Oregon Mortgage Lender Bond
What is the Oregon Mortgage Lender Bond?
The Oregon Department of Consumer and Business Services obliges companies to follow proper regulations by securing their mortgage lenders licenses. The division also ensures that applicants files for a permit with the Nationwide Mortgage Licensing System (NMLS). The NMLS provides first-time users with their instructions for state-licensed individuals.
The State of Oregon mandates applicants to secure their licenses and fees, including bonds with the State Insurance Division. The total bond amount for the brand new licenses is $50,000 which will be submitted to the NMLS through an electronic surety bond and must be settled prior to their operation. Permittees must pay non-refundable fees as follows:
- $960 application fee
- $100 NMLS fee
For more information, you may visit Oregon’s Mortgage Lender Licensing page or their physical office.
Why do you need an Oregon Mortgage Lender Bond?
The State of Oregon obliges mortgage lending companies to secure their bonds prior to their operation to protect future clients from fraudulent activities or in the event the company defaults. In line with this, permittees must first prepare the following prior to submitting their application with the NMLS:
- National Safe MLO Test
- Accomplished pre-licensing education
- Criminal and credit report check
Apart from the mandatory legal compliance, securing your own licensing bond also ensures:
- Clients are completely safe and secure under your agency
- Your credibility is boosted in terms of financial security
- You are able to use your full line of credit
- The confidentiality of your activities (unless requested by legal authorities)
- Your access to professional advice counseling from lawyers, estimators, and similar professionals.
More details about the Oregon Mortgage Lender Bond
The bond must be filed with Oregon’s Department of Consumer and Business Services and must be issued by a surety bond provider certified by the state’s Insurance Department. The parties in the agreement are:
- Principal (mortgage lender)
- Obligee (State of Oregon)
- Surety/Bond Company or Obligor (surety bond provider)
How much does an Oregon Mortgage Lender Bond cost?
The cost of the bond will depend on the employer’s credit score, industry experience, business history, and the surety provider’s background, and will normally be between 0.8% and 5% of the total bond amount. Generally, the better the credit report status, the better the premium rate which is between 0.75% and 5% for this bond type.
How do I obtain this bond?
At Surety Bond Authority, we are dedicated to helping you get your bond the fast and easy way. Here is a step-by-step guide to help you get started.
To secure your bond, be sure to transact with a reputable surety company early. If you are ready to get yours processed today, you can APPLY HERE. Rest assured our expert surety bond agent will guide you from the time of your application until the issuance of your bond.
- Completed bond application form (to be provided by our trusted surety agents)
- Bond forms (as designed and mandated by the state regulation department)
- Financial documents (this includes your bank account statements, sources of income, balance sheets, personal and business capital, escrow accounts, etc.)
- Other requirements as prescribed (seller’s permit, facility permit to legally conduct business, etc.)
In the assessment phase, our underwriter will need the following information:
- Nature of your business
- Credit Score
- Financial strength
For the speedy processing of your application, ensure you have gathered and provided accurate information upon submission.
Once the assessment is done, we will promptly issue your bond and send it your way. Contact us today and get your bond issued in no time.