The Oregon Administrative Rules contain OARs filed through January 15, 2010

DEPARTMENT OF CONSUMER AND BUSINESS SERVICES,
DIVISION OF FINANCE AND CORPORATE SECURITIES

441-860-0020

Application Procedure

(1) Each person applying for a mortgage banker or mortgage broker license shall submit to the director the following:

(a) A completed application on a form approved by the director;

(b) A form approved by the director completed by the applicant and any individual the applicant designates as a control person;

(c)(A) A corporate surety bond if the applicant acts as the applicant’s sole mortgage loan originator or employs a mortgage loan originator; or

(B) A corporate surety bond or irrevocable letter of credit if the applicant is a mortgage banker and the applicant is either not a mortgage loan originator or the applicant is not required to employ a mortgage loan originator;

(d) Financial statements prepared in accordance with generally accepted accounting principles, including a balance sheet and a statement of income or operations, dated not more than six months prior to submission of the application:

(A) The financial statements may be prepared by the mortgage banker or mortgage broker, except that if the director finds it in the public interest, the director may require that a mortgage banker or mortgage broker submit financial statements prepared by an independent accountant;

(B) If the financial statements are more than six months old, interim period financial statements prepared by the mortgage banker or mortgage broker for the period ending the last full month prior to the date of application shall also be submitted.

(e) Written authorization to examine the applicant's Clients' Trust Account under ORS 59.935(3) or, in the case of a neutral escrow depository, a copy of the escrow agreement under OAR 441-875-0040(4);

(f) A copy of the written Notice to Financial Institution of Establishment of Clients' Trust Accounts under ORS 59.940. In the event the applicant does not receive client funds except at the time of closing, an Affidavit and Undertaking in the form and on terms approved by the director;

(g) The name of the registered agent of the mortgage banker or mortgage broker appointed under ORS 60.111 to accept process, notices or demands served upon the mortgage banker or mortgage broker;

(h)(A) Each of the following persons listed in paragraph (B) of this subsection shall submit the information:

(i) A biographical statement including name, address, Social Security number, date of birth, and a description of any material litigation;

(ii) A description of pending charges and convictions within the previous seven years from the date of the application of a misdemeanor, an essential element of which is fraud;

(iii) A description of pending charges and convictions for any felony for the preceding seven years; or

(iv) A description of pending charges and convictions a felony at any time if an element of the felony was an act of fraud, dishonesty, a breach of trust or laundering a monetary instrument.

(v) If more than one name or Social Security number has been used by any of the persons submitting the biographical statement, all names and Social Security numbers must be submitted;

(vi) A statement listing the revocations by another jurisdiction of a license as a mortgage banker, mortgage broker, or mortgage loan originator or a license substantially similar to a mortgage banker, a mortgage broker, or a mortgage loan originator; and

(vii) An employment history for the ten years prior to the date of the application which shall include the name of each employer, job position and title, date each employment began and date each employment ended.

(B) Paragraph (A) of this section applies to:

(i) Any director, officer, and shareholder with direct or indirect ownership of greater than or equal to ten percent of outstanding shares of a corporate applicant;

(ii) The owner, if the applicant is an unincorporated sole proprietorship;

(iii) Each managing partner of a limited partnership or a partner in a general partnership with a partnership interest greater than or equal to ten percent of the total partnership interests in the general or limited partnership;

(iv) A member or managing member in a limited liability company with an ownership interest greater than or equal to ten percent of the total membership interests in the limited liability company; and

(v) The person identified in ORS 59.850 (2) as having the requisite experience in the mortgage business, negotiating loans in a related business satisfactory to the director, or lending experience in a related business satisfactory to the director.

(j) Each branch supervisor shall submit an employment history for the ten years prior to the date of the application, or the date of employment as a supervisor. The employment history shall include the name of each employer, job position and title, date each employment began and date each employment ended.

