Chapter 86A - Oregon Legislature

Chapter 86A

2017 EDITION

Mortgage Lending

MORTGAGE BANKERS; MORTGAGEBROKERS; MORTGAGE LOAN

ORIGINATORS(Generally)

86A.095 Short title86A.100 Definitions86A.103 License required to engage in residential

mortgage transactions as mortgagebanker or mortgage broker

86A.106 Procedures for licensing; experience re-quired; certification; surety bond or letterof credit; fees; rules

86A.109 Expiration of initial license; renewal; du-ration of renewed license; change in per-sonnel; rules

86A.112 Licensees to keep records; inspection; fil-ing financial reports; rules

86A.115 Grounds for denying, suspending, condi-tioning or revoking license

86A.118 Action against applicant or licensee foract or omission of associate; exception

86A.121 Cancellation of license or application; ap-plication to surrender license

86A.124 Supervisory authority of director overmortgage bankers, mortgage brokers andmortgage loan originators; documents ex-empt from disclosure

86A.127 Investigations; publicity with respect toviolations; cease and desist order

86A.130 Enjoining violations; fine; appointment ofreceiver; attorney fees; damages to pri-vate parties

86A.133 Procedures where assets or capital ofmortgage banker or mortgage brokerfound impaired; involuntary liquidation

86A.136 Rules; financial statements86A.139 Notice of orders; hearings on orders86A.142 Judicial review of orders86A.145 Oaths and subpoenas in proceedings be-

fore director86A.148 Copies of documents; fees; rules; effect of

certification86A.151 Liability of person that employs mortgage

loan originator; recovery of damages;limitations on proceeding; action againstbond or letter of credit; attorney fees

86A.154 Fraud and deceit with respect to mort-gage banker or mortgage broker business

86A.157 Clients’ Trust Account; examination; de-posit of funds; interest; rules

86A.160 Notice to bank regarding Clients’ TrustAccount

86A.163 Prohibited advertisements86A.166 Designation of principal place of business;

other offices; change of personnel; regis-tered agent

86A.169 Disclosure required before closing mort-gage loan or mortgage banking loan

86A.172 Advisory committee

86A.175 Servicing or collecting mortgage bankingloan or mortgage loan by mortgagebanker or mortgage broker

86A.178 Legislative findings regarding mortgageloan originators; prohibited practice

86A.183 Prohibited conduct for mortgage bankers,mortgage brokers and mortgage loanoriginators; conditions affecting employ-ment of mortgage loan originators

86A.186 Mortgage loan originator criminal recordschecks; rules

(Regulation of Lending Activity)86A.195 Restrictions on negative amortization

loans; verification of borrower income;prepayment penalties

86A.196 Notice of reverse mortgage prohibition inhomestead property tax deferral program;summary of terms of reverse mortgage inadvertisement or solicitation; annual no-tice to person with reverse mortgage orto escrow agent, title insurance companyor other agent; exception

86A.198 Materials in languages other than Eng-lish; requirements

MORTGAGE LOAN ORIGINATORS86A.200 Definitions86A.203 License and unique identifier for mort-

gage loan originator; requirements; ex-emptions; rules

86A.206 Application for license; information andmaterials required for application; rules

86A.209 Interim license; findings required86A.212 Findings required for issuing license; basis

for denial; rules86A.215 Education and testing requirements for

license; education and test providers86A.218 License renewal; expiration; rein-

statement; rules86A.221 Continuing education requirements for

mortgage loan originator; credit allowed86A.224 Denying, suspending, conditioning, revok-

ing or declining to renew license; findingsrequired; order; civil penalty; prohibitedactivity; criminal liability

86A.227 Corporate surety bond required; right ofaction; rules

86A.230 Contracts or agreements with NationwideMortgage Licensing System and Registryand other agencies; information sharing;confidentiality; reports of violations; rules

86A.233 Production of records; investigations, ex-aminations and subpoenas; possession ofrecords; access to records; powers of di-rector; prohibited activities

86A.236 Prohibited activities86A.239 Display of license and unique identifier;

rules; report of condition86A.242 Rules

Title 9 Page 1 (2017 Edition)

MORTGAGES AND LIENS

MORTGAGE LOAN SERVICERS86A.300 Short title86A.303 Definitions86A.306 License requirement; applicability; excep-

tions; enforcement; rules86A.309 Application for license; requirements;

waiver; fee; conditions for issuance andrenewal and for denial, revocation or re-fusal; license term; rules

86A.312 Licensee’s principal place of business;registered agent; assumed business name

86A.315 Required liquidity, operating reserves andtangible net worth; compliance with fed-eral standards as compliance with re-quirements; director’s powers to enforcecompliance

86A.318 Required notices to director; rules86A.321 Director’s supervisory authority; exam-

inations; confidentiality

86A.324 Duties of mortgage loan servicer; prohib-ited conduct; rules

86A.327 Complaints; director’s power to investi-gate; confidentiality; exceptions

86A.330 Violations; civil penalties; costs of inves-tigation

86A.333 Additional duties of licensee; required re-sponse to borrower’s request for informa-tion; account history

86A.336 Suspension or removal of licensee’s direc-tor or officer

86A.339 Additional duties of mortgage loanservicer; prohibited practices

PENALTIES86A.990 Criminal penalties for violations of ORS

86A.095 to 86A.19886A.992 Civil penalties for violations of ORS

86A.095 to 86A.198


MORTGAGE LENDING 86A.100

MORTGAGE BANKERS; MORTGAGEBROKERS; MORTGAGE LOAN

ORIGINATORS(Generally)

86A.095 Short title. ORS 86A.095 to86A.198 may be cited as the “Oregon Mort-gage Lender Law.” [Formerly 59.980]

86A.100 Definitions. As used in ORS86A.095 to 86A.198:

(1) “Fraud,” “deceit” and “defraud” arenot limited to common-law deceit.

(2) “License” means a license issued to amortgage banker or mortgage broker underORS 86A.095 to 86A.198.

(3)(a) “Mortgage banker” means a personthat for compensation or in the expectationof compensation:

(A) Either directly or indirectly makes,negotiates or offers to make or negotiate amortgage banking loan or a mortgage loan;and

(B) Services or sells a mortgage bankingloan.

(b) “Mortgage banker” does not include:(A) A financial institution, as defined in

ORS 706.008.(B) A financial holding company or a

bank holding company, as defined in ORS706.008, if the financial holding company orbank holding company does not do more thancontrol a subsidiary or affiliate, as describedin 12 U.S.C. 1841, and does not engage in thebusiness of a mortgage banker or mortgagebroker.

(C) A person that makes a loan securedby an interest in real estate with theperson’s own moneys for the person’s owninvestment and that is not engaged in thebusiness of making loans secured by an in-terest in real estate.

(D) An attorney licensed or otherwiseauthorized to practice law in this state if theattorney:

(i) Negotiates the terms of a residentialmortgage loan as an ancillary matter in theattorney’s representation of a client; and

(ii) Does not receive compensation froma mortgage banker, mortgage broker, mort-gage loan originator or lender or an agentof the mortgage banker, mortgage broker,mortgage loan originator or lender.

(E) A person that, as seller of real prop-erty, receives one or more mortgages ordeeds of trust as security for a separatemoney obligation.

(F) An agency of a state or of the UnitedStates.

(G) A person that receives a mortgage ordeed of trust on real property as security for

an obligation payable on an installment ordeferred payment basis and arising out ofmaterials furnished or services rendered inimproving the real property or a lien createdwithout the consent of the owner of the realproperty.

(H) A person that funds a mortgagebanking loan or mortgage loan that a li-censee or exempt person originated andprocessed and that does not maintain a placeof business in this state in connection withfunding mortgage banking loans or mortgageloans, does not directly or indirectly solicitborrowers in this state for the purpose ofmaking mortgage banking loans or mortgageloans and does not participate in negotiatingmortgage banking loans or mortgage loans.For the purpose of this subparagraph, “nego-tiating mortgage banking loans or mortgageloans” does not include setting the termsunder which a person may buy or fund amortgage banking loan or a mortgage loanthat a licensee or exempt person originated.

(I) A nonprofit federally tax exempt cor-poration certified by the United States SmallBusiness Administration and organized topromote economic development within thisstate whose primary activity consists of pro-viding financing for business expansion.

(J) A licensee licensed under ORS chap-ter 725 or a mortgage broker.

(K) A retirement or pension fund.(L) An insurer as defined in ORS 731.106.(M) A court appointed fiduciary.(N) A person designated by rule or order

of the Director of the Department of Con-sumer and Business Services.

(4) “Mortgage banking loan” means aloan, extension of credit or a retail salescontract that is funded exclusively from themortgage banker’s own resources, that is di-rectly or indirectly secured by a mortgage ordeed of trust or any lien interest on real es-tate and that is created with the consent ofthe owner of the real property. For purposesof this subsection, “own resources” meansany of the following:

(a) Cash, corporate capital, warehousecredit lines at financial institutions definedin ORS 706.008 or other sources that are li-ability items of the mortgage banker’s finan-cial statements for which the mortgagebanker’s assets are pledged;

(b) Correspondent contracts between themortgage banker and a bank, savings bank,trust company, savings and loan association,credit union, profit sharing or pension trust,a licensee under ORS chapter 725 or an in-surance company; or

(c) The mortgage banker’s affiliates’ cash,corporate capital, warehouse credit lines at


86A.100 MORTGAGES AND LIENS

financial institutions defined in ORS 706.008or other sources that are liability items onthe affiliates’ financial statements for whichthe affiliates’ assets are pledged. As used inthis paragraph, “affiliates” means entitiesthat, directly or indirectly, through one ormore intermediaries control, are controlledby or are under common control with theentity specified.

(5)(a) “Mortgage broker” means a personthat:

(A) Engages all or part of the time, forthe account of others or for the person’s ownaccount, in the business of selling real estatepaper whether as issuer, agent or principalto persons other than persons enumerated inORS 59.035 (4);

(B) Engages all or part of the time, forthe account of others or for the person’s ownaccount, in the business of accepting fundsfrom one or more persons other than personsenumerated in ORS 59.035 (4) for investmentin real estate paper; or

(C) For compensation, or in the expecta-tion of compensation, either directly or indi-rectly makes, negotiates or offers to make ornegotiate a mortgage loan.

(b) “Mortgage broker” does not include:(A) A financial institution, as defined in

ORS 706.008.(B) A financial holding company or a

bank holding company, as defined in ORS706.008, if the financial holding company orbank holding company does not do more thancontrol a subsidiary or affiliate, as describedin 12 U.S.C. 1841, and does not engage in thebusiness of a mortgage banker or mortgagebroker.

(C) A person that purchases real propertyand issues an obligation to finance thetransaction to the seller incidentally to thesale.

(D) A real estate licensee as defined inORS 696.010 who performs services solelyincidental to the practice of professional realestate activity as defined in ORS 696.010,unless the real estate licensee performs thefunctions of a mortgage banker or a mort-gage broker as defined in this section.

(E) A person licensed under the pro-visions of ORS chapter 725 or a mortgagebanker.

(F) A person that makes a loan securedby an interest in real estate with theperson’s own moneys, for the person’s owninvestment and that is not engaged in thebusiness of making loans secured by an in-terest in real estate.

(G) An attorney licensed or otherwiseauthorized to practice law in this state if theattorney:

(i) Negotiates the terms of a residentialmortgage loan as an ancillary matter in theattorney’s representation of a client; and

(ii) Does not receive compensation froma mortgage banker, mortgage broker, mort-gage loan originator or lender or an agentof the mortgage banker, mortgage broker,mortgage loan originator or lender.

(H) A person that, as a seller of realproperty, receives one or more mortgages ordeeds of trust as security for a separatemoney obligation.

(I) An agency of a state or of the UnitedStates.

(J) A person that receives a mortgage ordeed of trust on real property as security foran obligation payable on an installment ordeferred payment basis and arising out ofmaterials furnished or services rendered inimproving the real property or a lien createdwithout the consent of the owner of the realproperty.

(K) A person that funds a mortgage loanthat a licensee or exempt person originatedand processed and that does not maintain aplace of business in this state in connectionwith funding mortgage loans, does not di-rectly or indirectly solicit borrowers in thisstate for the purpose of making mortgageloans and does not participate in negotiatingmortgage loans. For the purpose of this sub-paragraph, “negotiating mortgage loans”does not include setting the terms underwhich a person may buy or fund a mortgageloan that a licensee or exempt person origi-nated.

(L) A nonprofit federally tax exempt cor-poration certified by the United States SmallBusiness Administration and organized topromote economic development within thisstate whose primary activity consists of pro-viding financing for business expansion.

(M) A person licensed under ORS 446.691or 446.696 or a temporary manufacturedstructure dealer licensee under ORS 446.701that provides services customarily associatedwith the retail sales of manufactured dwell-ings, including communication of generallyavailable information regarding mortgageloans, unless:

(i) The person receives from a purchasera fee or commission as a mortgage broker ormortgage banker that is disclosed in thesales contract, purchase agreement or appli-cable federal documents;

(ii) For the benefit of a potential pur-chaser, the person completes a loan applica-tion form or other document that is part ofa mortgage banking loan and completes agood faith estimate under the federal RealEstate Settlement Procedures Act, 12 U.S.C.



2601 et seq. and Regulation H, 12 C.F.R. part1008, as in effect on January 1, 2014;

(iii) The person solicits or receives creditinformation from a prospective purchaser forthe purpose of making credit decisions; or

(iv) The person negotiates with a poten-tial purchaser the terms of a mortgage loanincluding but not limited to points, interestrates, length of loan or other loan conditions.

(N) A person designated by rule or orderof the director.

(6) “Mortgage loan” means a loan, exten-sion of credit or retail sales contract, otherthan a mortgage banking loan, secured by amortgage or deed of trust or a lien intereston real estate that is created with the con-sent of the owner of the real estate.

(7) “Mortgage loan originator” has themeaning given that term in ORS 86A.200.

(8) “Residential mortgage transaction”means a transaction in which a mortgage,deed of trust, purchase money security inter-est arising under an installment sales con-tract, or equivalent consensual securityinterest is created or retained in propertyupon which four or fewer residential dwell-ing units are planned or situated, includingbut not limited to individual units or condo-miniums and cooperatives. As used in thissubsection, “residential dwelling unit” meansan improvement designed for residential oc-cupancy. [Formerly 59.840; 2013 c.268 §1]

86A.103 License required to engage inresidential mortgage transactions asmortgage banker or mortgage broker. (1)It is unlawful for any person to engage inresidential mortgage transactions in thisstate as a mortgage banker or mortgage bro-ker unless the person is licensed under ORS86A.095 to 86A.198. A person who is a mort-gage banker or mortgage broker under ORS86A.100, but who does not engage in resi-dential mortgage transactions in this state,is not required to obtain a license under ORS86A.095 to 86A.198.

(2) For purposes of this section, a person“engages in residential mortgage transac-tions in this state” when any act constitutingthe business of a mortgage banker or mort-gage broker and involving a residentialmortgage transaction originates from thisstate or is directed to and received in thisstate or when the real estate that is thesubject of the activities of the mortgagebanker or mortgage broker is located in thisstate. [Formerly 59.845]

86A.106 Procedures for licensing; ex-perience required; certification; suretybond or letter of credit; fees; rules. (1)The Director of the Department of Consumerand Business Services by rule shall establish

procedures for licensing mortgage bankers ormortgage brokers. The director may coordi-nate licensing with the Nationwide MortgageLicensing System and Registry.

(2) An applicant for a license, or a man-aging partner, director, executive officer orother individual that occupies a similar posi-tion or performs similar functions for theapplicant, shall have, during the five yearsimmediately preceding the time of applica-tion, not less than three years’ experience inthe mortgage business, three years’ experi-ence negotiating loans in a related businesssatisfactory to the director or three years’equivalent lending experience in a relatedbusiness satisfactory to the director.

(3) If a license is issued to a person otherthan an individual, at least one managingpartner, director, executive officer or otherindividual that occupies a similar position orperforms similar functions for the personshall, at all times during the term of the li-cense, satisfy the experience requirement de-scribed in subsection (2) of this section.

(4) An applicant for a license that is notsubject to the requirement set forth in ORS86A.227 shall file with the director a corpo-rate surety bond or irrevocable letter ofcredit that is approved by the director in anamount the director specifies by rule, thatruns to the State of Oregon and that is is-sued by an insured institution as defined inORS 706.008.

