The Complete Oregon Mortgage Broker License Guide [2020]

Published: Apr 6, 2020
oregon mortgage broker license

 

Mortgage professionals in Oregon have to undergo a licensing procedure prior to launching operations in the state. If you want to start your business, you need to obtain an Oregon mortgage broker license.

The Division of Financial Regulation sets the criteria that you have to satisfy in order to be granted a license. However, you have to go through the process via the Nationwide Multistate Licensing System and Registry (NMLS) website. 

It’s a good idea to get acquainted with the requirements and the steps of the licensing before you delve into it. Find out the essential details in the sections below. 

Choose a Mortgage License Type

Your first step is to select the license type that best matches your intended activities. You can choose from the following:

  • Mortgage Lender License (company) – assisting a person in obtaining or applying to obtain an Oregon residential mortgage loan, making an Oregon residential mortgage loan, or offering to sell or selling residential real estate paper or accepts funds for investment in real estate paper
  • Mortgage Servicer License (company) – servicing Oregon residential mortgage loans
  • Mortgage Loan Originator License (individual) – taking a residential mortgage loan application or offering to negotiate or negotiates the terms of a residential mortgage loan

The full list of license types is on the NMLS website

Meet the Oregon Mortgage Broker License Requirements

oregon mortgage broker licenseYou have to meet the criteria of the Division of Financial Regulation in order to get licensed. 

Business Documents 

If you need to get a company license, you need to register your business entity with the Secretary of State. This applies for the Oregon mortgage lender license, as well as the servicer license. 

Besides that, you need to obtain and/or complete the following documents: 

  • Trade name (if applicable) 
  • Business plan
  • Organizational chart
  • Management chart
  • Resident/Registered Agent information
  • Disclosure questions
  • Control Person (MU2) attestation 
  • Qualifying Individual/Operations Manager assignment
  • Certificate of Authority/Good Standing Certificate

If you’re applying for a mortgage loan originator license, you have to complete the disclosure questions. You also need to provide your employment history. 

Provide a Surety Bond 

Oregon mortgage companies have to obtain a surety bond as a part of the licensing process. The bond functions as an extra layer of protection for your customers. It guarantees your legal compliance.

The amount of your Oregon mortgage broker bond depends on the license type that you want to obtain:

  • Mortgage Lender License – $50,000 for an initial license; up to $200,000 for renewals, depending on your loan origination volume
  • Mortgage Servicer License – $50,000
  • Mortgage Loan Originator License – your sponsoring company must be bonded 

In order to get bonded, you have to pay a small fraction of the required amount. It is called the premium and depends on your personal and business finances. The stronger they are, the lower it can get. If your overall profile is stable, the typical rates you can expect are between 0.5% and 5%.

Want to see the exact cost of your Oregon mortgage broker bond? Fill in the short form below! 

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Criminal Background Check

You need to pass an FBI criminal background check for the servicer license, as well as for the loan originator one

Credit Report and Financial Statements

Applicants for company licenses (lender and servicer) have to provide their financial statements. Authorization for a credit report is necessary for servicers and loan originators. 

Education and State Exams 

Loan originators have to complete at least 20 hours of NMLS-approved pre-licensure education courses. They must include at least 3 hours of federal laws and regulations, 3 hours of ethics, 2 hours of lending standards applicable to nontraditional mortgage, and 4 hours of Oregon content. Afterwards, you have to successfully pass the state test

Complete the Oregon Mortgage Broker License Application

You should submit online the full application package to the NMLS . 

For the documents that have to be sent to the Division, you can either email them at [email protected] or send them by mail to:

DFR Licensing Section 

PO Box 14480 

Salem OR 97309-0405

License and Registration Fees

You need to cover the following fees as well:

  • Mortgage Lender License and Mortgage Servicer License – $960 license fee and $100 NMLS processing fee 
  • Mortgage Loan Originator License – $80 license fee and $30 NMLS processing fee

The other fees are $15 per control person for each credit report, and $36.25 for each FBI criminal background check.

 

Have further questions about the Oregon mortgage license and bonding? You can contact us at tel:877.514.5146.

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Robin Kix

Robin Kix

Robin Kix is currently the Renewal Department Manager. Since joining Lance Surety in 2014, she has helped thousands of businesses throughout the nation remain compliant at the federal, state and local level. She has significant experience supporting commercial bond lines, particularly in the automobile, transportation and construction industries. Robin and her team work together to create a positive customer service experience at the time of every policy renewal, whether that be finding the best pricing or offering additional assistance.