Michigan does not attach a statewide surety bond to the LARA Residential Builder or Maintenance and Alteration Contractor license. Those credentials are still required for most residential work over the Occupational Code threshold, but bonding—if any—comes from cities and counties, not from a statewide license surety published here. Statewide instruments in this Resource Center come from other programs: the Michigan Department of State for vehicle dealer surety under MCL 257.248; LARA Bureau of Professional Licensing for collection-agency surety under MCL 339.907 and R 339.4007; the Department of Insurance and Financial Services for mortgage broker, lender, and servicer financial responsibility under the first- and secondary-mortgage acts and for mortgage loan originator surety under MCL 493.159; and the Secretary of State / county clerks for the $10,000 notary bond under MCL 55.273. Bid, performance, and payment bonds for individual jobs remain project instruments.
Michigan · Surety Bond Resource Center
Michigan surety bonds
Michigan’s statewide license bonds sit with a handful of agencies. The Department of State requires a $25,000 vehicle dealer bond for Class A, B, and D dealers. Licensing and Regulatory Affairs (LARA) collection agencies post a surety or cash bond between $5,000 and $50,000 under Occupational Code § 907 and the R 339.4007 schedule. The Department of Insurance and Financial Services (DIFS) mortgage company financial responsibility under the first- and secondary-mortgage acts uses $25,000 for a broker who receives pre-closing borrower funds or a lender, and $125,000 for a servicer—a broker who does not receive those funds and is not a lender is outside that $25,000 class. Individual mortgage loan originators follow a separate volume-based surety under MCL 493.159. Notaries file a $10,000 bond with the county clerk under the Michigan Law on Notarial Acts. LARA residential builder and maintenance-and-alteration licenses are statewide credentials without a verified statewide license bond; city and county contractor bonds remain local.
Michigan at a glance
- Vehicle dealer (Class A / B / D)
- $25,000
- Collection agency
- $5,000–$50,000
- Mortgage broker / lender / servicer
- $25,000 / $125,000
- Notary public
- $10,000
MCL 257.248; SOS dealer manual and DIFS Bulletin 2023-06-INS.
MCL 339.907 and R 339.4007 average-monthly-business table; $10,000 repossession floor.
$25,000 if broker receives pre-closing funds or is a lender; $125,000 for servicers (MCL 445.1654 / 493.56).
MCL 55.273; county clerk filing; licensed MI attorneys exempt from bond.
How it works in this state
How Michigan bonding is organized
Michigan bond directory
Find your bond requirement
These guides cover license and permit bonds with verified educational content. Your agency notice or application checklist is always the final authority.
- Motor Vehicle Dealer BondLicense & permitMichigan Department of State — Business Licensing Section$25,000File the Secretary of State–approved bond; renewal certificates allowedRenew with dealer license; 30-day SOS cancellation notice
- Collection Agency BondLicense & permitLicensing and Regulatory Affairs (LARA) — Bureau of Professional Licensing (collection agencies)$5,000–$50,000 by average monthly businessSurety bond or cash bond filed with Licensing and Regulatory AffairsKeep in force while licensed; 30-day department cancellation notice
- Mortgage Broker / Lender / Servicer BondLicense & permitDepartment of Insurance and Financial Services — Consumer Finance$25,000 / $125,000 by activityFile electronically through NMLS for first-mortgage licenses; surety or letter of credit (first-lien deposit options separately)File with license/renewal; NMLS electronic surety for first-mortgage licenses
- Mortgage Loan Originator BondLicense & permitDepartment of Insurance and Financial Services — Consumer Finance$10,000–$250,000 by volumeIndividual Form FIS 2135 or sponsoring-company Form FIS 2137, filed with DIFSKeep continuous; replace after claim recovery; sponsors file quarterly coverage reports
- Notary Public BondLicense & permitMichigan Department of State — Office of the Great Seal / county clerks$10,000File with the county clerk of residence or expected appointmentMaintain for commission term; 60-day cancellation notice to notary, SOS, and county clerk
Who sets the requirement?
Michigan licensing agencies
Each agency below sets its own bond requirement. Open the related guide for amounts and filing steps.
Michigan Department of State — Business Licensing (dealers)
Licenses vehicle dealers and receives the MCL 257.248 Class A, B, and D surety bond.
Open related guide →LARA — Bureau of Professional Licensing (collection agencies)
Licenses collection and repossession agencies and receives MCL 339.907 surety or cash bonds.
Open related guide →Department of Insurance and Financial Services — Consumer Finance
Licenses mortgage brokers, lenders, servicers, and mortgage loan originators and receives financial-responsibility and MLO surety filings.
Open related guide →Michigan Department of State — Office of the Great Seal / county clerks
Appoints notaries; county clerks receive the $10,000 surety bond and administer the oath.
Open related guide →Before you apply
Confirm these details from the agency notice
Bring these five items when you request a bond. For the full checklist, see how to read a bond requirement.
- 1
Who requires it
Confirm whether you need SOS dealer surety, a LARA collection-agency bond, DIFS mortgage company or MLO coverage, or a county-clerk notary bond.
- 2
Bond title or form
Use the SOS-approved dealer bond, LARA-prescribed collection bond, DIFS/NMLS mortgage company bond or FIS 2135/2137 MLO forms, or a Michigan-licensed notary surety for county filing.
- 3
Required amount
Match $25,000 dealer; collection $5,000–$50,000 (or $10,000 repossession floor); mortgage $25,000 for brokers receiving pre-closing funds or lenders and $125,000 for servicers; MLO individual or sponsor schedule; notary $10,000.
- 4
License / business identifiers
Keep the name on the bond identical to the SOS, LARA, NMLS/DIFS, or county notary filing.
- 5
Term / continuation
Dealer bonds renew with the license and may use renewal certificates. Collection, mortgage, and MLO coverage must stay in force while licensed. Notary bonds cover the commission term with statutory cancellation notice.
Learn more about surety bonds
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Frequently asked questions
Does Michigan require a statewide residential builder bond?
No statewide residential builder or maintenance-and-alteration license bond appears in the verified programs published here. LARA still licenses those contractors under the Occupational Code, and cities or counties may require their own registration or permit bonds.
Do all vehicle dealer classes need the $25,000 bond?
MCL 257.248 requires the bond for new vehicle dealers, used or secondhand vehicle dealers, and brokers. The SOS dealer manual and DIFS Bulletin 2023-06-INS describe that requirement for Class A, B, and D dealers. Other classifications have different licensing rules and are not automatically covered by that $25,000 amount.
Is the mortgage company bond the same as the MLO bond?
No. Company financial responsibility under the first- and secondary-mortgage acts uses $25,000 for a broker who receives pre-closing borrower funds or a lender, and $125,000 for a servicer. Individual originators use a separate MCL 493.159 schedule, or coverage under a sponsoring-company MLO bond.
Start your Michigan bond application
Michigan will be preselected in the application. Choose the bond type on the next step—we verify the current agency form before anything is issued.
Last verified 2026-08-10. Official sources are retained with this guide and checked before publication.
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