75th OREGON LEGISLATIVE ASSEMBLY--2009 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 359
House Bill 2189
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for Department of Consumer and Business Services)
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 as
introduced.
Authorizes Director of Department of Consumer and Business
Services to license mortgage bankers and mortgage brokers in
cooperation with Nationwide Mortgage Licensing System and
Registry. Requires director to adopt rules necessary to conform
with requirements of federal Housing and Economic Recovery Act of
2008.
Requires person that is licensed as mortgage banker or mortgage
broker, person that applies for mortgage banker's or mortgage
broker's license or other person that employs loan originator to
maintain bond or letter of credit. Requires person to keep
certain records and to maintain records for loan originators
through Nationwide Mortgage Licensing System and Registry.
Sets educational and testing requirements for obtaining or
renewing loan originator's license and requires submission of
certain information for criminal records check.
Requires loan originator to be licensed under Nationwide
Mortgage Licensing System and Registry and obtain unique
identifier.
Specifies grounds on which director may deny, suspend,
condition or revoke mortgage banker's, mortgage broker's or loan
originator's license.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to regulation of mortgage professionals; creating new
provisions; amending ORS 59.840, 59.845, 59.850, 59.860,
59.865, 59.875, 59.880, 59.900, 59.905, 59.945, 59.962, 59.969,
59.970, 59.971, 59.972, 59.973, 59.975, 59.992 and 725.230;
repealing ORS 59.977 and section 7, chapter 526, Oregon Laws
2003; and declaring an emergency.
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 59.980:
{ - (1) 'Director' means the Director of the Department of
Consumer and Business Services. - }
{ - (2) - } { + (1) + } '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 59.980. - }
{ - (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 59.980, 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
producer licensed under ORS 744.052 to 744.089 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. - }
{ + (2)(a) 'Loan originator' means an individual who, for
compensation or gain:
(A) Takes a residential mortgage loan application; or
(B) Offers or negotiates terms for a residential mortgage loan.
(b) 'Loan originator' does not include:
(A) An employee of a financial institution as defined in ORS
706.008 or a subsidiary that is owned and controlled by a
financial institution.
(B) An individual who only underwrites or processes loans and
does not advertise, communicate or otherwise represent to the
public in any manner that the individual can or will perform any
activities as a loan originator.
(C) An individual who works on behalf of a loan originator only
to:
(i) Receive, collect, distribute or analyze information
commonly used to process or underwrite a residential mortgage
loan; or
(ii) Obtain information necessary to process or underwrite a
residential mortgage loan from a consumer by means of
communication that does not include offering, negotiating or
providing advice concerning loan rates or terms.
(D) A real estate broker, as defined in ORS 696.010, unless the
real estate broker is compensated, directly by or through an
agent of, a mortgage banker, a mortgage broker, a loan originator
or a person that funds a residential mortgage loan.
(E) A person that extends credit only in connection with a
timeshare plan, as defined in 11 U.S.C. 101(53D). + }
{ - (5) - } { + (3) + } 'Mortgage banker':
(a) Means any person { - who - } { + that + } 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 financial holding company or 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 financial holding company, 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 59.980. - }
(C) A person { - who - } { + that + } makes a loan secured
by an interest in real estate with the person's own moneys
{ - , - } for the person's own investment and { - who - }
{ + that + } 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 - } { + that + }, 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 - } { + that + } 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 - } { + that + } funds a mortgage
banking loan or mortgage loan { - which - } { + that a
licensee or exempt person has originated and processed and
that + } { - 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 { + that a licensee or exempt person + }
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 { + of the Department of Consumer and Business
Services + }.
{ - (6) - } { + (4) + } '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 - } { + that + } is directly or
indirectly secured by a mortgage or deed of trust or any lien
interest on real estate and { - which - } { + that + } 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 - } { + the mortgage
banker's + } 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 - } { + control + }, are
controlled by or are under common control with the entity
specified.
{ - (7) - } { + (5) + } { + (a) + } 'Mortgage broker'
{ - : - }
{ - (a) - } means a person { - who - } { + that + }:
(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) { + ' Mortgage broker' + } does not include:
(A) A financial institution, as defined in ORS 706.008.