(k) The information required under OAR 441-860-0030 for each branch office;

(l) Payment of fees for application or renewal, as applicable, under OAR 441-860-0100.

(m) The following information concerning the applicant’s mortgage loan originators, including the applicant if the applicant is a licensed mortgage loan originator:

(A) The name and unique identifier of each individual employed by the applicant;

(B) A signed statement attesting that at the time the applicant submits information under this rule each individual employed by the applicant has a valid mortgage loan originator license; and

(C) A signed statement that the applicant conducted the state criminal background check required by OAR 441-860-0045 and found no disqualifying convictions.

(2) If an applicant for a license submits an application which is incomplete in any respect, the director shall notify the applicant of the deficiencies through the National Mortgage Licensing System and Registry. The applicant has 30 days from the date of the notice to correct the deficiencies to complete the application. If the applicant fails to complete the application, the application will be considered abandoned.

Stat. Auth.: ORS 59.850, 59.855 & 59.900, 2009 OL Ch 863, Sec. 4, 13a, 15
Stats. Implemented: ORS 59.845 & 59.850, 2009 OL Ch 863, Sec. 4, 15
Hist.: FCS 3-1993, f. & cert. ef. 11-15-93; FCS 11-1994, f. 11-4-94, cert. ef. 11-15-94; FCS 1-1996, f. 11-20-96, cert. ef. 12-1-96; Administrative correction 8-4-97; FCS 4-1999, f. & cert. ef. 12-23-99; FCS 10-2000, f. & cert. ef. 9-13-00; FCS 10-2001, f. 12-24-01, cert. ef. 1-1-02; FCS 7-2003, f. 12-30-03 cert. ef. 1-1-04; FCS 6-2004, f. 12-14-04, cert. ef. 1-1-05; FCS 3-2005, f. & cert. ef. 9-6-05; FCS 1-2007, f. & cert. ef. 1-17-07; FCS 12-2009, f. 12-2-09, cert. ef. 1-1-10; FCS 14-2009, f. 12-30-09 cert. ef. 1-4-10

441-860-0025

Rules for Use of Assumed Business Names

(1) In addition to any requirements for registering an assumed business name with the Secretary of State, a mortgage banker or mortgage broker who intends to use an assumed business name to identify the person’s mortgage banker or mortgage broker business shall also comply with the following before doing business under the assumed business name:

(a) If the assumed business name contains words or phrases described in ORS 56.023, the mortgage banker or mortgage broker must obtain specific written approval from the director under ORS 705.635.

(b) The assumed business name must be added to the corporate surety bond of the mortgage banker or mortgage broker under either OAR 441-860-0085 or 441-860-0090.

(c) The mortgage banker or mortgage broker may purchase a separate corporate surety bond for the assumed business name if:

(A) The separate corporate surety bond contains the name of the principal mortgage banker or mortgage; and

(B) The separate corporate surety bond complies with either OAR 441-860-0085 or 441-860-0090, as applicable.

(d) Any corporate surety bond must be in force as of the date of the addition of the assumed business name, and must be forwarded to the director within two weeks from the addition of the assumed business name; and

(e) The assumed business name must be placed upon any client trust account maintained by the mortgage banker or mortgage broker.

(2) Regardless of the lack of any ownership interest in the assumed business name, the mortgage banker or mortgage broker is responsible for all actions of those acting under the assumed business name which relate to mortgage banking loans or mortgage loans.

Stat. Auth.: ORS 59.850 & 59.900
Stats. Implemented: ORS 59.850
Hist.: FCS 4-1999, f. & cert. ef. 12-23-99; FCS 14-2009, f. 12-30-09 cert. ef. 1-4-10

441-860-0030

Branch Office Licensing

If a mortgage banker or mortgage broker intends to operate a branch office, the mortgage banker or mortgage broker shall obtain a license for the branch office prior to originating loans from the branch office by submitting the licensing fee specified in OAR 441-860-0100 and providing the following information through the Nationwide Mortgage Licensing System and Registry or on a form approved by the director:

(1) The address of the location of each branch office, and the mailing address if different, and the branch office telephone number email address and facsimile number.

