How to Fill Out Michigan DIFS Consumer Finance Company License + FAQs

The Michigan Consumer Finance Company License is the state authorization issued by the Michigan Department of Insurance and Financial Services (DIFS) that allows a company to make, broker, or service consumer loans, regulatory loans, sales finance contracts, motor vehicle sales finance contracts, and secondary mortgage loans inside Michigan. Most applicants file the combined Consumer Financial Services Class I or Class II License through the Nationwide Multistate Licensing System (NMLS), using the Form MU1 company application plus a Michigan-specific state checklist of uploads and mailed items.

Filing this license wrong is expensive. DIFS reports that more than 30% of first-time consumer finance license filings are returned as deficient, and unlicensed lending under MCL 493.22 can void loan contracts and trigger civil fines up to $5,000 per violation. This guide walks you through every screen, every field, every upload, and every common mistake so your file lands clean the first time.

Here is what you will learn in this guide:

📋 What the Michigan Consumer Finance Company License covers, and which class fits your business
🗂️ Every document, ID number, and financial statement you must gather before you log in to NMLS
🖥️ How to fill out NMLS Form MU1 line by line, with named examples for each field
💵 The exact fees, surety bond, and net worth thresholds you must meet
⚖️ The mistakes, misconceptions, and statutes that trip up most applicants and how to avoid them

What the Michigan Consumer Finance Company License Is and Who Must File It

The Michigan Consumer Finance Company License is not one license. It is a family of authorities housed under the Consumer Financial Services Act, MCL 487.2051 et seq., administered by DIFS. The Class I and Class II licenses combine several underlying authorities into a single filing, while standalone licenses still exist for companies that only need one authority. The agency that receives every application is DIFS, and the system that routes it is NMLS, the same federally chartered platform used for mortgage and money transmitter licensing through the Conference of State Bank Supervisors.

A Class I Consumer Financial Services License is reserved for companies with a Michigan net worth of at least $250,000 and lets the licensee conduct regulatory loan, sales finance, motor vehicle sales finance, and secondary mortgage activity. A Class II Consumer Financial Services License requires a $500,000 minimum net worth and adds first mortgage and consumer loan authority. Standalone licenses include the Regulatory Loan License under MCL 493.1 for unsecured loans up to $25,000, the Sales Finance License under MCL 492.101, and the Motor Vehicle Sales Finance License under MCL 492.114.

You must file if your company makes loans to Michigan consumers, buys retail installment contracts from Michigan dealers, finances Michigan vehicle purchases, or services any of the above for a fee. The trigger is Michigan consumer activity, not where the lender is headquartered. An Ohio installment lender that originates a single $1,000 loan to a Detroit resident must hold a Michigan license. The consequence of skipping the filing is severe: under MCL 493.22 the loan is void, the borrower owes nothing, and the lender can be referred for criminal prosecution.

A common misconception is that a federal bank charter or a sister-state license preempts Michigan law. It does not for non-bank lenders. Only federally insured depository institutions enjoy that preemption, and even fintech partners using a bank partnership model often still need state licensure under Michigan’s true-lender analysis. When in doubt, request a written interpretive opinion from the DIFS Office of Consumer Finance before lending.

Before You Start: Documents and Information You Need

Filing without your documents ready is the single biggest reason applications stall. NMLS will let you save and resume, but DIFS counts the calendar from the day you submit, not the day you started. The Michigan checklist is published on the NMLS State Licensing Resource Center, and you should download the most current PDF before you begin because checklist items change without major announcements.

Here is the pre-filing checklist. Gather every item below before you open Form MU1.

