Oregon Mortgage Servicer Bond

Oregon Mortgage Servicer Bond

With the passing of Oregon Senate Bill 98, and in accordance with Oregon Revised Statutes (ORS) 86A.300 to 86A.339, the Mortgage Servicer Bond and license are required in Oregon for individuals and companies servicing residential mortgage loans. Jet’s quick online bond process allows you to get coverage quickly.


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The license and bond requirement is enforced by the Oregon Department of Consumer and Business Services (DCBS), Division of Financial Regulation, but licensing and all paperwork is completed through the Nationwide Multistate Licensing System (NMLS). Jet can easily manage the license bond process through the NMLS.

What Is the Cost of the Oregon Mortgage Servicer Bond with Jet?

Your cost for the Mortgage Servicer Bond can be as low as $250 annually or $25 monthly with Jet. A soft credit check is necessary to determine the rate, but only takes a second online. If you are a new licensee starting your business mid-year, Jet can provide you prorated pricing so you aren’t obligated to pay for a full year or you can easily utilize our monthly offer.

Oregon Mortgage Servicer Bond Cost
Mortgage Loan Amounts Bond Limit Monthly Annual
New Business or less than $10mil $50,000 $19 $188
$10 - 25 mil $75,000 $28 $281
$25 - 50 mil $100,000 $38 $375
$50 - 100 mil $150,000 $56 $563
More than $100 mil $200,000 $75 $750

By writing directly, Jet cuts out middlemen who add nonsense broker fees. The chart below reflects bond rates for someone with good credit.

Other carriers do not offer monthly installment plans for Mortgage Servicer Bonds, but Jet understands that paying in full up front can be tough for businesses. Jet’s monthly payment option allows for more financial flexibility throughout the year.

Mortgage Servicer Distinction

The mortgage servicer license is separate from the Mortgage Lender Bond and license; a company must obtain a license and surety bond for each license type if they are originating and servicing residential mortgage loans in Oregon.

A mortgage servicer is a business that handles the day-to-day servicing of a mortgage loan and sends mortgage loan statements to clients. Each mortgage servicer branch needs a license, but a bond is only required for the original mortgage servicer license.

How Is the Bond Limit Determined?

Bond amounts vary from $50,000 to $200,000, depending on the past four quarters of residential mortgage loans serviced in Oregon. The DCBS will determine the bond amount annually upon receiving and evaluating your loan statements.

Businesses servicing less than $5,000 total of Oregon residential mortgage loans do not need to become a licensed mortgage loan servicer or obtain a bond.

What Is the Mortgage Servicer Bond Filing Process?

Jet files the Mortgage Servicer Bond through the NMLS for you. Once you grant Jet authority to be your surety bond provider within the NMLS, all future management associated with the surety bond is taken care of by Jet, including filing, bond riders, renewal, and cancellation. Refer to the chart below for the NMLS electronic surety bond filing process.

Mortgage Servicer Bonds must be renewed or replaced on an annual basis, which is all done through the NMLS. The bond must be submitted to the NMLS prior to December 1st, with the effective date of December 31st. 

How Does Cancellation of the Bond Work?

You can cancel the bond at any time with Jet Insurance Company. Although typically the bond is to remain on file for five years after the license terminates, cancellation can be requested from Jet to the DCBS. As long as your license is in good standing, the DCBS is likely to approve the request for cancellation.

Jet must have something in writing stating the licensee wishes to cancel the bond, and cancellation will be requested by Jet within the NMLS after that. The DCBS will be notified of the cancellation request in the NMLS and the bond will remain effective for 30 calendar days.

If you request cancellation with multiple months left on the bond term, Jet calculates a prorated refund based on what is left, and will return that amount to you. Other insurance carriers sneakily put language in their indemnity agreements that state they will charge fees upon cancellation, or that the bond premium is fully earned or has minimum earned amounts affecting how much or whether a refund will be issued.

How To Avoid Bond Claims as a Mortgage Servicer

The Oregon Revised Statutes 86A.300 to 86A.339 detail out the rules and standards by which a mortgage servicer should abide. By following the regulations, a servicer will have little to worry about. Actions against mortgage loan servicers’ licenses will arise for the following actions:

  • Charge fees for services not provided
  • Increase fees beyond the usual amount charged
  • Apply borrower funds improperly/fraudulently

Before getting to the point of a bond claim a consumer complaint is typically filed with the DCBS. The DCBS will notify you and provide a copy of the complaint for which you have 30 days to respond. The DCBS may also investigate and request supporting documentation from you. If any violations listed under ORS 86A.330 are found, the DCBS has jurisdiction to charge a civil penalty fee of up to $5,000.

Depending on what is found in the investigation and how you correspond, the violation could lead to a bond claim. It is in the best interest for a mortgage servicer to address the mediation and corrective actions afforded to them to avoid worsening the situation. Ultimately, and depending on the violation(s), the DCBS has authority to suspend or revoke the mortgage servicer license under ORS 86A.336.

What Is Jet’s Bond Claim Process?

If a complaint reaches the point of a bond pay out, Jet will make sure the claim is valid and will make the bond payment if necessary. Regulations put in place by the DCBS are there to prevent mortgage servicers from acting unethically and when handling money and dealing with customers there is no room for shenanigans.

Mortgage servicers should furnish any supporting documentation for the violation/incident to help Jet determine next steps and validity of the claim. If a claim is proved to be accurate, Jet will proceed to pay the claimant; the mortgage loan servicer is then liable to reimburse Jet. Surety bonds are different from insurance policies for this reason, as they still pay the damaged party, surety bond claims must be paid back by the holder.

The license bond is to remain in effect for five years after the mortgage servicer ceases to be licensed, giving ample time for bond claims to be filed if warranted. 

Why Is the Mortgage Servicer Bond Required in Oregon?

Any time there is a large amount of money involved in a business transaction, there is risk associated for the customer, such as the mortgage servicer charging the customer an increased monthly payment so they can earn more money. The Mortgage Servicer Bond acts as a line of credit to loan servicers to guarantee their ability to abide by the rules and regulations set forth in ORS 86A.303 to 86A.339. There is a long process before the bond is needed as a remedy, however, the bond is there for when mortgage servicers decide to avoid regulations and penalties from the DCBS. 

How To Get the Mortgage Servicer Bond With Jet

You can get a bond the same day with Jet by simply verifying information in our online bond process. All we need is your business name, address, phone number, and a few other simple pieces of information to get your bond filed once approved.


What Is the Renewal Process for the Mortgage Servicer Bond?

The bond is continuous, meaning it will stay on file as long as payment is made to Jet. The DCBS evaluates your businesses on an annual basis to ensure the correct bond amount is on file, and will send you a notice by September each year. The new or renewed bond must be in the NMLS before December 1st, with an effective date of December 31st.

Upon renewal, you will need to let Jet know if any changes are to be made including the bond limit, business address, and business name. Jet will make sure everything is correct within the NMLS. 

If you choose Jet’s monthly payment plan, the payments will continue to come out of your preferred account as usual, with no additional actions on your part. If the bond limit changes, Jet will adjust the monthly pricing to accommodate for the increase or decrease.

Paying for the bond annually? You can simply pay the bond renewal and Jet will take care of the rest for you. The NMLS allows you to review bond information quickly, so you can get back to servicing residential loans for your customers.

Are Other Bonds Needed for Mortgage Businesses in Oregon?

A Mortgage Lender Bond is needed for those originating Oregon residential mortgage loans. Businesses that do both the originating and servicing of mortgage loans in Oregon must obtain licenses and surety bonds for both.

Oregon Mortgage Servicer Bond Form