(2) The information required under OAR 441-860-0020 regarding the branch supervisor who will supervise the activities of the employees of the branch to insure compliance with all applicable rules and regulations.

(3) Upon satisfaction of the requirements listed in sections (1) and (2), a separate branch office license will be issued by the director for posting in the branch office location.

Stat. Auth.: ORS 59.850 & 59.900
Stats. Implemented: ORS 59.845
Hist.: FCS 3-1993, f. & cert. ef. 11-15-93; FCS 11-1994, f. 11-4-94, cert. ef. 11-15-94; FCS 4-1999, f. & cert. ef. 12-23-99; FCS 1-2007, f. & cert. ef. 1-17-07; FCS 12-2009, f. 12-2-09, cert. ef. 1-1-10; FCS 14-2009, f. 12-30-09 cert. ef. 1-4-10

441-860-0040

Supervision of Branch Offices and Mortgage Loan Originators

(1) A mortgage banker or a mortgage broker must diligently supervise and control every mortgage loan originator employed by the mortgage banker or the mortgage broker in the mortgage banker or mortgage broker’s principal place of business and at each branch office.

(2) A mortgage banker or mortgage broker must personally supervise or designate a control person to supervise each branch office to ensure compliance with ORS 59.840 through 59.980 and OAR 441-850-0005 through 441-885-0500. .

(3) To diligently supervise and control a mortgage loan originator employed by the mortgage banker or the mortgage broker, the mortgage banker or mortgage broker shall:

(a) Ensure that mortgage loan originators, and persons required to be licensed as mortgage loan originators, employed by the mortgage banker or mortgage broker obtain and maintain a license under 2009 Or Laws ch. 863, ¦¦ 1 to 13 and OAR 441, division 880.

(b) Establish, maintain and enforce written procedures to supervise the activities of mortgage loan originators employed by the mortgage banker or mortgage broker and other associated persons that are subject to its supervision and to supervise the operation of each office of the mortgage banker or mortgage broker transacting loans with Oregon consumers. The procedures shall be reasonably designed to achieve compliance with applicable Oregon and federal lending laws and rules, including ORS 59.840 to 59.980.

(c) Review the activities of each office transacting loans with Oregon consumers, which shall include the examination of customer loan files, including closed and opened files. The reviews shall be reasonably designed to assist in detecting violations of, preventing violations of and achieving compliance with applicable mortgage lending laws, regulations and rules, as well as detecting and preventing irregularities or abuses. Each mortgage broker shall retain a record of the dates and findings of each review. The duties of this rule may be delegated to a qualified supervisor.

(d) Provide a copy of the procedures required by this rule to every mortgage loan originator employed by the mortgage banker or mortgage broker in written or electronic format.

(e) Ensure that mortgage loan originators obtain training to address deficiencies identified by the mortgage banker or mortgage broker in loan file and operations reviews or make up deficiencies in continuing education as necessary.

(f) Establish procedures for handling consumer complaints and develop procedures to identify the types of consumer complaints that must be forwarded to a supervisor for review. Complaints that must be forwarded to a supervisor include complaints about material changes in loan terms, fees or expenses, or material omissions about loan terms, fees or expenses. The mortgage banker or mortgage broker shall also develop procedures for investigating, responding to and keeping a record of complaints forwarded to a supervisor.

(g) Visit at least annually each branch the mortgage banker or mortgage broker licenses in Oregon to review compliance with the procedures listed in this section.

(3) In establishing the procedures in section (2) of this rule and in determining the frequency of office reviews, the mortgage banker or mortgage broker shall consider the following:

(a) The number of loan transactions made by the mortgage banker or mortgage broker;

(b) The number of office locations transacting loans with Oregon consumers;

(c) The number of affiliated persons assigned to each location;

(d) The nature and complexity of the loan transactions that the mortgage banker or mortgage broker predominantly makes;

(e) The number of mortgage loan originators assigned to a location;

(f) The number of mortgage loan originators assigned to the supervision of an individual supervisor; and

(g) The results of previous office reviews.

