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 441-860-0085 - Corporate Surety Bond for Mortgage Bankers or Mortgage Brokers Acting as or Employing a Mortgage Loan Originator

Current through Register Vol. 63, No. 7, July 1, 2024
(1) This rule applies to a mortgage banker or
			 mortgage broker licensed under ORS
			 86A.095 through
			 86A.198 and OAR chapter 441,
			 division 860 that either acts as the applicant's sole mortgage loan originator
			 or employs one or more mortgage loan originators. A mortgage banker or mortgage
			 broker must maintain a corporate surety bond during the time the person acts as
			 a mortgage loan originator or during the time the person employs a mortgage
			 loan originator.
(2) The corporate
			 surety bond must be in a form and on terms approved by the director and shall
			 be renewed or replaced each calendar year. The corporate surety bond 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 before October 1 of each calendar year.
(3) The corporate surety bond must
			 remain in effect for at least five years after the person ceases to be licensed
			 as a mortgage banker or mortgage broker. A consumer 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
			 person ceases to be licensed as a mortgage banker or mortgage broker, 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 must
			 be calculated based on the sum of the dollar amount of direct and third party
			 loans reported as closed and funded as reported on the Oregon residential
			 mortgage lending activity reports submitted under OAR 441-865-0025  for quarters
			 two, three and four of the previous year and the first quarter of the current
			 year, or as many such quarters as have or should have been filed as of
			 September 1 of the current year. The calculation is then used to determine the
			 sum of the corporate surety bond 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 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, the corporate surety
			 bond 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, the corporate surety bond 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, the
			 corporate surety bond 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, the corporate surety bond 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, the corporate
			 surety bond must be in the amount of $200,000.