Certificate of Good Standing from the Michigan Department of Licensing and Regulatory Affairs (LARA). Without it, DIFS cannot confirm your entity is authorized to do business in Michigan, and your file is held in pending status.
Articles of incorporation or organization, plus all amendments. These prove the legal form of your company. Missing amendments cause DIFS to question ownership chains.
Most recent audited financial statements, prepared by a CPA in accordance with GAAP. A reviewed or compiled statement will be rejected for Class II applicants. Without GAAP audited financials, the net worth test cannot be verified.
Surety bond in the correct amount. The minimum is $25,000 for a Regulatory Loan License, scaling up by loan volume; the Class II bond starts at $125,000. The bond must be on the DIFS-approved form, signed by an authorized surety.
Organizational chart showing every direct and indirect owner of 10% or more. DIFS uses this to identify control persons who must submit fingerprints.
Business plan describing products, pricing, target market, funding sources, compliance program, and complaint handling. A weak business plan is the most common cause of additional information requests.
Trust account or operating account verification letter from your bank. This proves you can segregate consumer funds where required.
Fingerprint authorization through NMLS for every control person, executive officer, and 10%+ owner. Without prints submitted through NMLS, the FBI background check will not return to DIFS.
Resumes and 10-year employment history with no unexplained gaps for every executive officer and qualifying individual.
Credit reports authorized through NMLS for every control person. A credit report with unresolved judgments triggers a written explanation request.

Skipping any of the ten items above turns a 60-day review into a 120-day review. Build the file before you click Submit.

Where to Get the Form and How to Access It

Form MU1 is not a paper PDF you fill out. It lives entirely inside NMLS as an interactive online application. Go to the NMLS Resource Center and click Get Started. If your company has never used NMLS, you must first request a Company Account by submitting the Company Account Request Form by email to NMLS. NMLS issues credentials within two to three business days.

Once inside NMLS, your primary account administrator selects Filing, then Company (MU1), then Create New Filing. You will see a list of states; check Michigan and the specific license type, such as Consumer Financial Services Class II License or Regulatory Loan License. NMLS then loads the Michigan-specific checklist into your filing and prevents submission until every required field is complete.

Michigan-specific items that NMLS does not host are uploaded inside the Document Uploads tab of MU1. The current Michigan checklist PDF is linked from the DIFS Consumer Finance industry page, and you should match every checklist line to a corresponding NMLS upload row. Mailed items, when required, go to the DIFS Office of Consumer Finance, P.O. Box 30220, Lansing, Michigan 48909.

A nuance many applicants miss: NMLS uses the Form MU2 for individuals, the Form MU3 for branches, and the Form MU1 for the company itself. You file all three if you have branches and individual control persons, which most applicants do. The consequence of forgetting MU2 filings is automatic file abandonment after 30 days of inactivity, since DIFS cannot run background checks on people who have no MU2 record.

Step-by-Step: How to Fill Out Form MU1 Line by Line

The MU1 walkthrough below follows NMLS’s exact section order. Each field gets its own H3 with plain English, instructions, an example, a nuance, a common mistake, and a misconception. Sample entries appear in italics so you can spot them at a glance.

Section 1: Identifying Information — Legal Name

This field asks for the exact legal name of your company as it appears on your articles of incorporation or articles of organization. Type the name in mixed case, including every comma, period, and corporate identifier such as LLC, Inc., or Corporation. Do not abbreviate, and do not enter a trade name here.

For example, Great Lakes Consumer Lending, LLC would be entered exactly that way, including the comma before LLC. If your articles say L.L.C. with periods, use the periods. NMLS cross-checks this entry against your LARA filing.

A nuance: if your company recently amended its name, file the amendment with LARA before the NMLS filing, then enter the new name. Filing the old name causes a mismatch with the Certificate of Good Standing and triggers a rejection.

The most common mistake on this field is dropping the corporate suffix. Entering Great Lakes Consumer Lending without LLC makes the file appear to belong to a different entity, and DIFS issues an additional information request that adds at least 14 days. A frequent misconception is that the DBA belongs in this box. It does not. DBAs go in the Other Trade Names section.

Section 1: Identifying Information — Main Office Address

This field asks for the physical street address of your principal place of business. Enter the street number, street name, suite, city, state, and ZIP code. P.O. boxes are not allowed because DIFS investigators must be able to physically inspect the location.

For example, Maria Lopez, the compliance officer for Great Lakes Consumer Lending, LLC, enters 1234 Woodward Avenue, Suite 500, Detroit, MI 48226. She uses Suite and not Ste. because NMLS does its own address validation against the U.S. Postal Service database.

