Oregon Mortgage Lender Bond

The Oregon Division of Financial Regulation is responsible for ensuring licensing compliance for mortgage brokers, lenders and servicers. The licensing regulations for mortgage brokers and lenders are established under Oregon Revised Statutes Chapter 86A. Senate Bill 98 defines licensing requirements for mortgage loan servicers.

This surety bond is an agreement between three parties: 

• Principal: The mortgage broker, lender or servicer that needs to get the bond.
• Obligee: The entity requiring the principal to get bonded.
• Surety: The company that issues the bond.

The purpose of a surety bond is to ensure compensation for those negatively impacted by a mortgage broker’s, lender’s or servicer’s unethical behavior. The surety is responsible for investigating claims and will provide compensation to the claimant for validated claims. Afterward, the principal is required to reimburse the surety for the claim amount. 

Avoiding claims against the bond is in the financial interest of mortgage brokers, lenders and servicers. The best strategy for doing so is by complying with state regulations and standards.

The cost of a mortgage broker bond or a lender bond is between $500 and $20,000. The required bond amount varies by loan volume and is between $50,000 and $200,000. A mortgage loan servicer bond costs between $500 and $5,000. This is based on the required bond amount of $50,000.

The bond rate is between 1% and 10% of the required bond amount. This is also known as the bond premium or the cost of the bond. The chart below will help you estimate your bond cost before applying. 

Many of our customers are curious about the factors influencing how much a bond costs. In addition to the applicant’s credit scores, we consider the applicant’s bond history, finances and industry experience.

1. Apply For Your Bond

Obtaining an Oregon mortgage broker bond, a lender bond or a servicer bond is an easy, three-step process. To begin, apply for your bond using your choice of convenient methods.

1. Apply for a bond online – Our customers appreciate access to the online bond application 24/7. This short form usually takes only a few minutes to complete.
2. Call us at (888) 592-6631 – If you have questions or prefer to apply by phone, our bond experts are happy to help.

When applying, you will need:

• Bond name (Mortgage Lender Surety Bond or Mortgage Servicer License Bond) 
• Bond amount ($50,000 to $200,000)
• Email and contact information

2. Get a Quote

After applying, you will quickly receive a bond quote in your inbox. As you review your quote, please let us know if you need revisions. Our bond specialists are available to review your quote with you, if requested. 

3. Purchase Your Bond

Our customers appreciate how easy it is to complete the documents and pay the invoice online. After you take these steps, you will receive your original bond by email.

When applying for an Oregon mortgage broker license, a lender license or a servicer license, an electronic surety bond must be submitted through the NMLS. Mortgage broker and lender activities are covered by the same Mortgage Lender License. The Oregon Division of Financial Regulation is responsible for enforcing licensing compliance. 

Mortgage brokers and lenders must submit the Mortgage Lender Surety Bond, while loan servicers must submit the Mortgage Servicer Bond. These bonds are continuous and run until they are canceled by the surety or the obligee. 

If you have any questions regarding required bond amount, the definition and role of mortgage brokers, lenders and servicers in Oregon, etc., please contact us. 

When one of our new customers contacted us recently, he needed clarification on mortgage broker bond requirements before applying. He appreciated the personal attention we provided as we answered his questions. Soon afterward, he applied online and got a bond quote from us right away.

The licensing process for Oregon mortgage brokers, lenders and servicers is completed via the Nationwide Mortgage License System. When applying for a new license, you must submit the following items:

• Application
• Surety bond
• Credit report
• Criminal background check
• Financial statements
• Resident/registered agent
• Approvals and designation
• Business plan
• Certificate of Authority/Good Standing
• Formation documents
• Management chart
• Organizational chart
• Disclosure questions

Additional documents required for a mortgage broker or lender are:

• Qualifying individual
• Trust accounting
• State background check for mortgage loan originators
• Remote work policy

Nationwide Mortgage Licensing System. (n.d.). Checklist compiler. https://mortgage.nationwidelicensingsystem.org/slr/SitePages/Checklist-Compiler.aspx

Oregon Division of Financial Regulation. (n.d.). Oregon Division of Financial Regulation. Oregon.gov. https://dfr.oregon.gov/pages/index.aspx

Oregon State Legislature. (2017). Senate Bill 98: Enrolled (2017 Regular Session). https://olis.oregonlegislature.gov/liz/2017R1/Downloads/MeasureDocument/SB98/Enrolled

Oregon State Legislature. (n.d.). Oregon Revised Statutes: Chapter 86A — Mortgage lenders and brokers. https://www.oregonlegislature.gov/bills_laws/ors/ors086a.html

Oregon Division of Financial Regulation. (n.d.). Mortgage servicer license: Electronic surety bond requirements. Nationwide Multistate Licensing System. https://mortgage.nationwidelicensingsystem.org/slr/StateForms/OR_Mortgage%20Servicer%20License%20ESB_v1.pdf

Oregon Division of Financial Regulation. (n.d.). Surety bond form for Oregon mortgage licensees. Nationwide Multistate Licensing System. https://mortgage.nationwidelicensingsystem.org/slr/StateForms/OR3-surety-bond.pdf