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Mortgage Broker Licenses in Michigan

The Michigan Department of Insurance and Financial Services (DIFS) licenses individuals and companies working in the residential mortgage industry anywhere within the state. Companies and sole proprietors can obtain a license as a broker, as a broker and lender, or as a broker lender, and servicer.

In any of these three categories, there are separate licenses for those dealing with first mortgages and those dealing with second mortgages on residential properties located in the state of Michigan. Individuals doing loan origination work must obtain a mortgage loan originator license or prove that they are covered under their employer�s license.

What Does the Licensing Process Involve?

While DIFS regulates and oversees licensing in Michigan�s residential mortgage industry, license applications are submitted through the National Mortgage Licensing System (NMLS). There is a non-refundable $100 NMLS user fee in addition to a non-refundable application fee, which varies depending on the type of license.

All applications, for both new and renewal licenses, must be accompanied by a surety bond unless eligible for an exemption, as illustrated below.

Type of License

Surety Bond Amount

Eligible for Exemption

1st Mortgage Broker and Lender

$25,000

No

1st Mortgage Broker

$25,000

Yes *

1st Mortgage Broker, Lender, and Servicer

$125,000

No

2nd Mortgage Broker and Lender

$25,000

No

2nd Mortgage Broker (License)

$25,000

Yes *

2nd Mortgage Broker (Registration)

$25,000

Yes *

Second Mortgage Broker, Lender, and Servicer (License)

$125,000

No

2nd Mortgage Broker, Lender, and Servicer (Registration)

$125,000

No

Mortgage Loan Originator (individual)

$10,000 (first-time license);

$25,000 or $50,000 renewals, based on previous year�s loan volume

No

Mortgage Loan Originator (company)

$50,000, $150,000, or $250,000 based on previous year�s loan volume

No

* If funds will not be received from prospective borrowers before closing a mortgage loan.

Why Is a Surety Bond Required?

The surety bond is a licensee�s guarantee to conduct business in accordance with all applicable laws, rules and regulations governing the residential mortgage industry, as specified by the terms of the surety bond agreement. Any violation of the agreement can result in a claim being filed against the licensee�s surety bond for up to the full penal amount of the bond.

A surety bond agreement brings together three parties in a legally binding contract:

• The entity requiring the bond, DIFS in this case, is the obligee.
• The party required to purchase the bond (the residential mortgage broker, lender, servicer, or originator) is the principal.
• The company issuing the bond is the surety.

The roles and responsibilities of each party are spelled out in the surety bond agreement.

What Happens if a Claim is Filed?

Upon receiving notice of a claim, the surety will first make sure that the claim is valid, and will then try to negotiate a settlement. If that attempt is unsuccessful, the surety will usually pay the claim as an advance of funds to the principal.

By paying the claim, the surety is essentially making a short-term loan to the principal, which the principal is required to repay. Surety bond contracts include an indemnification clause that relieves the surety of any obligation to pay claims. The responsibility for paying claims rests solely with the principal.

What Does a Mortgage Broker Bond Cost?

The surety charges the principal an annual premium that is a small percentage of the required bond amount. That percentage is established by the surety based on the principal�s personal credit score and financial condition. Those with good credit will usually be assigned a premium rate that is between 1% and 3% of the bond amount, but bond applicants with poor credit will pay a higher rate because of the greater risk that the principal will not be readily reimburse the surety for claims paid in advance.

Get Bonded Securely with Our Expert Guidance

At Single Source Insurance, our surety bond experts will answer any questions you may have about the bonding process and help you get the license bond you need as a residential mortgage professional.

What Types of Mortgage Broker Licenses Are Issued in Arizona?

Arizona issues mortgage broker licenses that allow licensees to broker loans on both commercial and residential properties. Mortgage broker licenses are issued to both individuals and companies that find, compare, and negotiate loans for real estate purchases within the state of Arizona. Those who deal with commercial real estate clients should apply for a Commercial Mortgage Broker license.

There are three types of Arizona mortgage broker licenses: company, branch, and individual.

What Does the Licensing Process Involve?

In Arizona, mortgage brokers are licensed at the state level by the Arizona Department of Financial Institutions (AzDFI). Applications are processed through the Nationwide Mortgage Licensing System (NMLS), but hard copies of the documents required to support the application are mailed directly to AzDFI.