(4) In establishing the procedures in section (2) of this rule and in determining the number of files from each mortgage loan originator to be reviewed, the mortgage banker or mortgage broker shall consider the following:

(a) The knowledge and years of lending experience of a mortgage loan originator;

(b) The disciplinary history of and the number of complaints received about a mortgage loan originator;

(c) The experience and level of sophistication of the borrowers of a mortgage loan originator, if the mortgage banker, mortgage broker or mortgage loan originator predominantly serves specific segments of society;

(d) The nature and complexity of the loan transactions that the mortgage banker or mortgage broker predominantly makes; and

(e) The results of previous file reviews for a particular mortgage loan originator.

(5) The mortgage banker or mortgage broker is subject to disciplinary action of the director for any violation of the Oregon Mortgage Lender Law or corresponding rules committed by a mortgage loan originator authorized to make or negotiate residential mortgage loans for the mortgage banker or mortgage broker, whether or not that accountability is documented in any written agreement.

Stat. Auth.: ORS 59.900
Stats. Implemented: ORS 59.865
Hist.: FCS 3-1993, f. & cert. ef. 11-15-93; FCS 11-1994, f. 11-4-94, cert. ef. 11-15-94; FCS 1-2007, f. & cert. ef. 1-17-07; FCS 14-2009, f. 12-30-09 cert. ef. 1-4-10

441-860-0045

State Criminal Records Check

(1) In addition to the criminal records check required for submission to the National Mortgage Licensing System and Registry under 2009 Or Laws ch. 863, ¦¦ 4 and 10, a mortgage banker or mortgage broker must conduct a state criminal records check of each individual employed by the mortgage banker or mortgage broker as a mortgage loan originator.

(a) The mortgage banker or mortgage broker shall search state records of all states where the individual has resided in the past 10 years using the person's full legal name, date of birth, place of birth and Social Security number.

(b) The mortgage banker or mortgage broker must use the services of law enforcement agencies or an independent private company that complies with the federal Fair Credit Reporting Act to conduct the state criminal records check.

(2) An applicant for a mortgage loan originator license may not be employed and a currently employed mortgage loan originator must be terminated immediately if the state criminal records check discloses a conviction for a felony or a misdemeanor if an essential element of the misdemeanor involved false statements or dishonesty:

(a) During a period of seven years before the date the applicant submits an application for a license as a mortgage loan originator; or

(b) At any time before the date the applicant submits an application a license as a mortgage loan originator if the conviction or plea involved a felony and an element of the felony was an act of fraud, dishonesty, a breach of trust or laundering a monetary instrument.

(3) State criminal records check documents received by the mortgage banker or mortgage broker shall be maintained in a secure location separate from personnel records, and shall be made available to the director for examination at any reasonable time and may require, without subpoena, the production of such records at the office of the director as often as is reasonably necessary. These records shall be preserved for three years after the mortgage banker or mortgage broker terminates the mortgage loan originator’s employment. After the retention period, the records shall be destroyed in a secure manner.

Stat. Auth.: ORS 59.971 & 59.972
Stats. Implemented: ORS 59.971 & 59.972
Hist.: FCS 5-2003, f. 12-30-03 cert. ef. 1-1-04; FCS 2-2004, f. & cert. ef. 8-5-04; Renumbered from 441-880-0050 by FCS 14-2009, f. 12-30-09 cert. ef. 1-4-10

441-860-0050

Renewal of Mortgage Banker and Mortgage Broker License

(1) A mortgage banker or a mortgage broker license shall expire on December 31 of each calendar year. At least 30 days prior to the expiration of a mortgage banker or mortgage broker license, an application for renewal of the license shall be submitted to the director and shall include the following:

(a) A completed license renewal form approved by the director.

