Title 9, Mortgages and Liens

ORS 86A.095 to 86A.198 may be cited as the “Oregon Mortgage Lender Law.” [Formerly 59.980]

As used in ORS 86A.095 to 86A.198: (1) “Fraud,” “deceit” and “defraud” are not limited to common-law deceit. (2) “License” means a license issued to a mortgage banker or mortgage broker under ORS 86A.095 to 86A.198. (3)(a) “Mortgage banker” means a person that for compensation or…

(1) It is unlawful for any person to engage in residential mortgage transactions in this state as a mortgage banker or mortgage broker unless the person is licensed under ORS 86A.095 to 86A.198. A person who is a mortgage banker or mortgage broker under ORS 86A.100, but who does …

(1) The Director of the Department of Consumer and Business Services by rule shall establish procedures for licensing mortgage bankers or mortgage brokers. The director may coordinate licensing with the Nationwide Mortgage Licensing System and Registry. (2) An applicant for a lic…

(1) An initial license expires one year after the date of issuance unless the Director of the Department of Consumer and Business Services establishes a different expiration date to coordinate with the Nationwide Mortgage Licensing System and Registry. (2) The director by rule sh…

(1) A mortgage banker or mortgage broker shall make and keep accounts, correspondence, memoranda, papers, books and other records that the Director of the Department of Consumer and Business Services by rule or order prescribes. The mortgage banker or mortgage broker shall preser…

Except as provided in ORS 86A.118, the Director of the Department of Consumer and Business Services may by order deny, suspend, condition or revoke a license if the director finds that the applicant or licensee: (1) Is insolvent, either in the sense that the liabilities of the ap…

The Director of the Department of Consumer and Business Services may enter an order against the applicant or licensee under ORS 86A.115 if any partner, officer or director of a mortgage banker or mortgage broker, any person occupying a similar status or performing similar functio…

(1) The Director of the Department of Consumer and Business Services may cancel an application or license if the director finds that the applicant or licensee: (a) Has ceased to do business as a mortgage banker or mortgage broker; (b) Has failed to maintain a corporate surety bon…

(1) The Director of the Department of Consumer and Business Services has general supervision and control over mortgage loan originators, mortgage bankers and mortgage brokers that reside or do business in this state and that engage in an activity that is subject to the provisions…

The Director of the Department of Consumer and Business Services: (1) May make such public or private investigations within or outside this state as the director deems necessary to determine whether a person has violated any provision of ORS 86A.095 to 86A.198 or any rule or orde…

(1) Whenever the Director of the Department of Consumer and Business Services has reasonable cause to believe that a person has been engaged or is engaging in any violation of any provision of ORS 86A.095 to 86A.198 or any rule or order of the director, the director may bring sui…

(1) When the Director of the Department of Consumer and Business Services ascertains that the assets or capital of any mortgage banker or mortgage broker is impaired, or that the mortgage banker’s or mortgage broker’s affairs are in an unsound condition, the director may take pos…

(1) In accordance with this section and ORS chapter 183, the Director of the Department of Consumer and Business Services may from time to time make, amend and rescind such rules as are necessary to carry out the provisions of ORS 86A.095 to 86A.198, including but not limited to …

(1) Except as provided in ORS 183.745, upon the entry of an order under ORS 86A.095 to 86A.198, the Director of the Department of Consumer and Business Services shall promptly give appropriate notice of the order as provided in this subsection. The notice shall state that a heari…

(1) A person aggrieved by an order of the Director of the Department of Consumer and Business Services which has been the subject of a timely application for hearing before the director shall be entitled to judicial review of the order under ORS chapter 183. (2) A judgment of a r…

(1) For the purpose of an investigation or proceeding under ORS 86A.095 to 86A.198, the Director of the Department of Consumer and Business Services may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence and require the production of boo…

(1) The Director of the Department of Consumer and Business Services shall furnish to any person, upon payment of a fee established by rule, copies of any document which is a matter of public record. Certified copies shall be furnished upon request. In a proceeding or prosecution…

(1) A person that employs a mortgage loan originator or under the provisions of ORS 86A.200 to 86A.239 should employ a mortgage loan originator is liable as provided in subsection (2) of this section for an ascertainable loss of money or property, real or personal, in a residenti…

It is unlawful for any person, directly or indirectly, in connection with the conduct of a mortgage banker or mortgage broker business: (1) To employ any device, scheme or artifice to defraud; (2) Knowingly to make any untrue statement of a material fact or to omit to state a mat…

(1) Each mortgage banker or mortgage broker shall maintain in this state one or more separate bank accounts that shall be designated a Clients’ Trust Account in which all trust funds received or handled by the mortgage banker or mortgage broker shall be deposited unless, pursuant…

(1) Each mortgage banker or mortgage broker, at the time a Clients’ Trust Account is opened under ORS 86A.157, shall provide the bank in which the account is opened with a notice in substantially the following form: ________________________________________________________________…

A mortgage banker or mortgage broker shall not use or cause to be published any advertisement that: (1) Contains any false, misleading or deceptive statement or representation; or (2) Identifies the mortgage banker or mortgage broker by any name other than the name listed on the …

(1) Every licensed mortgage banker and mortgage broker shall designate and maintain a principal place of business for the transaction of business. (2) If a licensed mortgage banker or mortgage broker intends to transact business at any place other than the principal place of busi…

Prior to the closing of any mortgage loan or any mortgage banking loan, the mortgage banker or mortgage broker shall supply the borrower with a disclosure as required by the real estate lending provisions of 15 U.S.C. 1601 et seq. and Regulation Z, 12 C.F.R. Part 226. [Formerly 5…

