Does the state require a physical location within the state?
Michigan does not require first or second mortgage licensees to maintain a physical presence in the state.

Is there individual loan officer licensing?
No.

What are lenders, brokers and loan officers called?
Michigan uses the terms mortgage broker and mortgage lender.

What is the cost of a license? Surety bond? Are there net worth requirements?
Companies engaged in the business of originating or brokering first-lien residential mortgage must obtain a Michigan mortgage lender license under the Michigan Mortgage Brokers, Lenders and Servicers Licensing Act. The licensing as well as annual renewal fee in Michigan is $150 for brokers and $300 for lenders. The licensing fee is refundable if an application is denied. There is a nonrefundable investigation fee for the initial license application of $450. Lender and broker licensees must maintain a minimum net worth of $25,000 verified by audited financial statements and a surety bond of $25,000. Licenses must be renewed annually by June 30.

Companies engaged in the business of originating or brokering second-lien residential mortgage must obtain a Michigan Secondary Mortgage Loan Act (SMLA) license. The licensing fee in Michigan is $350 for brokers and $500 for lenders. The licensing fee is refundable if an application is denied. There is a nonrefundable investigation fee for the initial license application of $450. Lender and broker licensees must maintain a minimum net worth of $25,000 verified by audited financial statements and a surety bond of $25,000. Licenses must be renewed annually by December 31.

Is there a pre-licensing education requirement? Is there a test?
No.

Is there a CE requirement?
No.

Are there different requirements for mortgage brokers and mortgage lenders (i.e. can you broker under a lender license)?
An applicant should indicate its intended activities on its application for licensure. Both activities are covered under the Michigan Mortgage Brokers, Lenders and Servicers Licensing Act.

Are there any state specific high cost loan provisions?
No.

Are there any state specific predatory lending laws?
The Michigan Consumer Mortgage Protections Act became effective January 6, 2003. The act places numerous restrictions and notice requirements on mortgage loans. A mortgage loan is defined by the act as a loan or home improvement installment contract secured by a first or subordinate lien on one- to four-family residential real property located in Michigan which is used as the borrower's principal dwelling.

Closing practices – attorney or title state? Wet or dry settlement?
Michigan is treated as a wet funding state by practice. There is no penalty for not delivering funds with closing documents, but closing may be delayed if funds are not delivered.

Are there 2nd mortgage policies and/or restrictions? Do you need a separate license to do 2nd mortgages?
Yes (see the section on licensing).

Who is the regulator and what is their contact information?
State of Michigan
Office of Financial and Insurance Services
Division of Financial Institutions
P.O. Box 30224
Lansing, MI 48909
Phone: (517) 373-0220 or (877) 999-6442
Fax: (517) 335-0908
www.michigan.gov/cis


DISCLAIMER: The data contained here is for informational purposes only. It should not be the sole resource for licensing decisions. Please consult the regulator and/or an attorney that specializes in these matters before taking action.


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