(5) The total amount of the corporatesurety bond or irrevocable letter of credit fora single applicant under subsection (4) of thissection shall be not less than $50,000. Thedirector by rule shall require the sum of thecorporate surety bond or irrevocable letterof credit to reflect the dollar amount of theloans that the mortgage banker or mortgagebroker originates.

(6) If the application, surety bond orirrevocable letter of credit and fees are inorder and the director is satisfied that theapplication should not be denied upon one ormore of the grounds specified in ORS86A.115, 86A.118 or 86A.121, the directorshall license the mortgage banker or mort-gage broker.

(7) A licensee shall amend the licenseapplication and, if necessary, increase theamount of the corporate surety bond orirrevocable letter of credit described in sub-section (5) of this section when there arematerial changes in the information con-tained in the original application.

(8) An applicant for a license under thissection or a licensee who applies to renew alicense under ORS 86A.109 shall certify tothe director in a form and manner the direc-tor specifies by rule that the applicant or li-



censee has independently verified that everyindividual the applicant or licensee hired orintends to hire as a mortgage loan origina-tor:

(a) Meets the requirements set forth inORS 86A.200 to 86A.239;

(b) Has undergone a state criminal re-cords check in accordance with ORS86A.186; and

(c) Is covered, if applicable, by a corpo-rate surety bond as provided in ORS 86A.227.

(9) The director shall:(a) Charge and collect fees for initial and

renewal license applications.(b) Set by rule all fees required under

this section. The director shall set the feesto reflect amounts sufficient to meet thecosts of administering ORS 86A.095 to86A.198, including amounts sufficient to es-tablish and maintain a reasonable emergencyfund.

(c) Set by rule the amounts of corporatesurety bonds and irrevocable letters of creditrequired under this section.

(10) The fees under this section are notrefundable except for fees that the directordetermines by rule are refundable. [Formerly59.850]

86A.109 Expiration of initial license;renewal; duration of renewed license;change in personnel; rules. (1) An initiallicense expires one year after the date of is-suance unless the Director of the Depart-ment of Consumer and Business Servicesestablishes a different expiration date to co-ordinate with the Nationwide Mortgage Li-censing System and Registry.

(2) The director by rule shall establishprocedures to renew a license. The rule shallspecify the duration of a renewed license.

(3) If there is a change in the partners,directors, officers or persons that occupysimilar positions or perform similar func-tions, or persons that directly or indirectlycontrol a mortgage banker or mortgage bro-ker, written notification of the change mustbe filed promptly with the director. No fee isrequired for the notification. [Formerly 59.855]

86A.112 Licensees to keep records; in-spection; filing financial reports; rules. (1)A mortgage banker or mortgage broker shallmake and keep accounts, correspondence,memoranda, papers, books and other recordsthat the Director of the Department of Con-sumer and Business Services by rule or orderprescribes. The mortgage banker or mortgagebroker shall preserve the records for fiveyears unless the director by rule prescribesotherwise. The director may examine the re-cords within or outside this state at anyreasonable time or times and may require

without subpoena the production of the re-cords at the office of the director as often asis reasonably necessary.

(2) A mortgage banker or mortgage bro-ker shall file financial reports or other in-formation that the director by rule or orderrequires and shall promptly correct a docu-ment filed with the director that is or be-comes incomplete or inaccurate in anymaterial respect.

(3) On or before May 1 of each year oron a date the director establishes by rule, amortgage banker or mortgage broker shallfile a report with the director in a form pre-scribed by the director. The report shallcontain information the director requiresconcerning the mortgage banker’s or mort-gage broker’s business and operations relatedto residential mortgage lending during thepreceding calendar year. The informationshall include the number and nature of loansoriginated by mortgage loan originators thatthe mortgage banker or mortgage brokeremployed.

(4) The report and any records submittedto the director under this section are exemptfrom disclosure or production and are confi-dential as provided under ORS 705.137.

(5) Notwithstanding the exemption andconfidentiality provisions of subsection (4) ofthis section, the director may abstract infor-mation contained in reports submitted undersubsection (3) of this section and may makethe abstracted information available for pub-lic inspection provided that the abstractedinformation does not identify a particularmortgage banker or mortgage broker as asource of the information. [Formerly 59.860]

86A.115 Grounds for denying, sus-pending, conditioning or revoking license.Except as provided in ORS 86A.118, the Di-rector of the Department of Consumer andBusiness Services may by order deny, sus-pend, condition or revoke a license if the di-rector finds that the applicant or licensee:

(1) Is insolvent, either in the sense thatthe liabilities of the applicant or licensee ex-ceed the assets of the applicant or licenseeor that the applicant or licensee cannot meetthe obligations of the applicant or licenseeas the obligations mature, or that the appli-cant or licensee is in such financial condi-tion that the applicant or licensee cannotcontinue in business with safety to the cus-tomers of the applicant or licensee.

(2) Engaged in dishonest, fraudulent orillegal practices or conduct in any businessor profession or unfair or unethical practicesor conduct in connection with the mortgagebusiness.

(3) Willfully or repeatedly violated orfailed to comply with a provision of ORS



86A.095 to 86A.198 or a rule or order of thedirector.

(4) Failed, in conducting business as amortgage banker or mortgage broker, tocomply with the provisions of:

(a) The Truth in Lending Act, 15 U.S.C.1601 et seq. and Regulation Z, 12 C.F.R. part226, as in effect on October 1, 2009;

(b) The Real Estate Settlement Proce-dures Act, 12 U.S.C. 2601 et seq. and Regu-lation X, 24 C.F.R. part 3500, as in effect onJanuary 1, 2010;

(c) The Equal Credit Opportunity Act, 15U.S.C. 1691 et seq. and Regulation B, 12C.F.R. 202.9, 202.11, 202.12 and 202.14, as ineffect on July 30, 2009; or

(d) 12 U.S.C. 5101 et seq. and regulationsadopted under 12 U.S.C. 5101 et seq.

(5) Was convicted of a misdemeanor, anessential element of which is fraud, or of afelony.

(6) Filed an application for a license that,as of the date the license was issued, or asof the date of an order that denied, sus-pended, conditioned or revoked a license, wasincomplete in any material respect or con-tained a statement that was, in light of thecircumstances under which the statementwas made, false or misleading with respectto a material fact.

(7) Failed to account to persons inter-ested for money or property received in con-nection with a mortgage loan.

(8) Is permanently or temporarily en-joined by a court of competent jurisdictionfrom engaging in or continuing conduct or apractice that involves an aspect of the mort-gage business.

(9) Is subject to an order of the directorthat denies, suspends, conditions or revokesa license.

(10) Is subject to a United States PostalService fraud order that is currently effectiveand was issued within the last five years.

(11) Does not have the experience re-quired by ORS 86A.106 (2) or (3).

(12) Failed to comply with the require-ments of ORS 86A.112 to make and keep re-cords prescribed by rule or order of thedirector, to produce such records required bythe director or to file any financial reportsor other information the director by rule ororder may require.

(13) Is subject to an order of the directorthat denies, suspends, conditions or revokesa license under any other law the directoradministers.

(14) Is subject to a cease and desist orderthe director entered within the previous five

years after the applicant or licensee had no-tice and an opportunity for a hearing.

(15) Demonstrated negligence or incom-petence in performing any act for which thelicensee is required to hold a license.

(16) Failed to supervise diligently andcontrol the mortgage-related activities of amortgage loan originator the licensee em-ploys.

(17) Knowingly misrepresented to the di-rector the training of, examination of orcontinuing education time earned by a mort-gage loan originator the licensee employs.

(18) Willfully or repeatedly employed in-dividuals as mortgage loan originators whodo not meet the training, education or con-tinuing education requirements for mortgageloan originators.

(19) Failed to notify the director of thetermination of a mortgage loan originator forfailure to comply with state or federal laws,regulations or rules. [Formerly 59.865]

86A.118 Action against applicant orlicensee for act or omission of associate;exception. The Director of the Departmentof Consumer and Business Services may en-ter an order against the applicant or licenseeunder ORS 86A.115 if any partner, officer ordirector of a mortgage banker or mortgagebroker, any person occupying a similar sta-tus or performing similar functions, or anyperson directly or indirectly controlling themortgage banker or mortgage broker hasbeen guilty of any act or omission whichwould be cause for denying, suspending orrevoking the license of an individual mort-gage banker or mortgage broker. This sectionshall not apply to ORS 86A.115 (1). [Formerly59.870]

86A.121 Cancellation of license or ap-plication; application to surrender li-cense. (1) The Director of the Departmentof Consumer and Business Services maycancel an application or license if the direc-tor finds that the applicant or licensee:

(a) Has ceased to do business as a mort-gage banker or mortgage broker;

(b) Has failed to maintain a corporatesurety bond or irrevocable letter of creditrequired under ORS 86A.106 or 86A.227; or

(c) Cannot be located after a reasonablesearch.

(2) A mortgage banker or mortgage bro-ker may surrender a license by filing an ap-plication to surrender the license. Unless thedirector determines that the license shouldbe suspended or revoked, the director shallallow the surrender subject to any condi-tions, limitations and restrictions the direc-tor may impose. [Formerly 59.875]



86A.124 Supervisory authority of di-rector over mortgage bankers, mortgagebrokers and mortgage loan originators;documents exempt from disclosure. (1)The Director of the Department of Consumerand Business Services has general super-vision and control over mortgage loan origi-nators, mortgage bankers and mortgagebrokers that reside or do business in thisstate and that engage in an activity that issubject to the provisions of ORS 86A.095 to86A.198. The director may examine at anytime mortgage bankers and mortgage brokersand the records and activities connected withmortgage bankers, mortgage brokers andmortgage loan originators. The provisions ofthis section and of any other section of ORS86A.095 to 86A.198 relating to examinationsextend to a person that is or should havebeen licensed as a mortgage loan originatorunder ORS 86A.200 to 86A.239 or licensed asa mortgage banker or mortgage broker, aperson exempted by rule from the definitionsof mortgage banker, mortgage broker ormortgage loan originator or a person whoselicense has expired or has been withdrawn,canceled, suspended, conditioned or revoked.The director may collect from the person theactual expenses incurred in the examination.

(2)(a) A mortgage loan document the di-rector obtains as part of an examination un-der this section is exempt from disclosureand is confidential for the purposes of ORS705.137.

(b) This subsection does not prohibit anindividual from inspecting and requesting thedirector to disclose any of the individual’smortgage loan documents that the directorobtained during the course of an examina-tion. The director shall authenticate theindividual’s identity before disclosing themortgage loan documents to the individual.[Formerly 59.880; 2011 c.350 §1]

86A.127 Investigations; publicity withrespect to violations; cease and desistorder. The Director of the Department ofConsumer and Business Services:

(1) May make such public or private in-vestigations within or outside this state asthe director deems necessary to determinewhether a person has violated any provisionof ORS 86A.095 to 86A.198 or any rule ororder of the director, or to aid in the en-forcement of ORS 86A.095 to 86A.198 or inthe formulation of rules and forms thereun-der;

(2) May require or permit a person to filea statement in writing, under oath or other-

wise as the director determines, as to all thefacts and circumstances concerning the mat-ter to be investigated;

(3) May publish information concerningany violation under this section or ORS86A.130, 86A.990 or 86A.992 or any rule ororder of the director after an action takenunder this section or ORS 86A.130, 86A.990or 86A.992; and

(4) If the director has reasonable causeto believe that any person has been engaged,is engaging or is about to engage in any vio-lation of any provision of ORS 86A.095 to86A.198, may issue an order, subject to ORS86A.139, directed to the person, and to anyother person directly or indirectly control-ling the person, to cease and desist from theviolation or threatened violation. [Formerly59.885]

86A.130 Enjoining violations; fine; ap-pointment of receiver; attorney fees;damages to private parties. (1) Wheneverthe Director of the Department of Consumerand Business Services has reasonable causeto believe that a person has been engaged oris engaging in any violation of any provisionof ORS 86A.095 to 86A.198 or any rule ororder of the director, the director may bringsuit in the name and on behalf of the Stateof Oregon in the circuit court of any countyof this state to enjoin the violation and toenforce compliance with any provision ofORS 86A.095 to 86A.198 or such rule or or-der. Upon a proper showing, a permanent ortemporary injunction, restraining order orwrit of mandamus shall be granted. Thecourt may fine the person against whom theorder is entered not more than $5,000 foreach violation, which shall be entered as ajudgment and paid to the General Fund ofthe State Treasury. Each violation is a sepa-rate offense. In the case of a continuing vio-lation, each day’s continuance is a separateviolation, but the maximum penalty for anycontinuing violation shall not exceed $20,000for each offense. If the court finds that thedefendant has violated any provision of ORS86A.095 to 86A.198 or any such rule or order,the court may appoint a receiver, who maybe the director, for the defendant or thedefendant’s assets. The court may not re-quire the director to post a bond. The courtmay award reasonable attorney fees to thedirector if the director prevails in an actionunder this section. The court may awardreasonable attorney fees to a defendant whoprevails in an action under this section if thecourt determines that the director had no



objectively reasonable basis for asserting theclaim or no reasonable basis for appealing anadverse decision of the trial court.

(2) The director may include in any ac-tion authorized by subsection (1) of this sec-tion:

(a) A claim for restitution or damagesunder ORS 86A.151 on behalf of the personsinjured by the act or practice constitutingthe subject matter of the action. The courtshall have jurisdiction to award appropriaterelief to such persons, if the court finds thatenforcement of the rights of such persons byprivate civil action, whether by class actionor otherwise, would be so burdensome or ex-pensive as to be impractical; or

(b) A claim for disgorgement of illegalgains or profits derived. Any recovery underthis paragraph shall be turned over to theGeneral Fund of the State Treasury unlessthe court requires other disposition. [Formerly59.890]

86A.133 Procedures where assets orcapital of mortgage banker or mortgagebroker found impaired; involuntary liqui-dation. (1) When the Director of the De-partment of Consumer and Business Servicesascertains that the assets or capital of anymortgage banker or mortgage broker is im-paired, or that the mortgage banker’s ormortgage broker’s affairs are in an unsoundcondition, the director may take possessionof all the property, business and assets of themortgage banker or mortgage broker locatedin this state and retain possession of thempending the further proceedings specified inthis section. The director shall inventory theassets and liabilities of the mortgage bankeror mortgage broker. The director shall fileone copy of the inventory in the office of thedirector and one copy in the office of theclerk of the circuit court of the county inwhich the principal place of business of themortgage banker or mortgage broker is lo-cated, and shall mail one copy to eachshareholder or partner of the mortgagebanker or mortgage broker at the last-knownaddress of the shareholder or partner. Theclerk of the court shall file the inventory asa pending proceeding and give it a casenumber.

(2) If any mortgage banker or mortgagebroker refuses to permit the director to takepossession under this section, the directormay apply to the circuit court of the countyin which the principal place of business ofthe mortgage banker or mortgage broker is

located for an order appointing a receiver,who may be the director, to take possession.

(3) If the deficiency in assets or capitalhas not been made good or the unsound con-dition remedied within 60 days from the datewhen the director or receiver took pos-session, the property, business and assets ofthe mortgage banker or mortgage broker lo-cated in this state shall be liquidated. If areceiver has not been appointed, the directorshall apply for such appointment by thecourt in which the inventory was filed. Theliquidation shall proceed as provided by lawfor liquidation of a private corporation inreceivership.

(4) The expenses of the receiver andcompensation of counsel, as well as all ex-penditures required in the liquidation pro-ceedings, shall be fixed by the director,subject to the approval of the court, and,upon certification by the director, shall bepaid out of the funds in the hands of the di-rector as such receiver. [Formerly 59.895]

86A.136 Rules; financial statements.(1) In accordance with this section and ORSchapter 183, the Director of the Departmentof Consumer and Business Services may fromtime to time make, amend and rescind suchrules as are necessary to carry out the pro-visions of ORS 86A.095 to 86A.198, includingbut not limited to rules governing the activ-ities of mortgage loan originators, mortgagebankers and mortgage brokers and rulesgoverning the purchase or sale of mortgagebanking loans, mortgage loans or real estatepaper in coordination with applicable pro-visions of ORS 59.005 to 59.505, 59.710 to59.830, 59.991 and 59.995 and rules adoptedunder the applicable provisions.