(B) A financial holding company or 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 financial holding company, 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 59.980. - }
(C) A person { - who - } { + that + } 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 - } { + that + } makes a loan secured
by an interest in real estate with the person's own moneys
{ - , - } for the person's own investment and { - who - }
{ + that + } 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 - } { + that + }, 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 - } { + that + } 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 - } { + that + } funds a mortgage loan
{ - which - } { + that a licensee or exempt person has
originated and processed and that + }
{ - 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 { + that a licensee or exempt person + }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 446.691 or 446.696 or a
temporary manufactured structure dealer licensee under ORS
446.701
{ - who - } { + that + } 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.
{ - (8) - } { + (6) + } '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.
{ + (7) 'Nationwide Mortgage Licensing System and Registry '
means a system for licensing loan originators that is developed
and maintained by the Conference of State Bank Supervisors and
the American Association of Residential Mortgage Regulators or
successor organizations under the provisions of Division A, Title
V of the Housing and Economic Recovery Act of 2008, P.L. 110-289.
(8) 'Residential mortgage loan' means a loan extended primarily
for personal, family or household use that is secured by a
mortgage, deed of trust or other equivalent consensual security
interest on a dwelling, as defined in 15 U.S.C. 1602(v), or on
residential real estate upon which a dwelling is or is intended
to be constructed. + }
(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) 'Unique identifier' means a number or other means of
identification assigned by or under protocols established by the
Nationwide Mortgage Licensing System and Registry. + }
SECTION 1a. ORS 59.845 is amended to read:
59.845. (1) { - It is unlawful for any person to - } { + A
person may not + } engage in residential mortgage transactions in
this state as a mortgage banker or mortgage broker unless the
person is licensed under ORS 59.840 to 59.980. A person
{ - who - } { + that + } is a mortgage banker or mortgage
broker under ORS 59.840, but { - who - } { + that + } does
not engage in residential mortgage transactions in this state, is
not required to obtain a { + mortgage banker's or mortgage
broker's + } license under ORS 59.840 to 59.980.
(2) For purposes of this section, a person 'engages in
residential mortgage transactions in this state' when any act
constituting the business of a mortgage banker or mortgage broker
and involving a residential mortgage transaction originates from
this state or is directed to and received in this state or when
the real estate that is the subject of the activities of the
mortgage banker or mortgage broker is located in this state.
SECTION 2. ORS 59.850 is amended to read:
59.850. (1) The Director of the Department of Consumer and
Business Services by rule shall establish procedures for
licensing mortgage bankers or mortgage brokers. The director may
{ - coordinate licensing with any national registration or
licensing system. - } { + license mortgage bankers and mortgage
brokers in coordination with the Nationwide Mortgage Licensing
System and Registry. For purposes of this section, 'coordination'
includes paying or having licensees pay fees and costs directly
to the Nationwide Mortgage Licensing System and Registry. + }
(2) An applicant for a { + mortgage banker's or mortgage
broker's + } license { - as a mortgage banker or mortgage
broker - } , or a managing partner, director, executive officer
or other individual
{ - occupying - } { + that occupies + } a similar position or
{ - performing - } { + performs + } similar functions for the
applicant, shall have, during the five years immediately
preceding the { - time - } { + date + } of application, not
less than three years' experience in the mortgage business, three
years' experience negotiating loans in a related business
satisfactory to the Director { + of the Department of Consumer
and Business Services + } or three years' equivalent lending
experience in a related business satisfactory to the director.
(3) If a { - license as a mortgage banker or mortgage
broker - } { + mortgage banker's or mortgage broker's
license + } is issued to a person other than an individual, at
least one managing partner, director, executive officer or other
individual { - occupying - } { + that occupies + } a similar
position or { - performing - } { + performs + } similar
functions for the person shall, at all times during the term of
the license, satisfy the experience requirement described in
subsection (2) of this section.
{ - (4) Every applicant for a license as a mortgage banker or
mortgage broker shall file with the director a corporate surety
bond or irrevocable letter of credit issued by an insured
institution as defined in ORS 706.008 as the director may approve
by rule running to the State of Oregon in a sum to be determined
by the director by rule. - }
{ - (5) The total amount of the corporate surety bond or
irrevocable letter of credit for a single applicant under
subsection (4) of this section shall be not less than $25,000 but
not more than $50,000, regardless of the number of offices of the
applicant. If an applicant has more than one office in this state
to engage in residential mortgage transactions as a mortgage
banker or mortgage broker, the amount of the bond or letter of
credit shall increase for each additional office in an amount
determined by the director by rule. The amount of the increase in
the bond or letter of credit for each additional office shall be
not less than $5,000 but not more than $10,000. The director may
adjust the minimum amount of the increase in the bond or letter
of credit for additional offices as necessary to comply with the
$50,000 limit. - }
{ + (4)(a) If a licensee, an applicant for a mortgage
banker's or mortgage broker's license or another person employs a
loan originator, the licensee, applicant or person shall obtain a
corporate surety bond or irrevocable letter of credit that covers
the activities of loan originators that the licensee, applicant
or person employs.