Applicants for licensing as a mortgage broker must meet experiential and residency requirements, complete 24 hours of pre-licensing education, and pass both a school exam and a state exam. The AzDFI application fee and NMLS processing fees are both collected through NMLS. There are also fees for taking the required class and taking the required exams.

Applicants who have completed the educational requirements and are ready to proceed with licensing must purchase a Mortgage Broker surety bond. The required bond amount depends on whether the applicant will be working with only institutional investors ($10,000) or with both institutional and non-institutional investors ($15,000).

Why Is a Surety Bond Required?

States require surety bonds before issuing licenses for individuals or companies in professions that have the potential to result in financial loss for clients if those professionals engage in unlawful or unethical conduct. Arizona�s surety bond requirement for mortgage brokers obligates those licensees to comply with all applicable state laws as well as the rules and regulations of AzDFI.

A mortgage broker surety bond is a licensee�s guarantee to abide by the law and behave ethically and responsibly in all of their dealings with clients and investors, as spelled out in the terms and conditions of the surety bond agreement. Any violation can result in a claim being filed against the surety bond�claims for which the licensee is legally responsible for paying.

What Happens if a Claim is Filed?

First, understand that a surety bond brings together three parties in a legally binding agreement:

• The obligee is the state agency requiring the bond, in this case, AzDFI.
• The principal is the party applying for a mortgage broker license and required to purchase the bond.
• The surety is the company underwriting and issuing the bond.

When a claim is filed, the surety will first conduct an investigation to ascertain its validity. If the claim is valid, the surety will typically attempt to negotiate a settlement. If that is unsuccessful, the surety will pay the claim, but only as an advance that the principal must then reimburse. Remember, it�s the principal, not the surety, that is legally responsible for paying claims.

What Does a Mortgage Broker Bond Cost?

As with all surety bonds, the premium you will pay is only a small percentage of the total required bond amount. The surety decides what that percentage, the premium rate, will be based on the applicant�s personal credit and financial situation. The better the applicant�s credit, the lower the premium rate will be. Those with good credit will pay the standard market rate of between 1% and 3% of the total bond amount, while those with poor credit will pay a higher rate.

Get Bonded Securely with Our Expert Guidance

Let the surety experts at Single Source Insurance help you get the bond you need to secure your Arizona mortgage broker license.

What Types of Mortgage Broker Licenses Are Issued in Indiana?

Indiana licenses mortgage brokers through the Office of the Secretary of State, though applications are processed through the Nationwide Mortgage Licensing System (NMLS). Don�t confuse a mortgage broker license with a mortgage lending license, which permits loan origination as well as mortgage brokering. Mortgage lending licenses are issued by the Indiana Department of Financial Institutions (DFI). Our focus here is on mortgage broker licenses.

There are two types of mortgage broker licenses in the state:

• Company – for sole proprietorships and companies representing residential clients
• Branch – for additional locations operated by a licensed mortgage broker

What Does the Licensing Process Involve?

The Indiana Loan Broker Act imposes a continuous education requirement on principal managers during their first year as licensed mortgage broker, but no exam is required before applying for a license. There is, however, a residency requirement and principal managers must have two years of relevant experience. All applicants for a mortgage broker license must purchase a surety bond and submit it through the NMLS website along with other required documents. Some paperwork must be sent directly to the Secretary of State’s office.

Why Is a Surety Bond Required?

A surety bond indemnifies the state against legal liability for any financial loss suffered by consumers as a result of the unlawful or unethical actions of a licensed Indiana mortgage broker. The surety bond is the licensee�s guarantee to abide by all relevant rules and regulations of the Indiana Loan Broker Act and other laws of the state of Indiana, all of which are spelled out in the terms of the surety bond agreement.

What Happens if a Claim is Filed?

In the event that a licensed mortgage broker acts in a manner that causes a financial loss to another party, the injured party has the right to file a claim for damages against the mortgage broker�s bond. The first thing the surety company will do is make sure the claim is valid. The usual practice is for the surety company to attempt to negotiate a settlement, but if that�s unsuccessful, the surety company will go ahead and pay the claim as an advance on the mortgage broker�s behalf.

However, every surety bond contract includes an indemnification clause that relieves the surety company of any financial responsibility for paying claims. Paying claims is the legal responsibility of the mortgage broker who purchased the bond. Consequently, the mortgage broker must reimburse the surety company in full.

