Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 890 - LICENSING OF MORTGAGE SERVICERS › Section 441-890-0035 - Corporate Surety Bond or Irrevocable Letter of Credit for Mortgage Servicers

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Every
			 applicant for a license as a mortgage servicer must file a corporate surety
			 bond or irrevocable letter of credit with the director as specified in this
			 rule in a form and on terms approved by the director. The corporate surety bond
			 shall be renewed or replaced each calendar year. The corporate surety bond or
			 irrevocable letter of credit shall be delivered to the director by filing in
			 the NMLS 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 or mortgage
			 servicer subject to this rule reduce the amount of a corporate surety bond or
			 irrevocable letter of credit before October 1 of each calendar year.
(2) The corporate surety bond or irrevocable
			 letter of credit must remain in effect for at least five years after the person
			 ceases to be licensed as a mortgage servicer. A consumer must file a claim
			 against the corporate surety bond or irrevocable letter of credit before the
			 corporate surety bond or irrevocable letter of credit expires as described in
			 this section.
(3) At least five
			 years after a person ceases to be licensed as a mortgage servicer, the person
			 or the writer of the corporate surety bond or irrevocable letter of credit may
			 apply to the director for release of the corporate surety bond or irrevocable
			 letter of credit. Unless the director determines that claims are pending
			 against the person for violation of 2017 Or Laws ch 636, the director will
			 release the corporate surety bond or irrevocable letter of credit.
(4) The corporate surety bond or irrevocable
			 letter of credit must be calculated on the total unpaid principal balance of
			 residential mortgage loans in Oregon as of the last day of the second quarter
			 of the year, or, for new applications, the most recent completed quarter. The
			 sum of the corporate surety bond or irrevocable letter of credit must be
			 determined as follows:
(a) For a person with
			 an unpaid principal balance of less than $10,000,000, the corporate surety bond
			 or irrevocable letter of credit must be in the amount of $50,000.
(b) For a person with an unpaid principal
			 balance of $10,000,000 or more but less than $25,000,000, the corporate surety
			 bond or irrevocable letter of credit must be in the amount of
			 $75,000.
(c) For a person with an
			 unpaid principal balance of $25,000,000 or more but less than $50,000,000, the
			 corporate surety bond or irrevocable letter of credit must be in the amount of
			 $100,000.
(d) For a person with an
			 unpaid principal balance of $50,000,000 or more but less than $100,000,000, the
			 corporate surety bond or irrevocable letter of credit must be in the amount of
			 $150,000.
(e) For a person with an
			 unpaid principal balance of $100,000,000 or more, the corporate surety bond or
			 irrevocable letter of credit must be in the amount of $200,000.