(2) A financial statement required underORS 86A.095 to 86A.198 must be prepared inaccordance with generally accepted account-ing principles. The director may by rule pre-scribe:

(a) The form and content of financialstatements required under ORS 86A.095 to86A.198;

(b) The circumstances under which con-solidated financial statements must be filed;and

(c) Whether any required financial state-ments must be certified by independent orcertified public accountants. [Formerly 59.900]

86A.139 Notice of orders; hearings onorders. (1) Except as provided in ORS183.745, upon the entry of an order underORS 86A.095 to 86A.198, the Director of the



Department of Consumer and Business Ser-vices shall promptly give appropriate noticeof the order as provided in this subsection.The notice shall state that a hearing will beheld on the order if a written demand forhearing is filed with the director within 20days after the date of service of the order.The notice shall be given to:

(a) The applicant or licensee, with re-spect to orders entered pursuant to ORS86A.115; or

(b) An interested person, with respect toorders entered pursuant to any other pro-vision of ORS 86A.095 to 86A.198.

(2) If a person entitled to notice of theorder files a timely demand for a hearing, thedirector shall hold a hearing on the order asprovided by ORS chapter 183. In the absenceof a timely demand for a hearing, a personis not entitled to judicial review of the order.

(3) After the hearing, the director shallenter a final order vacating, modifying or af-firming the order.

(4) The director may enter a final orderrevoking a license notwithstanding the factthat the license has expired, if the initial or-der of revocation was issued before the li-cense or registration expired. [Formerly 59.905]

86A.142 Judicial review of orders. (1)A person aggrieved by an order of the Di-rector of the Department of Consumer andBusiness Services which has been the subjectof a timely application for hearing before thedirector shall be entitled to judicial reviewof the order under ORS chapter 183.

(2) A judgment of a reviewing court un-der ORS chapter 183 may not bar the direc-tor from thereafter vacating or modifying anorder involved in the proceeding for review,or entering any new order, for a propercause that was not decided by the reviewingcourt. [Formerly 59.910]

86A.145 Oaths and subpoenas in pro-ceedings before director. (1) For the pur-pose of an investigation or proceeding underORS 86A.095 to 86A.198, the Director of theDepartment of Consumer and Business Ser-vices may administer oaths and affirmations,subpoena witnesses, compel their attendance,take evidence and require the production ofbooks, papers, correspondence, memoranda,agreements or other documents or recordsthat the director deems relevant or materialto the inquiry. Each witness who appearsbefore the director under a subpoena shallreceive the fees and mileage provided forwitnesses in ORS 44.415 (2).

(2) If a person fails to comply with asubpoena so issued or a party or witness re-fuses to testify on any matters, the judge ofthe circuit court or of any county, on theapplication of the director, shall compel obe-dience by proceedings for contempt as in thecase of disobedience of the requirements ofa subpoena issued from such court or a re-fusal to testify therein. [Formerly 59.915]

86A.148 Copies of documents; fees;rules; effect of certification. (1) The Di-rector of the Department of Consumer andBusiness Services shall furnish to any per-son, upon payment of a fee established byrule, copies of any document which is amatter of public record. Certified copies shallbe furnished upon request. In a proceedingor prosecution under ORS 86A.095 to86A.198, a copy so certified shall be primafacie evidence of the contents of the entryor document certified.

(2) A certificate of the director as tocompliance or noncompliance with licensingprovisions of ORS 86A.095 to 86A.198 shallbe taken and received in a civil or criminalproceeding in this state as prima facie evi-dence of the facts stated in the certificate.[Formerly 59.920]

86A.151 Liability of person that em-ploys mortgage loan originator; recoveryof damages; limitations on proceeding;action against bond or letter of credit;attorney fees. (1) A person that employs amortgage loan originator or under the pro-visions of ORS 86A.200 to 86A.239 shouldemploy a mortgage loan originator is liableas provided in subsection (2) of this sectionfor an ascertainable loss of money or prop-erty, real or personal, in a residential mort-gage transaction if the person engages in aresidential mortgage transaction in whichthe person:

(a) Violates a provision of ORS 86A.200to 86A.239, except ORS 86A.236 (11), or ORS86A.095 to 86A.198, except ORS 86A.115 (4);or

(b)(A)(i) Makes an untrue statement of amaterial fact; or

(ii) Omits from a statement a materialfact that would make the statement not mis-leading in light of the circumstances underwhich the person makes the statement; and

(B) Fails to prove that the person did notknow, or in the exercise of reasonable carecould not have known, of the untrue state-ment or omission.



(2) The person suffering ascertainableloss may recover damages in an amountequal to the ascertainable loss.

(3) A person whose sole function in con-nection with a residential mortgage transac-tion is to provide ministerial functions ofescrow, custody or deposit services in accor-dance with applicable law is liable only if theperson participates or materially aids in theresidential mortgage transaction and theplaintiff sustains the burden of proof that theperson knew of the existence of the facts onwhich liability is based or that the person’sfailure to know of the existence of the factswas the result of the person’s recklessnessor gross negligence.

(4) Except as otherwise provided in thissubsection, an action or suit may not becommenced under this section more thanthree years after the residential mortgagetransaction. An action under this section fora violation under subsection (1)(b) of thissection or ORS 86A.154 may be commencedwithin three years after the residentialmortgage transaction or two years after theperson bringing the action discovered orshould have discovered the facts on whichthe action is based, whichever is later, butnot later than five years after the date of theresidential mortgage transaction. Failure tocommence an action on a timely basis is anaffirmative defense.

(5) A person has a right of action underthe corporate surety bond or irrevocable let-ter of credit required under ORS 86A.106 or86A.227 if the person:

(a) Initiates a mortgage banking loan ormortgage loan application; and

(b) Has a right of action against anotherperson under this section.

(6) Subsection (3) of this section does notlimit a person’s liability:

(a) For conduct other than in the cir-cumstances described in subsection (3) of thissection; or

(b) Under any other law.(7) Except as provided in subsection (8)

of this section, the court may award reason-able attorney fees to the prevailing party inan action under this section.

(8) The court may not award attorneyfees to a prevailing defendant under the pro-visions of subsection (7) of this section if theaction under this section is maintained as aclass action pursuant to ORCP 32. [Formerly59.925; 2011 c.9 §5]

86A.154 Fraud and deceit with respectto mortgage banker or mortgage brokerbusiness. It is unlawful for any person, di-rectly or indirectly, in connection with theconduct of a mortgage banker or mortgagebroker business:

(1) To employ any device, scheme or ar-tifice to defraud;

(2) Knowingly to make any untrue state-ment of a material fact or to omit to state amaterial fact necessary in order to make thestatements made, in the light of the circum-stances under which they are made, not mis-leading;

(3) To engage in any act, practice orcourse of business which operates or wouldoperate as a fraud or deceit upon any person;or

(4) To make or file, or cause to be madeor filed, to or with the Director of the De-partment of Consumer and Business Servicesany statement, report or document which isknown to be false in any material respect ormatter. [Formerly 59.930]

86A.157 Clients’ Trust Account; ex-amination; deposit of funds; interest;rules. (1) Each mortgage banker or mortgagebroker shall maintain in this state one ormore separate bank accounts that shall bedesignated a Clients’ Trust Account in whichall trust funds received or handled by themortgage banker or mortgage broker shall bedeposited unless, pursuant to written agree-ment of all parties having an interest in thetrust funds, the trust funds are immediatelyplaced in a neutral escrow depository in thisstate.

(2) Each mortgage banker or mortgagebroker shall file with the Director of theDepartment of Consumer and Business Ser-vices, on forms approved by the director, astatement identifying the name of the bankor banks, account number or account num-bers, and name of account or accounts foreach Clients’ Trust Account maintained.

(3) Each mortgage banker or mortgagebroker shall authorize the director or an au-thorized representative of the director, on aform approved by the director, to examineany Clients’ Trust Account, by a duly au-thorized representative of the director. Theexamination shall be made at such times asthe director may direct.

(4) If a branch office maintains a sepa-rate Clients’ Trust Account, a separatebookkeeping system shall be maintained inthe branch office, provided a copy of all doc-



uments evidencing payments into and fromthe Clients’ Trust Account is maintained inthe main office of the mortgage banker ormortgage broker.

(5) Trust funds received by a mortgagebanker or mortgage broker may be placed bythe mortgage banker or mortgage broker ina federally insured interest-bearing bank ac-count, designated a Clients’ Trust Account,but only with the prior written approval ofall parties having an interest in the trustfunds. The earnings of such interest-bearingaccount shall not inure to the benefit of themortgage banker or mortgage broker unlessexpressly approved in writing before depositof the trust funds by all parties having aninterest in the trust funds.

(6) A mortgage banker or mortgage bro-ker is not entitled to any part of any interestearnings on trust funds deposited under sub-section (5) of this section or to any part ofthe earnest money or other money paid tothe mortgage banker or mortgage broker inconnection with any real estate transactionas part or all of the mortgage banker’s ormortgage broker’s commission or fee untilthe transaction has been completed or termi-nated. The question of the disposition of for-feited earnest money shall be negotiatedbetween a mortgage banker or mortgagebroker and a client at the time of executingany earnest money agreement. The result ofsuch negotiation shall be filled in on theagreement form at the time of signing by theclient and either separately initialed by theclient or placed immediately above the sig-nature of the client.

(7) Clients’ Trust Account funds are notsubject to execution or attachment on anyclaim against the mortgage banker or mort-gage broker.

(8) No person shall knowingly keep orcause to be kept any funds or money in anybank under the heading of Clients’ TrustAccount or any other name designating suchfunds or money as belonging to the clientsof any mortgage banker or mortgage broker,except actual trust funds deposited with thebanker or broker.

(9) The director may provide by rule forother records to be maintained and for themanner in which trust funds are deposited,held and disbursed. [Formerly 59.935]

86A.160 Notice to bank regardingClients’ Trust Account. (1) Each mortgagebanker or mortgage broker, at the time aClients’ Trust Account is opened under ORS86A.157, shall provide the bank in which the

account is opened with a notice in substan-tially the following form:__________________________________________

NOTICE OF CLIENTS’ TRUST ACCOUNTTo: (name of bank)

I, , am the (owner,president, managing general partner or otherposition description) of(name of mortgage banker or mortgage bro-ker) and am authorizedto act on behalf of (name of mortgage bankeror mortgage broker) .

Under the provisions of ORS 86A.157, Iam required to maintain in Oregon a Clients’Trust Account for the purpose of holdingfunds belonging to others.

With regard to the account(s) numbered which is/are designated as a

Clients’ Trust Account, the account(s) is/aremaintained with you as a depository formoney belonging to persons other than my-self and in my fiduciary capacity as a mort-gage banker or mortgage broker establishedby client agreements in separate documents.Dated: (insert date)

(signature of person authorized to acton behalf of mortgage banker

or mortgage broker) ACKNOWLEDGMENT OF RECEIPT

I, , a duly author-ized representative of (bank) , dohereby acknowledge receipt of the aboveNOTICE OF CLIENTS’ TRUST ACCOUNTon (date) .

(signature)

(title)__________________________________________

(2) The acknowledged copy of the noticedescribed in subsection (1) of this sectionshall be retained by the mortgage banker ormortgage broker as provided in ORS 86A.157for the retention of trust account records,subject to inspection by the Director of theDepartment of Consumer and Business Ser-vices or the director’s authorized represen-tative. [Formerly 59.940]

86A.163 Prohibited advertisements. Amortgage banker or mortgage broker shallnot use or cause to be published any adver-tisement that:

(1) Contains any false, misleading or de-ceptive statement or representation; or

(2) Identifies the mortgage banker ormortgage broker by any name other than thename listed on the license issued by the Di-



rector of the Department of Consumer andBusiness Services or an assumed businessname registered under ORS chapter 648.[Formerly 59.945]

86A.166 Designation of principal placeof business; other offices; change of per-sonnel; registered agent. (1) Every licensedmortgage banker and mortgage broker shalldesignate and maintain a principal place ofbusiness for the transaction of business.

(2) If a licensed mortgage banker ormortgage broker intends to transact businessat any place other than the principal placeof business, the licensee shall notify the Di-rector of the Department of Consumer andBusiness Services, in writing, not later than30 days prior to opening another office. Thenotice shall contain the address of any otheroffice. A copy of the license issued to themortgage banker or mortgage broker shall bedisplayed in each place of business of the li-censee.

(3) If there is any change among themembers, officers, partners or directors ofany licensee, the licensee shall notify the di-rector within 30 days of the name, addressand occupation of each new member, officer,partner or director and provide any otherinformation the director may require.

(4) A mortgage banker or mortgage bro-ker whose principal place of business is notin this state shall continuously maintain aregistered agent in this state. The name andaddress of the agent shall be included in theapplication for a license. A mortgage bankeror mortgage broker shall notify the directorimmediately of any change in the name oraddress of the registered agent.

(5) The registered agent of a mortgagebanker or mortgage broker shall be an agentupon whom any process, notice or demandrequired or permitted by law to be servedupon the mortgage banker or mortgage bro-ker may be served. The director shall be anagent of a mortgage banker or mortgagebroker if the mortgage banker or mortgagebroker fails to appoint or maintain a regis-tered agent in this state or the registeredagent cannot with reasonable diligence befound. [Formerly 59.950]

86A.169 Disclosure required beforeclosing mortgage loan or mortgagebanking loan. Prior to the closing of anymortgage loan or any mortgage banking loan,the mortgage banker or mortgage brokershall supply the borrower with a disclosureas required by the real estate lending pro-visions of 15 U.S.C. 1601 et seq. and Regu-lation Z, 12 C.F.R. Part 226. [Formerly 59.955]

86A.172 Advisory committee. Beforeadopting rules under ORS 86A.095 to

86A.198, the Director of the Department ofConsumer and Business Services may appointand shall consider the suggestions of an ad-visory committee that represents the inter-ests of persons that the rules will likelyaffect. The director may also use othermeans to obtain public views to assist thedirector in adopting the rules. [Formerly 59.960;2011 c.351 §1]

86A.175 Servicing or collecting mort-gage banking loan or mortgage loan bymortgage banker or mortgage broker. (1)With the permission of the lender, noteowner, note holder or other holder of an in-terest in a note, a mortgage banker or mort-gage broker may service or collect amortgage banking loan or mortgage loan inthe name of the mortgage banker or mort-gage broker or in the name of the lender,note owner, note holder or other holder ofan interest in the note.

(2) Except as provided in ORS 86A.095 to86A.198, nothing in subsection (1) of thissection grants the Director of the Depart-ment of Consumer and Business Services theauthority to regulate the servicing or col-lection of a mortgage banking loan or mort-gage loan by a mortgage banker or mortgagebroker.

(3) As used in this section:(a) “Mortgage banker” has the meaning

given that term in ORS 86A.100 (3)(a) butalso includes a person exempted from thedefinition of mortgage banker in ORS86A.100 (3)(b).

(b) “Mortgage banking loan” has themeaning given that term in ORS 86A.100.

(c) “Mortgage broker” has the meaninggiven that term in ORS 86A.100.

(d) “Mortgage loan” has the meaninggiven that term in ORS 86A.100.

(e) “Service or collect any mortgagebanking loan or mortgage loan” includes butis not limited to:

(A) Holding documents or written instru-ments and receiving and disbursing paymentsaccording to the instructions of the partiesto the documents or written instruments;

(B) Collecting or remitting, or having theright or obligation to collect or remit, for alender, note owner, note holder or otherholder of an interest in a note or for amortgage banker’s or mortgage broker’s ownaccount, payments, interest, principal andtrust items, including but not limited to haz-ard insurance and taxes, on a mortgagebanking loan or mortgage loan in accordancewith the terms of the loan, and includes loanpayment follow-up, delinquency loanfollow-up, loan analysis and notifications tothe borrower that are necessary to enable



the borrower to keep the loan current and ingood standing; and

(C) Bringing and maintaining a suit oraction to collect amounts owed on a mort-gage banking loan or mortgage loan, includ-ing but not limited to exercising contractual,statutory or common law remedies such asinjunction, specific performance, judicial ornonjudicial foreclosure or receivership.[Formerly 59.962]

Note: 86A.175 was enacted into law by the Legis-lative Assembly but was not added to or made a partof ORS chapter 86A or any series therein by legislativeaction. See Preface to Oregon Revised Statutes for fur-ther explanation.

86A.178 Legislative findings regardingmortgage loan originators; prohibitedpractice. (1) The Legislative Assembly findsand declares that:

(a) The public interest is served by iden-tifying a mortgage loan originator with aspecific mortgage banker or mortgage broker;and

(b) The public must be protected from theconflicts of interest created when a mortgageloan originator is employed by more than onemortgage lender.

