Or. Admin. Code § 441-860-0085 - Corporate Surety Bond for Mortgage Bankers or Mortgage Brokers Acting as or Employing a Mortgage Loan Originator
(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.
Notes
Stat. Auth.: ORS 86A.242
Stats. Implemented: ORS 86A.227
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