Mortgage Broker, Lender, and Servicer FAQ
- Do the Mortgage Brokers, Lenders, and Servicers Licensing Act and the Secondary Mortgage Loan Act require a licensee or registrant to have an actual physical office location in Michigan?
No, the Mortgage Brokers, Lenders, and Servicers Licensing Act and the Secondary Mortgage Loan Act do not require that an intended licensee or registrant have a physical location in the state of Michigan. However, a licensee or registrant is required to have a Michigan resident agent.
- Is a licensee or registrant required to obtain authority to conduct business in Michigan?
Yes, if an intended licensee or registrant is a corporation, limited liability company, etc., authority to conduct business as a foreign entity, or an exemption, must be obtained from the Michigan Corporation Division of the Corporations, Securities, & Commercial Licensing Bureau.
- How do I apply for a license or registration to make mortgage loans?
You will also need to fill out the application forms FIS 1140 and FIS 2053 that are available on the Department of Insurance and Financial Services website. Procedures are included in the DIFS applications.
Licensing personnel are available to answer questions about licensing or registration requirements at 877-999-6442.
- What is the difference between a bank and a mortgage company?
Both banks and mortgage companies can make mortgage loans. Banks, however, can also take deposits of your money, which can be placed into a savings account or checking account, but mortgage companies cannot take deposits.
- I applied for a mortgage loan and I think I was "red-lined". What should I do?
If you feel that your loan was denied because of the ethnic characteristics of the neighborhood you live in or because of the geographic area in which the property in question is located, you can contact us at 877-999-6442 and request a complaint form, or access the complaint form on the Department of Insurance and Financial Services website. Also, if you feel that your loan was denied because of your religion, race, color, national origin, age, sex, height, weight, or marital status, you can call the Department of Civil Rights at 517-335-3165 or 313-456-3700 for further information.
- My mortgage company refuses to give me a copy of my appraisal report. What can I do?
Regulation B, issued by the Federal Reserve Board, requires that the lender provide you with a copy of your appraisal report, but only if you paid for it. You must make a written request for a copy of your appraisal. If the mortgage company continues to refuse to supply you with a copy of your appraisal report, you can contact us at 877-999-6442 and request a complaint form, or access the complaint form on the Department of Insurance and Financial Services website. Upon receipt of the completed form, we will contact the mortgage company on your behalf.
- What is the highest rate of interest I can be charged on a mortgage loan?
PL 96-221 (a federal law) eliminated interest rate ceilings on all first lien mortgage loans in 1981. If you would like more information on interest rates in Michigan, please see the Michigan Statutory Interest Rate Ceilings on the Department of Insurance and Financial Services website.
The answers provided are not meant to be a substitute for legal advice.