(2) A mortgage loan originator may notoriginate loans for more than one mortgagebanker, mortgage broker or other mortgagelender or independent mortgage agency atthe same time. [Formerly 59.967]

86A.179 [Formerly 59.969; repealed by 2009 c.863§36]


86A.183 Prohibited conduct for mort-gage bankers, mortgage brokers andmortgage loan originators; conditions af-fecting employment of mortgage loanoriginators. (1) A mortgage banker, mort-gage broker or mortgage loan originator maynot:

(a) Engage in dishonest, fraudulent or il-legal practices or conduct in a business orprofession or engage in unfair or unethicalpractices or conduct in connection with themortgage business.

(b) Willfully or repeatedly violate or failto comply with a provision of ORS 86A.095to 86A.198 or 86A.200 to 86A.239 or a ruleor order of the Director of the Departmentof Consumer and Business Services.

(c) Fail to account to persons interestedfor money or property received in connectionwith a mortgage loan.

(d) Fail to meet the training, educationor continuing education requirements formortgage loan originators set forth in ORS86A.215 or 86A.221.

(e) Perform an act as a mortgage loanoriginator in a negligent or incompetentmanner.

(2) An individual may not be employedby a mortgage banker or mortgage broker asa mortgage loan originator if:

(a) The individual was convicted of acrime or category of crime specified by thedirector by rule;

(b) The individual is suspended or hasbeen prohibited from employment as a mort-gage loan originator under ORS 86A.224;

(c) The employment violates any condi-tions imposed under ORS 86A.224; or

(d) The employment violates an order is-sued by the director, a state or federalagency or a court of competent jurisdiction.[Formerly 59.971]

86A.186 Mortgage loan originatorcriminal records checks; rules. (1) A per-son that employs or intends to employ an in-dividual as a mortgage loan originator shallconduct a state criminal records check of theindividual.

(2) A person that employs or intends toemploy an individual as a mortgage loanoriginator shall report to the Director of theDepartment of Consumer and Business Ser-vices the results of each state criminal re-cords check conducted under subsection (1)of this section.

(3) The director shall adopt rules to:(a) Implement and administer state crim-

inal records checks required under this sec-tion; and

(b) Specify crimes and categories ofcrimes for which a conviction will prevent aperson from acting as a mortgage loan origi-nator under ORS 86A.183. [Formerly 59.972]




(Regulation of Lending Activity)86A.195 Restrictions on negative

amortization loans; verification of bor-rower income; prepayment penalties.(1)(a) As used in this section, “negativeamortization loan” means a mortgage loanor mortgage banking loan that is structuredin such a way that a borrower in any periodmay make a scheduled loan payment that isinsufficient to pay accruing interest.

(b) “Negative amortization loan” does notinclude:

(A) A loan commonly known as a bridgeloan, the terms of which specify that:



(i) The maturity period for the loan isless than 18 months; and

(ii) The borrower may pay only interestuntil a time when the entire unpaid loanbalance is due and payable.

(B) A mortgage loan in which:(i) The principal amount is not more than

$50,000; and(ii) The combined loan to value ratio be-

tween all mortgage loans that are secured bythe same property and the value of the se-curing property is not more than 50 percent.

(C) A loan commonly known as a reversemortgage, the terms of which specify that theloan:

(i) Is a non-recourse loan secured by realproperty;

(ii) Provides cash advances to the bor-rower based on the equity or value in theborrower’s owner-occupied principal resi-dence;

(iii) Requires no payment of principal orinterest until the entire loan becomes dueand payable; and

(iv) Is made by a mortgage lender li-censed in this state or licensed under thelaws of the United States.

(D) A loan commonly known as a homeequity line of credit, in which:

(i) The amounts borrowed and the inter-est and other charges are debited to an ac-count that is secured by an interest in realestate;

(ii) Interest on the account is computedperiodically;

(iii) The borrower has the right to pay infull at any time without penalty or to pay ininstallments that are specified in the loanagreement; and

(iv) The lender agrees to permit a bor-rower from time to time to borrow money,with the maximum limit on the amount ofeach borrowing established by the loanagreement.

(2) A mortgage banker, mortgage brokeror mortgage loan originator may not negoti-ate or make, or offer to negotiate or make,a negative amortization loan without regardto the borrower’s repayment ability at thetime the loan is made, including theborrower’s current and reasonably expectedincome, employment, assets other than thecollateral, current obligations and mortgagerelated obligations. The mortgage banker,mortgage broker or mortgage loan originatorshall verify the income and assets of theborrower that will be relied on to evaluatethe borrower’s repayment ability. Theborrower’s repayment ability must be evalu-ated and the borrower’s income and assets

must be verified in a manner that is consist-ent with the requirements of 12 C.F.R.226.34, as promulgated on January 1, 2010.

(3) A negative amortization loan may notcontain a prepayment penalty beyond thefirst 24 months after the date on which theloan is made.

(4) A creditor may not collect a prepay-ment penalty on an existing negative amorti-zation loan in return for or as a consequenceof refinancing or providing funds to refinancethe negative amortization loan. [2009 c.603 §2;2009 c.863 §38]

86A.196 Notice of reverse mortgageprohibition in homestead property taxdeferral program; summary of terms ofreverse mortgage in advertisement orsolicitation; annual notice to person withreverse mortgage or to escrow agent, ti-tle insurance company or other agent;exception. (1) Before entering into anagreement with a borrower for a reversemortgage, a lender shall notify the borrowerin writing of the provisions of ORS 311.700(2).

(2)(a) In any advertisement, solicitationor communication that a lender or an agentor affiliate of the lender intends as an in-ducement for a person to apply for or enterinto a contract for a reverse mortgage, thelender or the agent or affiliate of the lendershall include a clear and conspicuous sum-mary of the terms of the reverse mortgage.The summary must, at a minimum, disclosethese provisions of the reverse mortgage loancontract to the extent that the contract in-cludes the provision:

(A) At the conclusion of the term of thereverse mortgage loan contract, some or allof the equity in the property that is the sub-ject of the reverse mortgage no longer be-longs to the person and the person may needto sell or transfer the property to repay theproceeds of the reverse mortgage from theproceeds of the sale or transfer or the personmust otherwise repay the reverse mortgagewith interest from the person’s other assets.

(B) The lender will charge an originationfee, a mortgage insurance premium, closingcosts or servicing fees for the reverse mort-gage, all or any of which the lender will addto the balance of the reverse mortgage loan.

(C) The balance of the reverse mortgageloan grows over time and the lender chargesinterest on the outstanding loan balance.

(D) The person retains title to the prop-erty that is the subject of the reverse mort-gage until the person sells or transfers theproperty and is therefore responsible forpaying property taxes, insurance, mainte-nance and related taxes. Failing to pay theseamounts may cause the reverse mortgage



loan to become due immediately and maysubject the property to a tax lien or otherencumbrance or to possible foreclosure.

(E) Interest on a reverse mortgage is notdeductible from the person’s income tax re-turn until the person repays all or part ofthe reverse mortgage loan.

(b) As used in paragraph (a) of this sub-section:

(A) “Clear and conspicuous” means:(i) In larger type than the surrounding

text or in a type, color or font that contrastswith surrounding text of the same size or setoff from surrounding text by symbols orother marks in a manner that draws atten-tion; or

(ii) Spoken in a volume and cadence thatis sufficient to enable a reasonable person tohear and understand.

(B) “Reverse mortgage” means a residen-tial mortgage transaction in which thelender provides loan proceeds to a borrowerin a lump sum or in monthly installmentswith the expectation that the borrower willrepay the loan from the proceeds of a saleor transfer of the real property that securesthe loan.

(3)(a) A lender who has a contract witha person for a reverse mortgage each yearshall send a notice with the informationspecified in subsection (2)(a)(D) of this sec-tion to the person or to any escrow agent,title insurance company or other agent thatpays property taxes from an escrow accounton the person’s behalf. The lender shall sendthe notice to the person at the person’s last-known address or to the escrow agent, titleinsurance company or other agent at the ad-dress the lender has in the lender’s recordsfor the escrow agent, title insurance com-pany or other agent. The lender shall sendthe notice at least 60 calendar days beforeproperty taxes are due for the property thatis subject to the reverse mortgage.

(b) Paragraph (a) of this subsection doesnot apply to a contract for a reverse mort-gage that includes a reserve account fortaxes.

(4) Subsections (2) and (3) of this sectiondo not apply to a financial institution, as de-fined in ORS 706.008, or to a licensee, as de-fined in ORS 725.010. [2012 c.13 §1; 2015 c.87 §1;2017 c.161 §1]

Note: 86A.196 was enacted into law by the Legis-lative Assembly but was not added to or made a partof ORS chapter 86A or any series therein by legislativeaction. See Preface to Oregon Revised Statutes for fur-ther explanation.

86A.198 Materials in languages otherthan English; requirements. (1) A mort-gage banker, a mortgage broker or a mort-

gage loan originator shall provide in writingthe materials identified in subsection (2) ofthis section to a borrower if the mortgagebanker, mortgage broker or mortgage loanoriginator:

(a) Communicates or causes to be com-municated an advertisement in a languageother than English or otherwise solicitsbusiness in a language other than English;and

(b) Offers to negotiate or make, or nego-tiates or makes, a residential mortgagetransaction in the course of which a sub-stantial portion of the communication withthe borrower that is related to the transac-tion takes place in the language other thanEnglish that was used to communicate theadvertisement or make the solicitation.

(2) A mortgage banker, mortgage brokeror mortgage loan originator that takes anaction described in subsection (1) of thissection shall provide the following materialsto the borrower in English and in the lan-guage other than English in which a sub-stantial portion of the communication that isrelated to the transaction takes place:

(a) A good faith estimate required underthe Real Estate Settlement Procedures Act,12 U.S.C. 2601 et seq., and under RegulationX, 24 C.F.R. part 3500, as enacted or pro-mulgated on January 1, 2010;

(b) The disclosures related to the trans-action that are required under the Truth inLending Act, 15 U.S.C. 1601 et seq., and un-der Regulation Z, 12 C.F.R. part 226, as en-acted or promulgated on January 1, 2010; and

(c) A statement notifying the borrowerthat loan documents associated with thetransaction will be in English and advisingthe borrower to obtain appropriate assistancewith any necessary translations.

(3) The Director of the Department ofConsumer and Business Services shall de-velop and distribute translated versions ofthe materials identified in subsection (2) ofthis section in the three languages otherthan English that are most commonly spokenin this state. [2009 c.603 §3; 2009 c.863 §39]

MORTGAGE LOAN ORIGINATORS86A.200 Definitions. As used in ORS

86A.200 to 86A.239:(1) “Depository institution” means a de-

pository institution, as defined in 12 U.S.C.1813(c), and a credit union, as defined inORS 723.008.

(2) “Federal banking agency” means:(a) The Board of Governors of the Fed-

eral Reserve System;(b) The Comptroller of the Currency;



(c) The Director of the Office of ThriftSupervision in the United States Departmentof the Treasury;

(d) The National Credit Union Adminis-tration Board; and

(e) The Board of Directors of the FederalDeposit Insurance Corporation.

(3)(a) “Loan processor or underwriter”means an individual who, after receiving anapplication, performs clerical or support du-ties that include:

(A) Receiving, collecting, distributing andanalyzing information commonly used inprocessing or underwriting a residentialmortgage loan; or

(B) Communicating with a consumer toobtain information necessary to process orunderwrite a residential mortgage loan.

(b) “Loan processor or underwriter” doesnot include an individual who communicateswith a consumer for the purpose of offeringor negotiating residential mortgage loanterms with the consumer or offering counselor consultation to the consumer concerningresidential mortgage loan terms or rates.

(4)(a) “Mortgage loan originator” meansan individual who, for compensation or gain:

(A) Takes an application for a residentialmortgage loan; or

(B) Offers or negotiates terms for a resi-dential mortgage loan.

(b) “Mortgage loan originator” does notinclude:

(A) An individual who, as an employeeor independent contractor, works solely as aloan processor or underwriter;

(B) A person that performs professionalreal estate activities, as defined in ORS696.010, unless the person is compensated bya mortgage banker, mortgage broker, mort-gage loan originator or lender or an agentof a mortgage banker, mortgage broker,mortgage loan originator or lender;

(C) An individual that extends creditsolely in connection with a timeshare plan,as defined in 11 U.S.C. 101(53D); or

(D) An individual who:(i) Is employed by a person that is li-

censed by the Director of the Department ofConsumer and Business Services; and

(ii) Collects or receives payments on be-half of a person that holds a residentialmortgage, including payments of principal,interest, escrow amounts and other amountsdue on obligations that under the terms ofthe note are due and owed to the person thatholds the residential mortgage.

(5) “Nationwide Mortgage Licensing Sys-tem and Registry” means a system that the

Conference of State Bank Supervisors andthe American Association of ResidentialMortgage Regulators maintain to registerand license mortgage loan originators.

(6) “Nontraditional mortgage” means amortgage other than a 30-year fixed-ratemortgage or a mortgage that the director byrule defines as a nontraditional mortgage.

(7) “Registered mortgage loanoriginator” means an individual who:

(a) Is employed by:(A) A depository institution;(B) A subsidiary of a depository institu-

tion that is regulated by a federal bankingagency; or

(C) An institution that is regulated bythe Farm Credit Administration;

(b) Performs the duties of a mortgageloan originator; and

(c) Complies with the registration re-quirements set forth in 12 U.S.C. 5106.

(8) “Residential mortgage loan” means aloan that is secured by a mortgage, deed oftrust or equivalent consensual security in-terest on four or fewer residential dwellingunits, including but not limited to individualdwelling units, mobile homes, condominiumsor cooperatives that are planned for or situ-ated on real property in this state.

(9) “Unique identifier” means a numberor other means of identification that is as-signed by or under protocols established bythe Nationwide Mortgage Licensing Systemand Registry. [2009 c.863 §1]

86A.203 License and unique identifierfor mortgage loan originator; require-ments; exemptions; rules. (1) Except asprovided in subsection (2) of this section, anindividual may not engage in business as amortgage loan originator in this state with-out first:

(a) Obtaining and maintaining a mort-gage loan originator’s license under ORS86A.212 or renewing a mortgage loanoriginator’s license under ORS 86A.218; and

(b) Obtaining a unique identifier from theNationwide Mortgage Licensing System andRegistry.

(2) Subsection (1) of this section does notapply to:

(a) A registered mortgage loan originatorwho acts within the scope of the registeredmortgage loan originator’s employment;

(b) An individual who offers or negotiatesterms of a residential mortgage loan with oron behalf of the individual’s spouse, child,sibling, parent, grandparent, grandchild or arelative in a similar relationship with the



individual that is created by law, marriageor adoption;

(c) An individual who offers or negotiatesterms of a residential mortgage loan that issecured by a dwelling that served as theindividual’s residence;

(d) An individual who, as a seller duringany 12-month period, offers or negotiatesterms for not more than three residentialmortgage loans that are secured by a dwell-ing unit that the individual owns, or that alimited liability company of which the indi-vidual is a member owns, and that did notserve as the individual’s residence, if:

(A) Membership in the limited liabilitycompany that owns the dwelling unit con-sists only of the individual or of the individ-ual and the individual’s spouse, children,siblings, parents, grandparents, grandchil-dren or other relatives who are related tothe individual by law, marriage or adoption;

(B) The individual or the limited liabilitycompany does not advertise that, or other-wise suggest by statements or conduct that,the limited liability company engages in thebusiness of making residential mortgageloans;

(C) The individual complies with the pro-visions of subsection (3) of this section; and

(D) The individual does not engage inconduct that is prohibited under ORS86A.224 or 86A.236;

(e) An attorney who is licensed or other-wise authorized to practice law in this state,if the attorney negotiates the terms of a res-idential mortgage loan in representing a cli-ent and does not receive compensation froma mortgage banker, mortgage broker, mort-gage loan originator or lender or an agentof the mortgage banker, mortgage broker,mortgage loan originator or lender, exceptthat for the purposes of determining whetherthe attorney is exempt under this paragraph,the attorney does not receive compensationfrom a mortgage loan originator or lender ifthe attorney receives compensation from aclient that would otherwise meet the defi-nition of a mortgage loan originator orlender but is exempt under paragraph (c), (d)or (f) of this subsection;

(f) An individual who is licensed as amanufactured structure dealer under ORS446.691 and who:

(A) Offers or negotiates terms of a resi-dential mortgage loan related to a sale foroccupancy of a previously owned manufac-tured dwelling in a manufactured dwellingpark three or fewer times in any 12-monthperiod; and

(B) Uses a written sale agreement formwith the purchaser that complies with the

requirements of ORS 646A.050, 646A.052 and646A.054, with any rules adopted under ORS646A.050, 646A.052 and 646A.054 and withany other applicable requirements for resi-dential mortgages for manufactured dwell-ings; or

(g) An individual who is licensed as alimited manufactured structure dealer underORS 446.706 and who:

(A) Has an ownership interest in a man-ufactured dwelling park;

(B) Offers or negotiates terms of a resi-dential mortgage loan related to a sale foroccupancy of a previously owned manufac-tured dwelling in any manufactured dwellingpark in which the individual has an owner-ship interest, five or fewer times in any12-month period; and

(C) Uses a written sale agreement formwith the purchaser that complies with therequirements of ORS 646A.050, 646A.052 and646A.054, with any rules adopted under ORS646A.050, 646A.052 and 646A.054 and withany other applicable requirements for resi-dential mortgages for manufactured dwell-ings.