(b) If a licensee or an applicant for a mortgage banker's or
mortgage broker's license does not employ a loan originator and
does not originate residential mortgage loans, the licensee or
applicant shall obtain a corporate surety bond or irrevocable
letter of credit that covers the licensee's or applicant's
activities.
(5) The Director of the Department of Consumer and Business
Services by rule may accept as sufficient for the purposes of
meeting the requirement to obtain a corporate surety bond or
irrevocable letter of credit under this section a corporate
surety bond or irrevocable letter of credit required under
another provision of law if:
(a) The amount of the corporate surety bond or irrevocable
letter of credit required under the other provision of law is
equal to or larger than the amount the director requires under
subsection (8)(c) of this section; and
(b) The amount of the corporate surety bond or irrevocable
letter of credit required under the other provision of law is
sufficient to pay the obligation that is the basis for the
requirement under the other provision of law. + }
(6) If { - the - } { + an applicant's + } application,
{ + corporate + } surety bond or irrevocable letter of credit
and fees are in order and the director is satisfied that the
application should not be denied upon one or more of the grounds
specified in ORS 59.865, 59.870 or 59.875, the director
shall { + issue a mortgage banker's or mortgage broker's + }
license { - the mortgage banker or mortgage broker - } { + to
the applicant + }.
(7) { + When there are material changes in the information
contained in the original application or when an action against a
licensee's corporate surety bond or irrevocable letter of credit
is commenced, the + } { - A - } licensee shall amend the
license application and, if necessary, increase the amount of the
corporate surety bond or irrevocable letter of credit { - as
described - } { + to the amount the director specifies + } in
subsection { - (5) - } { + (8)(c) + } of this section { +
or file a new corporate surety bond or irrevocable letter of
credit. + } { - when there are material changes in the
information contained in the original application. - }
(8) The director shall:
{ - (a) Charge and collect fees for initial and renewal
license applications; - }
{ + (a) Charge and collect fees to evaluate applications for
mortgage banker and mortgage broker licenses and to issue or
renew mortgage banker or mortgage broker licenses; + }
(b) Set by rule all fees required under this section.
{ - Fees shall be set to reflect those - } { + The director
shall set the fees at + } amounts sufficient to meet the costs of
administering ORS 59.840 to 59.980, including { - those - }
amounts sufficient to establish and maintain a reasonable
emergency fund; and
(c) Set by rule the amounts of corporate surety bonds and
irrevocable letters of credit required under this section.
{ + The director shall require that the corporate surety bond or
irrevocable letter of credit be issued by an insured institution,
as defined in ORS 706.008, and that it run to the State of
Oregon. + }
(9) The fees under this section are not refundable except for
{ - those - } fees that the director determines by rule may be
refundable.
SECTION 3. ORS 59.860, as amended by section 1, chapter 38,
Oregon Laws 2008, is amended to read:
59.860. (1) { - Every - } { + A + } mortgage
banker { + , + } { - and - } mortgage broker { + or loan
originator + } shall make and keep such accounts, correspondence,
memoranda, papers, books and other records as the Director of the
Department of Consumer and Business Services by rule or order
prescribes. { - All such records shall be preserved - }
{ + The mortgage banker, mortgage broker or loan originator
shall preserve the records + } for five years unless the director
by rule prescribes otherwise. The director may examine { - all
such - } { + the + } records within or { - without - } { +
outside + } this state at any reasonable time or times and may
require without subpoena the production of
{ - such - } { + the + } records at the office of the
director as often as is reasonably necessary.
(2) { - Every - } { + A + } mortgage banker { + , + }
{ - and - } mortgage broker { + or loan originator + } shall
file financial reports or other information as the director by
rule or order may require and shall promptly correct any document
filed with the director that is or becomes incomplete or
inaccurate in any material respect.
