Michigan 1st Mortgage Broker - NMLS Bond
Overview
Michigan's Mortgage Brokers, Lenders, and Servicers Licensing Act ties the bond to what you actually do with borrower money: under MCL 445.1654, a licensed first mortgage broker that receives funds from prospective borrowers before closing must maintain a $25,000 surety bond — the same amount required of first mortgage lenders — while servicers carry $125,000. The bond is filed with the Michigan Department of Insurance and Financial Services through NMLS and protects Michigan consumers harmed by the licensee's conduct under the Act.
Who Needs This Bond?
Companies licensed — or applying — as first mortgage brokers in Michigan through NMLS whose operations involve receiving funds from prospective borrowers, along with first mortgage lenders and, at the higher tier, servicers, all under MCL 445.1654's schedule. Brokers who never touch borrower funds before closing should confirm their exact obligation on their NMLS checklist with DIFS, since Michigan keys the requirement to fund handling. Multistate brokers adding Michigan through NMLS meet the same requirement as home-grown shops.
What is this Bond For?
The bond secures the licensee's faithful compliance with Michigan's Mortgage Brokers, Lenders, and Servicers Licensing Act. If the broker's violations — misapplied borrower funds, misrepresentation, or other unlawful conduct in brokering first mortgages — cause covered losses, recovery comes from the surety up to the bond's penal sum, and the licensee must reimburse the surety. It is a statutory consumer-protection guarantee running in favor of the state, not insurance for the brokerage's own risks.
When is it Required?
The bond must be reflected on your NMLS record before DIFS approves the initial license and must remain continuously in force through every renewal cycle. A change in operations matters here: start receiving borrower funds where you previously didn't, add lending or servicing authority, and the bond obligation changes with you — before the new activity begins, not after. A surety cancellation without replacement is a license-level deficiency that DIFS sees through NMLS quickly.
Where Does it Apply?
The requirement comes from the Michigan Compiled Laws and is administered statewide by the Department of Insurance and Financial Services, with the bond maintained electronically through NMLS. It covers first mortgage brokering involving Michigan borrowers and Michigan property regardless of where your offices are. Second mortgage activity is governed by a separate Michigan act with its own requirements, and every other state where you broker has its own bond.
How to Buy Online
Click 'Buy This Bond Online' to open the secure surety portal in a new tab, complete the short application, and pay in a single session. The executed bond is delivered ready for electronic submission to your NMLS record for DIFS review.
Why Bond Titan?
Michigan's fund-handling distinction trips up plenty of brokers, so this page cites MCL 445.1654 directly in the Official Sources section below — confirm your obligation before you buy. Bond Titan is powered by The Southern Agency, a licensed surety agency, with a fully online flow built for NMLS timelines.
Official Sources
The requirements described on this page are verified against the official sources below.
- $25,000 bond for first mortgage brokers receiving borrower funds and for first mortgage lenders; $125,000 for first mortgage servicers: MCL 445.1654 (verified July 16, 2026)
- Licensing framework of the Mortgage Brokers, Lenders, and Servicers Licensing Act (license requirement provision): MCL 445.1652 (verified July 16, 2026)