The Oregon Division of Financial Regulation has begun using the Nationwide Multistate Licensing System (NMLS) to accept applications for mortgage servicer and debt buyer licenses. The license applications were available through the NMLS beginning on November 1, 2017. Financial business licensee applicants in the state—including mortgage servicers—must also begin submitting Electronic Surety Bonds (ESBs).
Many states have adopted use of the NMLS for mortgage loan businesses, money transmitters, and other financial businesses. The system is not a substitute for state licensing entities, rather it serves as a state and federal record of all licensees�mortgage servicers, originators, lenders, collection agencies, etc. Most licenses issued by the Division already accept applications through the NMLS; mortgage loan servicers and debt buyers are both new licenses.
The mortgage loan servicer license is established from a mortgage loan originator license—a business offering both services needs both licenses. Mortgage loan servicers’ licensing rules are still being established, but the Division will begin issuing licenses on January 1, 2018. The Division asks for this and more information:
- Any business trade names
- Registered agent in Oregon
- Completed MU-3 for any branch locations
- $960 license and registration fee plus $100 NMLS processing fee
- $15 for credit report for each control person
- $36.25 for criminal background check for each control person
- $50,000 surety bond
- Financial statements less than six months old
- Proof of each control person’s good character, financial responsibility, and general fitness to operate a financial business
Debt buyers’ licensing law takes effect on January 1, 2018 and separates them from collection agencies. These financial businesses submit much of the same information as other businesses, and pay a $450 licensing fee plus the $100 NMLS fee. Currently, they don’t have a surety bond requirement.
In conjunction with moving application submissions to NMLS, the state of Oregon has begun using ESBs for licensees’ bond requirements. ESBs have been adopted for several states’ licenses, and make it easier to track and maintain the bond. ESBs are no different from surety bonds—besides being a digital rather than physical document. The state of Oregon began using ESBs for financial businesses in April 2017. The state plans to convert surety bonds to ESBs for all financial businesses licensed through the NMLS (and that require a bond) by December 31, 2018. Those that do not convert their bond may be barred from license renewal.