(3) An individual who offers or negotiatesterms for a residential mortgage loan, andwho claims an exemption under subsection(2)(c), (d) or (f) of this section from the re-quirements set forth in subsection (1) of thissection, may not at any time hold more thaneight residential mortgage loans withoutmeeting the requirements set forth in sub-section (1) of this section. For the purposesof a determination under this subsection asto whether an individual who claims an ex-emption under subsection (2)(d) of this sec-tion holds more or fewer than eightresidential mortgage loans, the individualshall disclose to the Director of the Depart-ment of Consumer and Business Services allloans that all limited liability companies ofwhich the individual is a member hold in theaggregate.

(4) An individual who offers or negotiatesterms for a residential mortgage loan, andwho claims an exemption under subsection(2)(g) of this section from the requirementsset forth in subsection (1) of this section,may not at any time hold more than 12 resi-dential mortgage loans without meeting therequirements set forth in subsection (1) ofthis section.

(5) The Director of the Department ofConsumer and Business Services by rule mayexempt an individual from the requirementto obtain a mortgage loan originator’s licenseunder ORS 86A.200 to 86A.239 if the UnitedStates Consumer Financial Protection Bu-reau requires or permits the exemption under12 U.S.C. 5101 et seq.



(6) Notwithstanding the exemption fromlicensing for an individual described in sub-section (2)(f) or (g) of this section, subsection(1) of this section applies to the individual ifthe United States Consumer Financial Pro-tection Bureau determines, in a guideline,rule, regulation or interpretive letter, thatthe exemption is inconsistent with require-ments set forth in 12 U.S.C. 5101 et seq.

(7)(a) Except as provided in paragraph (b)of this subsection, an employee of a manu-factured structure dealer licensed under ORS446.691 is not subject to the provisions ofORS 86A.200 to 86A.239 if the employee:

(A) Performs only administrative or cler-ical tasks; and

(B) Receives in connection with a sale orother transaction related to a manufacturedstructure, as defined in ORS 446.003, only asalary or commission that is customaryamong dealers and employees of dealers.

(b) An employee of a dealer is subject tothe provisions of ORS 86A.200 to 86A.239 ifthe United States Consumer Financial Pro-tection Bureau determines, in a guideline,rule, regulation or interpretive letter, thatthe exemption granted in paragraph (a) ofthis subsection is inconsistent with require-ments set forth in 12 U.S.C. 5101 et seq. [2009c.863 §2; 2013 c.281 §1; 2013 c.443 §15; 2015 c.677 §1]

86A.206 Application for license; infor-mation and materials required for appli-cation; rules. (1) The Director of theDepartment of Consumer and Business Ser-vices by rule shall determine the manner inwhich an applicant must apply and the formand contents of an application for a licenseto conduct business as a mortgage loan orig-inator.

(2) In connection with an application un-der this section, an applicant shall apply forand receive a unique identifier from the Na-tionwide Mortgage Licensing System andRegistry. As part of the application, the di-rector by rule shall require the applicant tosubmit to the director or directly to the Na-tionwide Mortgage Licensing System andRegistry:

(a) Fingerprints that the Federal Bureauof Investigation, or another governmentagency that is authorized to receive finger-prints, can use to perform a state, nationaland international criminal backgroundcheck;

(b) A summary of the applicant’s personalhistory and experience on a form prescribedby the Nationwide Mortgage Licensing Sys-tem and Registry;

(c) A document that authorizes the Na-tionwide Mortgage Licensing System and

Registry to obtain, with reference to the ap-plicant:

(A) A credit report from a consumer re-porting agency, as defined in 15 U.S.C.1681a(f), or a consumer reporting agency thatcompiles and maintains files on consumerson a nationwide basis, as defined in 15 U.S.C.1681a(p); and

(B) Information about administrative,civil or criminal proceedings and findingsconcerning the applicant in any govern-mental jurisdiction; and

(d) Other information the director or theNationwide Mortgage Licensing System andRegistry may require. [2009 c.863 §3]

86A.209 Interim license; findings re-quired. The Director of the Department ofConsumer and Business Services may issuean interim mortgage loan originator’s licenseto a person that is not licensed under ORS86A.212 if the director finds that issuing theinterim license will facilitate the business oflicensed mortgage loan originators or pre-vent an undue delay in issuing a mortgageloan originator’s license. The director mayspecify the term of the interim mortgage loanoriginator’s license and may issue the in-terim license to an applicant for a mortgageloan originator’s license only if the directorfinds that the applicant:

(1) Is employed by a person that has avalid license or registration from the De-partment of Consumer and Business Services;

(2) Substantially meets the requirementsof ORS 86A.206, 86A.212 and 86A.215 as ofJuly 31, 2010; and

(3) Has not committed an act prohibitedunder ORS 86A.236. [2009 c.863 §3a]

86A.212 Findings required for issuinglicense; basis for denial; rules. (1) The Di-rector of the Department of Consumer andBusiness Services may not issue a mortgageloan originator’s license to an applicant un-less the director finds, at a minimum, thatthe applicant:

(a) Has obtained a unique identifier fromthe Nationwide Mortgage Licensing Systemand Registry.

(b) Has not had a mortgage loanoriginator’s license revoked in another juris-diction. For purposes of this paragraph, anapplicant’s mortgage loan originator’s licensewas not revoked if an order or decision torevoke the license was later rescinded or va-cated.

(c) Has not been convicted of or pleadedguilty or no contest in a state, federal, for-eign or military court to a felony or to amisdemeanor if an essential element of themisdemeanor involved false statements ordishonesty:



(A) During a period of seven years beforethe date the applicant submits an applicationunder ORS 86A.206; or

(B) At any time before the date the ap-plicant submits an application under ORS86A.206, if the conviction or plea involved afelony and an element of the felony was anact of fraud, dishonesty, a breach of trust orlaundering a monetary instrument. For pur-poses of this paragraph, a conviction thatwas later pardoned is not a conviction.

(d) Has demonstrated financial responsi-bility sufficient to command the confidenceof the community and warrant the determi-nation that the applicant will operate hon-estly, fairly and efficiently within thepurposes of ORS 86A.200 to 86A.239.

(e) Has completed the education require-ment set forth in ORS 86A.215 and passed atest that meets the standards set forth inORS 86A.215.

(f) Is covered by a surety bond in accor-dance with the provisions of ORS 86A.227.

(2) The director may not:(a) Deny a mortgage loan originator’s li-

cense to an applicant because of theapplicant’s credit score; or

(b) Use information in a credit report asthe sole basis for denying the mortgage loanoriginator’s license.

(3) The director shall issue a mortgageloan originator’s license to an applicant if:

(a) The director is satisfied that the in-formation contained in the application for amortgage loan originator’s license is accu-rate and complete; and

(b) No reason exists under subsection (1)of this section to deny the applicant a mort-gage loan originator’s license.

(4) The director by rule may specify cri-teria for determining financial responsibilityunder subsection (1)(d) of this section. [2009c.863 §4]

86A.215 Education and testing re-quirements for license; education andtest providers. (1) An applicant for a mort-gage loan originator’s license shall:

(a) Complete, at a minimum, 20 hours ofan approved course of prelicensing educationthat, at a minimum, must include:

(A) Three hours devoted to federal lawsand regulations;

(B) Three hours devoted to ethics, withinstruction concerning fraud, consumer pro-tection and fair lending; and

(C) Two hours devoted to lending stan-dards applicable to nontraditional mortgages;and

(b) Pass a qualified written test with ascore of 75 percent correct or better. Thetest must measure the applicant’s knowledgeof:

(A) Ethics; and(B) Federal and state laws, regulations

and rules that apply to residential mortgageloan origination, including laws, regulationsand rules that concern fraud, consumer pro-tection, fair lending and nontraditionalmortgages.

(2) For purposes of this section:(a) An approved course of prelicensing

education is a course that the NationwideMortgage Licensing System and Registry hasreviewed and for which the NationwideMortgage Licensing System and Registry hasapproved the contents, provider, instruc-tional standards and means and methods ofdelivery, using reasonable standards.

(b) A qualified written test is a test thatthe Nationwide Mortgage Licensing Systemand Registry develops and for which the Na-tionwide Mortgage Licensing System andRegistry approves the test provider andmethod of test administration, using reason-able standards.

(3) The director shall accept for the pur-poses of the requirements set forth in sub-section (1) of this section an approved courseof prelicensing education that an applicantcompleted in another state.

(4) This section does not preclude:(a) An applicant’s employer or a subsid-

iary, agent or affiliate of the employer fromproviding an approved course of prelicensingeducation; or

(b) An approved test provider from ad-ministering a qualified test at the businesslocation of the applicant’s employer or anaffiliate, subsidiary or agent of the employeror at the business location of a person withwhich the employer has an exclusive con-tractual arrangement related to mortgageloan origination.

(5) An applicant may take a qualified testfour consecutive times, provided that eachtest administration occurs 30 days after aprevious test administration. If the applicantfails the approved test four consecutivetimes, the applicant must wait at least sixmonths before retaking the test. [2009 c.863 §5]

86A.218 License renewal; expiration;reinstatement; rules. (1) The Director ofthe Department of Consumer and BusinessServices shall renew a mortgage loanoriginator’s license if the director finds that:

(a) The licensed mortgage loan originatorcontinues to meet the requirements set forthunder ORS 86A.212;



(b) The licensed mortgage loan originatorpaid the fee required to renew the mortgageloan originator’s license; and

(c) The licensed mortgage loan originatorsatisfied the continuing education require-ments set forth in ORS 86A.221. If the li-censed mortgage loan originator did notsatisfy the requirements under ORS 86A.221,instead of declining to renew the mortgageloan originator’s license, the director by ruleor order may permit or require the licensedmortgage loan originator to make up the de-ficiency in continuing education.

(2)(a) A mortgage loan originator’s li-cense expires if:

(A) The licensed mortgage loan origina-tor does not apply to renew the mortgageloan originator’s license;

(B) The director declines to renew themortgage loan originator’s license; or

(C) The licensed mortgage loan originatordoes not otherwise maintain eligibility underthe requirements set forth in ORS 86A.200 to86A.239.

(b) The director by rule may establish aprocedure and requirements for reinstating alicense that has expired. The procedure andrequirements the director establishes mustbe consistent with standards established bythe Nationwide Mortgage Licensing Systemand Registry and must at a minimum providethat an applicant for reinstatement who hasallowed the applicant’s mortgage loanoriginator’s license to lapse for a period offive or more years, whether or not the appli-cant was employed or continued to engage inbusiness as a mortgage loan originator dur-ing the period of the lapse, shall:

(A) Demonstrate to the director that theapplicant completed the continuing educationrequirements set forth in ORS 86A.221 thatwere required in the year in which the ap-plicant last held a mortgage loan originator’slicense; and

(B) Pass the qualified written test asprovided in ORS 86A.215. [2009 c.863 §6]

86A.221 Continuing education require-ments for mortgage loan originator;credit allowed. (1) A licensed mortgage loanoriginator each year shall complete at leasteight hours of an approved course of contin-uing education that, at a minimum, must in-clude:

(a) Three hours devoted to federal lawsand regulations;

(b) Two hours devoted to ethics, with in-struction concerning fraud, consumer pro-tection and fair lending; and

(c) Two hours devoted to lending stan-dards applicable to nontraditional mortgages.

(2) For purposes of this section, an ap-proved course of continuing education is acourse that the Nationwide Mortgage Li-censing System and Registry has reviewedand for which the Nationwide Mortgage Li-censing System and Registry has approvedthe contents, provider, instructional stan-dards and means and methods of delivery,using reasonable standards.

(3) This section does not preclude a li-censed mortgage loan originator’s employeror a subsidiary, agent or affiliate of the em-ployer from providing an approved course ofcontinuing education.

(4) The Director of the Department ofConsumer and Business Services shall acceptfor the purposes of the requirement set forthin subsection (1) of this section an approvedcourse of continuing education that a li-censed mortgage loan originator completedin another state.

(5) A licensed mortgage loan originator:(a) May receive credit for a continuing

education course only in the year in whichthe licensed mortgage loan originator takesthe course, unless the director under ORS86A.218 permits or requires the mortgageloan originator to make up a deficiency incontinuing education; and

(b) May not for the purposes of meetingthe requirement set forth in subsection (1)of this section take the same approvedcourse of continuing education in the sameyear or in any two successive years.

(6) A licensed mortgage loan originatorwho is also approved as an instructor for anapproved course of continuing education mayreceive two hours of credit toward the li-censed mortgage loan originator’s own con-tinuing education requirement for each hourof the approved course of continuing educa-tion that the licensed mortgage loan origina-tor teaches. [2009 c.863 §7]

86A.224 Denying, suspending, condi-tioning, revoking or declining to renewlicense; findings required; order; civilpenalty; prohibited activity; criminal li-ability. (1) In addition to authority the Di-rector of the Department of Consumer andBusiness Services has under ORS 86A.095 to86A.198, the director under this section hasthe authority, subject to ORS chapter 183, todeny, suspend, place conditions upon, revokeor decline to renew a mortgage loanoriginator’s license or permanently prohibita person from conducting business as amortgage loan originator if:

(a) A licensed mortgage loan originatorviolates a provision of ORS 86A.200 to86A.239 or a rule or order the director issuesunder ORS 86A.200 to 86A.239;



(b) The director makes a finding underORS 86A.212 or 86A.218 that the directorbelieves justifies a decision to deny or de-cline to renew a mortgage loan originator’slicense;

(c) An applicant makes a false statementor a material misstatement of fact on an ap-plication for a mortgage loan originator’s li-cense or a licensed mortgage loan originatormakes a false statement or a material mis-statement of fact on an application to renewa mortgage loan originator’s license; or

(d) A person who is not exempted fromthe requirement to obtain a mortgage loanoriginator’s license under ORS 86A.203 (2)conducts business as a mortgage loan origi-nator without applying for and receiving amortgage loan originator’s license underORS 86A.206 and 86A.212.

(2) The director, subject to ORS chapter183, may order a person that is subject toregulation under ORS 86A.200 to 86A.239 to:

(a) Cease and desist immediately or per-manently from violating a provision of ORS86A.200 to 86A.239 or from an act or practicerelated to mortgage loan origination that thedirector deems harmful to a consumer or tothe public;

(b) Stop or suspend business related tomortgage loan origination;

(c) Pay restitution to a consumer or an-other person that the director finds sufferedharm from the person’s acts, omissions,practices or operations or as a result of theperson’s violation of a provision of ORS86A.200 to 86A.239; or

(d) Take or refrain from taking an actionthe director deems necessary to comply withORS 86A.200 to 86A.239.

(3)(a) The director, in accordance withORS 183.745, may impose a civil penalty inan amount not to exceed $5,000 for eachseparate instance of a violation of or failureto comply with the provisions of ORS86A.200 to 86A.239 or a rule or order the di-rector adopted or issued under ORS 86A.200to 86A.239.

(b) Every violation described in para-graph (a) of this subsection is a separate of-fense that is subject to a separate penalty.Each day in which the same violation occursis a separate violation. A violation that con-tinues for more than one day is a continuingviolation that is subject to a maximum pen-alty of $20,000.

(4)(a) A person may not knowingly:(A) Violate a provision of ORS 86A.203;(B) Fail to comply with an order the di-

rector issues under this section;

(C) Fail to produce records at thedirector’s request under ORS 86A.233;

(D) Employ a device, scheme or artificeto defraud or engage in an act, practice orcourse of business that operates or wouldoperate as a fraud or deceit;

(E) Make an untrue statement of a ma-terial fact or omit from a statement a mate-rial fact that would make the statement notmisleading in light of the circumstances un-der which the person makes the statement;or

(F) Make or file or cause to be made orfiled with the director a statement, report ordocument that the person knows is false ina material respect or matter.

