Or. Admin. Code § 441-890-0035 - Corporate Surety Bond or Irrevocable Letter of Credit for Mortgage Servicers
(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.
Notes
Statutory/Other Authority: ORS 86A.309
Statutes/Other Implemented: ORS 86A.309
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