OAR 441-730-0026
Corporate Surety Bond for Consumer Finance Licensees Employing a Mortgage Loan Originator
(1)
This rule applies to a consumer finance company licensed under ORS 725.010 (Definitions) to 725.270 (Reinstatement of revoked license) and OAR chapter 441, division 730 that employs one or more mortgage loan originators. The corporate surety bond must be in a form and on terms approved by the director.(2)
A corporate surety bond under this rule must be renewed or replaced each calendar year, concurrently with the license renewal of any mortgage loan originators employed by the consumer finance company. The corporate surety bond shall be submitted through the Nationwide Mortgage Licensing System and Registry 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)
A consumer finance company must maintain a corporate surety bond during the period the company employs a mortgage loan originator. The corporate surety bond must remain in effect for at least five years after the person ceases to employ one or more mortgage loan originators. A person 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 consumer finance company ceases to originate residential mortgage loans, 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 (Materials in languages other than English), the director will release the corporate surety bond.(5)
The sum of the corporate surety bond for a consumer finance company that employs one or more mortgage loan originators must be calculated based on the last required annual report submitted under OAR 441-730-0320 (Licensee Reporting). The sum of each consumer finance company’s corporate surety bond must be determined as follows:(a)
For a consumer finance company that has not previously conducted business involving the origination of residential mortgage loans, the corporate surety bond must be in the amount of $50,000.(b)
For a consumer finance company making or negotiating less than $10,000,000 in residential mortgage loans in the previous calendar year, the corporate surety bond must be in the amount of $50,000.(c)
For a consumer finance company making or negotiating $10,000,000 or more but less than $25,000,000 in residential mortgage loans in the previous calendar year, the corporate surety bond must be in the amount of $75,000.(d)
For a consumer finance company making or negotiating $25,000,000 or more but less than $50,000,000 in residential mortgage loans in the previous calendar year, the corporate surety bond must be in the amount of $100,000.(e)
For a consumer finance company making or negotiating $50,000,000 or more but less than $100,000,000 in residential mortgage loans in the previous calendar year, the corporate surety bond must be in the amount of $150,000.(f)
For a consumer finance company making or negotiating more than $100,000,000 in residential mortgage loans in the previous calendar year, the corporate surety bond must be in the amount of $200,000.(6)
Notwithstanding section (5) of this rule, a person that obtains and maintains one or more consumer finance licenses in this state may provide a corporate surety bond in an amount to cover the entire surety amounts required for one or more of the person’s consumer finance companies in an amount meeting the minimum bond amounts of sections (5)(a) through (f) of this rule.
Source:
Rule 441-730-0026 — Corporate Surety Bond for Consumer Finance Licensees Employing a Mortgage Loan Originator, https://secure.sos.state.or.us/oard/view.action?ruleNumber=441-730-0026.