What Does a Mortgage Broker Bond Cost?

Surety companies calculate bond premiums as a small percentage of the total required bond amount. In Indiana, the required bond amount depends on the previous year�s loan volume:

• $50,000 for a loan volume of up to $5 million
• $60,000 for a loan volume of $5 million to $20 million
• $75,000 for a loan volume over $20 million

The surety company assigns each applicant a premium rate based on the applicant�s personal credit score and financial condition. Applicants with good credit will pay between 1% and 3% of the required bond amount. Applicants with credit problems will likely pay a higher premium rate.

Get Bonded Securely with Our Expert Guidance

Apply online today for a mortgage broker bond that will allow you to get or renew your Indiana mortgage broker license.

What Types of Mortgage Broker Licenses Are Issued in Oregon?

What most states refer to as a mortgage broker license is called a mortgage lender license in Oregon. An Oregon mortgage lender license allows the licensee to broker residential mortgage loans as well as make them. Mortgage lender licenses are issued to both companies and sole proprietorships. Oregon also licenses mortgage servicers and mortgage loan originators.

What Does the Licensing Process Involve?

Although the Division of Financial Regulation regulates and oversees Oregon�s mortgage industry and issues licenses for mortgage lending professionals, applications must be submitted through the National Mortgage Licensing System (NMLS). There is a non-refundable $100 NMLS user fee in addition to a non-refundable application fee of $960.

Applications must identify the �Experienced Person� (Qualified Individual), usually the sole proprietor, company owner, or full-time employee who has been involved in mortgage lending for a minimum of three out of the past five years.

All applications, for both new and renewal licenses, must be accompanied by a surety bond. For new license applicants, the required bond amount is $50,000. For renewal licenses, the required bond amount is based on the dollar amount of Oregon residential mortgage loans listed in the mortgage call reports filed for the previous four quarters. The Division of Financial Regulation will send a notice stating the required renewal bond amount prior to the license renewal date.

Why Is a Surety Bond Required?

A mortgage broker surety bond is required as protection for the state and consumers against financial losses caused by the unlawful or unethical mortgage brokering or lending practices of a licensed mortgage lender. The bond serves as the mortgage lender�s guarantee to comply with all relevant Oregon laws and the rules established by the Division of Financial Regulations identified in the surety bond agreement.

A surety bond agreement is a legally binding contract among three parties:

• The Division of Financial Regulation, as the party requiring the bond, is the obligee
• The mortgage lender or broker is the principal
• The company issuing the bond is the surety

Any violation of the terms of the surety bond agreement can trigger a claim against the bond, which the principal is legally responsible for paying.

What Happens if a Claim is Filed?

Upon receiving notice of a claim, the surety will investigate to verify the claim�s validity. If found to be valid, the surety will then attempt to negotiate a settlement. If no agreement is reached, the surety will typically pay the claim, but only as an advance on behalf of the principal. The principal is then required to reimburse the surety. In essence, the advance payment by the surety is a short-term loan to the principal.

What Does a Mortgage Broker Bond Cost?

Nearly all surety bonds are sold for a premium that is a percentage of the required bond amount. That percentage, known as the premium rate, is determined by the surety based on the principal�s personal credit score and financial standing. Applicants with good credit generally pay a premium that is between 1% and 3% of the bond amount, while those with poor credit will pay a higher rate.

Get Bonded Securely with Our Expert Guidance

Use our convenient online system to apply for the surety bond you�ll need to get your Oregon mortgage lender license.

If you are trying to register a vehicle for which you don�t have a valid title, you may be able to do so by obtaining a bonded title from the Iowa Department of Transportation. The same process applies whether you never received a title when you acquired a vehicle, received a defective title, or received a title but lost it before transferring it into your name.

Learn everything you need to know about the Iowa bonded title process below, and contact Single Source Insurance to get the bond you need today.

What Is a Bonded Title?

A bonded title protects the state and anyone who might later show up and be able to prove a valid ownership interest in the vehicle. The bond is your guarantee that you are the legitimate owner and will cover any financial loss suffered by another party if that turns out not to be true.

Who Needs a Bonded Title?

Anyone who lacks a proper title and is attempting to retitle or register a vehicle in their name needs a bonded title. This requires the purchase of an Iowa title bond.

How Does the Process Work?