A nuance: if your main office is outside Michigan, you still enter the out-of-state address here. You will identify your Michigan branches separately on Form MU3. The Class II license does not require a Michigan physical office, but a Michigan registered agent is mandatory.

The most common mistake is entering a virtual office or coworking space without disclosing it. DIFS examiners check Google Street View. If the address is a UPS Store, your file is held until you supply the actual operations address. The misconception that you can use a registered agent address as your main office is wrong; the registered agent address goes in a different field.

Section 1: Identifying Information — Federal Employer Identification Number (FEIN)

This field asks for your 9-digit IRS-issued FEIN. Enter the number with no dashes and no spaces, in the format 123456789. NMLS automatically formats the display.

For example, Marcus Chen, founder of Wolverine BNPL Inc., enters 874512369. He confirms it matches his IRS SS-4 confirmation letter before submitting.

A nuance: if your company is a single-member LLC taxed as a disregarded entity, you still need a FEIN. Using the owner’s Social Security number triggers an immediate rejection because DIFS cannot legally store SSNs in a company record.

The most common mistake is transposing two digits, which causes the IRS verification step to fail and freezes the application. The misconception that the state tax ID substitutes for a FEIN is wrong; only the federal number is accepted.

Section 1: Identifying Information — Other Trade Names (DBAs)

This field asks for every assumed name, fictitious name, or DBA under which your company operates in Michigan. List each separately and attach the LARA Certificate of Assumed Name for each.

For example, if Great Lakes Consumer Lending, LLC operates as GLCash and Lakeshore Loans, both names are listed, and each LARA certificate is uploaded. Janet Park, the attorney filing on behalf of an Ohio lender, enters MidwestCredit as the only DBA used in Michigan.

A nuance: a DBA used only in marketing without a LARA certificate is still a Michigan DBA, and DIFS requires it to be filed retroactively. The agency cross-checks consumer complaint databases for unregistered names.

The most common mistake is omitting a DBA used on the company website. DIFS treats this as an unlicensed-name violation under MCL 487.2071, which carries fines and a public order. The misconception that DBA registration with LARA alone is enough is wrong; each DBA must also be reflected on Form MU1.

Section 2: Resident/Registered Agent

This field asks for the name and Michigan address of the registered agent authorized to receive service of process. Enter the agent’s full legal name, street address, city, and ZIP code. Commercial registered agents like CT Corporation or CSC are common.

For example, Wolverine BNPL Inc. enters The Corporation Company, 40600 Ann Arbor Road E, Suite 201, Plymouth, MI 48170.

A nuance: an out-of-state company must maintain a Michigan registered agent at all times. If the agent resigns and you do not name a replacement within 30 days under MCL 450.4207, LARA dissolves your authority to do business and DIFS automatically suspends your license.

The most common mistake is naming an employee who later leaves the company. The misconception that the company’s general counsel can serve from another state is wrong; the agent must have a Michigan street address.

Section 3: Contact Employees

This field asks you to designate the primary contact for licensing, the primary contact for consumer complaints, and the primary contact for examinations. Enter each person’s name, title, phone, and email. The same person may hold all three roles for a small company.

For example, Aisha Bell, Chief Compliance Officer of MidwestCredit, lists herself for all three roles with her direct line and her aisha.bell@midwestcredit.com email.

A nuance: the consumer complaint contact’s email must be monitored daily. DIFS forwards consumer complaints to that address with a 14-day response deadline under DIFS Bulletin 2020-12-CF.

The most common mistake is listing a no-reply email. The misconception that DIFS will mail complaints in paper form is wrong; routing is electronic.

Section 4: Books and Records

This field asks where the company keeps its books, accounts, and loan records, and how DIFS examiners can access them. Enter the physical address, the name of the records custodian, and a contact phone.

For example, Great Lakes Consumer Lending, LLC enters its Detroit headquarters and lists Maria Lopez, Compliance Officer, with her direct line. The company adds a note that records are also stored electronically in Encompass loan origination software, accessible to DIFS examiners on request.

A nuance: cloud-only records are allowed under MCL 493.10, but you must give DIFS read access during examinations. Refusal to grant electronic access is treated as obstruction.

