Who requires it
Department of Insurance and Financial Services — Consumer Finance
License & permit · Michigan
Michigan Mortgage Broker, Lender, and Servicer Bond
Michigan mortgage brokers, lenders, and servicers prove financial responsibility when they apply for or renew company licenses under the first-lien Mortgage Brokers, Lenders, and Servicers Licensing Act and the Secondary Mortgage Loan Act. Both statutes use the same amounts: $25,000 for a broker who receives borrower funds before closing or who acts as a lender, and $125,000 for a servicer. A broker who does not receive pre-closing borrower funds and is not acting as a lender is not in the $25,000 class under either section. Coverage is usually a surety bond or irrevocable letter of credit filed with the commissioner; the first-lien act also allows certain deposit alternatives and narrow servicer waiver paths.
Common bond amount
$25,000 / $125,000 by activity
$25,000 for a broker who receives pre-closing borrower funds or for a lender; $125,000 for a servicer—same amounts under MCL 445.1654 (first) and MCL 493.56 (secondary). A broker who does not receive pre-closing funds and is not a lender is not in the $25,000 class under either section. Confirm mixed or ambiguous activity with DIFS.
How you file
File electronically through NMLS for first-mortgage licenses; surety or letter of credit (first-lien deposit options separately)
Renewal
File with license/renewal; NMLS electronic surety for first-mortgage licenses
Who requires it
Company applicants and licensees under Act 173 of 1987 (first mortgages) and Act 125 of 1981 (secondary mortgages) who must provide proof of financial responsibility under MCL 445.1654 or MCL 493.56—specifically brokers who receive borrower funds before closing, lenders, and servicers. A broker that never holds pre-closing borrower funds and does not act as a lender is outside the $25,000 requirement in those sections. If your activity is mixed or ambiguous, confirm classification with DIFS. Individual mortgage loan originators use a separate MCL 493.159 instrument—not this company bond.
How much is required
MCL 445.1654(1)(a) and MCL 493.56(1)(a) each set $25,000 for an applicant who acts as a broker and receives funds from a prospective borrower before closing, or who acts as a lender, and $125,000 for an applicant who acts as a mortgage servicer. Both acts accept a surety bond or an approved irrevocable letter of credit. Only the first-lien act (MCL 445.1654(3)–(5)) adds deposit-with-state-treasurer alternatives after a small administrative fee and limited commissioner paths to reduce, waive, or modify servicer requirements, including a waiver for certain real-estate-broker land-contract servicers. The secondary act’s § 493.56 lists surety or letter of credit only.
How to get and file it
Have an approved surety execute a surety bond that does not expire before the license, or arrange an approved irrevocable letter of credit. Under the first-lien act only, you may instead use a qualifying deposit with the state treasurer where MCL 445.1654(3) applies. File through the NMLS electronic surety bond process DIFS requires for first-mortgage licenses; do not mail original paper bonds to DIFS when electronic filing applies. Align the name on the bond with the NMLS company record. Provide proof of financial responsibility with each license or renewal application so coverage lasts at least through the license term. Convert or maintain electronic surety filings in NMLS as DIFS directs. Keep company mortgage surety separate from any individual or sponsor MLO bond under MCL 493.159. If you conduct both first- and secondary-mortgage activity or your broker/lender/servicer role is unclear, confirm with DIFS which amount and filing path apply.
Cost note
Those figures are the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Broker (receiving funds) or lender
- $25,000 under MCL 445.1654 / 493.56
- Broker without pre-closing funds (and not a lender)
- Not in the $25,000 class under either section; confirm mixed or ambiguous roles with DIFS
- Servicer
- $125,000 under MCL 445.1654 / 493.56
- Acceptable proof
- Surety bond or approved irrevocable letter of credit under both acts; deposit alternatives and limited servicer waivers only under the first-lien act (MCL 445.1654)
- Filing channel
- NMLS electronic surety bond for DIFS first-mortgage company licenses
Official sources
Related resources
Frequently asked questions
Do brokers who never hold borrower funds need the $25,000 bond?
No. Under MCL 445.1654 and MCL 493.56, the $25,000 requirement applies to a broker who receives borrower funds before closing or who acts as a lender. A broker who never holds those funds and is not a lender is not in that class. Servicers use the $125,000 requirement. If your role is mixed or unclear, confirm with DIFS.
Do first and secondary mortgage companies use different amounts?
No. Both statutes use $25,000 for brokers who receive pre-closing funds or lenders, and $125,000 for servicers. You may still need separate licenses or registrations for first- versus secondary-mortgage activity—confirm with DIFS how dual activity is bonded.
Does this cover individual MLOs?
No. Originators need individual coverage or a sponsoring-company MLO bond under MCL 493.159, which uses a different volume schedule.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a Michigan application
Michigan will be preselected. Choose your bond type in the application—we confirm the correct product against your agency form before anything is issued.
Last verified 2026-08-10. This guide is based on verified educational content and official sources.
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