Brief Summary
If your Oregon consumer finance company employs mortgage loan originators, this $50,000 electronic surety bond is what keeps the license in good standing. It is filed through NMLS rather than mailed to Salem, you pay a yearly premium instead of tying up $50,000 in cash, and the same bond can be raised as your residential loan volume grows.
Oregon requires a consumer finance licensee that employs mortgage loan originators to file a corporate surety bond running to the State of Oregon under ORS 86A.227 and ORS 725.140. New companies and those with under $25 million in prior year residential mortgage loan volume post $50,000. The bond is submitted as an electronic surety bond through NMLS by a surety authorized in Oregon, and OAR 441-730-0026 requires it to be in place by December 1 each year.
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Detailed Information About the Oregon Consumer Finance License ($50,000) - NMLS Bond:
Who has to post this bond
Oregon licenses consumer finance companies under ORS Chapter 725, administered by the Division of Financial Regulation within the Department of Consumer and Business Services. The license covers loans of $50,000 or less with terms longer than 60 days for personal, family, household or educational use, along with purchasing, servicing or refinancing those contracts.
The bond requirement attaches to a specific group. ORS 725.140 and ORS 86A.227 require a licensee that employs mortgage loan originators to file a corporate surety bond with the director that runs to the State of Oregon and covers each originator the company employs. ORS 725.230 lets the director revoke the license of a company that fails to file and maintain that bond.
The amount depends on loan volume
This is the detail most applicants miss. The $50,000 figure is the starting tier, not a fixed amount. OAR 441-730-0026 sets the bond by the prior year's residential mortgage loan volume:
- New companies, or under $25 million: $50,000
- $25 million to $49,999,999: $75,000
- $50 million to $99,999,999: $100,000
- $100 million to $199,999,999: $150,000
- $200 million or more: $200,000
A company holding more than one consumer finance license may file one bond large enough to cover the combined amounts, as long as it meets the tier minimums.
Filing and keeping it in force
The bond is an electronic surety bond submitted through the Nationwide Multistate Licensing System, and DFR's licensure questionnaire states it must come from a surety authorized to do business in Oregon. The rule requires the bond to be submitted through NMLS by December 1 of each calendar year. The bond must stay in place while the company employs originators and for at least five years after it stops.
Renewal and reporting
DFR states that licenses issued before November 1 expire December 31 of the same year, with renewals filed through NMLS between November 1 and December 1. Every licensee also files an annual report by March 31 covering the prior calendar year.
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