Senate Bill 98, passed by the 2017 Oregon Legislature and effective Jan. 1, 2018, requires companies to get a license from the Division of Financial Regulation in order to service Oregon residential mortgage loans. This license is separate from the license to originate mortgage loans. Effective Jan. 1, 2018, a company that both originates and services mortgage loans must have both a mortgage lender license and a mortgage servicer license. The division will begin accepting applications Nov. 1, 2017.
The division is working on rulemaking to implement the new licensing and regulation program. We expect to issue temporary rules to accept applications and issue licenses on Jan. 1, 2018. We will continue with the standard rulemaking process to implement permanent rules for licensing and regulation. When more information is available on this process, you can find it on our Laws and Rules page in the Proposed Rules section.
How to apply
All applications for an Oregon mortgage servicer license must be filed through the Nationwide Mortgage Licensing System (NMLS). The NMLS website has instructions on how to submit an application for Oregon, or any other state. NMLS has a resources and support section that may be helpful, particularly for first-time users. We expect to have a checklist available on the NMLS system in October 2017.
An application for a mortgage servicer license submitted through the NMLS must meet all of the following requirements:
- Be completed with any other trade names the company intends to use in servicing Oregon residential mortgage loans.
- Include a registered agent in Oregon.
- Have a completed MU-3 for any branch location where the company will service Oregon residential mortgage loans.
- Include an electronic surety bond or letter of credit in the amount that will be set by rule.
- Identify all of the applicant’s controllers and managers, including completing a MU2, providing fingerprints if they are not on file with NMLS and authorizing both a criminal records check and a credit report.
- Include answers to disclosure questions for the company, the controllers, and the branch managers. There is more information on the questions available through the NMLS application process . If you answer yes to any disclosure question, you must provide an explanation. This chart details information that you must provide in response to an affirmative answer;
- Not include a controller or manager that has been convicted of any of the following:
- Any felony in the past seven years.
- A misdemeanor involving a false statement or dishonesty in the past seven years.
- Any felony at any time if the felony involved fraud, dishonesty, breach of trust, or money laundering.
- Show that each controller and manager has demonstrated financial responsibility, character, and general fitness to command the confidence of the community and warrant that the company will operate honestly, fairly, and efficiently.
- Provide financial statements that are less than six months old that demonstrate that the company maintains sufficient liquidity, operating reserves, and tangible net worth to adequately meet all obligations. For companies that service Fannie Mae, Freddie Mac, or Ginnie Mae loans, they must meet the requirements of those institutions.
- Upload a business plan that includes a statement with a detailed breakdown of the portfolio of mortgage services rights on a nationwide basis as well as separately for Oregon.
- Pay the nonrefundable application fee that will be set by rule and $100 NMLS user fee.