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This permanent rule establishes the process by which licensees and prospective applicants must submit applications, renewals, and other administrative actions through the Nationwide Mortgage Licensing System and Registry (NMLS). Prior to 2014, consumer finance lending licensees and prospective applicants submitted licensing materials via paper documentation or by the state's own online system. This permanent rule modifies the licensing and application procedures and makes mandatory the transition of all licensing activity for consumer finance lenders to NMLS. A permanent rule is necessary to avoid missing key mandatory deadlines with NMLS that would allow for implementation and result in greater costs to the state and industry.
The proposed rule reduces the hourly examination fee payable by money transmitters to the hourly fee set in statute. In 2008, the Division of Finance and Corporate Securities updated hourly examination fees to be consistent throughout its programs. During the process, the hourly fee for money transmitter examinations was raised. The authorizing statute sets the hourly fee for an examiner at $60. The division performs very few examinations of money transmitters because most are out-of-state businesses.
Recent rules - permanent rules not yet posted to Secretary of State Web site:
The statewide toll-free telephone contact number currently included in foreclosure notices for handling consumer queries and for consumers to receive mortgage foreclosure information has changed. The new toll free number is 1-855-480-1950.
Currently, all securities salespersons, regardless of whether they are employed by a broker-dealer or represent an issuer or owner of securities must submit a complete, multi-state securities application form as part of their salesperson licensing application. The application requires more information than is likely necessary to license salespersons in Oregon who only represent an issuer or owner of securities. This proposed rulemaking activity would grant the department the flexibility to offer those salespersons representing an issuer or owner an option to use a state-specific, streamlined application form.
In 2013, the Legislature enacted House Bill 3482 which in part exempted individuals licensed as manufactured structure dealers from having to obtain a mortgage loan originator license. This proposed rulemaking activity addresses three issues with the bill that needed further clarification. First, the proposed rules would limit the exemption to one limited manufactured structure dealer licensee per park, but allow sales by full manufactured structure dealer licensees not affiliated with the limited manufactured structure dealer. Second, the proposed rules would clarify that a manufactured structure dealer may engage the services of a licensed or registered mortgage loan originator to offer or negotiate loans on the licensee's behalf once statutory caps were met. Finally, the rules would apply the statutory caps on the number of loans a licensee may hold to loans made on or after the operative date of Oregon's implementation of the federal S.A.F.E. Act, which was July 31, 2010.
Like any corporation, the board of directors appointed to direct and control the overall affairs of a banking institution (i.e., certain state-chartered banks) meets according to the terms of the institution's bylaws or articles of incorporation. However, unlike other corporations, the Oregon Bank Act (ORS chapters 706 to 716) specifies the default frequency of board meetings. Prior to 2013, boards of directors of banking institutions met at least once a month. Banking institutions could obtain approval from the Director of the Department of Consumer and Business Services to meet less frequently than once a month. In 2013, the Legislature adopted changes to the Oregon Bank Act through the passage of HB 2070. Among the changes in the bill, the Oregon Bank Act now requires the Director of the Department of Consumer and Business Services to set the frequency of board meetings by rule. This proposed rulemaking activity sets the minimum number of regularly-scheduled meetings at four times per year, with flexibility that allows the Director to require additional meetings if needed to meet the unique situation of a particular banking institution.
This permanent rule implements changes to the escrow exemption for debt management service providers established by 2013 House Bill 3489. The permanent rulemaking clarifies that the exemption does not apply if an escrow agent assists an unregistered debt management service provider that is not exempt from registration in performing a debt management service, or provides escrow services to a consumer in accordance with a debt management services plan executed by an unregistered debt management services provider that is not exempt from registration. This permanent rulemaking clarifies that the total of fees for services provided by escrow agents and debt management service providers may not exceed the fee limitations set forth in the debt management statutes.
In 2008, Congress passed the Secure and Fair Enforcement for Mortgage Licensing Act. The Act, more commonly known as the S.A.F.E. Act, required states to license individuals that take applications and negotiate terms for residential mortgage loans as mortgage loan originators. To implement this new federal licensing requirement, Congress encouraged the states to establish a Nationwide Mortgage Licensing System (NMLS) to provide a comprehensive licensing database. Because of the close supervision of mortgage loan originators by their employers, most states also license mortgage lending business through NMLS. These permanent rules are adopted to ensure that Oregon business licensees may continue to efficiently do business through the NMLS system. Furthermore, because the regulation of mortgage lending businesses has evolved since passage of the S.A.F.E. Act, these rules make minor changes to definitions, application submissions, bonding calculations, reporting requirements, and testing.
In 2014, the Legislature enacted Senate Bill 1520. This act exempts renewable energy cooperative corporations from registering membership shares or capital stock as securities. The Legislature conditioned this exemption on any rules adopted by the Director of the Department of Consumer and Business Services. This proposed rulemaking places certain substantive restrictions on a renewable energy cooperative corporations relying on this exemption, such as restrictions on the amount of raised money from non-accredited investors. The rulemaking activity also requires two disclosures be given to prospective members: a general disclosure that discusses the workings of the renewable energy cooperative corporation and risks associated with developing renewable energy generations facilities, and a specific disclosure discussing the risks endemic to a specific project.
This temporary rule establishes the process by which licensees and prospective applicants must submit applications, renewals, and other administrative actions through the Nationwide Mortgage Licensing System and Registry (NMLS). At present, consumer finance lending licensees and prospective applicants submit licensing materials via paper documentation or by the state's own online system. This rule modifies the present licensing and application procedures and makes mandatory the transition of all licensing activity for consumer finance lenders to NMLS. A temporary rule is necessary to avoid missing key mandatory deadlines with NMLS that would allow for implementation and result in greater costs to the state and industry.
This temporary rule clarifies that pawnbrokers shall offer a grace period on all first time pledge loans, specifically those in the amount of $500 or less. At present, pawnbrokers provide a grace period by statute for first time pledge loans in excess of $500. Industry has a long-standing practice of offering a 30-day grace period on all pledge loans, regardless of the amount. An ambiguity exists as to whether the 30-day grace period exists on first time pledge loans in the amount of $500 or below. As consumers may be harmed by the ambiguity, and industry does not have clear guidance as to how to apply grace periods, the division has opted to adopt this rule. A temporary rule is necessary because there is an immediate harm to consumers if the ambiguity is used to omit a grace period on loans of $500 or less.
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.