If you are engaged as a First Mortgage Broker, Lender or Servicer in Michigan you are required under Public Act 173 of 1987 to file a Michigan First Mortgage Broker, Lender and Servicer Bond as a condition of licensure.
A surety bond protects the party requesting the bond, the Obligee, against any financial losses as a result of poor financial decisions, damages, unethical decisions, or a failure to follow state and local laws on the part of you, the Principal. The Michigan First Mortgage Broker, Lender and Servicer Bond holds you accountable for your business decisions.
By possessing a Michigan First Mortgage Broker, Lender and Servicer Bond, you are telling your Obligee that you can be trusted as a Principal and that you stand behind your business decisions.