The most common mistake is listing a third-party vendor’s data center as the records location without a custodian contact. The misconception that DIFS will accept records by mailed CD-ROM is outdated; the agency now requires secure portal uploads.

Section 5: Direct Owners and Executive Officers (Schedule A)

This field asks you to disclose every direct owner with 10% or more ownership and every executive officer. For each person or entity, enter legal name, title, ownership percentage, and date control was acquired. Individuals must also file Form MU2.

For example, Wolverine BNPL Inc. lists Marcus Chen at 60%, his co-founder Priya Patel at 25%, and Acorn Seed Fund II, L.P. at 12%. Each individual files an MU2; the fund discloses its general partner.

A nuance: indirect ownership of 10% or more must be disclosed on Schedule B by tracing up through every holding entity until you reach a natural person or a public company. Stopping at the holding company level is incomplete disclosure.

The most common mistake is omitting a spouse’s community-property interest, which DIFS treats as undisclosed control under MCL 487.2055. The consequence is denial for material misstatement. The misconception that non-voting equity is exempt from disclosure is wrong; economic ownership of 10% or more triggers disclosure regardless of voting rights.

Section 6: Disclosure Questions

This section asks 14 yes/no questions about criminal history, regulatory actions, civil judgments, bankruptcies, and consumer protection violations involving the company and every control person. Answer each question, then upload an explanation document for every Yes.

For example, if Marcus Chen settled an FTC consent order in 2019, he answers Yes to question 6 and uploads a one-page memo describing the order, the resolution, and current compliance steps.

A nuance: a Yes is not automatically disqualifying. Disqualification turns on materiality, recency, and remediation. A No answer that is later contradicted by the FBI background check is a license-killer.

The most common mistake is treating a nolo contendere plea as not a conviction. Under DIFS rules it is. The misconception that sealed or expunged records do not need disclosure is wrong; NMLS asks about charges, and you must disclose unless your state expungement specifically prohibits disclosure for licensing.

Section 7: Qualifying Individual

This field asks for the person responsible for the day-to-day Michigan operations and the person on whose experience the company qualifies for licensure. Enter the qualifying individual’s name, title, NMLS ID, and years of consumer finance experience.

For example, Aisha Bell, with 12 years at a national installment lender, is named the qualifying individual for MidwestCredit and lists her NMLS ID 2456789.

A nuance: the qualifying individual must complete an MU2 and submit fingerprints. If the qualifying individual leaves, the company has 30 days to designate a replacement under MCL 487.2057, or face suspension.

The most common mistake is naming a figurehead with no real authority. The misconception that any C-suite officer qualifies is wrong; DIFS evaluates actual consumer finance experience.

Section 8: Surety Bond

This field asks you to upload the executed surety bond and enter the bond number, surety company NAIC code, effective date, and amount. The bond must be on the DIFS-approved bond form and signed in wet ink by an authorized attorney-in-fact for the surety.

For example, Great Lakes Consumer Lending, LLC uploads a $125,000 Class II bond issued by Travelers Casualty and Surety Company of America, NAIC 31194, effective 01/01/2026.

A nuance: the bond amount scales with origination volume. A licensee originating more than $5 million per year must increase the bond to $250,000 within 30 days of crossing the threshold.

The most common mistake is uploading a bond on the surety’s generic form rather than the DIFS form. The misconception that an irrevocable letter of credit may substitute is wrong; DIFS accepts only a surety bond from an admitted carrier.

Section 9: Financial Statements

This field requires the most recent audited financial statements for Class II applicants and a CPA-reviewed statement for Class I and Regulatory Loan applicants. Upload the PDF, then enter the as-of date, total assets, total liabilities, and Michigan net worth.

For example, Wolverine BNPL Inc. uploads its 12/31/2025 audited statements showing Michigan net worth of $612,000, comfortably above the $500,000 Class II minimum.

A nuance: net worth must be tested as of the application date, not just the audit date. If a large dividend was paid after audit, you must file a supplemental certification.

The most common mistake is submitting personal financials of the owner instead of company financials. The misconception that positive net income equals net worth is wrong; net worth is assets minus liabilities, regardless of profitability.

