71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 1916
A-Engrossed
House Bill 2764
Ordered by the House May 11
Including House Amendments dated May 11
Sponsored by Representative WITT (at the request of Oregon
Association of Mortgage Brokers)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Establishes loan originator registration for mortgage broker or
mortgage banker employees who { - communicate - }
{ + negotiate + } with borrowers or potential borrowers to
establish loan terms and conditions. Establishes { - advisory
committee to approve - } educational and continuing education
programs and registration examination for loan originators.
{ + Provides exceptions. Establishes duties of supervisor of
loan originator. + }
{ - Requires criminal background check for loan originator
and employee in responsible charge of mortgage lending activities
of mortgage broker or mortgage banker. - }
{ + Provides procedure for criminal background checks.
Modifies disciplinary authority of Director of Department of
Consumer and Business Services. + }
A BILL FOR AN ACT
Relating to mortgage lending; creating new provisions; and
amending ORS 59.840, 59.865, 59.880, 59.905 and 59.962.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 59.840 is amended to read:
59.840. As used in ORS 59.840 to 59.965:
(1) 'Director' means the Director of the Department of Consumer
and Business Services.
(2) 'Fraud,' 'deceit' and 'defraud' are not limited to
common-law deceit.
(3) 'License' means a license issued to a mortgage banker or
mortgage broker under ORS 59.840 to 59.965.
{ + (4)(a) 'Loan originator' means an individual employed by
or purporting to act as an agent or independent contractor for a
mortgage broker or mortgage banker who is required to be licensed
under ORS 59.840 to 59.965, with the expectation by the
individual of compensation or gain that is determined by the
amount borrowed or the terms and conditions agreed to by the
mortgage loan borrower, and having primary job responsibilities
that include negotiating with a borrower or potential borrower
for the purpose of establishing the terms and conditions of a
mortgage loan.
(b) 'Loan originator' includes a person employed at a location
outside this state whose primary job responsibilities include
contacting or attempting to contact a borrower or potential
borrower within this state through any medium or mode of
communication for purposes of providing a mortgage loan within
this state.
(c) 'Loan originator' does not include an individual whose
responsibilities are clerical or administrative functions,
including but not limited to gathering information, requesting
information, word processing, soliciting general interest in
mortgage loans, sending correspondence and assembling files. + }
{ - (4) - } { + (5) + } 'Mortgage banker':
(a) Means any person who for compensation or in the expectation
of compensation:
(A) Either directly or indirectly makes, negotiates or offers
to make or negotiate a mortgage banking loan or a mortgage loan;
and
(B) Services or sells a mortgage banking loan.
(b) Does not include:
(A) A financial institution, as defined in ORS 706.008.
(B) A bank holding company, as defined in ORS 706.008, holding
an institution described in subparagraph (A) of this paragraph; a
savings and loan holding company as defined in section 408 of the
National Housing Act, 12 U.S.C. 1730a (1982), holding an
association described in subparagraph (A) of this paragraph; the
subsidiaries and affiliates of the bank holding company or
savings and loan holding company; or subsidiaries and affiliates
of institutions described in subparagraph (A) of this paragraph,
provided that the appropriate statutory regulatory authority is
exercising control over or is regulating or supervising the
persons listed in this subparagraph in their mortgage banking
activities in accordance with the purposes of ORS 59.840 to
59.965.
(C) A person who makes a loan secured by an interest in real
estate with the person's own moneys, for the person's own
investment and who is not engaged in the business of making loans
secured by an interest in real estate.
(D) An attorney licensed in this state who negotiates mortgage
banking loans or mortgage loans in the ordinary course of
business, unless the business of negotiating mortgage banking
loans or mortgage loans constitutes substantially all of the
attorney's professional activity.
(E) A person who, as seller of real property, receives one or
more mortgages or deeds of trust as security for a separate money
obligation.
(F) An agency of any state or of the United States.
(G) A person who receives a mortgage or deed of trust on real
property as security for an obligation payable on an installment
or deferred payment basis and arising out of materials furnished
or services rendered in the improvement of that real property or
any lien created without the consent of the owner of the real
property.
(H) A person who funds a mortgage banking loan or mortgage loan
which has been originated and processed by a licensee or by an
exempt person and who does not maintain a place of business in
this state in connection with funding mortgage banking loans or
mortgage loans, does not directly or indirectly solicit borrowers
in this state for the purpose of making mortgage banking loans or
mortgage loans and does not participate in the negotiation of
mortgage banking loans or mortgage loans. For the purpose of this
subparagraph, 'negotiation of mortgage banking loans or mortgage
loans' does not include setting the terms under which a person
may buy or fund a mortgage banking loan or a mortgage loan
originated by a licensee or exempt person.