(b) Financial statements prepared in accordance with generally accepted accounting principles, including a balance sheet and a statement of income or operations, dated not more than six months prior to submission of the application. If the financial statements are more than six months old, interim period financial statements prepared by the mortgage banker or mortgage broker for the period ending the last full month prior to the date of the application must also be submitted.

(c) Any applicable renewal fees prescribed under OAR 441-860-0100.

(d) A mortgage banker or mortgage broker shall file with the director as a condition of renewal a corporate surety bond conforming to the requirements of OAR 441-860-0085 or a corporate surety bond or irrevocable letter of credit conforming to the requirements of OAR 441-860-0090.

(2) The director may refuse to renew a license if a reason exists under ORS 59.840 to 59.980 or 2009 Or Laws ch 863, ¦¦ 1 to 13.

(3) If a mortgage banker or mortgage broker submits an application for renewal which is incomplete in any respect, the director shall notify the mortgage banker or broker of the deficiencies on the application. The mortgage banker or mortgage broker shall have 15 days from the date of the notice or the end of the renewal period, whichever occurs first, to complete the application for renewal. If the mortgage banker or mortgage broker fails to complete the application for renewal, and the license shall be terminated on the expiration date by reason of failure to renew.

Stat. Auth.: ORS 59.850, 59.855, 59.900, 2009 OL Ch 863, ¦ 13a
Stats. Implemented: ORS 59.855 & 59.969
Hist.: FCS 3-1993, f. & cert. ef. 11-15-93; FCS 11-1995, f. 11-4-94, cert. ef. 11-15-94; FCS 4-1999, f. & cert. ef. 12-23-99; FCS 10-2000, f. & cert. ef. 9-13-00; FCS 10-2001, f. 12-24-01, cert. ef. 1-1-02; FCS 7-2003, f. 12-30-04, 1-1-04; FCS 6-2004, f. 12-14-04, cert. ef. 1-1-05; FCS 12-2009, f. 12-2-09, cert. ef. 1-1-10; FCS 14-2009, f. 12-30-09 cert. ef. 1-4-10

441-860-0060

Equivalent and Related Experience

(1) An applicant or an applicant’s control person who has experience in the following categories shall be given full credit for such experience toward meeting the experience requirement under ORS 59.850:

(a) Origination of loans secured by lien interests in real estate;

(b) Negotiation of loans secured by lien interests in real estate;

(c) Underwriting of loans secured by lien interests in real estate; or

(d) Persons who supervise the activities of those persons enumerated in subsections (a) through (c) of this section.

(2) An applicant who has experience in the following categories, within the five year period preceding the application date, may receive partial credit for such experience toward the experience requirement contained in ORS 59.840 through 59.980. Credit may be given in only one category listed and for not more than three years actual experience. Credit given shall be in the ratios of actual years of experience to equivalent years credited toward qualification for a mortgage banker and mortgage broker license as set forth below. The remaining years of experience required to qualify for a mortgage banker or mortgage broker license shall be obtained from experience in categories listed in section (1) of this rule. The categories of possible alternative experience for which partial credit is available, and the ratios of actual years of experience to equivalent years credited toward qualification for a mortgage banker or mortgage broker license are:

(a) Escrow officer, 3:2;

(b) Loan processor with responsibility primarily for loans secured by lien interests on real estate, 3:2;

(c) Branch manager of lender with responsibilities primarily for loans not secured by lien interests on real estate, 3:1.5;

(d) Loan officer with responsibility primarily for loans not secured by lien interests on real estate, 3:1.5;

(e) Paralegal with demonstrated experience in real estate financing matters, 3:1;

(f) Real estate broker with an Oregon license or a license from a state with substantially equivalent real estate licensing requirements, 3:1;

(g) Title officer with a title company, 3:1;

(h) Real estate broker, not within subsection (f) of this section, 3:1;

(i) Real estate salesperson with an Oregon license or a license from a state with substantially equivalent licensing requirements, 3:1;

(j) Licensed real estate appraiser, 3:1; and

(k) Real estate salespersons not included in subsection (i) of this section, 3:0.5.

