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Mortgage licensing / Michigan

Michigan 1st Mortgage Broker License

company licence · NMLS MIFRSTBROKER_C · DIFS

Requirements (16)

  1. Step 1

    Other Trade Name: Assumed names should be listed under Other Trade Names section on the NMLS Company Form. Michigan does not limit the number of assumed names.

    Submitted via: NMLS

  2. Step 2

    Trade Name/Assumed Name Registration Certificates: All assumed names must first be registered with the Michigan Corporation Division (ph. 517-241-6470; website www.michigan.gov/corporations). If operating under an assumed name, a separate State issued and approved document for each assumed name should be uploaded.

    Submitted via: Upload in NMLS under the Document Type “Trade Name/Assumed Name Registration Certificates” in the Document Uploads section of the Company (MU1) Form.

  3. Step 3

    Resident/Registered Agent: Resident/Registered Agent section of the NMLS Company Form should be completed with the information currently on record with Michigan Corporation Division. If you are not required to register with the Michigan Corporation Division, you must list a Michigan resident or Michigan business entity as the Resident/Registered Agent.

    Submitted via: NMLS

  4. Step 4

    Qualifying Individual: Qualifying Individual is an individual responsible for the Michigan operations of the applicant. This section of the Company (MU1) Form must be completed.

    Submitted via: NMLS

  5. Step 5

    Financial Statements: See the License Requirements and Fees Chart on the NMLS Resource Center for details related to this Requirement.

    Submitted via: NMLS

  6. Step 6

    Financial Statements: Upload most recent audited (prepared by a Certified Public Accountant) or unaudited financial statement (signed by an executive officer) completed in accordance with Generally Accepted Accounting Principles dated within 12 months. You may use financial statement form FIS 2053. To demonstrate “general fitness” pursuant to Section 3(1) of the Mortgage Brokers, Lenders, and Servicers Licensing Act, 1987 PA 173, applicant’s net worth shall be $15,000 or more if the applicant does not receive funds from prospective borrowers prior to closing mortgage loans. Applicant’s net worth shall be $25,000 or more if the applicant does receive funds from prospective borrowers prior to closing mortgage loans.

  7. Step 7

    Business Plan: Upload a business plan outlining marketing strategy, products, target markets and operating structure the applicant intends to employ.

    Submitted via: Upload in NMLS under the Document Type “Business Plan” in the Document Uploads section of the Company (MU1) Form.

  8. Step 8

    Certificate of Authority/Good Standing Certificate: All entities except individuals must first be registered with the Michigan Corporation Division (ph. 517-241-6470; website www.michigan.gov/corporations). Upload a state-issued document from the Michigan Corporation Division demonstrating that the corporation or limited liability company (LLC) is authorized to do business in the state.

    Submitted via: Upload in NMLS under the Document Type “Certificate of Authority/Good Standing Certificate” in the Document Uploads section of the Company (MU1) Form.

  9. Step 9

    Formation Document: Upload a certified copy of: • The Corporate Charter or Articles of Incorporation (if a corporation), or • The Articles of Organization and Operating Agreement (if a Limited Liability Company), or • The Partnership Agreement (if a partnership of any form), or • Assumed Name Filing (if a sole proprietorship).

    Submitted via: Upload in NMLS under the Document Type “Formation Document” in the Document Uploads section of the Company (MU1) Form.

  10. Step 10

    Management Chart: Upload an organizational chart showing the applicant’s divisions, officers, and managers.

    Submitted via: Upload in NMLS under the Document Type “Management Chart” in the Document Uploads section of the Company (MU1) Form.

  11. Step 11

    Organizational Chart/Description: Upload an organizational chart if applicant is owned by another entity or entities or person, or has subsidiaries or affiliated entities.

    Submitted via: Upload in NMLS under the Document Type “Organizational Chart/Description” in the Document Uploads section of the Company (MU1) Form.

  12. Step 12

    Proof of Financial Responsibility Deposit: Complete one of the following. 1. Electronic Surety Bond: If applicant does receive funds from prospective borrowers prior to closing mortgage loans, request Electronic Surety Bond via NMLS in the amount of $25,000 furnished and submitted by a surety company authorized to conduct business in Michigan. See the ESB Adoption Table and the ESB for NMLS Licensees page of the NMLS Resource Center for more information. NOTE: This company bond is not to be used for the MLO bond requirement. 2. Exemption Declaration: If applicant does not receive funds from prospective borrowers prior to closing mortgage loans, complete form FIS 1140 Exemption Declaration.

    Submitted via: Upload in NMLS under the Document Type “Alternate Security Device” in the Document Uploads section of the Company (MU1) Form.

  13. Step 13

    Business Relationships: Provide a list of names and business addresses of the three primary licensees, registrants, or exempt institutions that applicant will broker mortgage loans (i.e., lenders). Note that under Michigan law, a licensee/registrant may broker or assign loans only to licensees, registrants, or exempt institutions.

    Submitted via: Upload in NMLS under the Document Type “Additional Requirements” in the Document Uploads section of the Company (MU1) Form.

  14. Step 14

    Direct Ownership Verification: Provide copies of stock certificates, operating agreement, or other legal documentation to support 100% direct ownership. Also, if the direct ownership or indirect ownership (two tiers of indirect) does not reflect 100% ownership on the MU1 filing, provide a complete detailed spreadsheet listing owners’ names and percentages. NOTE: This is only “Not Applicable” if applying as a sole proprietorship.

    Submitted via: Upload in NMLS under the Document Type “Formation Document” in the Document Uploads section of the Company (MU1) Form.

