75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
 
HA to A-Eng. HB 2189 (A to RC)
 
LC 359/HB 2189-A13
 
                       HOUSE AMENDMENTS TO
                   A-ENGROSSED HOUSE BILL 2189
           (INCLUDING AMENDMENTS TO RESOLVE CONFLICTS)
 
              By JOINT COMMITTEE ON WAYS AND MEANS
 
                             June 22
 
  On page 1 of the printed A-engrossed bill, line 4, after '
446.741,' insert '697.612,' and after '725.230' insert ' and
sections 2 and 3, chapter ___, Oregon Laws 2009 (Enrolled House
Bill 2188)'.
  On page 4, after line 5, insert:
  ' (4)(a) Except as provided in paragraph (b) of this
subsection, an employee of a dealer, as defined in ORS 446.003,
is not subject to the provisions of sections 1 to 13 of this 2009
Act if the employee:
  ' (A) Performs only administrative or clerical tasks; and
  ' (B) Receives in connection with a sale or other transaction
related to a manufactured structure, as defined in ORS 446.003,
only a salary or commission that is customary among dealers and
employees of dealers.
  ' (b) An employee of a dealer is subject to the provisions of
sections 1 to 13 of this 2009 Act if the United States Department
of Housing and Urban Development in a guideline, rule, regulation
or interpretive letter determines that the exemption granted in
paragraph (a) of this subsection is inconsistent with
requirements set forth in 12 U.S.C. 5101 et seq.'.
  On page 25, line 45, delete 'Violation of' and insert 'A person
that knowingly violates'.
  On page 26, line 2, delete ', is' and insert ', commits'.
  On page 32, after line 30, insert:
  '  { +  SECTION 38. + } If House Bill 2188 becomes law, section
2, chapter ___, Oregon Laws 2009 (Enrolled House Bill 2188), is
amended to read:
  '  { +  Sec. 2. + } (1)(a) As used in this section, 'negative
amortization loan' means a mortgage loan or mortgage banking loan
that is structured in such a way that a borrower in any period
may make a scheduled loan payment that is insufficient to pay
accruing interest.
  ' (b) 'Negative amortization loan' does not include:
  ' (A) A loan commonly known as a bridge loan, the terms of
which specify that:
  ' (i) The maturity period for the loan is less than 18 months;
and
  ' (ii) The borrower may pay only interest until a time when the
entire unpaid loan balance is due and payable.
  ' (B) A mortgage loan in which:
  ' (i) The principal amount is not more than $50,000; and
  ' (ii) The combined loan to value ratio between all mortgage
loans that are secured by the same property and the value of the
securing property is not more than 50 percent.
  ' (C) A loan commonly known as a reverse mortgage, the terms of
which specify that the loan:
  ' (i) Is a non-recourse loan secured by real property;
 