(3) An applicant who does not originate loan applications or negotiate loan terms but who is in the business of selling real estate paper whether as issuer, agent or principal, to persons other than persons enumerated in ORS 59.035(4), or who engages all or part of the time, for the account of others or for the person's own account, in the business of accepting funds from one or more persons other than persons enumerated in ORS 59.035(4) for investment in real estate paper, shall be given full credit for experience toward meeting the three of the past five year experience requirement contained for:

(a) Experience as a licensed securities salesperson under the provisions of ORS 59.165; or,

(b) Experience as a securities salesperson effecting transactions in securities which are exempt from registration under the provisions of ORS 59.025 and 59.035.

(4) The individual listed as the experienced person, as described in ORS 59.850, on the applicant's licensing application may not work, as an employee or independent contractor as the experienced person, for another mortgage banker or mortgage broker.

Stat. Auth.: ORS 59.850(2) & 59.900
Stats. Implemented: ORS 59.840
Hist.: FCS 3-1993, f. & cert. ef. 11-15-93; FCS 11-1994, f. 11-4-94, cert. ef. 11-15-94; FCS 4-1999, f. & cert. ef. 12-23-99; FCS 7-2001, f. & cert. ef. 8-1-01; FCS 2-2004, f. & cert. ef. 8-5-04; FCS 1-2007, f. & cert. ef. 1-17-07; FCS 14-2009, f. 12-30-09 cert. ef. 1-4-10

441-860-0070

Disclosure of Significant Developments

(1) A mortgage banker or mortgage broker shall be required to notify the director within 30 days of the occurrence of any of the following significant developments:

(a) Filing for bankruptcy or reorganization.

(b) Notification of the institution of license revocation procedures against the mortgage banker or mortgage broker by any state.

(c) Filing of a felony indictment against a mortgage banker or mortgage broker, officer, director, principal, control person or experienced person.

(d) A mortgage banker or mortgage broker, officer, director, principal, control person or experienced persons being convicted of a felony or misdemeanor involving fraud.

(e) All material litigation occurring against the mortgage banker or mortgage broker.

(f) The director may require other information as deemed necessary to determine whether a new application is required if a change of control or ownership of a mortgage banker or mortgage broker occurs. For purposes of this rule, a change in control or ownership includes:

(A) Acquisition of ten percent or more of the stock in a corporation by a person or a group of persons, or the ability of a person or group acting in concert to elect a majority of the directors or otherwise effect a change in policy of the corporation.

(B) Acquisition of the mortgage banker or mortgage broker business, if the applicant is an unincorporated sole proprietorship;

(C) Acquisition by a managing partner of a limited partnership or a partner in a general partnership of ten percent or more of the partnership interests in the general or limited partnership;

(D) Acquisition by a member or managing member in a limited liability company of a membership interest greater than or equal to ten percent of the total membership interests in the limited liability company; and

(E) In the case of entities other than corporations or those listed in paragraphs (A) through (D) of this subsection, change in control shall mean any change in principals of the organization, whether active or passive.

(g) In addition to the requirements of OAR 441-860-0030, a mortgage banker or a mortgage broker shall notify the director when a branch office ceases to operate.

(h) Any changes in the information required on the mortgage banker or mortgage broker's application form, including, but not limited to address changes, phone number changes, etc.

(i) Any changes in the status of a mortgage loan originator employed by the mortgage banker or mortgage broker.

(j) Any dismissal of a mortgage loan originator employed by the mortgage banker or mortgage broker due to a change in the mortgage loan originator’s licensing status or an event that would constitute grounds for license revocation under 2009 Or Laws ch. 863, sections 1 to 13 and OAR chapter 441, division 880.

