Frequently Asked Questions
Are there any circumstances under which the bond amount for a mortgage servicer in Oregon may be increased beyond the standard $50,000 requirement?
Yes, in certain situations, the Oregon Division of Financial Regulation may require a mortgage servicer to post a bond amount greater than the standard $50,000. These situations typically arise when a servicer’s financial condition, business practices, or regulatory compliance raise concerns. The decision to increase the bond amount is made on a case-by-case basis, and servicers should be prepared to meet these increased requirements if requested.
Can a mortgage servicer use a blanket bond to cover multiple licensed locations in Oregon, or is a separate bond required for each location?
Oregon generally requires a separate Mortgage Servicer Bond for each licensed location within the state. A blanket bond that covers multiple locations may not be acceptable to meet the regulatory requirements. Mortgage servicers with multiple locations in Oregon should be prepared to obtain and maintain separate bonds for each of their licensed offices.
Is the Mortgage Servicer Bond refundable or prorated if a mortgage servicer decides to cease operations in Oregon or their license is revoked?
The Mortgage Servicer Bond is typically not refundable or prorated if a mortgage servicer decides to cease operations in Oregon or if their license is revoked. The bond is intended to provide financial security for consumers and the state, and its release is subject to specific conditions and regulatory approval. Mortgage servicers should plan accordingly and consult with the Oregon Division of Financial Regulation if they have questions about the bond’s status when ending operations in the state.