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
B-Engrossed
House Bill 2764
Ordered by the Senate July 4
Including House Amendments dated May 11 and Senate Amendments
dated July 4
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 negotiate with borrowers or
potential borrowers to establish loan terms and conditions.
{ + Excludes employees of certain mortgage bankers based upon
bankers' ratings. + } Establishes educational and continuing
education programs and { - registration - } examination for
loan originators. Provides exceptions. Establishes duties of
{ - supervisor of - } { + mortgage banker or broker that
employs + } loan originator. { + Prohibits loan originators from
engaging in dishonest, fraudulent or illegal practices, failing
to meet educational requirements and engaging in certain other
activities. + }
{ - 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, 59.900, 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 banker or mortgage broker that 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.
(d) 'Loan originator' does not include an employee of a
mortgage banker that is 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 and
that has an office within this state at which the mortgage banker
maintains complete and current copies of all employment records
and other records as required by the Director of the Department
of Consumer and Business Services by order or rule, in a format
acceptable to the director.
(e) 'Loan originator' does not include an insurance agent or
insurance consultant licensed under ORS 744.002.
(f) 'Loan originator' does not include a person or group of
persons exempted by rule or order of the director. + }
{ - (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.
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) The Legislative Assembly finds and declares
that:
(a) The public interest is served by identifying a loan
originator with a specific mortgage banker or mortgage broker;
and
(b) The public must be protected from the conflicts of interest
created when a loan originator is employed by more than one
mortgage lender.
(2) 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) A mortgage banker or mortgage broker must
provide to the Director of the Department of Consumer and
Business Services, and keep current, a list of loan originators
employed by the banker or broker. The banker or broker shall
notify the director within 30 days of the employment or
termination of employment of a loan originator.
(2) An applicant for issuance of a mortgage banker or mortgage
broker license under ORS 59.850 shall include with the
application evidence acceptable to the director that each person
the applicant has hired or intends to hire as a loan originator
has:
(a)(A) Successfully completed an entry level training course
approved or provided by an organization certified by the director
as described in section 9 of this 2001 Act; and
(B) Passed an examination, approved or provided by an
organization described in section 9 of this 2001 Act, on laws and
rules relating to mortgage lending in this state; or
(b) If the person has been employed as a loan originator for
two or more years in this state, completed continuing education
as required by the director pursuant to section 8 of this 2001
Act.
(3) A mortgage banker or mortgage broker that applies for
renewal of a license pursuant to ORS 59.855 shall include with
the application evidence acceptable to the director that each
person employed by the banker or broker as a loan originator has:
(a)(A) Successfully completed an entry level training course
approved or provided by an organization certified by the director
as described in section 9 of this 2001 Act; and
(B) Passed an examination, approved or provided by an
organization described in section 9 of this 2001 Act, on laws and
rules relating to mortgage lending in this state; or
(b) If the person has been employed as a loan originator for
two or more years in this state, completed continuing education
as required by the director pursuant to section 8 of this 2001
Act.
(4) An applicant under subsection (2) or (3) of this section
shall, at the time of application:
(a) Certify that, to the best of the applicant's belief, no
person the applicant employs or intends to employ as a loan
originator has engaged in conduct that would constitute a
violation of section 3 (2) or 6 of this 2001 Act; or
(b) Note any exceptions to the certification made in paragraph
(a) of this subsection. An applicant is not subject to an action
at law for making a notation under this paragraph in good faith.
(5) A mortgage banker or mortgage broker may voluntarily report
to the director regarding employees who would qualify as loan
originators if not exempted under ORS 59.840 (4). Voluntary
reporting by a banker or broker under this subsection does not
make the reported employees subject to training, examination or
continuing education requirements or other laws governing loan
originators.
(6) The director shall keep records that include notifications
filed under subsection (1) of this section and exceptions to
certifications under subsection (4) of this section. The
director shall retain the records for a period of not less than
three years. The director shall keep for 10 years a record of any
complaint against a loan originator that has been determined to
be justified pursuant to section 7 of this 2001 Act.
(7) Notwithstanding subsections (1) to (3) of this section and
ORS 59.865 (17) and sections 6 (4) and 8 of this 2001 Act, the
director, by rule, may waive any training, examination or
continuing education requirement for a loan originator for a
period not to exceed six months after the person begins or
resumes employment as a loan originator. + }
SECTION 5. { + Notwithstanding section 4 of this 2001 Act, for
a filing made pursuant to ORS 59.850 or 59.855 within two years
after the effective date of this 2001 Act, a person who is
employed as a loan originator on the effective date of this 2001
Act and who has at least three years of full-time experience as a
loan originator on the effective date of this 2001 Act is
considered to have met the applicable training, examination and
continuing education requirements of section 4 (2) and (3) of
this 2001 Act. After the filing of any application described in
this section, the loan originator is subject to the continuing
education requirements established pursuant to section 8 of this
2001 Act. The two-year period for the loan originator to comply
with continuing education requirements is measured from the
filing date of the first application described in this section
that lists the loan originator. + }
SECTION 6. { + A person employed by a mortgage banker or
mortgage broker as a loan originator may not:
(1) Engage in dishonest, fraudulent or illegal practices or
conduct in any business or profession or engage in unfair or
unethical practices or conduct in connection with the mortgage
business.