The Iowa bonded title process is essentially the same regardless of the reason why you don�t have a valid title. You�ll need to follow these steps:

• Complete and sign an Application for Registration and Bonded Certificate of Title for a Vehicle.
• Attach any documentation you have to support your ownership claim, such as a Bill of Sale, receipt, or cancelled check for the purchase.
• Submit the completed application and proof of ownership to the Iowa DOT�s Office of Vehicle & Motor Carrier Services, P.O. Box 9278, Des Moines, IA, 50306.
• The DOT will do a title record search and notify any owner on record with instructions to claim the vehicle or waive any further claim on it within 10 days of the date of mailing. If a waiver is received or there is no response, the DOT will continue processing the bonded title application.
• The DOT will appraise the vehicle and send you a bond form stating the vehicle�s value and the required title bond amount (1 � times the vehicle�s appraised value).
• Once you�ve purchased a three-year title surety bond, send the bond receipt and a letter authorizing the county treasurer to issue a bonded title to the DOT’s Bureau of Investigations and Identity Protection. You will be contacted by an investigator to verify the information you provided with your application.
• When you receive an authorization letter from DOT, you�ll need to take it to your county treasurer�s office within 30 days to apply for the title certificate, pay the fees and any taxes due, and register the vehicle.

The three-year term of the surety bond gives anyone with an ownership interest in the vehicle three years to file a claim for compensation. If there are no claims on the bond within that time, you will be issued an unbonded title.

If a claim is filed, the surety company will attempt to negotiate a settlement if they determine that the claim is valid. If no settlement is agreed upon, the surety company will pay the claim on your behalf, but you are legally obligated to reimburse the surety for that amount.

What Does It Cost?

Surety bond premiums are calculated as a small percentage of the required bond amount. At Single Source Insurance, all Iowa bonded title premiums will have a $100 minimum. For bonds with a penalty over $7,000, the premium is 1.5%. For bonds with a premium over $25,000, we will run a credit check.

Get A Quote

Our experts at Single Source Insurance will work with you to get you the best possible rate on the title bond you need. Contact us today.

You cannot register or sell a vehicle (including a motorcycle or motor home) unless you have a title showing you as the legitimate owner. There is a process through which you can obtain a bonded title�a title with a surety bond attached�that will allow you to register your vehicle or sell it to someone else.

Learn everything you need to know about the North Carolina bonded title process below, and contact Single Source Insurance to get the bond you need today.

What Is a Bonded Title?

There are several reasons why you might not have a title: perhaps you were never given one when you purchased the vehicle, or you were given one and lost it before it was properly registered in your name, or you were given a title that is defective in some way.

A title bond protects the state and any previous owner from financial loss if it can be proven that you should not have been issued a title.

Who Needs a Bonded Title?

You do not need a bonded title if you once had a title that was in your name but are now unable to find it. It�s relatively easy to get a replacement title certificate from the DMV. You only need to execute the following bonded title process if you never had a title in your name.

If you never had a title for the vehicle, or the title is defective in some way, you�ll have to apply for a bonded title.

How Does the Process Work?

There are several steps you�ll need to take before you can even submit an application for a bonded title in North Carolina:

• Contact your local DMV office to make sure you�re eligible for a bonded title.
• Complete the Title Application and Affidavit of Facts to Accompany Indemnity Bond, which you can download from the North Carolina DMV website or obtain as a hard copy from your local DMV office. Be sure to sign in the presence of a notary public.
• Have a vehicle inspection performed by a North Carolina DMV License & Theft Bureau Inspector. You will need to show the completed Title Application and Affidavit of Facts at the time of the inspection.
• The inspector will verify the VIN and odometer reading and make sure the vehicle has not been reported as stolen. Hold on to the completed inspection form.
• Get your vehicle appraised, and use that appraisal to calculate your required bond amount (1 � times the appraised value). You can visit a DMV license plate agency or call the North Carolina Customer Contact Center at (919)715-7000 to get the appraised value of the vehicle from the current Value Schedule. Note that if the vehicle is a motor home or is not listed in the Schedule, you�ll need to get appraisals from two different North Carolina dealers on the dealers� letterhead.
• Purchase a 3-year North Carolina Lost Title Bond in the required amount from a surety company licensed to operate in North Carolina.
• Submit the bond along with the completed Title Application, Affidavit of Facts, and inspection report to your local DMV.

What Happens if a Claim is Filed?