(2) The director may request additional information regarding any of the occurrences outlined in this rule.

Stat. Auth.: ORS 59.850 & 59.900
Stats. Implemented: ORS 59.860
Hist.: FCS 3-1993, f. & cert. ef. 11-15-93; FCS 4-1999, f. & cert. ef. 12-23-99; FCS 10-2001, f. 12-24-01, cert. ef. 1-1-02; FCS 2-2004, f. & cert. ef. 8-5-04; FCS 14-2009, f. 12-30-09 cert. ef. 1-4-10

441-860-0080

Failure to Continually Satisfy Experience Requirement

(1) If a mortgage banker or mortgage broker fails to satisfy the experience requirements under ORS 59.850(3) during any licensing period regardless of the reason for that failure, the mortgage banker or mortgage broker shall:

(a) Notify the director within three working days that the mortgage banker or mortgage broker no longer satisfies the experience requirement;

(b) Submit to the director within seven calendar days of the occurrence, an inventory and status of pending loan application files including an accounting of all Clients' Trust Accounts;

(c) Account for all investor funds;

(d) Submit to the director within one week of the occurrence a proposed plan to rectify the deficiency or a plan for the orderly transfer of business to a duly licensed mortgage banker or mortgage broker;

(e) Immediately cease accepting new applications from borrowers and, in the case of mortgage brokers who fund mortgages from investors other than institutions described in ORS 59.035(4), solicitation of funds and accepting such investor funds shall immediately cease.

(2) If the mortgage banker or mortgage broker fails to comply with the provisions of section (1) of this rule, the director shall take appropriate action, consistent with the authority granted pursuant to ORS 59.840 through 59.965 to ensure that the interests of borrowers and investors are protected.

(3) If the mortgage banker or mortgage broker is unable to satisfy the director that the experience requirement will be satisfied within 30 days, the director may institute action to suspend or revoke the mortgage banker’s or mortgage banker’s license.

(4) The director may require reports on the status of the mortgage banker or mortgage broker's business. A mortgage banker or mortgage broker shall provide a report containing the content specified by the director as often as the director may specify. The reports may be written or oral, or both as the director may specify.

(5) If a mortgage banker or mortgage broker renews a license but does not conduct business, the time period that the person does not conduct business does not apply to the experience requirement in ORS 59.850(2).

Stat. Auth.: ORS 59.850, ORS 59.865 & ORS 59.900
Stats. Implemented: ORS 59.840
Hist.: FCS 3-1993, f. & cert. ef. 11-15-93; FCS 11-1994, f. 11-4-94, cert. ef. 11-15-94; FCS 4-1999, f. & cert. ef. 12-23-99; FCS 10-2001, f. 12-24-01, cert. ef. 1-1-02; FCS 14-2009, f. 12-30-09 cert. ef. 1-4-10

441-860-0090

Surety Bond and Letter of Credit

(1) Every applicant for a license as a mortgage banker or mortgage broker must file with the Director a surety bond as specified in section (4) & (5) of this rule or a letter of credit as specified in section (6) & (7) of this rule.

(2) Every person licensed as a mortgage banker or mortgage broker must maintain a surety bond as specified in section (4) & (5) of this rule or letter of credit as specified in section (6) & (7) of this rule during the period of licensing. Each surety bond or letter of credit shall be subject to the filing of a claim for acts during the term of the bond for a period of six years.

(3) In no less than six years after a person ceases to be licensed as a mortgage banker or mortgage broker, the person or the writer of the surety bond or letter of credit may apply to the Director on forms approved by the Director for release of the surety bond or letter of credit. Unless the Director determines that claims are pending against the person for violation of ORS 59.840 through 59.980, the Director shall release the surety bond or letter of credit.

(4) A surety bond shall be in a form and on terms approved by the Director in the minimum sum of $25,000 from a company authorized to transact an insurance business in the State of Oregon. The amount of the surety bond shall not exceed $50,000 for a single applicant. The surety bond shall be renewed or replaced annually.