  15. Step 15

    Mortgage Loan Originator List: Provide a list of individuals that will obtain or currently hold a Michigan mortgage loan originator license that will be sponsored by the applicant. The list should include the name of the individuals and their NMLS ID numbers.

    Submitted via: Upload in NMLS under the Document Type “Additional Requirements” in the Document Uploads section of the Company (MU1) Form.

  16. Step 16

    Other Licenses Held By Company/Control Person: Provide a list of present/past professional licenses issued by Michigan or other states (i.e. real estate, securities, insurance, CPA, attorney). Do not list any licenses held in NMLS (company or MLO). NOTE: This is only “Not Applicable” if no professional licenses issued.

    Submitted via: Upload in NMLS under the Document Type “Additional Requirements” in the Document Uploads section of the Company (MU1) Form.

General information

Who is required to have this license? Any sole proprietor or company who, directly or indirectly serves or offers to serve as an agent for a person in an attempt to obtain a 1st lien mortgage loan and/or serves or offers to serve as an agent for a person who makes or offers to make 1st lien mortgage loans. 1st lien mortgage loan means a loan secured by a 1st lien position mortgage on real property located in Michigan and used, or improved for use, as a dwelling and designed for occupancy by 4 or fewer families or a land contract covering real property located in this state used, or improved for use, as a dwelling and designed for occupancy by 4 or fewer families. Who does not need this license? • An individual who is licensed as a mortgage loan originator and is an exclusive employee or agent of a non-depository financial institution or an exclusive employee or agent of a subsidiary of a non-depository financial institution. • Any sole proprietor or company who solely brokers a subordinate lien mortgage loan (See 2nd Mortgage Broker License/Registration). • Any sole proprietor or company who closes a 1st lien mortgage loan in its own name (See 1st Mortgage Broker and Lender License/Registration). • Any sole proprietor or company that is currently licensed/registered as a broker and lender, or licensed/registered as a broker, lender, and servicer. • A state or nationally chartered bank, a state or federally chartered savings and loan association, savings bank, or credit union, or an entity of the federally chartered farm credit system (See 1st Mortgage Broker Registration). • An entity that is an FHLMC approved seller or servicer (See 1st Mortgage Broker Registration). • An entity that is an FNMA approved seller or servicer (See 1st Mortgage Broker Registration). • An entity that is a GNMA approved issuer or servicer (See 1st Mortgage Broker Registration). • Is a real estate broker or real estate salesperson licensed under article 25 of the occupational code, 1980 PA 299, MCL 339.2501 to 339.2518, who acts as a 1st lien mortgage broker for not more than 1 licensee or 1 registrant (See 1st Mortgage Broker Registration). • Is a real estate broker or real estate salesperson licensed under article 25 of the occupational code, 1980 PA 299, MCL 339.2501 to 339.2518, who acts as a 1st lien mortgage broker, 1st lien mortgage lender, or 1st lien mortgage servicer only in connection with real estate sales in which the real estate broker or salesperson affiliated with the real estate broker is engaged and who receives for those services additional compensation beyond the customary commission on real estate sales (See 1st Mortgage Broker Registration). • Is an entity that is a subsidiary or affiliate of a depository financial institution or a depository financial institution holding company if the depository institution does not maintain a main office or a branch office in Michigan. • Any sole proprietor or company who brokers home improvement contracts under the home improvement finance act, 1965 PA 332, MCL 445.1101 to 445.1431. • A salesperson acting as an agent for a residential builder or residential maintenance and alteration contractor, or a residential builder or residential maintenance and alteration contractor licensed under article 24 of the occupational code, 1980 PA 299, MCL 339.2401 to 339.2412, if a 1st lien mortgage is made or negotiated in connection with the sale or financing of a residential structure or improvement constructed or improved by that residential builder or residential maintenance and alteration contractor. • Agencies or corporate instrumentalities of the United States and of this state and its political subdivisions, including the public employees' retirement system. • An individual licensed to practice law in this state and not engaged in the business of negotiating loans secured by real property, if the individual renders services in the course of his or her practice as an attorney-at-law. • A person who makes 1st lien mortgage loans exclusively for the benefit of employees of that person if the proceeds of the loan are used to assist the employee in meeting his or her housing needs. • A person acting as a fiduciary with respect to any employee pension benefit plan qualified under the internal revenue code who makes 1st lien mortgage loans solely to plan participants from plan assets. • A 1st lien mortgage broker, 1st lien mortgage lender, or a 1st lien mortgage servicer that is a subsidiary or affiliate of a depository financial institution or a subsidiary or affiliate of a holding company of a depository financial institution, if the depository financial institution maintains its main office or a branch office in Michigan. • A nonprofit corporation that makes, brokers, or services 1st lien mortgage loans in connection with a neighborhood housing program assisted under the neighborhood reinvestment corporation act, 42 USC 8101 to 8107. Pre-requisites for license applications • Minimum Net worth: $25,000 if collecting fees prior to mortgage loan closing $15,000 if not collecting fees prior to mortgage loan closing (to demonstrate “general fitness” pursuant to Section 3(1) of the Mortgage Brokers, Lenders, and Servicers Licensing Act, 1987 PA 173). • Bond amount: $25,000 if collecting fees prior to mortgage loan closing No bond required if not collecting fees prior to mortgage loan closing • Criminal background check: Yes • Credit check: Yes • Experience Yes • Testing N/A • Education N/A

Other Michigan mortgage licenses

Sourced from the NMLS/CSBS state licensing record, last updated June 13, 2023. Requirements change — confirm against the state agency before filing. Not legal advice.

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