable Act. The bond is payable to the State and any injured person for:
Act Violations
Any failure to conform to and comply with the provisions of Act 173 (first mortgage) or Act 125 (second mortgage) and all rules and regulations adopted by the DIFS Director.
Fraud & Misrepresentation
Acts of fraud, breach of trust, or misrepresentation by the licensee or its employees that cause financial injury to borrowers or loan applicants.
Unpaid Obligations
Payment of any money due or owing to the State of Michigan and to any person from the licensee by virtue of the provisions of the applicable Act.
Borrower Fund Mishandling
Mishandling of pre-closing funds received from prospective borrowers — the primary reason Michigan requires bonds for brokers collecting pre-closing payments.
How It Works
Get Your Michigan Mortgage Broker Bond in 4 Steps
Surety One makes obtaining your Michigan mortgage broker surety bond fast and straightforward. Most bonds are issued the same business day.
Apply Online
Complete our mortgage broker bond application online or call us at (800) 373-2804. There's no cost and no obligation.
Get Your Quote
Our underwriters review your application and provide a competitive premium quote, typically within hours. We work with all credit profiles.
Purchase & Sign
Accept your quote, complete the indemnity agreement, and pay your premium. We issue the bond on the appropriate Michigan DIFS form.
Filed via NMLS
Surety One files your electronic surety bond through the NMLS ESB platform. Your bond is immediately active for your Michigan license application or renewal.
Understanding Your Premium
How Is My Premium Determined?
Your premium — the actual amount you pay — is a percentage of your required bond amount. You do not pay the full bond amount. Your rate is individually determined through underwriting review.
| Underwriting Factor | How It Affects Your Premium |
|---|---|
| Required Bond Amount | Your license type determines the bond amount ($25K–$125K for companies, $10K–$250K for MLO bonds). Higher amounts result in higher premiums. |
| Personal Credit Score | Your FICO score is a primary factor. Stronger credit profiles generally qualify for lower premium rates. |
| Financial Statements | Bond amounts over $50,000 typically require personal and business financial statements for underwriting purposes. |
| Industry Experience | Your professional history in the mortgage industry may be considered as part of the risk assessment. |
| Claims History | Any prior surety bond claims or regulatory actions may influence the terms offered. |
Every Applicant Receives a Personalized Quote
Because premiums are individually determined, the only way to know your exact cost is to apply. Surety One provides free, no-obligation quotes — and we decline no application. We offer non-standard programs for applicants with impaired or limited credit. Apply now or call (800) 373-2804 for your personalized quote.
Common Questions
Michigan Mortgage Broker Bond FAQ
Michigan mortgage brokers or broker/lenders need a $25,000 bond. Combined broker/lender/servicer licensees need $125,000. MLO bonds range from $10,000 to $50,000 (individual) or $25,000 to $250,000 (company). Your premium is a percentage of that amount, individually determined by credit and underwriting review. Apply for a free, no-obligation quote from Surety One.
If you hold a broker-only license (first or second mortgage) and do not receive funds from prospective borrowers before closing, you may submit an exemption declaration instead of a surety bond. However, if you hold a broker/lender or broker/lender/servicer combination license, the bond is always required regardless of whether you collect pre-closing funds.
Michigan maintains separate licensing systems: first mortgage licenses under Act 173 of 1987, and second mortgage licenses under Act 125 of 1981. Bond amounts are identical for parallel license types ($25,000 for broker/lender, $125,000 for broker/lender/servicer). If you conduct both first and second mortgage business, you may need bonds under both acts. Surety One issues both bond types.
The Michigan Department of Insurance and Financial Services (DIFS), Consumer Finance Section, requires the bond. Contact the Consumer Finance Licensing Unit at (877) 999-6442 or difs-cf-licensing@michigan.gov for licensing questions. All bonds are filed electronically through the NMLS.
Michigan mortgage broker surety bonds are continuous in term. The surety may terminate the bond by giving 60 days' written notice to the principal and the Director of DIFS — one of the longest cancellation notice periods of any state. The bond remains in full force and effect until the 60-day period expires.
Yes. Surety One declines no application. We offer non-standard surety bond programs for applicants with impaired credit, limited credit history, or other underwriting challenges. Premium rates for non-standard credit will be higher, but we work to find terms that fit each applicant's situation.
MLOs who are not covered under a company (sponsoring) MLO bond must obtain their own individual MLO surety bond. The individual bond amount ranges from $10,000 to $50,000 based on the volume of loans closed in the previous 12 months. If a company provides a sponsoring MLO bond, individual MLOs covered by that bond do not need their own.
Michigan mortgage licenses expire December 31 each year. Renewals must be completed by December 15 through the NMLS. All surety bonds and riders are submitted through the NMLS electronic bond function — do not mail original bonds to DIFS. Failure to renew timely may result in late fees and inability to conduct mortgage transactions.
The Surety One Advantage
Why Choose Surety One, Inc.?
Surety One is a national surety leader specializing in the bonding needs of mortgage professionals across all 50 states, Puerto Rico, and the U.S. Virgin Islands.
MI Mortgage Bond Specialists
We specialize in all Michigan mortgage bonds — first and second mortgage company bonds, individual MLO bonds, and company sponsoring MLO bonds. We know Acts 173 and 125 inside and out.
Same-Day Issuance
Most Michigan mortgage broker bonds are issued the same business day. Our 24/7/365 underwriting team provides guaranteed same-day feedback on every submission.
A+ BBB Rated
Surety One carries an A+ rating with the Better Business Bureau in both our U.S. and Puerto Rico offices, reflecting our commitment to client satisfaction and ethical practices.
All Credit Accepted
We decline no application. Our non-standard programs provide access to bonding for applicants with damaged or limited credit histories. Everyone gets a fair review.
Multi-State Expertise
Operating in multiple states? We streamline your bonding across all 50 states with a single point of contact, ensuring compliance with each state's unique dual-system requirements.
Free Quotes, No Obligation
Application review and quoting are always free. There is no obligation to purchase. Contact us by phone, email, or live chat to explore your options.