(2) Willfully or repeatedly violate or fail to comply with a
provision of ORS 59.840 to 59.965 or a rule or order of the
Director of the Department of Consumer and Business Services.
(3) Fail to account to persons interested for all money or
property received in connection with a mortgage loan.
(4) Fail to meet the training, education or continuing
education requirements for loan originators. + }
SECTION 7. { + (1) If the Director of the Department of
Consumer and Business Services receives a complaint against a
loan originator for a violation of section 3 (2) or 6 of this
2001 Act, the director may notify the loan originator and the
mortgage banker or mortgage broker employing the loan originator.
(2) The director may investigate a complaint against a loan
originator. Upon the conclusion of the investigation, the
director shall promptly notify the loan originator and the
mortgage banker or mortgage broker employing the loan originator
of the director's proposed determination regarding the complaint.
(3) Any hearing on a complaint must be conducted as provided by
rules of the director and pursuant to ORS 183.310 to 183.550.
(4) If the director determines, after opportunity for hearing,
that a complaint is justified, the director shall note the
complaint in the records kept pursuant to section 4 (6) of this
2001 Act. For a violation of section 3 (2) or 6 of this 2001 Act,
the director may impose requirements for supervision and remedial
education of the loan originator, assess civil penalties against
the loan originator as provided in ORS 59.996 or refer the matter
for criminal prosecution pursuant to ORS 59.992. + }
SECTION 8. { + The Director of the Department of Consumer and
Business Services shall, by rule, establish continuing education
requirements for persons employed by mortgage bankers or mortgage
brokers as loan originators. The requirements established by the
director may not be less than 10 hours every two years and not
more than 20 hours every two years. The continuing education must
be obtained through continuing education programs approved or
provided by an organization whose continuing education curriculum
and testing is certified by the director as described in section
9 of this 2001 Act. + }
SECTION 9. { + (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 completed
pursuant to the laws of another state that the director
determines provide protection to the public that exceeds or is
substantially similar to the protection provided by ORS 59.840 to
59.965. + }
SECTION 10. 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 if the director finds that the
applicant or licensee:
(1) Is insolvent, either in the sense that the liabilities of
the applicant or 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 - }
{ + that, + } as of the date the license was issued, or as of
the date of an order denying, suspending { + , conditioning + }
or revoking a license, 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.
(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).
(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 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 is required to hold a license.
{ + (15) Has failed 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 training
of, examination of or continuing education time earned by a loan
originator employed by the licensee.
(17) Has willfully or repeatedly employed persons as loan
originators who do not meet the training, education or continuing
education requirements for loan originators.
(18) Has failed to notify the director of the termination of a
loan originator for failure to comply with state or federal laws,
regulations or rules. + }
SECTION 11. 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 { + reported as a loan
originator under section 4 of this 2001 Act or + } licensed as a
mortgage banker or mortgage broker, any person exempted by rule
from those definitions or any person whose 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 12. ORS 59.900 is amended to read:
59.900. (1) In accordance with this section and ORS 183.310 to
183.550, the Director of the Department of Consumer and Business
Services may from time to time make, amend and rescind such rules
as are necessary to carry out the provisions of ORS 59.840 to
59.965, including { + but not limited to rules governing the
activities of loan originators, mortgage bankers and mortgage
brokers and + }rules governing the purchase or sale of mortgage
banking loans, mortgage loans or real estate paper in
coordination with applicable provisions of ORS 59.005 to 59.451,
59.660 to 59.830, 59.991 and 59.995 and rules adopted thereunder.
(2) Any financial statement required under ORS 59.840 to 59.965
shall be prepared in accordance with generally accepted
accounting principles. The director may by rule prescribe:
(a) The form and content of financial statements required under
ORS 59.840 to 59.965;
(b) The circumstances under which consolidated financial
statements shall be filed; and
(c) Whether any required financial statements shall be
certified by independent or certified public accountants.
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 or licensee with respect to orders entered
pursuant to ORS 59.865;
{ + (b) The loan originator and the licensee employing the
loan originator with respect to orders entered pursuant to
section 7 of this 2001 Act; + }or
{ - (b) - } { + (c) + } 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
notwithstanding the fact that the license 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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