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Banks
Administration and Enforcement of
Banking Laws Generally
This rulemaking repeals the entire division of administrative rules that govern the registration and auditing of appraisal management companies (AMCs). In response to new federal standards for AMCs contained within the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 110-203), the Oregon Legislature passed legislation to transfer authority over AMCs from DCBS to the Oregon Appraiser Certification and Licensure Board. HB 2499 takes effect on January 1, 2012. Section 6 of the bill states that DCBS’ rules remain in effect until “superseded or repealed by rules” of the ACLB. On December 21, 2011, in a special board meeting, the ACLB voted to adopt rules on a temporary basis that implement the provisions of HB 2499. The rules adopted by the ACLB become effective as of January 1, 2012. In order to ensure continuity for regulated entities, the repeal of the rules contained in the notice will take effect as of January 1, 2012.
Until 2009, Oregon law required credit service organizations – entities registered improve a consumer’s credit record or to help obtain an extension of credit for a consumer – to register with DCBS. In 2009, the Legislature enacted House Bill 2191 (2009 Or Laws ch 604; the Act). The Act consolidated statutes regulating the practices of credit service organizations and debt consolidation agencies into a single series. As part of the consolidation section 27 of the Act, a provision that was not codified in the Oregon Revised Statutes, repealed the existing provisions of law governing credit service organizations. However, several existing rules that implemented the credit service organization statutes remained in the administrative rule compilation. This rulemaking activity removes these duplicative and unneeded rules relating to credit service organizations.
During the 2009 regular session, the Legislature passed House Bill 2191 to govern the activities of debt management service providers. As part of the updated law, the Legislature placed statutory limits on the amount of fees that a registered debt management service provider could charge, including for counseling clients. During deliberations on the fee limits, the Legislature authorized a temporary, additional counseling fee that a registered debt management service provider may charge. In implementing the bill, the Department of Consumer and Business Services (DCBS) adopted rules clarifying under what circumstances a registered debt management service provider could charge the additional counseling fee. On January 1, 2012, the authority in statute for the additional counseling fee sunsets and will no longer be in force. Because the underlying authority for the rules will no longer be in force, DCBS is repealing these implementing rules. The repeal itself will be effective as of January 1, 2012.
In response to the recent housing crisis, the Congress enacted the S.A.F.E. Mortgage Licensing Act of 2008 (Pub. L. 110-289). The S.A.F.E. Act sets minimum standards for the states to adopt for the licensing of mortgage loan originators; i.e., individuals that take mortgage loan applications and negotiate mortgage loan terms. After passage of the federal law and implementation at the state level, various groups raised concerns that the S.A.F.E. Act could apply to nonprofit organizations and government entities engaged in loan origination activities. In response, the U.S. Department of Housing and Urban Development issued final regulations in July 2011 (see 76 Fed. Reg. 38464). HUD determined that the S.A.F.E. Act applies to businesses, not “bona fide” nonprofit organizations and government entities. HUD’s interpretation required states to establish criteria for the nonprofit organization to be considered bona fide, for purposes of the S.A.F.E. Act, and to establish a basic process for making the determination. The adopted rules establish the process and criteria used to determine when a nonprofit organization is bona fide and clarifies that certain government employees need not obtain mortgage loan originator licenses.
Since 2008, Oregon law on nonjudicial foreclosures has required a trustee recording a notice of default with a county clerk to deliver to a homeowner a foreclosure notice form. The foreclosure notice form is written into state statute, but contains blanks for certain contact information that the sender must provide in the foreclosure notice. This contact information includes a statewide contact telephone number, the telephone numbers and a website address for the Oregon State Bar’s Lawyer Referral Service, and a website address for a directory of legal aid programs. The Department of Consumer and Business Services (DCBS) by law is required to provide the resource telephone contact numbers and website addresses the sender is to insert in completing the notice.
In 2009, the Oregon Legislature added new information on loan modification resources to the foreclosure warning form. Uncodified provisions of the law (Section 9) repealed, among other things, the new requirement to include information loan modification resources as of January 2, 2012. This rulemaking activity implements the sunset provision by removing the loan modification information required to be displayed on the foreclosure warning form. Because the sunset provision takes effect on January 2, 2012, failure to adopt rules promptly will result in serious prejudice to users receiving a foreclosure notice form and recipients filling out and providing a foreclosure notice form.
Resources:
Statutes: This links to the general Oregon Revised Statues Web site. It provides search and index functions as well as an overview to the Oregon Revised Statutes.
Rules: This is a general link to the Div. of Finance and Corporate Securities Rules as posted on the Secretary of State's Oregon State Archives Web site. Search and index functions available.
