Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 860 - LICENSING OF MORTGAGE BANKERS AND MORTGAGE BROKERS › Section 441-860-0090 - Corporate Surety Bond or Irrevocable Letter of Credit for Mortgage Bankers Not Employing Mortgage Loan Originators

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Every applicant for a license as a
			 mortgage banker who will not act as or employ a mortgage loan originator and
			 does not take an application for a residential mortgage loan, or offer or
			 negotiate terms for a residential mortgage loan 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 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 or
			 irrevocable letter of credit before October 1 of each calendar year.
(2) Every person licensed as a mortgage
			 banker must maintain a corporate surety bond or irrevocable letter of credit as
			 specified in this rule during the time the mortgage banker or mortgage broker
			 is licensed but does not act as or employ a mortgage loan originator. 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
			 banker. 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 banker, 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 ORS 86A.095 through
			 86A.198, 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 based on the previous four quarterly
			 residential reports of condition submitted under OAR 441-865-0025. The sum of
			 the corporate surety bond or irrevocable letter of credit must be determined as
			 follows:
(a) For a person that has not
			 previously conducted business involving the origination of residential mortgage
			 loans in Oregon, the corporate surety bond or irrevocable letter of credit must
			 be in the amount of $50,000.
(b)
			 For a person making or negotiating less than $10,000,000 in residential
			 mortgage loans in Oregon in the previous calendar year, the corporate surety
			 bond or irrevocable letter of credit must be in the amount of $50,000.
(c) For a person making or
			 negotiating $10,000,000 or more but less than $25,000,000 in residential
			 mortgage loans in Oregon in the previous calendar year, the corporate surety
			 bond or irrevocable letter of credit must be in the amount of $75,000.
(d) For a person making or
			 negotiating $25,000,000 or more but less than $50,000,000 in mortgage loans in
			 Oregon in the previous calendar year, the corporate surety bond or irrevocable
			 letter of credit must be in the amount of $100,000.
(e) For a person making or negotiating
			 $50,000,000 or more but less than $100,000,000 in residential mortgage loans in
			 Oregon in the previous calendar year, the corporate surety bond or irrevocable
			 letter of credit must be in the amount of $150,000.
(f) For a person making or negotiating
			 $100,000,000 or more in residential mortgage loans in Oregon in the previous
			 calendar year, the corporate surety bond or irrevocable letter of credit must
			 be in the amount of $200,000.