Before adopting rules under ORS 86A.095 to 86A.198, the Director of the Department of Consumer and Business Services may appoint and shall consider the suggestions of an advisory committee that represents the interests of persons that the rules will likely affect. The director ma…

(1) With the permission of the lender, note owner, note holder or other holder of an interest in a note, a mortgage banker or mortgage broker may service or collect a mortgage banking loan or mortgage loan in the name of the mortgage banker or mortgage broker or in the name of th…

(1) The Legislative Assembly finds and declares that: (a) The public interest is served by identifying a mortgage loan originator with a specific mortgage banker or mortgage broker; and (b) The public must be protected from the conflicts of interest created when a mortgage loan o…

(1) A mortgage banker, mortgage broker or mortgage loan originator may not: (a) Engage in dishonest, fraudulent or illegal practices or conduct in a business or profession or engage in unfair or unethical practices or conduct in connection with the mortgage business. (b) Willfull…

(1) A person that employs or intends to employ an individual as a mortgage loan originator shall conduct a state criminal records check of the individual. (2) A person that employs or intends to employ an individual as a mortgage loan originator shall report to the Director of th…

(1)(a) As used in this section, “negative amortization loan” means a mortgage loan or mortgage banking loan that is structured in such a way that a borrower in any period may make a scheduled loan payment that is insufficient to pay accruing interest. (b) “Negative amortization l…

(1) Before entering into an agreement with a borrower for a reverse mortgage, a lender shall notify the borrower in writing of the provisions of ORS 311.700 (2). (2)(a) In any advertisement, solicitation or communication that a lender or an agent or affiliate of the lender intend…

(1) A mortgage banker, a mortgage broker or a mortgage loan originator shall provide in writing the materials identified in subsection (2) of this section to a borrower if the mortgage banker, mortgage broker or mortgage loan originator: (a) Communicates or causes to be communica…

As used in ORS 86A.200 to 86A.239: (1) “Depository institution” means a depository institution, as defined in 12 U.S.C. 1813(c), and a credit union, as defined in ORS 723.008. (2) “Federal banking agency” means: (a) The Board of Governors of the Federal Reserve System; (b) The Co…

(1) Except as provided in subsection (2) of this section, an individual may not engage in business as a mortgage loan originator in this state without first: (a) Obtaining and maintaining a mortgage loan originator’s license under ORS 86A.212 or renewing a mortgage loan originato…

(1) The Director of the Department of Consumer and Business Services by rule shall determine the manner in which an applicant must apply and the form and contents of an application for a license to conduct business as a mortgage loan originator. (2) In connection with an applicat…

The Director of the Department of Consumer and Business Services may issue an interim mortgage loan originator’s license to a person that is not licensed under ORS 86A.212 if the director finds that issuing the interim license will facilitate the business of licensed mortgage loa…

(1) The Director of the Department of Consumer and Business Services may not issue a mortgage loan originator’s license to an applicant unless the director finds, at a minimum, that the applicant: (a) Has obtained a unique identifier from the Nationwide Mortgage Licensing System …

(1) An applicant for a mortgage loan originator’s license shall: (a) Complete, at a minimum, 20 hours of an approved course of prelicensing education that, at a minimum, must include: (A) Three hours devoted to federal laws and regulations; (B) Three hours devoted to ethics, with…

(1) The Director of the Department of Consumer and Business Services shall renew a mortgage loan originator’s license if the director finds that: (a) The licensed mortgage loan originator continues to meet the requirements set forth under ORS 86A.212; (b) The licensed mortgage lo…

(1) A licensed mortgage loan originator each year shall complete at least eight hours of an approved course of continuing education that: (a) At a minimum, must include: (A) Three hours devoted to federal laws and regulations; (B) Two hours devoted to ethics, with instruction con…

(1) In addition to authority the Director of the Department of Consumer and Business Services has under ORS 86A.095 to 86A.198, the director under this section has the authority, subject to ORS chapter 183, to deny, suspend, place conditions upon, revoke or decline to renew a mor…

(1) A person that employs a mortgage loan originator shall file with the Director of the Department of Consumer and Business Services a corporate surety bond that runs to the State of Oregon and that covers each mortgage loan originator the person employs. The corporate surety bo…

(1) The Director of the Department of Consumer and Business Services may contract with or otherwise agree with the Nationwide Mortgage Licensing System and Registry, or a person the Nationwide Mortgage Licensing System and Registry designates, to: (a) Collect and maintain records…

(1) The Director of the Department of Consumer and Business Services, as often as the director deems necessary to carry out the purposes of ORS 86A.200 to 86A.239, may: (a) Request or require a person that employs a mortgage loan originator or that under the provisions of ORS 86A…

A person who is subject to regulation under ORS 86A.200 to 86A.239 in connection with the person’s activities as a mortgage loan originator may not: (1) Perform an act as a mortgage loan originator in a negligent or incompetent manner; (2) Employ a device, scheme or artifice to d…

(1)(a) A licensed mortgage loan originator shall clearly display the licensed mortgage loan originator’s unique identifier on a residential mortgage loan application form, solicitation, advertisement, promotional material or website the licensed mortgage loan originator uses in c…

The Director of the Department of Consumer and Business Services may adopt, amend and repeal rules that are necessary to carry out the provisions of ORS 86A.200 to 86A.239. [2009 c.863 §13a] MORTGAGE LOAN SERVICERS

ORS 86A.303 to 86A.339 may be cited as the Mortgage Loan Servicer Practices Act. [2017 c.636 §1]

As used in ORS 86A.303 to 86A.339: (1) “Affiliate” means a person who controls, is controlled by or is under common control with another person. (2) “Applicant” means a person that applies for a license to engage in business as a residential mortgage loan servicer in this state. …