(I) A nonprofit federally tax exempt corporation certified by
the United States Small Business Administration and organized to
promote economic development within this state whose primary
activity consists of providing financing for business expansion.
(J) A licensee licensed under ORS chapter 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) Any other person designated by rule or order of the
director.
{ - (5) - } { + (6) + } 'Mortgage banking loan' means a
loan, extension of credit or a retail sales contract that is
funded exclusively from the mortgage banker's own resources,
which is directly or indirectly secured by a mortgage or deed of
trust or any lien interest on real estate and which is created
with the consent of the owner of the real property. For purposes
of this subsection, ' own resources' means any of the following:
(a) Cash, corporate capital, warehouse credit lines at
financial institutions defined in ORS 706.008 or other sources
that are liability items of the mortgage banker's financial
statements for which its assets are pledged;
(b) Correspondent contracts between the mortgage 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 insurance company; or
(c) The mortgage banker's affiliates' cash, corporate capital,
warehouse credit lines at financial institutions defined in ORS
706.008 or other sources that are liability items on the
affiliates' financial statements for which the affiliates' assets
are pledged. As used in this paragraph, 'affiliates' means
entities that, directly or indirectly, through one or more
intermediaries controls, are controlled by or are under common
control with the entity specified.
{ - (6) - } { + (7) + } 'Mortgage broker':
(a) Means a person who:
(A) Engages all or part of the time, for the account of others
or for the person's own account, in the business of selling real
estate paper whether as issuer, agent or principal to persons
other than persons enumerated in ORS 59.035 (4);
(B) Engages all or part of the time, for the account of others
or for the person's own account, in the business of accepting
funds from one or more persons other than persons enumerated in
ORS 59.035 (4) for investment in real estate paper; or
(C) For compensation, or in the expectation of compensation,
either directly or indirectly makes, negotiates or offers to make
or negotiate a mortgage loan.
(b) Does not include:
(A) A financial institution, as defined in ORS 706.008.
(B) A bank holding company, as defined in ORS 706.008, holding
an institution described in subparagraph (A) of this paragraph; a
savings and loan holding company as defined in section 408 of the
National Housing Act, 12 U.S.C. 1730a (1982), holding an
association described in subparagraph (A) of this paragraph; the
subsidiaries and affiliates of the bank holding company or
savings and loan holding company; or subsidiaries and affiliates
of institutions described in subparagraph (A) of this paragraph,
provided that the appropriate statutory regulatory authority is
exercising control over or is regulating or supervising the
persons listed in this subparagraph in their mortgage brokering
activities in accordance with the purposes of ORS 59.840 to
59.965.
(C) A person who purchases real property and issues an
obligation to finance the transaction to the seller incidentally
to the sale.
(D) A real estate licensee as defined in ORS 696.010 who
performs services solely incidental to the practice of
professional real estate activity as defined in ORS 696.010,
unless the real estate licensee performs the functions of a
mortgage banker or a mortgage broker as defined in this section.
(E) A person licensed under the provisions of ORS chapter 725
or a mortgage banker.
(F) A person who makes a loan secured by an interest in real
estate with the person's own moneys, for the person's own
investment and who is not engaged in the business of making loans
secured by an interest in real estate.
(G) An attorney licensed in this state who negotiates mortgage
loans in the ordinary course of business, unless the business of
negotiating mortgage loans constitutes substantially all of the
attorney's professional activity.
(H) A person who, as seller of real property, receives one or
more mortgages or deeds of trust as security for a separate money
obligation.
(I) An agency of any state or of the United States.
(J) A person who receives a mortgage or deed of trust on real
property as security for an obligation payable on an installment
or deferred payment basis and arising out of materials furnished
or services rendered in the improvement of that real property or
any lien created without the consent of the owner of the real
property.
(K) A person who funds a mortgage loan which has been
originated and processed by a licensee or by an exempt person and
who does not maintain a place of business in this state in
connection with funding mortgage loans, does not directly or
indirectly solicit borrowers in this state for the purpose of
making mortgage loans and does not participate in the negotiation
of mortgage loans. For the purpose of this subparagraph, '
negotiation of mortgage loans' does not include setting the terms
under which a person may buy or fund a mortgage loan originated
by a licensee or exempt person.