(b) A person who takes an action de-scribed in paragraph (a) of this subsectioncommits a Class C felony. [2009 c.863 §8]

86A.227 Corporate surety bond re-quired; right of action; rules. (1) A personthat employs a mortgage loan originatorshall file with the Director of the Depart-ment of Consumer and Business Services acorporate surety bond that runs to the Stateof Oregon and that covers each mortgageloan originator the person employs. The cor-porate surety bond must be issued by a cor-porate surety or an insured institution, asdefined in ORS 706.008, that is authorized totransact business in this state.

(2) The director by rule shall:(a) Prescribe the form of the corporate

surety bond;(b) Require the person to maintain the

corporate surety bond in an amount that re-flects the dollar amount of the loans theperson originated or in a minimum amountthe director specifies; and

(c) Prescribe other requirements for thecorporate surety bond as are necessary toaccomplish the purposes of ORS 86A.200 to86A.239.

(3) A right of action against the corpo-rate surety bond required under this sectionexists to the same extent that a right of ac-tion exists under ORS 86A.151.

(4) The director may require the personto file a new corporate surety bond if an ac-tion is commenced against the corporatesurety bond on file with the director. Theperson shall file a new corporate surety bondimmediately if a recovery is obtained againstthe bond. [2009 c.863 §9]

86A.230 Contracts or agreements withNationwide Mortgage Licensing Systemand Registry and other agencies; infor-mation sharing; confidentiality; reportsof violations; rules. (1) The Director of theDepartment of Consumer and Business Ser-vices may contract with or otherwise agree



with the Nationwide Mortgage LicensingSystem and Registry, or a person the Na-tionwide Mortgage Licensing System andRegistry designates, to:

(a) Collect and maintain records in con-nection with an application under ORS86A.212 or 86A.218;

(b) Collect and process application feesor other fees that are authorized under ORS86A.200 to 86A.239 and imposed by a govern-ment agency or association of governmentagencies;

(c) Serve as a point of contact the direc-tor may use to request information from andprovide information to the United States De-partment of Justice, the Federal Bureau ofInvestigation or other government agencies;

(d) Apply, abide by and implement stan-dards the Nationwide Mortgage LicensingSystem and Registry establishes for:

(A) Setting or resetting dates for report-ing information or renewing a mortgage loanoriginator’s license; and

(B) Amending or surrendering a mort-gage loan originator’s license; and

(e) Otherwise participate in the Nation-wide Mortgage Licensing System and Regis-try.

(2) The director may agree with the Con-ference of State Bank Supervisors, theAmerican Association of Residential Mort-gage Regulators or other government agen-cies or associations of government agenciesto share and to maintain under subsection (4)of this section the confidentiality or privilegeapplicable to information or material that:

(a) An applicant provides under ORS86A.206;

(b) A mortgage loan originator providesunder ORS 86A.218; or

(c) The director obtains from investi-gations, inquiries, proceedings, submissionsor other sources under the authority of ORS86A.200 to 86A.239.

(3) The director shall provide copies ofinformation and material that the directorsupplies to or receives from the NationwideMortgage Licensing System and Registry toan applicant for a mortgage loan originator’slicense under ORS 86A.212 or to a licensedmortgage loan originator who applies to re-new a license under ORS 86A.218. The di-rector by rule shall establish a procedure forchallenging the accuracy or completeness ofthe information and materials.

(4)(a) Except as provided in subsections(5) and (6) of this section and 12 U.S.C. 5111,information or material that an applicant, amortgage loan originator or the director pro-vides or discloses to the Nationwide Mort-

gage Licensing System and Registry retainsthe confidentiality or privilege from publicdisclosure that applies to the informationunder ORS 192.311 to 192.478 or under otherapplicable state or federal law, includingcourt rules. The confidentiality or privilegeapplies to the information or material despitedisclosure to state or federal agencies withregulatory authority over persons, businessesor activities related to mortgage lending.

(b) Information that is subject to a privi-lege described in paragraph (a) of this sub-section is not subject to:

(A) Disclosure under state or federal lawthat governs disclosure of information in thepossession of a public official; or

(B) Subpoena, discovery or admission intoevidence in an administrative proceeding orprivate civil action, unless the person whoseinformation is protected by the confidential-ity or privilege waives the confidentiality orprivilege in whole or in part.

(c) To the extent that the provisions ofORS 192.311 to 192.478 conflict with the pro-visions of this section, the provisions of thissection control.

(5) Subsection (4) of this section does notapply to information or material concerningan applicant’s or a mortgage loanoriginator’s employment history or recordsof discipline and enforcement actions thatappear in and are open to public access inthe Nationwide Mortgage Licensing Systemand Registry. The director may publish onthe Internet information that the directorreceives from the Nationwide Mortgage Li-censing System and Registry that is not sub-ject to a privilege described in subsection (4)of this section.

(6) The director shall regularly report tothe Nationwide Mortgage Lending Systemand Registry violations of the provisions ofORS 86A.200 to 86A.239, enforcement actionsagainst a person subject to ORS 86A.200 to86A.239 and other information the directordeems necessary to meet the director’s obli-gations under agreements with the Nation-wide Mortgage Licensing System andRegistry.

(7) To the extent reasonably necessary toparticipate in the Nationwide Mortgage Li-censing System and Registry, the director byrule or order may waive or modify, in wholeor in part, the requirements set forth in ORS86A.200 to 86A.239 or establish new require-ments consistent with the provisions of ORS86A.200 to 86A.239. [2009 c.863 §10]

86A.233 Production of records; inves-tigations, examinations and subpoenas;possession of records; access to records;powers of director; prohibited activities.(1) The Director of the Department of Con-



sumer and Business Services, as often as thedirector deems necessary to carry out thepurposes of ORS 86A.200 to 86A.239, may:

(a) Request or require a person that em-ploys a mortgage loan originator or that un-der the provisions of ORS 86A.200 to 86A.239should employ a mortgage loan originator toproduce, for the director’s examination anduse, books, accounts, records, files, docu-ments or other information or evidence;

(b) Investigate or examine an applicantor a licensed mortgage loan originator andreview the applicant’s or licensed mortgageloan originator’s:

(A) History of criminal, civil and admin-istrative proceedings, enforcement actions,arrests or other information related to theapplicant’s or licensed mortgage loanoriginator’s compliance with state and fed-eral law, rules or regulations; and

(B) Personal history and experience, in-cluding information obtained from credit re-ports from a consumer reporting agency, asdefined in 15 U.S.C. 1681a(f) or from a con-sumer reporting agency that compiles andmaintains files on consumers on a nation-wide basis, as defined in 15 U.S.C. 1681a(p);

(c) Direct, subpoena, examine, compel theattendance of, administer oaths and affirma-tions to, and request production of books,accounts, records, files, documents or otherinformation or evidence from witnesses andpersons that are subject to regulation underORS 86A.200 to 86A.239; and

(d) Interview and take and preserve tes-timony concerning business practices andoperations from the applicant’s or licensedmortgage loan originator’s officers, princi-pals, mortgage loan originators, employees,agents and customers or independent con-tractors associated with the applicant or li-censed mortgage loan originator.

(2)(a) The director may, with reference todocuments, materials or records described insubsection (1) of this section:

(A) Take possession of, sequester, controlor restrict access to the documents, materi-als or records; or

(B) Designate a person to take exclusivecharge of the documents, materials or re-cords in the location in which the docu-ments, materials or records are usually kept.

(b) At a time in which the director hastaken an action described in paragraph (a)of this subsection, a person may not, withoutthe director’s permission or a court order,remove or attempt to remove the documents,materials or records from the director’s pos-session or control or from the location inwhich the documents, materials or records

are kept under the exclusive charge of theperson the director designates.

(c) A person who owns or has a right topossess or control the documents, materialsor records may have access necessary toconduct the person’s ordinary business, un-less the director reasonably believes that thedocuments, materials or records have beenor are at risk of alteration or destruction forthe purposes of concealing a violation ofORS 86A.200 to 86A.239.

(3) In carrying out the purposes of thissection, the director may:

(a) Retain attorneys, accountants orother professionals or specialists to conductinvestigations, audits or examinations or as-sist in conducting investigations, audits orexaminations;

(b) Agree with other government agen-cies or officials to share resources, informa-tion, methods, procedures, documents,records, materials and information obtainedin the course of investigations, audits, exam-inations and related activities;

(c) Purchase, share, use or employ ana-lytical systems, methods or software avail-able from public or private sources;

(d) Accept and rely upon the results ofor reports concerning investigations, audits,examinations or proceedings conducted byother government agencies or officials in thisstate or in other states; and

(e) Accept, use and incorporate in thedirector’s findings, reports, orders or otheractions audit reports from an independentcertified public accountant.

(4) The director’s authority under thissection applies to a person who is subject toregulation under ORS 86A.200 to 86A.239,whether or not the person is licensed as amortgage loan originator.

(5) An applicant or licensed mortgageloan originator shall:

(a) Make available to the director at thedirector’s request books, accounts, records,files and other documents relating to theapplicant’s or licensed mortgage loanoriginator’s business operations and prac-tices; and

(b) Prepare, compile and deliver to thedirector reports, accounting compilations,lists and data concerning loan transactionsand other information the director requiresto carry out the purposes of ORS 86A.200 to86A.239.

(6) A person subject to investigation, au-dit or examination under this section maynot knowingly withhold, abstract, remove,mutilate, destroy or conceal books, accounts,records, computer records, files, documentsor other information or evidence that is sub-



ject to the director’s authority under thissection. [2009 c.863 §11]

86A.236 Prohibited activities. A personwho is subject to regulation under ORS86A.200 to 86A.239 in connection with theperson’s activities as a mortgage loan origi-nator may not:

(1) Perform an act as a mortgage loanoriginator in a negligent or incompetentmanner;

(2) Employ a device, scheme or artificeto defraud or engage in an act, practice orcourse of business that operates or wouldoperate as a fraud or deceit;

(3) Knowingly make an untrue statementof a material fact or omit from a statementa material fact that would make the state-ment not misleading in light of the circum-stances under which the person makes thestatement;

(4) Make or file or cause to be made orfiled with the Director of the Department ofConsumer and Business Services a state-ment, report or document that the personknows is false in a material respect or mat-ter;

(5) Engage in an unfair or deceptivepractice toward another person;

(6) Obtain property by fraud or misrepre-sentation;

(7) Solicit or enter into a contract witha borrower, the terms of which provide thatthe person may earn a fee or commission forusing the person’s best efforts to obtain aresidential mortgage loan even if the persondoes not obtain a residential mortgage loanfor the borrower, except that the terms ofthe contract may provide that the personmay earn an advance fee or recover actualexpenses that the person incurs;

(8) Solicit, advertise or enter into a con-tract, the terms of which specify an interestrate, points or other financing terms unlessthe interest rate, points or other financingterms are available to a prospective borrowerat the time the person makes the solicitationor advertisement or enters into the contract;

(9) Conduct or operate a business thatrequires a mortgage loan originator’s licensewithout holding a license issued under ORS86A.212 or 86A.218 or assist or enable an-other person who does not have a mortgageloan originator’s license to conduct or oper-ate a business that requires a mortgage loanoriginator’s license;

(10) Fail to disclose or provide informa-tion required under ORS 86A.200 to 86A.239or by state or federal laws, rules or regu-lations;

(11) Fail to comply with a provision ofORS 86A.200 to 86A.239, a rule adopted by

the Director of the Department of Consumerand Business Services or state or federallaws, rules or regulations that apply to abusiness that is subject to regulation underORS 86A.200 to 86A.239;

(12) Fail to conduct business as a mort-gage loan originator in compliance with theprovisions of:

(a) The Truth in Lending Act, 15 U.S.C.1601 et seq. and Regulation Z, 12 C.F.R. part226, as in effect on October 1, 2009;

(b) The Real Estate Settlement Proce-dures Act, 12 U.S.C. 2601 et seq. and Regu-lation X, 24 C.F.R. part 3500, as in effect onJanuary 1, 2010;

(c) The Equal Credit Opportunity Act, 15U.S.C. 1691 et seq. and Regulation B, 12C.F.R. 202.9, 202.11, 202.12 and 202.14, as ineffect on July 30, 2009; or

(d) 12 U.S.C. 5101 et seq. and regulationsadopted under 12 U.S.C. 5101 et seq.;

(13) Make, negligently or intentionally, afalse or deceptive statement or represen-tation in any manner concerning the rates,points or other financing terms or conditionsfor a residential mortgage loan;

(14) Make a false statement negligentlyin, or omit knowingly or willfully a materialfact from, a report or information the personsubmits to a government agency or the Na-tionwide Mortgage Licensing System andRegistry or in connection with an investi-gation or examination conducted by the di-rector or a government agency;

(15) Make a payment, threat or promise,directly or indirectly, to another person forthe purpose of influencing the other person’sindependent judgment concerning a residen-tial mortgage loan or to an appraiser for thepurpose of influencing the appraiser’s inde-pendent judgment concerning the value ofproperty;

(16) Charge or collect, attempt to chargeor collect or propose or enter into an agree-ment in which the person charges or collectsa fee that is prohibited under ORS 86A.200to 86A.239;

(17) Cause or require a borrower to ob-tain property insurance in an amount thatexceeds the replacement cost of the propertysubject to the residential mortgage loan; or

(18) Fail to account truthfully for moneysthat belong to a party to a residential mort-gage loan transaction. [2009 c.863 §12]

86A.239 Display of license and uniqueidentifier; rules; report of condition. (1)(a)A licensed mortgage loan originator shallclearly display the licensed mortgage loanoriginator’s unique identifier on a residentialmortgage loan application form, solicitation,advertisement, promotional material or



website the licensed mortgage loan origina-tor uses in connection with the licensedmortgage loan originator’s business.

(b) The Director of the Department ofConsumer and Business Services by rule mayspecify the location, size or other character-istics of the unique identifier that must ap-pear on the materials described in paragraph(a) of this subsection and the materials onwhich the unique identifier must appear.

(2) A person that employs a licensedmortgage loan originator shall submit a re-port of condition to the Nationwide Mort-gage Licensing System and Registry. Theform and contents of the report and thetimes at which the licensed mortgage loanoriginator submits the report shall complywith the specifications of the NationwideMortgage Licensing System and Registry.

(3) A loan processor or underwriter maynot represent to the public by means of ad-vertising, business cards, stationery, bro-chures, signs, rate lists or othercommunications, promotional items or meth-ods that the loan processor or underwritercan, will or is authorized to perform the du-ties of a mortgage loan originator unless theloan processor or underwriter obtains amortgage loan originator’s license underORS 86A.212. [2009 c.863 §13]

86A.242 Rules. The Director of the De-partment of Consumer and Business Servicesmay adopt, amend and repeal rules that arenecessary to carry out the provisions of ORS86A.200 to 86A.239. [2009 c.863 §13a]

MORTGAGE LOAN SERVICERS86A.300 Short title. ORS 86A.303 to

86A.339 may be cited as the Mortgage LoanServicer Practices Act. [2017 c.636 §1]

86A.303 Definitions. As used in ORS86A.303 to 86A.339:

(1) “Affiliate” means a person who con-trols, is controlled by or is under commoncontrol with another person.

(2) “Applicant” means a person that ap-plies for a license to engage in business as aresidential mortgage loan servicer in thisstate.

(3) “Borrower” means a person that in-curs an obligation to repay a residentialmortgage loan.

(4) “Branch office” means a location atwhich a business entity services a residentialmortgage loan other than the businessentity’s headquarters or principal place ofbusiness.

(5) “Business entity” means a corpo-ration, limited liability company, partnership,limited partnership, business trust, jointventure or other form of business organiza-

tion the constituent parts of which share acommon economic interest.

(6) “Controller” means:(a) A director, officer or general partner

of a business entity;(b) A managing member of a limited li-

ability company;(c) A person that has a direct or indirect

right to vote 10 percent or more of the secu-rities of a business entity that have votingrights or the power to sell or cause the saleof 10 percent or more of any class of a busi-ness entity’s securities;

(d) A person that has contributed 10 per-cent or more to a partnership’s capital or hasthe right to receive a distribution of 10 per-cent or more of a partnership’s capital orassets upon dissolution; or

(e) A person that, under the terms of acontract or because the person has an own-ership interest in another person, has thepower to manage or set policies for the otherperson, or otherwise direct the other person’soperations or affairs.

(7) “Licensee” means a person that hasapplied for and obtained or renewed a licensefrom the Director of the Department of Con-sumer and Business Services to engage inbusiness as a residential mortgage loanservicer in this state.

(8) “Manager” means an individual whohas supervisory authority over employeesand operations at a business entity’s branchoffice or other business location.

