Oregon Mortgage Broker Bonds Explained
In Oregon, you need a state license to operate as a mortgage lender, broker or banker. This licensure requires that you provide a mortgage broker bond.
The bond functions as a safety mechanism for your customers. It guarantees that you will follow applicable rules and regulations in your capacity as a mortgage professional.
In essence, the bond represents a three-party contractual agreement. The principal that needs bonding is your business. The obligee is the Oregon Division of Financial Regulation that sets the licensing criteria. The third entity is the bond provider - the surety.
Questions about Mortgage Broker Bonds in Oregon
Who needs this bond?
If you want to get an Oregon mortgage lender license, or a license as a mortgage broker or banker in the state, you have to meet the bonding requirement. The initial amount is $50,000. After the first year of licensing, the bond amounts are between $50,000 and $200,000, depending on your yearly loan volume. Similar rules apply for servicers, who have to obtain an Oregon mortgage servicer bond. The goal of the bonding is to guarantee your compliance with Chapter 86A of the Oregon Revised Statutes and Chapter 441 of the Finance and Securities Regulation.
The licensing authority is the Oregon Division of Financial Regulation. The Nationwide Multistate Licensing System & Registry (NMLS) processes the application forms and documents.
How much does the bonding cost?
Oregon mortgage brokers, bankers and lenders have to provide a bond between $50,000 and $200,000. This is the bond amount. However, you only have to pay a fraction of it, referred to as the bond premium. It is based on the strength of your personal and business finances.
Your actual price is determined on the basis of your personal credit score, company paperwork, and fixed and liquid assets. The surety bond cost is lower when these factors are stable. If your application is solid, you can expect to pay between 0.5% and 5% for your bond.
|Oregon Mortgage Broker Bond Cost Based on Credit Score|
|Yearly loan volume||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Initial licensing; volume below $10 million||$50,000||$250-$625||$375-$750||$1,000-$2,500||$2,500-$5,000|
|Between $10 million and $25 million||$75,000||$375-$938||$562-$1,125||$1,500-$3,750||$3,750-$7,500|
|Between $25 million and $50 million||$100,000||$500-$1,250||$750-$1,500||$2,000-$5,000||$5,000-$10,000|
|Between $50 million and $100 million||$150,000||$750-$1,875||$1,125-$2,250||$3,000-$7,500||$7,500-$15,000|
|Above $100 million||$200,000||$1,000-$2,500||$1,500-$3,000||$4,000-$10,000||$10,000-$20,000|
What if I have bad credit?
Lance Surety Bonds has created its Bad Credit Surety Bonds program for applicants with low credit scores, tax liens, bankruptcies, and civil judgments. If you are facing such financial issues, you can benefit from this program.
You can expect rates between 5% to 10% that correspond to the higher bonding risk. As we collaborate with a number of A-rated, T-listed surety companies, you can be sure that you will get a top bonding price with us.
How do I get my bond?
To launch the bonding procedure, you can complete our online application form (it takes 5min). Whenever we have your full set of documents, we will send you an exact quote you can then purchase the bond and will receive a digital and a paper version.
You can delve into the details of how bonding works on our How to Get Bonded page.
If you have further queries, you can also reach us at (877) 514-5146.
What happens if I get a bond claim?
You may receive a claim against your mortgage broker bond if you don't fulfill your legal obligations. In such cases, a harmed party can demand compensation up to the bond amount you have posted.
Initially, your surety may pay the costs on proven claims. However, as per the bond indemnity language, you have to repay it fully. That's why it is best to stay away from situations that can give rise to claims.
Still Have Questions? Check Our FAQ Pages
What Our Clients Have To Say?
Kimberlee AblesQuick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Andrew PoincotLong story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
Margie MartinezWe decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!