Mortgage broker bond cost
The amount of coverage you need for your Michigan mortgage loan originator bond will be based on your loan volume in the previous year. The cost an applicant will pay for the bond depends on your loan volume as well. If you are a first-time licensee doing under $12 million in loan volume a year, you can purchase this bond instantly without a credit check for just $100!
If you are doing more than $12 million in loan volume a year, your bond will be subject to underwriting consideration and your bond cost will be determined based on your credit history. Applicants with strong financial credentials can expect to pay just 1-5% of the required bond amount!
Why this bond
Michigan mortgage loan originator surety bonds ensure that the principal (mortgage loan originator) will conform to and comply with each provision of the Michigan Mortgage Loan Originator Licensing Act. For example, the act specifically prohibits mortgage loan originators from engaging in fraud, deceit, or material misrepresentation in regard to mortgage transactions, as well as failing to disclose information to borrowers as required by law.
Any consumer who suffers a financial loss as a result of a Michigan mortgage professional’s unethical and unlawful behavior can make a claim against the mortgage originator’s bond. The state can also make a claim against the bond to recoup losses. The principal would be required to reimburse the surety for any claims paid out.
Mortgage loan originator bond details
If the Commissioner determines after an investigation that the experience, character, business reputation and general fitness of the applicant and its officers, directors, shareholders, partners and affiliates do not meet the standards required by law, the commissioner has the right to revoke the license and surety bond.
Applicants must know their National Mortgage Licensing System identification number in order to properly fill out the Michigan mortgage loan originator surety bond form.
This bond type is required by the Michigan Office of Insurance and Financial Regulation and expires annually on December 31. It is unlawful to include a cancellation clause in this bond, which releases the principal and the surety from the bond before the expiration date.
Apply for your surety bond
Get a FREE Michigan Mortgage Loan Originator Bond Quote Today! Click here to begin