How to Become a Licensed Mortgage Loan Originator in Michigan

In Michigan, mortgage loan originators (MLOs) are licensed by the Department of Insurance and Financial Services (DIFS) and are responsible for helping consumers obtain and negotiate mortgage loans for profit. 

The Mortgage Loan Originator Licensing Act 75 of 2009 outlines the state regulations for MLOs and their employers. Read on to learn the complete MLO license and bonding process to work in Michigan.

How to Become a Licensed Mortgage Loan Originator in Michigan

Follow the steps below to get your Michigan MLO license.

Step 1: Complete pre-licensing education

To start, you must complete 20 hours of pre-licensing education. This includes courses on federal law, ethics and state-specific mortgage lending laws.

Step 2: Pass the SAFE MLO test

After completing the required education, create an National Mortgage Licensing System (NMLS) account. You must pass the online SAFE Mortgage Loan Originator Test, which includes both national and state components. 

Step 3: Complete a background check

You'll also need to undergo a criminal background check and submit your fingerprints through the NMLS. The FBI criminal background check fee is $36.25. You must have no felony convictions within the past 7 years and no financial crimes within the last 10 years.

Step 4: Authorize a credit report

Following the criminal background check, authorize a credit report and complete the Identity Verification Process (IDV) within the Individual Form (MU4).

Step 5: Submit your NMLS application

Submit the application through your NMLS account. You'll need to provide your personal information, employment history and background details. The application also requires a fee, which varies depending on whether you're applying as an individual or as a company. You can check the current fee schedule on the NMLS site.

Step 6: Purchase a surety bond

The DIFS requires mortgage loan originators to purchase a surety bond as part of the licensing process. Bonds protect consumers by ensuring that MLOs comply with state regulations. 

There are separate bonds for individual MLOs and companies with varying amounts based on the volume of mortgage loans closed in the previous year. Buy your Michigan mortgage loan originator bond online with SuretyBonds.com starting as low as $150.

Step 7: Apply with the DIFS

Once you've completed all the steps above, submit your application to the Michigan Department of Insurance and Financial Services for review and approval.

Step 8: Confirm company sponsorship

Finally, confirm your company sponsorship to activate your license. This ensures that you are affiliated with a licensed mortgage company authorized to conduct business in Michigan. Without an approved sponsorship, the license remains inactive, prohibiting you from engaging in mortgage loan origination activities.

How Much Does It Cost to Get a Michigan MLO License?

The cost of a Michigan mortgage loan originator bond depends on your projected or historical annual loan volume as well as your personal credit score:

• $10,000 Bond (Individual): $150 for first-time applicants or loans under $12M
• $25,000 Bond (Individual): Starting at $187 for loans between $12M - $24M
• $50,000 Bond (Individual): Starting at $375 for loans over $24M

Additionally, the cost to submit a mortgage loan originator license application in Michigan includes the following fees:

• $30 NMLS application fee
• $75 state application fee
• $15 credit report fee
• $36.25 criminal background check fee 

In total, you can expect to pay approximately $310–600 for your individual MLO license and bond in Michigan. 

Do I Need To Renew My Michigan Mortgage Loan Originator Bond

Yes, you need to renew your Michigan mortgage loan originator bond annually. The bond must remain active as part of the licensing requirements. 

To renew, you’ll receive instructions and an invoice from your bond provider before the bond term ends. Make sure to complete the renewal process on time to avoid any lapses in your license.

More Resources 

• NMLS: Resource Center​​​​​
• Michigan Mortgage Loan Originator Bond Form
• Michigan Department of Insurance and Financial Services: Mortgage Loan Originator
• Michigan Mortgage Loan Originator Testing Handbook
• Michigan Mortgage Brokers, Lenders, And Servicers Licensing Act