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Banks
Administration and Enforcement of Banking Laws Generally
In 2008, Congress passed the Housing and Economic Recovery Act (HERA). Title V of HERA (the S.A.F.E. Act) created minimum standards for states to license mortgage loan originators. To implement these, the Oregon legislature passed House Bill 2189 directing the department to coordinate licensing of mortgage loan originators with the Nationwide Mortgage Licensing System and Registry (NMLSR), to comply with the minimum requirements of the federal S.A.F.E. Act. These rules implement the statutory requirements for a new license for mortgage loan originators and make conforming requirements to the rules governing mortgage bankers, mortgage brokers, and consumer finance licensees who employ mortgage loan originators. The proposed rules revise the bonding requirements for mortgage bankers and brokers, update advertising requirements, and change the retention of documents in loan files to meet updated licensing requirements of mortgage loan originators and data needed by the NMLSR. The proposed rules related to consumer finance lenders update the advertising requirements, create a new bonding requirement, and create a new state background check requirement. The proposed rules also change the retention of documents in loan files to meet the updated licensing requirements of mortgage loan originators and data needed by the NMLSR for consumer finance lenders. The new rules also regulate the use of professional designations by mortgage bankers, mortgage brokers, and loan originators.
Recent rules - permanent rules not yet posted to Secretary of State Web site:
In 2009, the legislature enacted House Bill 2191. HB 2191 created a comprehensive registration system for persons engaged in debt management services. The bill requires that persons engaging in debt management activities register with the Department of Consumer and Business Services as debt management service providers. These permanent rules implement the registration requirement from the bill. These permanent rules also clarify the scope of the exemptions from registration and implement an additional counseling fee authorized by the bill until January 2012.
Effective January 1, 2010
Note: these rules were revised on 1/6/2010 to correct a technical error.
The legislature recently adopted Senate Bill 628 to address residential foreclosures and loan modification. Part of the bill amended the foreclosure notice form created by the 2008 Legislature in House Bill 3630. The amended form describes how to request a loan modification and provides information on resources available to the borrower. The Department of Consumer and Business Services is authorized to adopt rules prescribing the changes to this form. These rules add the loan modification provisions and directs users of the foreclosure notice to fill in specific information on the loan modification section of the foreclosure notice. The department adopted temporary rules in August 2009 to ensure that the information amended for the amended form was in place before the bill became effective. These rules simply re-adopt the temporary rules on a permanent basis.
ORS 59.850 requires the Director of the Department of Consumer and Business Services to set by rule fees for licensing mortgage banker and mortgage brokers. The statute requires the director to set the fees in an amount that both reflects the costs of administering the Oregon Mortgage Lending Law, ORS 59.840 to 59.980 and establishes a reasonable emergency fund. The department’s policy seeks to maintain a fund balance equivalent to two and four quarters of coverage. These permanent rules raise fees for initially issuing and renewing mortgage banker or mortgage broker licenses to administer the program and to maintain a one to two quarter reserve. Additionally, these permanent rules establish the fee for issuing and renewing the license of a mortgage loan originator.
In November, the division proposed administrative rules to implement 2009 House Bill 2189, itself Oregon’s implementation of the federal S.A.F.E. Act (Pub. L. 110-289). This rulemaking activity adopts rules for a new license for mortgage loan originators. This rulemaking activity also makes conforming amendments to the rules governing mortgage bankers and mortgage brokers. These rules require mortgage loan originators to apply for and renew licenses with the NMLSR. These rules also adjust the criminal background check for mortgage bankers and brokers and update supervision requirements. These rules also make many technical changes to differentiate the new mortgage loan originator license from the mortgage banker and mortgage broker licenses.
These rules set forth standards to protect consumers from misleading and fraudulent marketing practices with respect to the use of special designations and certifications in connection with the offer, sale or purchase of securities, or the provision of advice as to the value or advisability of investing in, purchasing or selling securities, directly or indirectly, or through a publication or writing, or by issuing or disseminating analyses or reports relating to securities.
The legislature passed Senate Bill 109 in the 2009 legislative session. Senate Bill 109 repealed a voluntary certification program for trade associations representing travel agencies, effective January 1, 2010. As a result of legislative action, the administrtive rules that implement the association of sellers of travel program are no longer necessary. This rulemaking activity will repeal these unnecessary provisions effective on January 1, 2010, to conincide with the statute.
These rules are no longer needed because permanent rules 441-910-0000 through 441-910-0200 filed and effective January 1, 2010 supersede these temporary rules. Although the temporary rules will expire on February 9, 2010, we are suspending them prior to their expiration date to eliminate redundancy between the two rules and prevent confusion.
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.
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