(L) A nonprofit federally tax exempt corporation certified by
the United States Small Business Administration and organized to
promote economic development within this state whose primary
activity consists of providing financing for business expansion.
(M) A person licensed under ORS 822.020 who provides services
customarily associated with the retail sales of manufactured
dwellings, including communication of generally available
information regarding mortgage loans, unless:
(i) The person receives from a purchaser a fee or commission as
a mortgage broker or mortgage banker that is disclosed in the
sales contract, purchase agreement or applicable federal
documents;
(ii) For the benefit of a potential purchaser, the person
completes a loan application form or other document that is part
of a mortgage banking loan and completes a good faith estimate
under the federal Real Estate Settlement Procedures Act (12
U.S.C. 2601 et seq.);
(iii) The person solicits or receives credit information from a
prospective purchaser for the purpose of making credit decisions;
or
(iv) The person negotiates with a potential purchaser the terms
of a mortgage loan including but not limited to points, interest
rates, length of loan or other loan conditions.
(N) Any other person designated by rule or order of the
director.
{ - (7) - } { + (8) + } 'Mortgage loan' means a loan,
extension of credit or retail sales contract, other than a
mortgage banking loan, secured by a mortgage or deed of trust or
any lien interest on real estate that is created with the consent
of the owner of the real estate.
{ - (8) - } { + (9) + } 'Residential mortgage transaction'
means a transaction in which a mortgage, deed of trust, purchase
money security interest arising under an installment sales
contract, or equivalent consensual security interest is created
or retained in property upon which four or fewer residential
dwelling units are planned or situated, including but not limited
to individual units or condominiums and cooperatives. As used in
this subsection, ' residential dwelling unit' means an
improvement designed for residential occupancy.
{ + (10) 'Supervisor' means an experienced person described
in ORS 59.850 (2) or (3) who is responsible for ensuring that the
mortgage lending practices of the mortgage broker or mortgage
banker comply with the Oregon Mortgage Lender Law. + }
SECTION 2. { + Sections 3 to 9 of this 2001 Act are added to
and made a part of ORS 59.840 to 59.965. + }
SECTION 3. { + (1)(a) An individual may not engage in the
occupation of loan originator unless the individual is:
(A) Registered with the Director of the Department of Consumer
and Business Services;
(B) Employed as a loan originator by a mortgage banker rated as
good or better under the federal rating system in effect on May
1, 2001, for seller-servicers of Federal Housing Administration,
Federal Home Loan Mortgage Corporation or Federal National
Mortgage Association loans; or
(C) Exempted by the director by rule or order.
(b) This subsection does not prohibit the voluntary
registration of an individual exempted under paragraph (a)(B) or
(C) of this subsection.
(2) An applicant for registration as a loan originator must
apply on a form approved by the director. The application must be
signed by the applicant and the supervisor of the applicant. The
supervisor shall:
(a) Certify that, to the best of the supervisor's belief, the
applicant has not engaged in conduct that would constitute a
violation of ORS 59.865; or
(b) Note any exceptions to the certification made in paragraph
(a) of this subsection.
(3) The director may conduct a criminal background check on the
applicant. The director may reject an application upon finding
that the applicant has engaged in activity demonstrating
unfitness to engage in mortgage lending activity. The director
may also reject an application for conduct described in ORS
59.865 or for good cause as determined by rule.
(4) An applicant for registration must:
(a) Successfully complete an entry level training course
approved by a provider certified by the director as described in
section 7 of this 2001 Act; and
(b) Pass an examination approved by a provider, as described in
section 7 of this 2001 Act, on laws and rules relating to
mortgage lending in this state.
(5) Subject to subsection (7) of this section, registration as
a loan originator is valid only for the duration of employment of
the loan originator by a specific mortgage broker or mortgage
banker. A registration as a loan originator lapses if the
employment of the loan originator by the specific mortgage broker
or mortgage banker terminates, but may be transferred to a new
employer under rules adopted by the director. Notwithstanding
subsection (4) of this section, the director, by rule, may
register an applicant who was previously registered as a loan
originator without the applicant retaking an examination or entry
level training course.
(6) Notwithstanding subsection (4) of this section, the
director may register an individual who passes the examination on
laws and rules relating to mortgage lending in this state prior
to completion by the individual of an approved entry level
training course. A registration granted under this subsection
lapses after six months unless the individual supplies proof
satisfactory to the director that the individual has completed an
approved entry level training course. An individual may not
obtain a registration under this subsection more than once.