(5) For each additional licensed branch location of the applicant engaging in residential mortgage transactions pursuant to ORS 59.845, the surety bond will increase by $5,000 until such time as the surety bond reaches the maximum sum of $50,000.

(6) A letter of credit shall be in a form and on terms approved by the Director in the minimum sum of $25,000 from a commercial financial institution authorized to transact banking business in the State of Oregon. The amount of the letter of credit shall not exceed $50,000 for a single applicant. The letter of credit shall be renewed or replaced annually.

(7) For each additional licensed branch location of the applicant engaging in residential mortgage transactions pursuant to ORS 59.845 the letter of credit will increase by $5,000 until such time as the letter of credit reaches the maximum sum of $50,000.

Stat. Auth.: ORS 59.850 & 59.900
Stats. Implemented: ORS 59.860, 59.969
Hist.: FCS 3-1993, f. & cert. ef. 11-15-93; FCS 11-1994, f. 11-4-94, cert. ef. 11-15-94; FCS 4-1999, f. & cert. ef. 12-23-99; FCS 10-2001, f. 12-24-01, cert. ef. 1-1-02; FCS 2-2004, f. & cert. ef. 8-5-04

441-860-0101

Fees Payable to the Director

In addition to any fees required to participate in the National Mortgage Licensing System and Registry, a mortgage banker or a mortgage broker shall pay to the director the following fees at the time of application:

(1) A nonrefundable application fee for a mortgage banker or mortgage broker license of $1,100 plus a $500 nonrefundable application fee for each branch the mortgage banker or mortgage broker establishes in Oregon.

(2) A nonrefundable renewal application fee for a mortgage banker or mortgage broker license of $550 plus a $250 nonrefundable application fee for each branch the mortgage banker or mortgage broker maintains in Oregon.

Stat. Auth.: 59.900
Stat. Implemented: 59.850
Hist.: FCS 12-2009, f. 12-2-09, cert. ef. 1-1-10

441-860-0110

Audit Charges Mortgage Bankers or Mortgage Brokers Pay to the Director

(1) Audit charges shall be paid upon receipt of the invoice of audit or examination fees.

(2) In addition to the initial application and renewal fees assessed pursuant to ORS 59.880 and OAR 441-860-0020(10) and 441-860-0050(3) licensees shall pay an audit charge in the amount of $75 an hour for each person used in performance of the audit.

(3) Notwithstanding section (2) of this rule:

(a) If an employee of the Department is required to travel out of state to perform the work described by section (2) of this rule, the rate of charge is $75 per hour plus cost to the Program of travel and subsistence for each such person;

(b) If the work described in section (2) of this rule is performed by a consultant hired by contract for the particular work, the charge payable by the Mortgage Banker or Mortgage Broker is the actual cost to the Program of the contract consultant.

Stat. Auth.: ORS 59.880
Stats. Implemented: ORS 59.880
Hist.: FCS 3-1993, f. & cert. ef. 11-15-93; FCS 11-1994, f. 11-4-94, cert. ef. 11-15-94; FCS 10-2001, f. 12-24-01, cert. ef. 1-1-02; FCS 8-2008, f. & cert. ef 8-28-08

441-860-0130

Private Money Loans

A person is not engaged in the business of making loans secured by an interest in real estate as used in ORS 59.840(5)(b)(C) and (7)(b)(F) if the person is making a loan from their own funds and does not make more than 10 loans secured by an interest in residential real estate during any consecutive twelve month period if they do not advertise or otherwise hold themselves out as being in the business of making mortgage loans.

Stat. Auth.: ORS 59.900
Stats. Implemented: ORS 59.840
Hist.: FCS 4-1999, f. & cert. ef. 12-23-99; FCS 14-2009, f. 12-30-09 cert. ef. 1-4-10

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