 
  ' (ii) Provides cash advances to the borrower based on the
equity or value in the borrower's owner-occupied principal
residence;
  ' (iii) Requires no payment of principal or interest until the
entire loan becomes due and payable; and
  ' (iv) Is made by a mortgage lender licensed in this state or
licensed under the laws of the United States.
  ' (D) A loan commonly known as a home equity line of credit, in
which:
  ' (i) The amounts borrowed and the interest and other charges
are debited to an account that is secured by an interest in real
estate;
  ' (ii) Interest on the account is computed periodically;
  ' (iii) The borrower has the right to pay in full at any time
without penalty or to pay in installments that are specified in
the loan agreement; and
  ' (iv) The lender agrees to permit a borrower from time to time
to borrow money, with the maximum limit on the amount of each
borrowing established by the loan agreement.
  ' (2) A mortgage banker, mortgage broker or  { + mortgage + }
loan originator may not negotiate or make, or offer to negotiate
or make, a negative amortization loan without regard to the
borrower's repayment ability at the time the loan is made,
including the borrower's current and reasonably expected income,
employment, assets other than the collateral, current obligations
and mortgage related obligations. The mortgage banker, mortgage
broker or  { + mortgage + } loan originator shall verify the
income and assets of the borrower that will be relied on to
evaluate the borrower's repayment ability. The borrower's
repayment ability must be evaluated and the borrower's income and
assets must be verified in a manner that is consistent with the
requirements of 12 C.F.R. 226.34, as promulgated on the effective
date of  { + chapter ___, Oregon Laws 2009 (Enrolled House Bill
2188) + }   { - this 2009 Act - } .
  ' (3) A negative amortization loan may not contain a prepayment
penalty beyond the first 24 months after the date on which the
loan is made.
  ' (4) A creditor may not collect a prepayment penalty on an
existing negative amortization loan in return for or as a
consequence of refinancing or providing funds to refinance the
negative amortization loan.
  '  { +  SECTION 39. + } If House Bill 2188 becomes law, section
3, chapter ___, Oregon Laws 2009 (Enrolled House Bill 2188), is
amended to read:
  '  { +  Sec. 3. + } (1) A mortgage banker, a mortgage broker or
a  { +  mortgage + } loan originator shall provide in writing the
materials identified in subsection (2) of this section to a
borrower if the mortgage banker, mortgage broker or
 { + mortgage + } loan originator:
  ' (a) Communicates or causes to be communicated an
advertisement in a language other than English or otherwise
solicits business in a language other than English; and
  ' (b) Offers to negotiate or make, or negotiates or makes, a
residential mortgage transaction in the course of which a
substantial portion of the communication with the borrower that
is related to the transaction takes place in the language other
than English that was used to communicate the advertisement or
make the solicitation.
  ' (2) A mortgage banker, mortgage broker or  { + mortgage + }
loan originator that takes an action described in subsection (1)
of this section shall provide the following materials to the
borrower in English and in the language other than English in
which a substantial portion of the communication that is related
to the transaction takes place:
  ' (a) A good faith estimate required under the Real Estate
Settlement Procedures Act, 12 U.S.C. 2601 et seq., and under
Regulation X, 24 C.F.R. part 3500, as enacted or promulgated on
January 1, 2010;
  ' (b) The disclosures related to the transaction that are
required under the Truth in Lending Act, 15 U.S.C. 1601 et seq.,
and under Regulation Z, 12 C.F.R. part 226, as enacted or
promulgated on the effective date of  { + chapter ___, Oregon
Laws 2009 (Enrolled House Bill 2188) + }   { - this 2009 Act - }
; and
  ' (c) A statement notifying the borrower that loan documents
associated with the transaction will be in English and advising
the borrower to obtain appropriate assistance with any necessary
translations.
  ' (3) The Director of the Department of Consumer and Business
Services shall develop and distribute translated versions of the
materials identified in subsection (2) of this section in the
three languages other than English that are most commonly spoken
in this state.
  '  { +  SECTION 40. + }  { + The amendments to sections 2 and
3, chapter ___, Oregon Laws 2009 (Enrolled House Bill 2188), by
sections 38 and 39 of this 2009 Act become operative on January
1, 2010. + }
  '  { +  SECTION 41. + } If House Bill 2191 becomes law, ORS
697.612, as amended by section 2, chapter ___, Oregon Laws 2009
(Enrolled House Bill 2191), is amended to read:
  ' 697.612. (1) A person that has not registered with the
Director of the Department of Consumer and Business Services
under ORS 697.632 may not engage in business in this state in the
course of which the person:
  ' (a) Performs a debt management service; or
  ' (b) Receives money or other valuable consideration or expects
to receive money or other valuable consideration for:
  ' (A) Soliciting or receiving an application from a consumer
for a debt management service;
  ' (B) Forwarding or providing a completed application for a
debt management service to a debt management service provider;
  ' (C) Referring a consumer to another debt management service
provider, if the person is a debt management service provider;
  ' (D) Providing a consumer's name, address or other information
that identifies the consumer to a debt management service
provider for the purpose of arranging the provision of a debt
management service; or
  ' (E) Providing advice, assistance, instruction or
instructional material concerning a debt management service to a
consumer.
  ' (2) A debt management service provider registered under ORS
697.632 may negotiate on a consumer's behalf for a reasonable
alternative repayment schedule or to reduce a claim described in
11 U.S.C. 502 if the debt management service provider is a
nonprofit budget and credit counseling agency approved in
accordance with 11 U.S.C. 111.
  ' (3) Subsection (1) of this section does not apply to:
  ' (a) An employee of a debt management service provider, if the
debt management service provider is registered under ORS 697.632.
  ' (b) An attorney licensed or authorized to practice law in
this state, if the attorney provides a debt management service
only incidentally in the practice of law.
  ' (c) A financial institution or a trust company, both as
defined in ORS 706.008.
  ' (d) A consumer finance company licensed under ORS chapter
725.
  ' (e) An escrow agent licensed under ORS 696.505 to 696.590.
  ' (f) A mortgage banker or mortgage broker licensed under ORS
59.840 to 59.980 or a  { + mortgage + } loan originator, as
defined in ORS 59.840.
  ' (g) A broker-dealer registered with the United States
Securities and Exchange Commission or the United States Commodity
Futures Trading Commission, if the broker-dealer is subject to
and acts in accordance with regulations promulgated by either
commission.
  ' (h) A consumer reporting agency, as defined in 15 U.S.C.
1681a(f).
  ' (i) A public body, as defined in ORS 174.109.
  ' (j) A person that is obeying or acting in accordance with a
court order.
  ' (k) An accredited educational institution or program that
offers or performs a debt management service without receiving
money or other valuable consideration, if the institution or
program performs the debt management service as an incidental
part of a class or a duty the institution or program provides
regularly.
  ' (L) A nonprofit budget and credit counseling agency approved
in accordance with 11 U.S.C. 111 that:
  ' (i) Provides only an individual or group briefing, as
described in 11 U.S.C. 109(h), or an instructional course
concerning personal financial management, as described in 11
U.S.C. 111; and
  ' (ii) Does not receive or offer to receive funds from a
consumer for the purpose of distributing the funds among the
consumer's creditors in full or partial payment of the consumer's
debts.
  ' (m) A nonprofit entity that provides advice, assistance,
instruction or instructional materials to a consumer in return
for a fee that is reasonably calculated to pay the cost of making
the advice, assistance, instruction or instructional materials
available.
  ' (n) An organization or a counselor approved by the United
States Department of Housing and Urban Development under 12
U.S.C.  1701x.
  '  { +  SECTION 42. + }  { + The amendments to ORS 697.612 by
section 41 of this 2009 Act become operative on January 1,
2010. + } ' .
  In line 31, delete '38' and insert '43'.
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