(7)(a) Except as provided in paragraph (b) of this subsection,
registration as a loan originator is valid for two years unless
the registration lapses or is terminated by the director.
(b) The director may prorate fees and adjust the initial term
of a registration to coincide with the license term of the
mortgage broker or mortgage banker employing the loan originator.
(8) A loan originator may not originate loans for more than one
mortgage banker, mortgage broker or other mortgage lender or
independent mortgage agency at the same time. + }
SECTION 4. { + (1) To renew the registration of a loan
originator who is in good standing with the Director of the
Department of Consumer and Business Services, the loan originator
must:
(a) Provide evidence satisfactory to the director that during
the preceding two years the loan originator has completed at
least 20 hours of continuing education programs approved by a
provider whose continuing education curriculum and testing is
certified by the director, as described in section 7 of this 2001
Act.
(b) Pay the registration renewal fee established by rule.
(2) Notwithstanding subsection (1) of this section, the
director may, by rule, allow a person to complete fewer
continuing education hours if the person has complied with the
requirement for 20 hours of continuing education at least once
and the director determines that the person's knowledge and
experience and the number of complaints about the person warrant
requiring fewer continuing education hours. The director may not
require fewer than 10 continuing education hours every two years.
(3) The director may charge reasonable fees as determined by
rule for the issuance or renewal of a registration or for any
other services performed by the director under sections 3 to 8 of
this 2001 Act.
(4) The director shall keep records that include notifications
filed under ORS 59.865 (17) and exceptions to certifications
filed under section 3 (2) of this 2001 Act. The director shall
retain the records for a period of not less than three years. + }
SECTION 5. { + (1) The Legislative Assembly finds and declares
that:
(a) The public interest is served by identifying a loan
originator with a specific mortgage broker or mortgage banker;
(b) The public must be protected from the conflicts of interest
created when a loan originator is employed by more than one
mortgage lender; and
(c) It is in the best interest of the public that loan
originators be educated and trained in all aspects of mortgage
origination, including federal laws establishing fair lending
practices, fair housing practices, truth in lending requirements
and regulation of residential mortgages.
(2) A supervisor must provide to the Director of the Department
of Consumer and Business Services and keep current a list of loan
originators employed by the mortgage broker or mortgage banker.
The supervisor shall notify the director within 30 days of the
termination of a loan originator's employment. An incoming
supervisor and a departing supervisor shall both promptly notify
the director of the change of supervisors.
(3) A loan originator may notify the director of a change in
employment status. + }
SECTION 6. { + (1) If the Director of the Department of
Consumer and Business Services receives a complaint against a
loan originator, the director may notify the licensee and the
supervisor.
(2) The director shall investigate a complaint against a loan
originator and may conduct a hearing as described in rules of the
director adopted pursuant to ORS 183.310 to 183.550. Upon the
conclusion of the investigation, the director shall notify the
licensee and the supervisor of the director's determination
regarding a complaint no later than the third day after the
determination.
(3) If the director determines that a complaint is justified,
the director shall note the complaint in the records kept
pursuant to section 4 (4) of this 2001 Act. Notwithstanding
section 4 (4) of this 2001 Act, if the director suspends or
revokes the loan originator's certificate of registration, the
director shall retain a notation of the action for a period of
not less than 10 years. + }
SECTION 7. { + (1) The Director of the Department of Consumer
and Business Services may certify an organization as qualified to
approve or provide entry-level training or continuing education
curricula and testing for loan originators. The director, by
rule, shall establish criteria for certifying an organization
under this subsection.
(2) The director, by rule, may provide for the acceptance or
conditional acceptance of continuing education hours provided
pursuant to the laws of another state that the director
determines provide protection to the public that is substantially
similar to the protection provided by ORS 59.840 to 59.965. + }
SECTION 8. { + (1) On the request of the Director of the
Department of Consumer and Business Services and with the consent
of the person about whom information is being requested, the
Department of State Police shall furnish to the director such
information as the Department of State Police may have in its
possession from its central bureau of criminal identification
including, but not limited to, manual or computerized information
concerning any applicant, licensee or registrant regulated under
ORS 59.840 to 59.965.
(2) On the request of the director, and with the consent of the
person about whom information is being requested, the Department
of State Police shall conduct nationwide criminal records checks
through the Federal Bureau of Investigation of any applicant,
licensee or registrant regulated under ORS 59.840 to 59.965.
