Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 730 - CONSUMER FINANCE › Section 441-730-0026 - Corporate Surety Bond for Consumer Finance Licensees Employing a Mortgage Loan Originator

Current through Register Vol. 63, No. 7, July 1, 2024
(1) This
			 rule applies to a consumer finance company licensed under ORS
			 725.010 to
			 725.270 and OAR chapter 441,
			 division 730 that employs one or more mortgage loan originators. The corporate
			 surety bond must be in a form and on terms approved by the director.
(2) A corporate surety bond under this rule
			 must be renewed or replaced each calendar year, concurrently with the license
			 renewal of any mortgage loan originators employed by the consumer finance
			 company. The corporate surety bond shall be submitted through the Nationwide
			 Mortgage Licensing System and Registry by December 1 of each calendar year but
			 may be made effective as of December 31 of each calendar year. In no case shall
			 any applicant, mortgage banker or mortgage broker subject to this rule reduce
			 the amount of a corporate surety bond before October 1 of each calendar year.
(3) A consumer finance company
			 must maintain a corporate surety bond during the period the company employs a
			 mortgage loan originator. The corporate surety bond must remain in effect for
			 at least five years after the person ceases to employ one or more mortgage loan
			 originators. A person must file a claim against the corporate surety bond
			 before the bond expires as described in this section.
(4) At least five years after a consumer
			 finance company ceases to originate residential mortgage loans, the person or
			 the writer of the corporate surety bond may apply to the director for release
			 of the corporate surety bond. Unless the director determines that claims are
			 pending against the person for violation of ORS
			 86A.095 through
			 86A.198, the director will
			 release the corporate surety bond.
(5) The sum of the corporate surety bond for
			 a consumer finance company that employs one or more mortgage loan originators
			 must be calculated based on the last required annual report submitted under OAR
			 441-730-0320. The sum of each consumer finance company's corporate surety bond
			 must be determined as follows:
(a) For a
			 consumer finance company that has not previously conducted business involving
			 the origination of residential mortgage loans, the corporate surety bond must
			 be in the amount of $50,000.
(b)
			 For a consumer finance company making or negotiating less than $10,000,000 in
			 residential mortgage loans in the previous calendar year, the corporate surety
			 bond must be in the amount of $50,000.
(c) For a consumer finance company making or
			 negotiating $10,000,000 or more but less than $25,000,000 in residential
			 mortgage loans in the previous calendar year, the corporate surety bond must be
			 in the amount of $75,000.
(d) For
			 a consumer finance company making or negotiating $25,000,000 or more but less
			 than $50,000,000 in residential mortgage loans in the previous calendar year,
			 the corporate surety bond must be in the amount of $100,000.
(e) For a consumer finance company making or
			 negotiating $50,000,000 or more but less than $100,000,000 in residential
			 mortgage loans in the previous calendar year, the corporate surety bond must be
			 in the amount of $150,000.
(f) For
			 a consumer finance company making or negotiating more than $100,000,000 in
			 residential mortgage loans in the previous calendar year, the corporate surety
			 bond must be in the amount of $200,000.