Oregon Adopts Rules Relating to Mortgage Servicer Licensing
The Oregon Department of Consumer and Business Services, Finance, and Securities Regulation adopted rules relating to mortgage servicer licensing that include: application, liquidity, surety bond or irrevocable letter of credit, and fees. These provisions are effective immediately.
Application
Oregon Administrative Rule 441-890-0005 sets application requirements for mortgage servicer licensing. The following materials are required for application, among other potential items:
- Form MU1
- Form MU2
- Fingerprints
- Authorization to conduct criminal records check
- Authorization to obtain credit report
- Corporate surety bond
- Irrevocable letter of credit
- Financial statements
- A statement with a detailed breakdown of the portfolio of mortgage loan servicing rights on a nationwide basis
- Detailed breakdown of the portfolio of mortgage loan servicing rights for Oregon
- The names and contact information of all subcontractors performing servicing activities
- Biographical information
- Fees
Liquidity
Oregon Administrative Rule 441-890-0030 sets liquidity, operating reserves, and tangible net worth requirements. Any applicant or licensee who is an approved servicer by a government sponsored entity (GSE) “must maintain liquidity, operating reserves, and tangible net worth that meet the standards set by the GSE” (OAR 441-890-0030(1)). If the applicant’s or licensee’s portfolio contains only non-GSE loans he or she must maintain a minimum tangible net worth of $1 million or maintain a $1 million surety bond, as well as liquidity, including operating reserves, of .00035 times the unpaid principal balance of the portfolio.
Surety Bond
Oregon Administrative Rule 441-890-0035 sets requirements for obtaining a corporate surety bond or irrevocable letter of credit. A corporate surety bond or irrevocable letter of credit must be filed with the Director of the Department of Consumer and Business Services, must be renewed each year, and remain in effect for five years after the person discontinues being a licensed mortgage servicer.
Fees
Oregon Administrative Rule 441-890-0040 sets license application fees. For an application of a mortgage servicer license a nonrefundable fee of $960 plus a $330 nonrefundable application fee for each branch the mortgage servicer establishes in Oregon is required. For a renewal of a mortgage servicer license, a nonrefundable fee of $480 plus a $165 nonrefundable renewal application fee for each branch the mortgage servicer maintains in Oregon. Oregon Administrative Rule 441-890-0045 sets examination charges; the Director of the Department of Consumer and Business Services has authority to conduct examinations (2017 Oregon Laws Chapter 636 § 8), and licensees shall pay an examination charge in the amount of $75 an hour for each person used in performance of the examination.
The full text of these rules can be found here: http://dfr.oregon.gov/laws-rules/Documents/fsr03-2018_rule-order.pdf
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