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Mortgage licensing / Michigan

Michigan 2nd Mortgage Broker/Lender/Servicer License

company licence · NMLS MISCNDBROKRLENDRSERVCR_C · DIFS

Requirements (17)

  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

    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

  6. Step 6

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

    Submitted via: NMLS

  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-issueddocument 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

    Electronic Surety Bond: See the License Requirements and Fees Chart on the NMLS Resource Center for details related to this Requirement.

    Submitted via: NMLS

  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, assign mortgage loans, or service mortgage loans (i.e., lenders, servicers). 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

    Description of Servicing Business: Complete one of the following. 1. Servicing policies and procedures are not required to be submitted, but at a minimum submit the following: a description of applicant’s servicing business, stating whether it will service its own loans or loans of other companies; person or firm responsible for quality control and their experience in quality control; sample of monthly statement of borrower’s account; sample “hello” and “goodbye” letters; person who will be responsible for the Michigan portfolio of loans, detailing knowledge and experience of Michigan law with regard to escrow, discharge of mortgages, payment history to borrowers, and annual preparation. 2. If applicant is acting as a master servicer ONLY, provide the name of the third party mortgage servicer and a copy of the sub-servicing agreement.

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

  15. Step 15

    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.

  16. Step 16

    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.

  17. Step 17

    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, services or offers to service subordinate mortgage loans. "Service" means the collection or remittance for a lender, note owner, or noteholder or a licensee's own account of 4 or more installment payments of the principal of, interest of, or an amount placed in escrow under a secondary mortgage loan, mortgage servicing agreement, or an agreement with a mortgagor. Any sole proprietor or company may apply for and obtain a 2nd mortgage broker, lender, and servicer license and receive authority to conduct subordinate lien mortgage broker, lender, and servicer activities even if the sole proprietor or company will not actively conduct each authorized activity. Subordinate lien mortgage loan means a loan secured by a 2nd or junior 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. If you are applying for or currently have a 1st mortgage license, you qualify for a 2nd mortgage registration. 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 is licensed/registered as a subordinate lien mortgage broker only, and does not close subordinate lien mortgage loans in its own or assumed name. • Any sole proprietor or company that is currently registered as a broker, lender, and servicer. • Any sole proprietor or company who is licensed/registered as a 2nd lien mortgage broker only, does not close 2nd lien mortgage loans in its own or assumed name, or service 2nd lien mortgage loans. • Any sole proprietor or company who solely brokers or makes or services a subordinate mortgage loan (See 2nd Mortgage Broker and Lender License/Registration). • A state or nationally chartered bank, a state or federally chartered savings and loan association, savings bank, or credit union, or any other institution whose deposits are insured by an agency of the federal government. • An entity that is an FHLMC approved seller or servicer (See 2nd Mortgage Broker, Lender, and Servicer Registration). • An entity that is an FNMA approved seller or servicer (See 2nd Mortgage Broker, Lender, and Servicer Registration). • An entity that is a GNMA approved issuer or servicer (See 2nd Mortgage Broker, Lender, and Servicer 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. • A nonprofit corporation that makes, brokers, or services mortgage loans in connection with a neighborhood housing program assisted under the neighborhood reinvestment corporation act, title VI of Public Law 95-557, 42 U.S.C. 8101 to 8107. • An entity that acts as a subordinate lien servicer but services 10 or fewer subordinate mortgage loans in a calendar year. Pre-requisites for license applications • Minimum Net worth: $100,000 • Bond amount: $125,000 • 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 5, 2024. Requirements change — confirm against the state agency before filing. Not legal advice.

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