(3) A person making application for a license or registration
under ORS 59.840 to 59.965 shall be deemed, upon signing or with
signature upon the application filed under ORS 59.840 to 59.965,
to have given consent necessary for purposes of this section.
(4) The director shall adopt rules to restrict dissemination of
information received under this section to persons with a
demonstrated and legitimate need to know the information.
(5) The director may charge an applicant, licensee or
registrant a fee as set by rule by the director not to exceed the
director's actual cost to obtain the information provided for in
this section. + }
SECTION 9. { + Notwithstanding section 3 of this 2001 Act, a
person employed as a loan originator on the effective date of
this 2001 Act and having at least three years of full-time
experience as a loan originator may obtain registration as a loan
originator without meeting the continuing education requirements
of section 3 (4) of this 2001 Act. A person described in this
section is subject to all other requirements for the issuance or
renewal of a registration as a loan originator. The supervisor
shall certify the experience and employment of the person and
that, to the best belief of the supervisor, the person has
complied with ORS 59.840 to 59.965. A person applying for
registration pursuant to this section must apply for registration
no later than the 180th day after the effective date of this 2001
Act. If the person is both a loan originator and a supervisor,
the person may act in both capacities in submitting an
application for a loan originator registration under this
section. + }
SECTION 10. { + Section 9 of this 2001 Act is repealed on
January 2, 2004. + }
SECTION 11. ORS 59.865 is amended to read:
59.865. Except as provided in ORS 59.870, the Director of the
Department of Consumer and Business Services may by order deny,
suspend { + , condition + } or revoke a license of a person as a
mortgage banker or mortgage broker { + or a certificate of
registration of a loan originator + } if the director finds that
the applicant { + , + } { - or - } licensee { + or
registrant + }:
(1) Is insolvent, either in the sense that the liabilities of
the applicant { - or - } { + for a license or the + }
licensee exceed the assets of the applicant or licensee or that
the applicant or licensee cannot meet the obligations of the
applicant or licensee as { - they - } { + the obligations + }
mature, or is in such financial condition that the applicant or
licensee cannot continue in business with safety to the customers
of the applicant or licensee.
(2) Has engaged in dishonest, fraudulent or illegal practices
or conduct in any business or profession or unfair or unethical
practices or conduct in connection with the mortgage business.
(3) Has willfully or repeatedly violated or failed to comply
with any provision of ORS 59.840 to 59.965 or any rule or order
of the director.
(4) Has been convicted of a misdemeanor, an essential element
of which is fraud, or of a felony.
(5) Has filed an application for a license { - which - }
{ + or registration that, + } as of the date the license
{ + or registration + } was issued, or as of the date of an
order denying, suspending { + , conditioning + } or revoking a
license { + or registration + }, was incomplete in any material
respect or contained any statement that was, in light of the
circumstances under which it was made, false or misleading with
respect to any material fact.
(6) Has failed to account to persons interested for all money
or property received { + in connection with a mortgage loan + }.
(7) Is permanently or temporarily enjoined by a court of
competent jurisdiction from engaging in or continuing any conduct
or practice involving any aspect of the mortgage business.
(8) Is the subject of an order of the director denying,
suspending { + , conditioning + } or revoking a license as a
mortgage banker or mortgage broker { + or a certificate of
registration as a loan originator + }.
(9) Is the subject of a United States Postal Service fraud
order that is currently effective and was issued within the last
five years.
(10) Does not have the experience required by ORS 59.850 (2) or
(3) { + for a mortgage banker or mortgage broker or the
continuing education required by section 4 of this 2001 Act for a
loan originator + }.
(11) Has failed to comply with the requirements of ORS 59.860
to make and keep records prescribed by rule or order of the
director, to produce such records required by the director or to
file any financial reports or other information the director by
rule or order may require.
(12) Is the subject of an order of the director denying,
suspending { + , conditioning + } or revoking a license { + or
registration + } under the provisions of any other law
administered by the director.
(13) Is the subject of a cease and desist order entered after
notice and opportunity for hearing and issued by the director
within the last five years.
(14) Has demonstrated negligence or incompetence in performing
any act for which the licensee { + or registrant + } is required
to hold a license { + or registration + }.
{ + (15) Has failed, in the capacity of a licensee, to
supervise diligently and control the mortgage-related activities
of a loan originator employed by the licensee.