Section 10: Document Uploads — Business Plan and Compliance Program

This field asks you to upload a business plan and a written compliance program that addresses Regulation Z, the federal Equal Credit Opportunity Act, Michigan rate caps, and Michigan complaint handling.

For example, MidwestCredit uploads a 22-page plan covering products, pricing, marketing channels, vendor management, and an annual compliance audit calendar.

A nuance: DIFS specifically wants to see a Bank Secrecy Act / AML program reference, even though consumer finance companies are not always FinCEN-registered, because Michigan examiners review SAR-equivalent procedures.

The most common mistake is uploading a generic template with another state’s name still in it. The misconception that the business plan is informational only is wrong; DIFS treats it as a binding representation, and material deviations require notice.

Three Filled-Out Examples Using Real Scenarios

Below are three named scenarios showing how different filers complete Form MU1. Each table has eight or more rows for the highest-impact fields.

Scenario 1: Out-of-State Installment Lender Expanding into Michigan

Janet Park, outside counsel for MidwestCredit, Inc., an Ohio installment lender, files for a Michigan Regulatory Loan License.

Form Section	What MidwestCredit Enters
Legal Name	MidwestCredit, Inc.
Main Office Address	200 Public Square, Suite 1400, Cleveland, OH 44114
FEIN	341234567
Other Trade Names	MWC Loans
Registered Agent	CT Corporation System, 40600 Ann Arbor Rd E, Plymouth, MI 48170
Direct Owners 10%+	Founder Capital Partners LP — 80%
Surety Bond	$25,000, Liberty Mutual, eff. 02/01/2026
Financial Statements	Reviewed, 12/31/2025, net worth $1.4M
Disclosure Questions	All No, except Question 9 — civil judgment paid in full, explanation uploaded

Scenario 2: Michigan-Based Fintech Launching Small-Dollar Loans

Marcus Chen founded Wolverine BNPL Inc. in Ann Arbor and applies for a Class II Consumer Financial Services License.

Form Section	What Wolverine BNPL Enters
Legal Name	Wolverine BNPL Inc.
Main Office Address	330 East Liberty Street, Ann Arbor, MI 48104
FEIN	874512369
Other Trade Names	PayWolverine
Qualifying Individual	Aisha Bell, Chief Compliance Officer, NMLS #2456789
Direct Owners 10%+	Marcus Chen 60%, Priya Patel 25%, Acorn Seed Fund II 12%
Surety Bond	$125,000 Class II, Travelers, eff. 01/01/2026
Financial Statements	Audited 12/31/2025, MI net worth $612,000
Business Plan Highlights	4-pay BNPL, 0% APR merchant-funded, no consumer fees

Scenario 3: Used-Car Dealership Financing Arm

Great Lakes Auto Finance, LLC finances retail installment contracts for a chain of Detroit-area used-car dealers and applies for a Motor Vehicle Sales Finance License.

Form Section	What Great Lakes Auto Finance Enters
Legal Name	Great Lakes Auto Finance, LLC
Main Office Address	1234 Woodward Avenue, Suite 500, Detroit, MI 48226
FEIN	812345678
Other Trade Names	GLAF
Registered Agent	Maria Lopez, 1234 Woodward Avenue, Suite 500, Detroit, MI 48226
Books and Records Location	Same as main office, custodian Maria Lopez
Surety Bond	$25,000 MVSF bond, Hartford, eff. 03/15/2026
Financial Statements	Reviewed 12/31/2025, net worth $310,000
Disclosure Questions	All No

How to File the Completed Form

The Michigan Consumer Finance Company License is filed primarily through NMLS, with limited mailed items. Below is each channel.

NMLS online filing. Log in at the NMLS online portal, open your saved MU1, and click Submit Filing. The NMLS processing fee is $100 for the company plus $20 per branch and $30 per MU2 individual. The Michigan investigation fee is $500 and the annual license fee is $250 for most license types, paid by ACH inside NMLS at submission. Expected processing time after a complete filing is 60 to 90 days. Keep the NMLS Filing Submission Receipt PDF as proof.

