Department of Consumer and Business Services
Division of Finance and Corporate Securities
Summary of Related Legislation - 2009 Regular Session
for previous years' legislative summaries
Certification of Sellers of Travel - SB 109. The bill eliminates a voluntary certification
for Associations of Sellers of Travel. The certification was no longer used and there were no
collection practices - SB 328. This bill allows the Attorney General to enforce debt collection
statutes and to investigate instances of unfair debt collection practices, such as making threats
or calling a borrower repeatedly or at unreasonable hours.
unions - SB 438. The bill creates a new definition for "organization" for defining
a credit union field of membership. This allows a corporation, limited liability company, or
association, and its directors, employees, or volunteers located in a geographic area to qualify
as an organization. The bill increases the maximum loan a credit union may make to member of
the credit unions' management without board of directors approval, from $25,000 to $100,000,
and limits the combined amount of loans to all such individuals to 10 percent of the credit union's
assets. The bill also makes several technical changes.
prevention - SB 628. This bill amends HB 3630 (2008 Session) regarding foreclosure notifications.
It adds a requirement that a lender or loan servicer must notify a homeowner facing foreclosure
of their right to request a loan modification, including the opportunity for a meeting (face-to-face
or by phone) and requires the lender/loan servicer to assess whether the borrower is eligible
for a loan modification.
of exempt funds - SB 731. The bill provides garnishment protections for exempt funds such
as Social Security benefits, veteran's benefits, workers' compensation benefits, and unemployment
benefits. Consumers whose benefits are directly deposited in their accounts will not be forced
to go to court to recover exempt funds since the funds won't leave the consumer's account.
in foreclosure - SB 952 (and Sec 1. HB 3004). These bills require advance notice of the foreclosure
proceedings and providing protections related to leases and security deposits. The notice will
provide information about tenants' rights and assistance resources.
insurance transactions - SB 973. The bill provides additional protections for consumers,
particularly seniors, who buy additional life insurance for the purpose of selling or transferring
the policy to investors. It requires additional disclosures, protects a consumer's personal financial
and medical information and bans certain types of life-settlement transactions.
lending practices - HB 2188. This bill prohibits lenders from making negative amortization
loans without regard to the borrower's ability to repay, and requires mortgage bankers, mortgage
brokers, and loan originators to verify the borrower's income and assets on which the mortgage
lender relies when determining ability to repay such loans. It also prohibits a negative amortization
loan from having a prepayment penalty after the first 24 months.
The bill requires that when a lender advertises or solicits in a language other
than English, and conducts a significant part of the communication about a mortgage loan in that
language, the lender must provide the borrower with three translated disclosures: the federal
"good faith estimate" required by the Real Estate Settlement Procedures Act (RESPA);
the Truth in Lending Act (TILA) disclosures; and a statement explaining that the loan documents
will only be provided in English and advising the borrower to obtain assistance with any necessary
translations. The department will be providing translations of the required disclosures in Spanish,
Russian, and Vietnamese.
of mortgage loan originators - HB 2189. This bill authorizes Oregon to participate in a national
licensing system for mortgage loan originators who work for mortgage bankers, mortgage brokers,
and consumer finance lenders. It allows the department to ensure that applicants for this license
have met education requirements, passed background and credit checks, following the laws in other
states, and are adequately covered by surety bonds. The bill also provides protections for borrowers
by allowing the department to enforce updated federal laws regarding disclosures to borrowers
and restrictions on misleading advertising.
management services - HB 2191. This bill revises the current registrations for debt consolidating
and credit repair services to include a registration requirement for all types of debt management
providers, including debt settlement companies and loan modifiers. It prohibits misleading advertising,
requires specific disclosures, limits fees that can be charged for these services, prohibits
upfront fees, and expands the authority for debtors the right to cancel contracts.
regulation - HB 2199. This bill authorizes DCBS to enter into an information sharing agreement
with the Financial Crime Enforcement Network (known as "FinCEN"), a division U.S. Treasury
division; changes calculation and timing of the APR limit for consumer finance lenders; eliminates
30-day posting requirement for consumer finance license applications; separates fee rule making
for banks, credit unions, and consumer finance; and changes bank holding company reporting.
buyers exempt from registration - HB 2307. The bill allows a person to buy debt to pursue
collection of the debt without being registered as a collection agency, as long as the debt buyer
does not have any obligation to pay any of the proceeds collected to the original debt holder.
The bill was intended to resolve outstanding uncertainties related to a 2004 bankruptcy court
decision [In re Krysl, 304 B.R. 425 (Or. 2004).
fees and notices - HB 2753. This bill authorizes a new fee of up to $3 for replacing a lost,
stolen, or destroyed pawn ticket; increases the storage fee to 3%, with a new cap of $100; and
clarifies that the $3 fee on a firearm pledge loan may only be charged on new loans. It changes
forfeiture notice requirements and defines when a pledge loan is considered a "renewal."
It allows local governments that regulate pawnbrokers to impose up to $1.00 on each pledge loan
(except for renewals) to pay for costs of administering and enforcing local government tracking
judgments after foreclosure - HB 3004. This bill prevents some lenders that foreclosure on
borrower with an 80/20 loan from collecting from the second loan when the home sells for less
than what the borrower owes. Prior to the mortgage lending crisis, many homebuyers financed 80
percent of the purchase price with a mortgage and trust deed and the remaining 20 percent with
second mortgage. However, such arrangements did not have the same protections under Oregon's
foreclosure laws as borrowers with a single mortgage loan. This protection from deficiency judgments
only applies when both loans were taken out at the time of the purchase and are both held by
the same lender.