Updated 04/26/23
Your 2nd Mortgage License/Registration expires December 31 of each year and must be renewed on or before December 15. You will receive renewal information from the Department of Insurance and Financial Services (DIFS) with instructions on how to renew. Renewal is requested and fees are paid directly through the Nationwide Multistate Licensing System & Registry (NMLS). All surety bonds, riders, etc. are submitted through the NMLS electronic bond function. Do not submit original surety bonds, riders, or continuation certificates directly to DIFS. Failure to renew on time may prevent you from conducting mortgage transactions in Michigan and may also result in late renewal penalty fees. (Section 6a(1) and 6a(10) of the Act).
Licensees/registrants are required to file quarterly Mortgage Call Reports (MCR) through NMLS, which consists of the following components:
The MCR is a single report of condition that reflects the mortgage activity and financial information of a licensee/registrant with specific mortgage loan production information for each mortgage loan originator. Failure to file the MCR will result in the inability to request license/registration renewal. (Section 6a(13) of the Act).
Yes, you must file your financial statement no later than 90 days after the close of your fiscal year-end. For example, if your fiscal year-end is December 31, you must file the financial statement on or before March 31. This requirement can be met by filing the Annual Standard Financial Condition component of the NMLS Mortgage Call Report (MCR). Please note that all licensees and registrants are required to complete and file the Annual Standard Financial Condition. Failure to file your financial statement may result in fines and penalties. (Section 6a(2) and 6a(9) of the Act). Licensees/registrants are not required to submit audited financial statements; however, they must be completed in accordance with GAAP.
No. Beginning in 2018, licensees/registrants are not required to file an Annual Report on DIFS form FIS 1077 and/or form FIS 1080. Instead, all licensees/registrants are required to directly submit mortgage broker, lender, and/or servicer loan activity using the electronic Mortgage Call Report (MCR) filed quarterly via the Nationwide Multistate Licensing System & Registry (NMLS). Further information regarding the quarterly reports can be found at the NMLS Resource Center Mortgage Call Report. This activity will be used to assess the annual renewal operating fee. Failure to file the NMLS MCR may result in fines and penalties. (Section 6a(13) and 6a(9) of the Act).
Yes. Beginning January 1, 2018, all new company license/registration applications will be required to meet all surety bond requirements by completing the electronic process. Current licensees/registrants must convert all existing surety bonds to NMLS via the submission of an ESB by no later than December 31, 2018.
Any transfer of 25% or more of a company’s shares or ownership is considered a transfer of the license. This action must have the Director’s consent prior to transfer. A registration is not transferable and requires the registrant to submit a new registration application. It is your responsibility to contact DIFS for information on transfers before the transaction consummation. (Section 13(2) of the Act).
A licensee or registrant may surrender a license or registration by delivering to the Director the license or registration with written notice that the licensee or registrant surrenders the license or registration. See MCL 493.61(4)
The required written notice must be submitted to the Director directly through NMLS. Additionally, the licensee/registrant must return the original certificate directly to DIFS via mail. The mailing address can be found within NMLS link above.
Submit the following document to DIFS:
Yes, a mortgage broker, lender, and/or servicer license or registration does not allow an individual to originate mortgage loans. Unless otherwise statutorily exempt, an individual (including an officer, director, member, shareholder, etc.) who originates mortgage loans is required to be licensed as a mortgage loan originator.
Yes, licensees/registrants are to regularly monitor their NMLS accounts for information accuracy and notify DIFS of any changes. Deficiencies set by NMLS or DIFS must be immediately addressed and resolved by the licensee/registrant.
If you have any questions regarding the above items, please contact the Consumer Finance Licensing Unit at 877-999-6442.
For information concerning compliance issues (e.g. maximum fees, record retention, prepayment penalty, RESPA, TILA and other compliance information), you should contact the Mortgage Examination and Investigation Section at 877-999-6442.
You can view licensed entities and entity locations by visiting “Regulated Consumer Finance Entities” on the DIFS website.
No, commercial or investment property is not included in the definition of “secondary mortgage loan” under the SMLA.
The SMLA defines a secondary mortgage loan as 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 that is used as a dwelling and is subject to a lien of 1 or more outstanding mortgages. See MCL 493.51(p)