Mailed Michigan-specific items. A handful of items, including the original surety bond with wet-ink signatures, must be mailed to the DIFS Office of Consumer Finance, P.O. Box 30220, Lansing, Michigan 48909. Use certified mail with return receipt. Keep the green card as proof of mailing.

In-person filing. Walk-in delivery is accepted at the DIFS office at 530 W. Allegan Street, 7th Floor, Lansing, Michigan, weekdays from 8:00 a.m. to 5:00 p.m. Bring two copies; the receptionist date-stamps one and returns it.

Fax filing. DIFS no longer accepts new license applications by fax as of the 2024 modernization. Fax may still be used for limited follow-up correspondence at (517) 284-8843.

Fingerprints. Each control person submits prints through the NMLS-authorized fingerprint vendor. The fee is $36.25 per person, paid inside NMLS. Live-scan locations are listed inside the NMLS schedule tool. Results return directly to DIFS within 7 to 10 days.

What Happens After You File

Once your filing is submitted, NMLS routes the package to the DIFS Office of Consumer Finance. A licensing analyst is assigned within five business days, and that analyst posts an Application Status Letter inside NMLS. The first letter usually requests one or two additional items, even on well-prepared files.

DIFS then conducts a background review, runs FBI fingerprint results, reviews the financial statements against net worth requirements, and may request a phone interview with the qualifying individual. Most clean files are approved within 60 to 90 days; files with deficiencies stretch to 120 to 180 days. The agency publishes its current processing times on the DIFS Consumer Finance bulletin page.

If approved, DIFS issues the license through NMLS, and the licensee receives an electronic license certificate. The license is renewed annually between November 1 and December 31 inside NMLS, with the same $250 fee and an updated financial statement. Failing to renew by December 31 results in license expiration on January 1 and a $100 reinstatement fee through the end of February under MCL 487.2059.

If denied, you receive a written notice with a 30-day right to request an administrative hearing under the Michigan Administrative Procedures Act. Most denials are resolved through corrective filings rather than litigation.

Mistakes to Avoid When Filling Out the Form

Below are the ten most common application-killers. Each one carries a direct, specific consequence.

Mismatched legal name between LARA and NMLS. The file is held until you correct one or the other.
Using a P.O. box as the main office. DIFS issues an additional information request and pauses the clock.
Forgetting to file MU2 for every control person. The application is auto-abandoned after 30 days of inactivity.
Uploading a bond on the surety’s form instead of the DIFS form. The bond is rejected and a new one must be issued.
Submitting unaudited financials for a Class II application. The application is denied for failure to meet net worth proof.
Answering No to a disclosure question that the FBI check later contradicts. Material misstatement is grounds for permanent denial.
Omitting a DBA used on the company website. DIFS treats it as unlicensed-name activity and may impose fines.
Listing a registered agent outside Michigan. The agent designation is invalid and LARA dissolves your authority.
Skipping the business plan upload. DIFS holds the file until a complete plan is provided.
Paying fees from a personal credit card. Payment is rejected because fees must come from a company account on file.
Filing the wrong license class. Switching mid-application requires withdrawal and a new $500 investigation fee.

Do’s and Don’ts

Do’s

Do download the current Michigan checklist the morning you submit, because checklists update without notice.
Do match every checklist line to a specific NMLS upload row to avoid orphaned documents.
Do run a fingerprint dry run with your control persons before locking the filing.
Do keep your surety bond effective date on or before the application date.
Do respond to DIFS additional information requests within seven days to keep momentum.
Do preserve the NMLS submission receipt PDF as your legal proof of timely filing.

Don’ts

Don’t answer disclosure questions before the qualifying individual has reviewed each one with counsel.
Don’t upload draft financials marked unaudited if you are applying for Class II.
Don’t assume a sister-state license preempts Michigan; it does not for non-bank lenders.
Don’t lend, advertise, or solicit Michigan consumers before the license is issued.
Don’t ignore renewal email reminders in November; expiration is automatic on January 1.
Don’t let a control person depart without filing an MU2 amendment within 15 days.

