New laws effective January 1st, 2018 bring mortgage loan service organizations under regulatory supervision and require licensing of the same. A per the Oregon Division of Financial Regulation, "Senate BIll 98 requires companies to get a license from the Division of Financial Regulation in order to service Oregon residential mortgage loans. This license is separate from the license to originate mortgage loans. Effective Jan. 1, 2018, a company that both originates and services mortgage loans must have both a mortgage lender license and a mortgage servicer license."
Under its rulemaking authority, the Division has issued administrative rules that regulate the Oregon mortgage loan servicer bond requirments. Rule 441-890-0035 stipulates that "every applicant for a license as a mortgage servicer must file a corporate surety bond 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 and shall be delivered to the director by filing in the NMLS system by December 1st of each calendar year. There is a specific formula for calculating the mortgage loan servicer bond amount. The surety bond 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:
Oregon surety bond leader, Surety One, Inc. is a specialist in the bonding needs of the mortgage loan origination and brokering services industry. We offer both the surety and fidelity bonds required of mortgage professionals in ALL fifty states, Puerto Rico and the U.S. Virgin Islands. Do you operate in multiple states? View our state-by-state report of mortgage broker bond requirements on our commercial surety bond page. Call (800) 373-2804, email us at Underwriting@SuretyOne.com or click here for assistance with your Oregon mortgage loan servicer surety bond application or information on ANY surety or fidelity bond need.
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