(9) “Person” means an individual or abusiness entity.

(10) “Residential mortgage loan” meansa loan secured by a mortgage, deed of trustor an equivalent consensual security interestin real property on which four or fewer im-provements designed for residential occu-pancy are planned or situated, including butnot limited to individual units, condominiumsand cooperatives.

(11) “Residential mortgage loan modifica-tion service” means:

(a) A negotiation or arrangement, or anoffer or attempt to negotiate or arrange, achange in the repayment obligations for orthe terms and conditions of a borrower’sresidential mortgage loan, including but notlimited to:

(A) A forbearance in collecting one ormore payments due;

(B) A change in the interest rate;(C) A change in the payment or repay-

ment schedule;(D) A substitution of different loan terms

and conditions;



(E) A substitution of a different classi-fication of loan;

(F) A capitalization of any arrearages; or(G) A reduction in principal.(b) Collecting or attempting to collect

data to submit to a person that performs aresidential mortgage loan modification ser-vice.

(12) “Service a residential mortgageloan” means to:

(a) Receive a scheduled periodic paymentfrom a borrower under the terms of a resi-dential mortgage loan, including anyamounts for deposit into an escrow accountthe lender establishes in accordance with theReal Estate Settlement Procedures Act, 12U.S.C. 2609;

(b) Pay to the lender or another personprincipal, interest and other amounts associ-ated with a residential mortgage loan in ac-cordance with the terms of any contract oragreement for servicing the residential mort-gage loan; or

(c) Pay an amount to a borrower, if theresidential mortgage loan is a home equityconversion mortgage or a reverse mortgage.[2017 c.636 §2]

86A.306 License requirement; applica-bility; exceptions; enforcement; rules. (1)A person may not directly or indirectly ser-vice a residential mortgage loan in this stateunless the person obtains or renews a licenseunder ORS 86A.309.

(2) Subsection (1) of this section does notapply to:

(a) A person, or an affiliate of the person,that in all operations within the UnitedStates during the calendar year servicesfewer than 5,000 residential mortgage loans,excluding loans that the person or theperson’s affiliate originates or owns.

(b) A financial institution, as defined inORS 706.008.

(c) A person that has obtained a licenseunder ORS 725.140.

(d) A financial holding company or bankholding company, both as defined in ORS706.008, if the financial holding company orbank holding company does not do more thancontrol an affiliate or a subsidiary, as definedin 12 U.S.C. 1841(d), and does not engage inbusiness as a residential mortgage loanservicer.

(e) An attorney who is licensed or other-wise authorized to practice law in this stateif the attorney:

(A) Services a residential mortgage loanas an ancillary matter while representing aclient; and

(B) Does not receive compensation froma residential mortgage loan servicer.

(f) An agency or instrumentality of thisstate or the United States.

(g) A housing finance agency, as definedin 24 C.F.R. 266.5.

(h) An institution that the Farm CreditAdministration regulates.

(i) A person that the Director of the De-partment of Consumer and Business Servicesdesignates by rule or order as exempt, in-cluding but not limited to a nonprofit organ-ization that promotes affordable housing orfinancing.

(3) Notwithstanding subsection (2) of thissection, the director may require any personto obtain a license under ORS 86A.309 beforeservicing a residential mortgage loan if thedirector determines that the person has vio-lated state or federal law or has engaged ina course of dealing that is fraudulent, decep-tive or dishonest.

(4)(a) If the director reasonably believesthat a person is subject to ORS 86A.303 to86A.339 or is engaging in or is about to en-gage in an act or practice that constitutesservicing a residential mortgage loan in thisstate without first obtaining a license asprovided in subsection (1) of this section, thedirector may:

(A) Order the person to:(i) Cease and desist from the act or

practice; or(ii) Affirmatively perform an act; or(B) Apply to a circuit court of this state

to enjoin the person from engaging in the actor practice.

(b) The director shall state in reasonabledetail the facts on which the director basesan order under paragraph (a)(A) of this sub-section.

(c) If a person that is subject to an orderunder paragraph (a)(A) of this subsection re-quests a hearing, the director shall scheduleand give notice of a hearing in accordancewith ORS chapter 183. If the person does notrequest a hearing, the director’s order be-comes final 30 days after the date of the or-der.

(5) Notwithstanding ORS 86A.175 (2), thedirector shall regulate mortgage servicersunder ORS 86A.303 to 86A.339, includingmortgage servicers that hold other licensesthe director issued. [2017 c.636 §3]

86A.309 Application for license; re-quirements; waiver; fee; conditions forissuance and renewal and for denial, re-vocation or refusal; license term; rules.(1)(a) A person that is subject to the re-quirement to obtain or renew a license under



ORS 86A.306 (1) or (3) shall submit an appli-cation to the Director of the Department ofConsumer and Business Services in the man-ner, on a form and with the contents the di-rector specifies by rule.

(b) The director by rule may require anapplicant to submit the application describedin paragraph (a) of this subsection to theNationwide Mortgage Licensing System andRegistry instead of, or in addition to, sub-mitting the application to the director.

(2)(a) An applicant shall submit with oras part of an application under subsection (1)of this section:

(A) Fingerprints from all of theapplicant’s controllers, registered agents andmanagers;

(B) A unique identifier that the applicantapplies for and receives from the NationwideMortgage Licensing System and Registry;

(C) The name and address of theapplicant’s registered agent in this state;

(D) The street address of the applicant’sprincipal place of business and of eachbranch office in this state at or from whichthe applicant will service a residential mort-gage loan;

(E) The name of the manager of anybranch office the applicant maintains in thisstate;

(F) The assumed business name, if any,that the applicant intends to use or underwhich the applicant intends to operate; and

(G) Other information the director re-quires to conduct a background check andevaluate the application.

(b) The director by rule may modify orwaive, for an application to renew a license,any requirement under paragraph (a) of thissubsection that the director determines isnot necessary for evaluating or approving theapplication for renewal.

(3) At the time an applicant submits anapplication under subsection (1) of this sec-tion, the applicant shall also:

(a) Pay to the director a fee in an amountthat the director specifies by rule. The di-rector shall specify the fee in an amount thatis sufficient, when aggregated with fees fromother applicants, to meet the director’s costof administering ORS 86A.303 to 86A.339.

(b) Submit to the director a corporatesurety bond or irrevocable letter of credit is-sued by an insured institution, as defined inORS 706.008, that runs to the State of Ore-gon in an amount the director specifies byrule. If the applicant seeks to renew a li-cense and submitted a corporate surety bondor irrevocable letter of credit previously, theapplicant shall show that the corporate

surety bond or irrevocable letter of creditremains effective in the amount the directorspecifies.

(4)(a) The director may not issue or re-new a license under this section unless thedirector finds that:

(A) The applicant submitted a completeapplication that does not contain a materialmisstatement;

(B) The application identifies a registeredagent in this state;

(C) The application names a manager foreach of the applicant’s branch offices in thisstate;

(D) The applicant and the applicant’scontrollers, registered agents and managershave not pleaded guilty or no contest in, orbeen convicted by, a state, federal, foreign ormilitary court:

(i) In the seven years before the date ofthe application, if the plea or conviction wasfor a felony, or for a misdemeanor an essen-tial element of which involved a false state-ment or dishonesty; or

(ii) At any time before the date of theapplication if the plea or conviction was fora felony an element of which was fraud, dis-honesty, a breach of trust or laundering amonetary instrument;

(E) The applicant and the applicant’scontrollers, registered agents and managershave demonstrated adequate financial re-sponsibility, character and general fitness tocommand the confidence of the communityand warrant a determination that the appli-cant will operate honestly, fairly and effi-ciently under the provisions of ORS 86A.303to 86A.339;

(F) The applicant has paid the fee andsubmitted the corporate surety bond orirrevocable letter of credit required undersubsection (3) of this section; and

(G) The applicant has satisfied any othercriteria for evaluating the applicant’s finan-cial responsibility and fitness the directorspecifies by rule.

(b) An applicant need not report a con-viction on an application under this sectionif the conviction was later pardoned.

(5)(a) The director may deny, revoke ordecline to renew a license if an applicant, alicensee or a person that services a residen-tial mortgage loan:

(A) Does not meet criteria set forth insubsection (4) of this section that the direc-tor has not waived under subsection (2)(b) ofthis section;

(B) Engages in a course of conduct thatviolates state or federal law or that consti-



tutes fraudulent, deceptive or dishonest deal-ing;

(C) Fails or refuses to comply with thedirector’s written request under ORS 86A.327to respond to a complaint against the appli-cant or licensee; or

(D) Fails or refuses to comply with afinal order the director issued.

(b) The director shall provide a licenseewith notice and an opportunity for a hearingunder ORS chapter 183 before revoking ordeclining to renew a license.

(6)(a) A license that the director issuesor renews under this section expires on De-cember 31 of the calendar year in which thedirector issued or renewed the license. A li-censee shall display a copy of the license atthe licensee’s principal place of business andat each branch office in this state at or fromwhich the licensee services a residentialmortgage loan.

(b) An applicant that intends to renew alicense shall apply for the renewal before thelicense expires.

(c) A licensee may reinstate a licensethat has expired only if the licensee appliesto renew the license under this sectionwithin the time permitted by the NationwideMortgage Licensing System and Registry.

(d) A licensee may not service a residen-tial mortgage loan during a period in whichthe licensee has applied to reinstate a licenseunless the director has given conditional ap-proval to the licensee. The conditional ap-proval may specify which accounts thelicensee may service and which services thelicensee may provide during the period inwhich the licensee’s application for rein-statement is pending. [2017 c.636 §4]

86A.312 Licensee’s principal place ofbusiness; registered agent; assumed busi-ness name. (1) A licensee shall designateand maintain a principal place of business ator from which the licensee services residen-tial mortgage loans in this state and shalldesignate a registered agent in this state.

(2)(a) If a licensee does not maintain aprincipal place of business in this state thelicensee shall nevertheless designate a regis-tered agent in this state. The registeredagent must be available to receive on thelicensee’s behalf any notice, demand or ser-vice of process permitted by law to be given,made or delivered to, or served upon, the li-censee.

(b) If the licensee does not designate aregistered agent in this state, or if thelicensee’s registered agent cannot with rea-sonable diligence be located, the Director ofthe Department of Consumer and BusinessServices is the licensee’s registered agent.

(3) A licensee may not use or operateunder an assumed business name unless thelicensee first registers the assumed businessname under ORS chapter 648 and lists thename on an application under ORS 86A.309or in a notice to the director under ORS86A.318. [2017 c.636 §5]

86A.315 Required liquidity, operatingreserves and tangible net worth; compli-ance with federal standards as compli-ance with requirements; director’spowers to enforce compliance. (1)(a) A li-censee shall maintain in accordance withgenerally accepted accounting principles suf-ficient liquidity, operating reserves and tan-gible net worth to permit the licensee toadequately meet all costs, expenses and otherfinancial requirements related to servicingresidential mortgage loans in this state. TheDirector of the Department of Consumer andBusiness Services may specify by rule thestandards a licensee must meet to complywith the requirements set forth in this sub-section.

(b) A licensee that the Federal NationalMortgage Association, the Federal HomeLoan Mortgage Corporation or the Govern-ment National Mortgage Association has ap-proved to service a residential mortgage loancomplies with the requirements set forth inparagraph (a) of this subsection if the li-censee meets the standards for liquidity, op-erating reserves and tangible net worthestablished by the association or corporationthat approved the licensee. If the applicableassociation’s or corporation’s standards donot apply to a particular residential mort-gage loan, the licensee in servicing the resi-dential mortgage loan shall meet the higheststandards the association or corporation hasestablished for liquidity, operating reservesand tangible net worth.

(2)(a) If a licensee fails to meet the ap-plicable standards for liquidity, operating re-serves and tangible net worth set forth insubsection (1) of this section, the directormay take and retain possession of thelicensee’s property, business and assets lo-cated in this state until the licensee returns,under the director’s supervision or oversight,to compliance with the applicable standards.

(b) In taking and retaining possession ofthe licensee’s property, business and assetsunder paragraph (a) of this subsection, thedirector shall conduct an inventory appropri-ate for establishing a receivership for the li-censee and file a copy of the inventory with:

(A) The Department of Consumer andBusiness Services;

(B) The clerk of the circuit court in thecounty in which the licensee’s principal



place of business in this state, or any branchoffice in this state, is located; and

(C) Each of the licensee’s controllers, atthe last address for each controller that thedirector has in the director’s records.

(c) A circuit court that receives a copyof an inventory under paragraph (b)(B) ofthis subsection shall file the inventory, listthe filing in the court’s docket as a pendingproceeding and assign a case number to theproceeding.

(3) If a licensee refuses to permit the di-rector to take and retain possession of thelicensee’s property, business and assets undersubsection (2) of this section or if the direc-tor can show that the interests of thelicensee’s borrowers or creditors require theappointment of a receiver, the director mayapply to the circuit court in the county inwhich the licensee’s principal place of busi-ness in this state is located for an order toappoint a receiver to take and retain pos-session of, operate or liquidate the property,business and assets. The court may appointthe director as the receiver.

(4) If, 60 days after the date on which thedirector took possession of a licensee’s prop-erty, business and assets under subsection (2)of this section, the licensee has not returnedto compliance with the applicable standardsdescribed in subsection (1) of this section,the director shall liquidate the property,business and assets. If the director is not thereceiver for the licensee’s property, businessand assets, the director shall apply to thecourt with which the director filed an inven-tory under subsection (2)(b)(B) of this sectionfor an order to appoint the director or an-other person as receiver. [2017 c.636 §6]

86A.318 Required notices to director;rules. (1)(a) A licensee shall notify the Di-rector of the Department of Consumer andBusiness Services in writing at least 30 daysbefore the licensee:

(A) Relocates or closes the licensee’sprincipal place of business or a branch officein this state; or

(B) Opens a branch office that the li-censee did not list in an application underORS 86A.309.

(b) In a notice under paragraph (a) of thissubsection the licensee shall list, as applica-ble:

(A) The new address to which the li-censee relocates the licensee’s principalplace of business or any branch office; and

(B) The address for any new branch of-fice the licensee opens.

(2)(a) A licensee shall notify the directorin writing not later than 30 days after:

(A) Any appointment, resignation orother change occurs in the licensee’s con-trollers, registered agents or managers; or

(B) Any material change occurs in theinformation that the licensee submitted in anapplication under ORS 86A.309.

(b) The licensee shall provide in a noticeunder paragraph (a)(A) of this subsection thename, address and title of any new control-ler, registered agent or manager the licenseeappoints.

(3)(a) A licensee shall notify the directorin writing not later than 10 days after:

(A) Filing for bankruptcy or reorganiza-tion;

(B) A controller, registered agent ormanager of the licensee becomes subject toan indictment that is related in any mannerto the licensee’s activities;

(C) The licensee receives notice of a finalorder issued in this or another state that:

(i) Demands that the licensee cease anddesist from any act;

(ii) Suspends or revokes a license or reg-istration; or

(iii) Constitutes any other formal or in-formal regulatory action against the licensee;

(D) The licensee registers or changes anduses or operates under an assumed businessname; or

(E) Another change in the licensee’s op-erations or governance occurs in a manneror with an effect that the director determinesby rule is significant enough to warrant thelicensee notifying the director.

(b) A licensee shall specify in a noticeunder paragraph (a)(C) of this subsection thereasons for taking a regulatory actionagainst the licensee that are set forth in anyfinal order.

(4) A licensee shall notify the directorimmediately if the licensee changes regis-tered agents or if the name or address for thelicensee’s registered agent in this statechanges. In the notice the licensee shall up-date the name and address for the registeredagent. [2017 c.636 §7]

86A.321 Director’s supervisory au-thority; examinations; confidentiality. (1)The Director of the Department of Consumerand Business Services has general supervi-sory authority over:

(a) Each licensee in this state;(b) Any person that services a residential

mortgage loan in this state, if the person issubject to ORS 86A.303 to 86A.339 or if thedirector required the person to obtain a li-cense under ORS 86A.306 (3); and



(c) Any person that had a license thatthe director withdrew, cancelled, suspended,conditioned or revoked, if the person contin-ues to service a residential mortgage loan.

(2)(a) The authority described in subsec-tion (1) of this section includes the authorityto examine a licensee or a person describedin subsection (1) of this section at any time.

(b) The director may charge and collectfrom a licensee or a person the director ex-amines under this section the costs the di-rector incurs in conducting the examination.

