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    Second Mortgage License & Registration

    The Department of Insurance and Financial Services issues second mortgage licenses and registrations to persons brokering, making/lending, or servicing a loan that has a term of 90 days or more; that is made to a person for personal, family, or household purposes; and that is secured by a mortgage on an interest in real property in Michigan that is used as a dwelling and is subject to a lien of 1 or more outstanding mortgages. A secondary mortgage loan may be secured by other collateral in addition to real property.

    Broker means a person who, directly or indirectly, does 1 or both of the following:

    • Serves or offers to serve as an agent for a person attempting to obtain a secondary mortgage loan.
    • Serves or offers to serve as an agent for a person who makes or offers to make a secondary mortgage loan.

    Lender means a person who, directly or indirectly, makes or offers to make secondary mortgage loans.

    Servicer means a person who, directly or indirectly, services or offers to service secondary mortgage loans.

    Service means the collection or remittance for a lender, noteowner, 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.


    A. NAME OF PERMIT OR APPROVAL:

    • Second Mortgage Broker License
    • Second Mortgage Lender License
    • Second Mortgage Servicer License
    • Second Mortgage Broker Registration
    • Second Mortgage Lender Registration
    • Second Mortgage Servicer Registration

    B. STATUTORY AUTHORITY:

    The Secondary Mortgage Loan Act, Public Act 125 of 1981, as amended, (MCL 445.493.51 et seq).

    Related Codes and Acts

    • Consumer Mortgage Protection Act
    • Credit Reform Act
    • Mortgage Lending Practices Act

    C. APPLICABLE REGULATION:

    Rules Administered by the Department of Insurance and Financial Services

    Secondary Mortgage Act, (R 493.101 - 493.120)

    • Mortgage and Home Lending Practices, (R 445.1001 - 445.1038)

    Secondary Mortgage Loan Act: Attorney General Opinion 6920
    Secondary Mortgage Loan Act: Attorney General Opinion 6926

    D. SUMMARY OF PERMIT/APPROVAL PROCESS:

     1.  Applicability

    A license or registration can be requested.

     2.  Pre-Application Requirements
    • Individuals using their personal name on the application do not have pre-application requirements before submitting the application.
    • Individuals doing business under an assumed name must first file the assumed name with their local county clerk's office before submitting the application.
    • Legal entities (corporations, limited liability companies, limited partnerships, etc.) must have prior approval from the Michigan Corporation Division to conduct business in Michigan prior to submitting the application.
     3.  Application Submission Requirements
     4.  Procedures and Time-Frame for Obtaining Approval

    Up to 120 days

     5.  Operational Requirements

    Annual Filings

    • Annual Report
    • Financial Statement
    • Renewal

    Amendment Filing for Name Changes, Address Changes, Authority Changes

    Transfer Filing for Ownership Changes

     6.  Fees

    Fee Schedule

     7.  Appeal Process

    Requesting a Hearing to Contest an Order

     8.  Public Input Opportunities

    How to File a Complaint


    E. Contact Information:

    Contact Us


    Creation/Revision Date:

    October 30, 2013

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