(16) Has knowingly misrepresented to the director the
continuing education time earned by a licensee or registrant.
(17) Has failed, in the capacity of a licensee, to notify the
director of the termination of a loan originator for failure to
comply with state or federal laws, regulations or rules. + }
SECTION 12. ORS 59.880 is amended to read:
59.880. The Director of the Department of Consumer and Business
Services shall have general supervision and control over all
{ + loan originators, + } mortgage bankers and mortgage brokers
residing or doing business in this state and engaged in any
activity subject to the provisions of ORS 59.840 to 59.965. All
such persons and their records and everything connected with
their activities shall be subject to examination by the director
at any time. The provisions of this section and of any other
section of ORS 59.840 to 59.965 relating to examinations shall
extend to any person who should have been { + registered as a
loan originator or + } licensed as a mortgage banker or mortgage
broker, any person exempted by rule from those definitions or any
person whose { + registration or + } license has expired or has
been withdrawn, canceled, suspended { + , conditioned + } or
revoked. The director may collect from each such person the
actual expenses incurred in that examination.
SECTION 13. ORS 59.905 is amended to read:
59.905. (1) Except as provided in ORS 183.090, upon the entry
of an order under ORS 59.840 to 59.965, the Director of the
Department of Consumer and Business Services shall promptly give
appropriate notice of the order as provided in this subsection.
The notice shall state that a hearing will be held on the order
if a written demand for hearing is filed with the director within
20 days after the date of service of the order. The notice shall
be given to:
(a) The applicant { + , registrant, supervisor + }or licensee
with respect to orders entered pursuant to ORS 59.865; or
(b) All interested persons with respect to orders entered
pursuant to any other provision of ORS 59.840 to 59.965.
(2) If timely demand for a hearing is filed by a person
entitled to notice of the order, the director shall hold a
hearing on the order as provided by ORS 183.310 to 183.550. In
the absence of a timely demand for a hearing, { - no - } { +
a + } person { - shall be - } { + is not + } entitled to
judicial review of the order.
(3) After the hearing, the director shall enter a final order
vacating, modifying or affirming the order.
(4) The director may enter a final order revoking a license
{ + or registration + } notwithstanding the fact that the
license { + or registration + } has expired, if the initial
order of revocation was issued prior to expiration of the license
or registration.
SECTION 14. ORS 59.962 is amended to read:
59.962. (1) With the permission of the lender, note owner, note
holder or other holder of an interest in a note, a mortgage
banker or mortgage broker may service or collect any mortgage
banking loan or mortgage loan in its own name or the name of the
lender, note owner, note holder or other holder of an interest in
the note.
(2) Except as provided in ORS 59.840 to 59.965, nothing in
subsection (1) of this section is intended to grant the Director
of the Department of Consumer and Business Services the authority
to regulate the servicing or collection of any mortgage banking
loan or mortgage loan by a mortgage banker or mortgage broker.
(3) As used in this section:
(a) 'Mortgage banker' has the meaning given that term in ORS
59.840 { - (4)(a) - } { + (5)(a) + } but also includes those
persons exempted from the definition of mortgage banker in ORS
59.840
{ - (4)(b) - } { + (5)(b) + }.
(b) 'Mortgage banking loan' has the meaning given that term in
ORS 59.840.
(c) 'Mortgage broker' has the meaning given that term in ORS
59.840.
(d) 'Mortgage loan' has the meaning given that term in ORS
59.840.
(e) 'Service or collect any mortgage banking loan or mortgage
loan' includes but is not limited to:
(A) Holding documents or written instruments and receiving and
disbursing payments according to the instructions of the parties
to the documents or written instruments;
(B) Collecting or remitting, or having the right or obligation
to collect or remit, for any lender, note owner, note holder or
other holder of an interest in a note or for a mortgage banker's
or mortgage broker's own account, payments, interest, principal
and trust items, including but not limited to hazard insurance
and taxes, on a mortgage banking loan or mortgage loan in
accordance with the terms of the loan, and includes loan payment
follow-up, delinquency loan follow-up, loan analysis and any
notifications to the borrower that are necessary to enable the
borrower to keep the loan current and in good standing; and
(C) Bringing and maintaining any suit or action to collect any
amounts owed on a mortgage banking loan or mortgage loan,
including but not limited to the exercise of any contractual,
statutory or common law remedies such as injunction, specific
performance, judicial or nonjudicial foreclosure or receivership.
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