(3) In order to carry out an examinationunder this section, the director may:

(a) Retain attorneys, accountants orother professionals and specialists as exam-iners, auditor or investigators.

(b) Enter into agreements or relation-ships with other government officials or reg-ulatory associations to share resources, useand create standardized methods, procedures,documents, databases, records, informationor evidence or to reduce the director’s regu-latory burden or improve efficiency.

(c) Participate in multistate examinationsthat the Conference of State Bank Supervi-sors or the federal Consumer Financial Pro-tection Bureau schedules and conducts. Inconducting an examination under this para-graph, the director shall follow the protocolthat the conference or bureau establishes forthe examination.

(d) Accept and rely on examination orinvestigation reports from other governmentofficials in this or another state.

(4) Books, accounts, papers, records, files,correspondence, contracts and agreements,disclosures, documentation and other infor-mation, material or evidence the director ob-tains in an examination under this section isconfidential and subject to the provisions ofORS 705.137, except that a borrower may re-quest to inspect material related to theborrower’s residential mortgage loan that thedirector by rule specifies is available for in-spection. The director shall authenticate theborrower’s identity before disclosing any ma-terial to the borrower. [2017 c.636 §8]

86A.324 Duties of mortgage loanservicer; prohibited conduct; rules. (1) Aperson that services a residential mortgageloan shall:

(a) Assess any fee that the person mayassess against a borrower within 45 days af-ter the borrower incurs the fee.

(b) Explain to a borrower in clear lan-guage and conspicuous text the reason forany fee the person assesses against the bor-rower in a written statement that the personmails to the borrower at the borrower’s last-

known address not more than 30 days afterthe person assesses the fee.

(c) Accept and credit, or treat as cred-ited, to the borrower’s account all amountsthe person receives at the address to whichthe borrower has been instructed to sendpayments on the borrower’s residential mort-gage loan. The person must credit the pay-ment, or treat the payment as credited,within one business day after receiving thepayment if the borrower has provided suffi-cient information to credit the account. Ifthe person uses the scheduled method of ac-counting and the person receives a regularlyscheduled payment before the scheduled duedate, the person shall credit the payment tothe borrower’s account not later than thescheduled due date.

(d) Mail a written notice to a borrowerat the borrower’s last-known address within10 days after receiving a payment if the per-son did not credit the payment, or treat thepayment as credited, to the borrower’s ac-count. In the notice, the licensee shallclearly explain the reason why the licenseedid not credit the payment and identify anyaction the borrower must take to properlycredit the payment or otherwise make cur-rent the borrower’s account.

(e) Collect funds into an escrow accountand make from the escrow account any pay-ments that are due for property taxes, insur-ance and all other charges related to the realproperty that secures a residential mortgageloan, if the residential mortgage loan agree-ment requires the licensee to establish anescrow account and make payments from theescrow account. The person shall performthe person’s duties under this paragraph ina manner that ensures that the borrower isnot subject to late fees, penalties or othernegative consequences of a failure to makerequired payments on time. A person com-plies with the requirements of this section ifthe person complies with the Real EstateSettlement Procedures Act, 12 U.S.C. 2609.

(f) Make reasonable efforts to respond toa borrower’s request concerning theborrower’s residential mortgage loan accountand to any dispute the borrower has with theperson or that is related to the borrower’sresidential mortgage loan account.

(g) Correct promptly any errors the per-son makes and refund promptly any fees theperson assesses against the borrower in er-ror.

(h) Provide to a borrower each year awritten statement that specifies:

(A) Whether the account is current and,if the account is not current, the reasonswhy the account is not current, including thedate on which any default occurred;



(B) The current balance due on theborrower’s residential mortgage loan, includ-ing the amount of the principal due, theamount of funds the person holds in a sus-pense account, the balance in any escrowaccount the person maintains for the bor-rower and the amount of any deficiency inthe escrow account of which the person isaware;

(C) The name, address and other contactinformation for the individual or businessentity that owns or holds the borrower’s res-idential mortgage loan, or an assignee of theindividual or business entity; and

(D) The name, address, telephone numberand any other contact information for a rep-resentative of the person from which theborrower can request information or towhich the borrower can direct complaints ordisputes. The person’s representative musthave sufficient information and authority torespond to the borrower’s requests, answerthe borrower’s questions and resolve theborrower’s disputes with the person.

(i) Include in each statement or noticethe person mails or sends to the borrowerunder this subsection text that the Directorof the Department of Consumer and BusinessServices prescribes by rule. The text mustinclude contact information for the Depart-ment of Consumer and Business Services andmust state clearly that, and how, the bor-rower may submit a complaint to the depart-ment concerning any conduct of the personthat is unlawful.

(2) A person that services a residentialmortgage loan may not, directly or indi-rectly:

(a) Employ any device, scheme or artificeto defraud another person;

(b) Knowingly make an untrue statementof a material fact or omit a material fact thatis necessary to make the person’s statementtrue in light of the circumstances in whichthe person makes the statement;

(c) Engage in an act, practice or courseof business that operates or that the personintends to operate as a fraud or deceit uponanother person; or

(d) Make or file with the department, orcause to be made or filed with the depart-ment, a statement, report or document thatthe person knows is false in any materialrespect or manner. [2017 c.636 §9]

86A.327 Complaints; director’s powerto investigate; confidentiality; exceptions.(1) If the Director of the Department ofConsumer and Business Services receives acomplaint concerning a person that servicesa residential mortgage loan, the director:

(a) Shall notify the person of the com-plaint, provide a copy of the complaint in thenotice and require the person to respond tothe complaint and to the director within 30days after the date of the notice;

(b) May investigate the complaint andrequire the person to provide books, ac-counts, papers, records, files, correspondence,contracts and agreements, disclosures, doc-umentation and other information, materialor evidence necessary for the director’s in-vestigation; and

(c) May investigate the person and theperson’s policies and practices with respectto servicing a residential mortgage loan andrequire the person to provide books, ac-counts, papers, records, files, documentationand other information, material or evidencenecessary for the director’s investigation.

(2)(a) Except as provided in paragraph (b)of this subsection, books, accounts, papers,records, files, correspondence, contracts andagreements, disclosures, documentation andother information, material or evidence thedirector receives or possesses as a conse-quence of an investigation under subsection(1) of this section are confidential unlessstate or federal law or a court order permitsor requires disclosure.

(b) The director may share any itemlisted in paragraph (a) of this subsection withany state or federal agency.

(3) The director may charge and collectfrom a person the director investigates underthis section the costs the director incurs inconducting the investigation. [2017 c.636 §10]

86A.330 Violations; civil penalties;costs of investigation. (1) If after conduct-ing an investigation, the Director of the De-partment of Consumer and Business Servicesdetermines that a person that services a res-idential mortgage loan has violated ORS86A.303 to 86A.339, a rule the directoradopted or an order the director issued underORS 86A.303 to 86A.339 or another applica-ble law, the director may order the person to:

(a) Cease and desist from any act thatconstitutes a violation of ORS 86A.303 to86A.339.

(b) Resolve any complaint the directorreceived under ORS 86A.327 and pay theborrower that submitted the complaint anydamages to which the borrower would beentitled under law.

(c) Pay a borrower any amount the per-son received from the borrower as compen-sation while engaging in any action thatconstituted a violation of ORS 86A.303 to86A.339.

(2)(a) In addition to and not in lieu of anyother penalty provided by law, the director



may impose a civil penalty under ORS183.745 in an amount of not more than $5,000for each instance in which a person violates,aids or abets another person in violating orprocures a violation of ORS 86A.303 to86A.339 or an order the director issues underORS 86A.303 to 86A.339.

(b) Each instance described in paragraph(a) of this subsection is a separate violationand each day in which a person engages ina continuous violation is a separate vio-lation. The director may not impose a pen-alty that exceeds $20,000 for a continuousviolation.

(3) The director may assess the costs ofconducting an administrative proceeding un-der this section against the person that isthe subject of the administrative proceedingor may include the costs of the administra-tive proceeding in any civil penalty the di-rector imposes under this section.

(4) A person that is subject to a civilpenalty under this section may appeal thepenalty as provided in ORS chapter 183.

(5) The director shall deposit any amountthe director receives under this section tothe General Fund of the State Treasury. [2017c.636 §11]

86A.333 Additional duties of licensee;required response to borrower’s requestfor information; account history. (1) A li-censee shall:

(a) Maintain, until a borrower repays orotherwise satisfies the borrower’s residentialmortgage loan or until the licensee sells theresidential mortgage loan, written or elec-tronic records of each written request theborrower submits for information concerninga dispute or error in relation to theborrower’s account.

(b) Respond in writing not more than 15days after receiving a written request for in-formation from a borrower, if the borrower’srequest includes the borrower’s name andaccount number, states that the account isor might be in error and describes the infor-mation the borrower seeks in sufficient de-tail to enable the licensee to comply with therequest. In the response, the licensee, at aminimum, shall:

(A) State whether the account is currentand, if the account is not current, the rea-sons why the account is not current, includ-ing the date on which any default occurred;

(B) State the current balance due on theborrower’s residential mortgage loan, includ-ing the amount of the principal due, theamount of funds the licensee holds in a sus-pense account, the balance in any escrowaccount the licensee maintains for the bor-rower and the amount of any deficiency in

the escrow account of which the licensee isaware;

(C) List the name, address, telephonenumber and other contact information forthe person that owns or holds the borrower’sresidential mortgage loan, or an assignee ofthe person; and

(D) List the name, address, telephonenumber and any other contact informationfor a representative of the licensee fromwhich the borrower can request further in-formation or to which the borrower can di-rect complaints or disputes. The licensee’srepresentative must have sufficient informa-tion and authority to respond to theborrower’s requests, answer the borrower’squestions and resolve the borrower’s disputeswith the licensee.

(c) Provide to the borrower, at theborrower’s request, one complete accounthistory each year at no charge to the bor-rower.

(2) If a borrower requests further infor-mation about the borrower’s residentialmortgage loan account from a licensee thatis more detailed than the information the li-censee provides in a statement under sub-section (1) of this section, the licensee shallrespond to the borrower not more than 15business days after receiving the borrower’srequest. The licensee may require the bor-rower to provide the borrower’s name andaccount number, state that the borrower’saccount is or might be in error and describethe information the borrower seeks in suffi-cient detail to enable the licensee to respond.The licensee shall respond to a request formore detailed information about theborrower’s account with a written statementthat:

(a) Identifies and itemizes for the two-year period before the date of the borrower’srequest, or as much of the two-year periodfor which the licensee serviced theborrower’s residential mortgage loan, all feesand charges the licensee assessed for theresidential mortgage loan, along with a fullpayment history that lists in conspicuoustext all of the credits and debits to the ac-count, all payments received from the bor-rower and the dates of the payments, allcredits to and disbursements from anyescrow or suspense account the licenseemaintains for the borrower and any otheractivity in the borrower’s residential mort-gage loan account; and

(b) Identifies any previous residentialmortgage loan servicer for the borrower’sresidential mortgage loan, if the licensee hasserviced the residential mortgage loan forless than two years.



(3) If a licensee claims that a borrowerowes any delinquent or outstanding amounton a borrower’s residential mortgage loanfrom a period before the licensee began ser-vicing the residential mortgage loan or frommore than the preceding two years, the li-censee shall provide the borrower with acomplete account history for the period be-ginning in the month during which the li-censee claims that the borrower owes thedelinquent or outstanding amount and endingon the date on which the licensee makes theclaim. [2017 c.636 §12]

86A.336 Suspension or removal oflicensee’s director or officer. (1)(a) If theDirector of the Department of Consumer andBusiness Services determines that a directoror officer of a licensee has violated ORS86A.303 to 86A.339, a rule the Director of theDepartment of Consumer and Business Ser-vices adopted or an order the director issuedunder ORS 86A.303 to 86A.339, directives orinstructions the director included in an orderor another applicable law, the Director of theDepartment of Consumer and Business Ser-vices may order the licensee’s board of di-rectors or controller to suspend or removethe licensee’s director or officer.

(b) A director or officer that the Directorof the Department of Consumer and BusinessServices has ordered a licensee’s board of di-rectors or controller to remove may not,without the Director of the Department ofConsumer and Business Services” permis-sion, act in any official capacity or conductany business for the licensee and may not inthe capacity of a director, officer, controlleror stockholder have access to the licensee’sassets, books, accounts, papers, records, files,correspondence, contracts and agreements,disclosures, documentation and other infor-mation or material the licensee uses in con-ducting business.

(2) The Director of the Department ofConsumer and Business Services shall issuean order under this section in writing andcause the order to be served personally or bycertified mail on the licensee and the direc-tor or officer that is the subject of the order.The Director of the Department of Consumerand Business Services may issue the orderwithout an administrative hearing.

(3)(a) The board of directors or controllerof a licensee that receives an order underthis section shall immediately suspend fromoffice the director or officer that is the sub-ject of the order.

(b) The director or officer that is thesubject of an order under this section mayappeal the order as a contested case underORS 183.415 to 183.500.

(4) The board of directors or the control-ler for a licensee by resolution shall removea director or officer that is the subject of anorder under this section and declare thedirector’s or officer’s office vacant if:

(a) The director or officer does not appealthe order by the date on which the period foran appeal under ORS 183.415 to 183.500 ex-pires; or

(b) The order of the Director of the De-partment of Consumer and Business Servicesis affirmed on appeal. [2017 c.636 §13]

86A.339 Additional duties of mortgageloan servicer; prohibited practices. (1) Aperson that performs a residential mortgageloan modification service for compensationor gain shall:

(a) Comply with all applicable state andfederal laws;

(b) Provide the borrower with a summaryof the material terms of any agreement underwhich the licensee provides services relatedto a modification of the borrower’s residen-tial mortgage loan; and

(c) Inform the borrower immediately inwriting if:

(A) The owner of the residential mort-gage loan needs additional information toprocess or consider the request; or

(B) The owner of the residential mort-gage loan will not consider a modification ofthe terms.

(2) A person that performs a residentialmortgage loan modification service for com-pensation or gain may not:

(a) Charge a fee before providing theservice for which the person charges the fee;

(b) Charge a fee that is not reasonableor that exceeds the usual and customary feesfor the service the person provides; or

(c) Require or encourage a borrower, asa condition of modifying the terms of a resi-dential mortgage loan or providing a servicerelated to modifying the terms of a residen-tial mortgage loan, to:

(A) Waive the borrower’s:(i) Legal defenses, available counter-

claims or other legal rights against the per-son;

(ii) Right to contest a foreclosure; or(iii) Right to receive notice before a

foreclosure proceeding begins;(B) Pay a fee, charge or assessment for

which the residential mortgage loan agree-ment, a servicing agreement or a relatedagreement does not provide; or

(C) Cease communications with the per-son, the trustee or beneficiary in a trustdeed, the owner or a servicer of the



borrower’s residential mortgage loan or anyother person with which the borrower hasthe right or duty to communicate concerningthe residential mortgage loan.

(3) A person that does not comply withsubsection (1) of this section or that engagesin conduct that is prohibited under subsec-tion (2)(a) or (b) of this section violates ORS86A.154. [2017 c.636 §14]

PENALTIES86A.990 Criminal penalties for vio-

lations of ORS 86A.095 to 86A.198. (1) Aperson that knowingly violates a provisionof ORS 86A.095 to 86A.198 or a rule adoptedby the Director of the Department of Con-sumer and Business Services under ORS86A.095 to 86A.198, except ORS 86A.145 (2),commits a Class C felony.

(2) Violation of ORS 86A.145 (2) is aClass A misdemeanor. [Formerly 59.992]

86A.992 Civil penalties for violationsof ORS 86A.095 to 86A.198. (1) In additionto all other penalties and enforcement pro-visions provided by law, any person who vio-

lates or who procures, aids or abets in theviolation of any provision of ORS 86A.095 to86A.198 or any rule or order of the Directorof the Department of Consumer and BusinessServices shall be subject to a penalty of notmore than $5,000 for every violation, whichshall be paid to the General Fund of theState Treasury.

(2) Notwithstanding subsection (1) of thissection, a person who fails to submit a reportrequired under ORS 86A.112 (3) on the datespecified is subject to a penalty of not morethan $100 per day for each day after thespecified date during which the failure con-tinues.

(3) Every violation is a separate offenseand, in the case of a continuing violation,each day’s continuance is a separate vio-lation, but the maximum penalty for anycontinuing violation shall not exceed $20,000for each offense.

(4) Civil penalties under this sectionshall be imposed as provided in ORS 183.745.[Formerly 59.996]


MORTGAGES AND LIENS


Documents

Chapter 86A - Oregon Legislature