Pros and Cons of Filing on Your Own vs. With Help

Pros of filing on your own

You save $5,000 to $25,000 in outside counsel and consultant fees.
You build internal NMLS expertise that pays off at renewal and amendment time.
You learn the law cold, which improves ongoing compliance.
You control the timeline rather than waiting on a vendor.
You preserve attorney-client privilege only where you actually need it.

Cons of filing on your own

Your first filing typically takes 40 to 80 internal hours, often more than counsel would spend.
You miss subtle disclosure traps that an experienced filer spots immediately.
A deficient filing can delay revenue by 60 to 120 days.
You may misclassify the license type and pay the investigation fee twice.
You shoulder all regulatory risk from misstatements, including potential personal liability for officers under MCL 487.2071.

Class I vs. Class II Consumer Financial Services License

Feature	Difference
Minimum net worth	$250,000 for Class I, $500,000 for Class II
Surety bond minimum	$25,000–$125,000 Class I, $125,000–$250,000 Class II
Loan authority	Class I covers regulatory, sales finance, MVSF, secondary mortgage; Class II adds first mortgage and consumer loans
Financial statement standard	CPA-reviewed for Class I, audited GAAP for Class II
Annual license fee	$250 both classes
Investigation fee	$500 both classes
Branch fee	$50 per branch each class
Typical applicants	Installment lenders, MVSF buyers (Class I); fintechs, mortgage-adjacent consumer lenders (Class II)

FAQs

Do I need a Michigan license if I only make one consumer loan a year to a Michigan resident?

Yes. Even a single loan to a Michigan consumer triggers licensing under MCL 493.2. The frequency does not matter. Lend without a license and the contract is void.

Is a federal preemption claim a defense to Michigan licensing?

No. Only federally insured depository institutions enjoy preemption. Non-bank lenders, fintechs, and bank-partnership servicers must hold the Michigan license regardless of the partner bank’s charter.

Do I write the legal name or the DBA in the Legal Name field of MU1?

No. Only the legal name from your articles goes there. DBAs go in the separate Other Trade Names field, with a LARA assumed-name certificate uploaded for each.

Can a P.O. box go in the Main Office Address field?

No. DIFS requires a physical street address so examiners can inspect operations. P.O. boxes trigger automatic additional information requests.

Do I list community-property spousal interests on Schedule A?

Yes. Any 10%-or-more economic ownership, including community-property interests, must be disclosed. Failing to list a spouse is treated as material misstatement.

Is a nolo contendere plea a Yes on the disclosure questions?

Yes. DIFS treats nolo pleas as convictions for licensing purposes. Answer Yes and upload an explanation memo to avoid a misstatement finding.

Can I substitute a letter of credit for the surety bond?

No. Michigan accepts only a surety bond from an admitted carrier on the DIFS-approved form. Letters of credit, cash deposits, and parent guaranties are not accepted.

Do I need audited financials for a Regulatory Loan License?

No. Reviewed financials prepared by a CPA are acceptable for the Regulatory Loan License and Class I. Only the Class II license requires GAAP audited financials.

Can my law firm serve as my Michigan registered agent?

Yes. Any Michigan resident or authorized Michigan entity, including a law firm with a Michigan office, may serve. The address must be a physical Michigan street address.

How long does approval take?

Yes there is a typical timeline. Clean files clear in 60 to 90 days. Files with deficiencies, criminal disclosures, or financial issues stretch to 120 to 180 days.

Do remote-only fintechs need a Michigan physical office?

No. Class II licensees may operate remotely, but a Michigan registered agent and a designated records custodian are still mandatory.

Can I start lending the day I submit the MU1?

No. Lending before license issuance violates MCL 493.22, voids the contracts, and can trigger civil fines up to $5,000 per loan plus restitution.

Does an expunged conviction need to be disclosed?

Yes. NMLS asks about charges, not just convictions on a current rap sheet. Disclose unless your state’s expungement statute specifically prohibits disclosure for licensing.

What happens if my qualifying individual quits mid-application?

No problem if you act fast. You have 30 days to designate a replacement and file an MU2 amendment. Miss the window and DIFS suspends the pending application.

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