When you get a bonded title, it�s like taking an oath that you are the rightful owner of the vehicle. If someone surfaces during the three-year term of the bond and can prove an ownership interest in the vehicle, that person can file a claim against the bond and be compensated for the financial loss resulting from you having been issued a bonded title to which you weren�t entitled.

The surety company will verify and then settle and pay the claim. However, the bond indemnifies the surety company and requires you to reimburse the surety for any claims paid on your behalf.

What Does It Cost?

Surety bond premiums are calculated as a small percentage of the required bond amount. At Single Source Insurance, all North Carolina bonded title premiums will have a $100 minimum. For bonds with a penalty over $7,000, the premium is 1.5%. For bonds with a premium over $25,000, we will run a credit check.

Get A Quote

You can count on the bonding experts at Single Source Insurance to get you the surety bond you need in order to obtain a bonded title for your vehicle in North Carolina. Contact us today to request a quote.

If you want to register a vehicle you have purchased or been given but do not have a title for it, there is a process that will enable you to obtain a bonded title. A bonded title is a title with a surety bond attached to protect the MVD and the rightful owner if it turns out that someone else has a legitimate ownership interest in the vehicle. Learn more about the Arizona bonded title process below, and contact Single Source Insurance to get the bond you need today.

Who Needs a Bonded Title?

Not everyone who lacks a title for a vehicle needs to go through the somewhat complicated process for getting a bonded title. If you once had a title for the vehicle in question at one point but no longer do, you can get a duplicate title from your local DMV office for only three dollars.

If you never had a title for the vehicle, or if the title is defective in some way, you�ll have to apply for a bonded title.

How Does the Process Work?

There are several steps you�ll need to take before you can even submit an application for a bonded title. Here�s what you need to know about the Arizona bonded title process:

1. If your vehicle is an in-state vehicle, ask your local MVD office to perform a motor vehicle record search to identify the person that most recently held the title to the vehicle. This will cost you $3. For an out-of-state vehicle, you�ll need to work with the other state�s MVD.
2. If the vehicle record search turns up a lien on the vehicle, you�ll need to obtain a lien release that specifies the vehicle�s year of manufacture, make, and VIN.
3. Have a law enforcement officer perform a Level 1 inspection. Everyone applying for a bonded title in Arizona must have this done to verify the VIN and ensure that the vehicle has not been reported as stolen.
4. Send certified letters to anyone whose name appears on the record search from Step 2, as well as to anyone involved in selling the vehicle to you, requesting that they sign the title over to you and send it to you or send you a notarized letter stating that they have no ownership interest in the vehicle. Make it clear that they have 30 days to respond.
5. If you get an answer to your certified letter(s), you will either have the title to the vehicle or you all the documentation you need to obtain a new title�without any need for a surety bond. If you get no response, obtaining a surety bond is mandatory.
6. Fill out and sign a Bonded Title Affidavit (available from the Arizona MVD) to explain how you acquired the vehicle and why you don�t have a title for it.
7. Take your completed application and all of the documentation you�ve gathered (including the responses to your certified letters, or proof that you sent letters if you received no response) to the MVD office for review and determination of the vehicle�s value. You may be told you need to get your vehicle inspected at this point.
8. Purchase a 3-year Arizona title bond with a bond amount equal to 1.5x the value MVD assigned to the vehicle. The bond certificate will arrive in the mail.
9. Take the bond and all other documents to the MVD for approval and issuance of a bonded title.

The bond is your guarantee that you are the rightful owner of the vehicle. At any time during the three years that the bond is in force, anyone with a legitimate ownership interest in the vehicle can come forward and file a claim against the title bond. The MVD itself can also file a claim if there is reason to believe you should not have been given a bonded title.

The surety company may pay the claim for you to expedite matters, but you must then reimburse the company in full. Even if you sell the vehicle during that 3-year period, you remain obligated to pay any valid claims against the bond.

What Does It Cost?

You will pay a small percentage of the bond amount as the premium for the title bond. At Single Source Insurance, all Arizona bonded title premiums will have a $100 minimum. For bonds with a penalty over $7,000, the premium is 1.5%. For bonds with a premium over $25,000, we will run a credit check.

Get Bonded Securely with Our Expert Guidance

At Single Source Insurance, our experienced surety bond agents are well acquainted with the lost title bonding process and will help you get the Arizona title bond you need at the best possible premium rate.