(3) On or before May 1 of each year or on a date the director
establishes by rule, { - every - } { + a + } mortgage banker
and mortgage broker shall file a report with the director in a
form prescribed by the director. The report shall contain
information the director requires concerning the mortgage
banker's or mortgage broker's business and operations related to
residential mortgage lending during the preceding calendar year.
The information shall include the number and nature of loans
originated by loan originators that the mortgage banker or
mortgage broker employed.
(4) The report and any records submitted to the director under
this section are exempt from disclosure or production and are
confidential as provided under ORS 705.137.
(5) Notwithstanding the exemption and confidentiality
provisions of subsection (4) of this section, the director may
abstract information contained in reports submitted under
subsection (3) of this section and may make the abstracted
information available for public inspection provided that the
abstracted information does not identify a particular mortgage
banker or mortgage broker as a source of the information.
SECTION 4. 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 - } { + mortgage banker's,
mortgage broker's or loan originator's license and may in
addition impose a fine or other penalty under the provisions of
ORS 59.840 to 59.980 + } 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 the obligations
mature, or { + that the applicant or licensee + } 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 59.980 or any rule or order
of the director.
{ + (4) Has, in the conduct of a mortgage lending business,
failed to comply with one or more of the requirements set forth
in:
(a) The Truth in Lending Act, 15 U.S.C. 1601 et seq., and
Regulation Z, 12 C.F.R. part 226, as in effect on January 1,
2010;
(b) The Real Estate Settlement Procedures Act, 12 U.S.C. 2601
et seq., and Regulation X, 24 C.F.R. part 3500, as in effect on
the effective date of this 2009 Act;
(c) The Equal Credit Opportunity Act, 15 U.S.C. 1691 et seq.,
and Regulation B, 12 C.F.R. 202.9, 202.11 and 202.12, as in
effect on the effective date of this 2009 Act; and
(d) Division A, Title V of the Housing and Economic Recovery
Act of 2008, P.L. 110-289, and regulations promulgated under the
Act, as in effect on the effective date of this 2009 Act.
(5) Has failed to cooperate with an examination conducted under
ORS 59.880 or an investigation conducted under ORS 59.885. + }
{ - (4) - } { + (6) + } Has been convicted of a
misdemeanor, an essential element of which is fraud, or of a
felony.
{ - (5) - } { + (7) + } Has filed an application for a
license that, as of the date the license was issued { - , - }
or as of the date of an order
{ - denying, suspending, conditioning or revoking a - }
{ + that denied, suspended, conditioned or revoked the + }
license, was incomplete in any material respect or contained any
statement that { + , + } { - was, - } in light of the
circumstances under which { - it - } { + the statement + }
was made, { + was + } false or misleading with respect to any
material fact.
{ - (6) - } { + (8) + } Has failed to account to persons
interested for all money or property received in connection with
a mortgage loan.
{ - (7) - } { + (9) + } 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. - }
{ + (10) Is subject to an order of the director that denies,
suspends, conditions or revokes a mortgage banker's, mortgage
broker's or loan originator's license. + }
{ - (9) - } { + (11) + } Is the subject of a United States
Postal Service fraud order that is currently effective and was
issued within the last five years.
{ - (10) - } { + (12) + } Does not have the experience
required by ORS 59.850 (2) or (3).
{ - (11) - } { + (13) + } 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) Is subject to an order of the director that denies,
suspends, conditions or revokes a license under any other law the
director administers.
(15) Is subject to a cease and desist order the director
entered within the previous five years after the applicant or
licensee had notice and an opportunity for a hearing. + }
{ - (14) - } { + (16) + } Has demonstrated negligence or
incompetence in performing any act for which the licensee is
required to hold a license.
{ - (15) - } { + (17) + } Has failed to supervise
diligently and control the mortgage-related activities of a loan
originator { - employed by - } the licensee { + employs + }.
{ - (16) - } { + (18) + } Has knowingly misrepresented to
the director the training of, examination of or continuing
education time earned by a loan originator { - employed by - }
the licensee { + employs + }.
{ - (17) - } { + (19) + } Has willfully or repeatedly
employed { - persons - } { + individuals + } as loan
originators who do not meet the training, education or continuing
education requirements for loan originators.
{ - (18) - } { + (20) + } 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 5. ORS 59.875 is amended to read:
59.875. { - (1) If the Director of the Department of Consumer
and Business Services finds that an applicant or licensee has
ceased to do business as a mortgage banker or mortgage broker, or
has failed to maintain a bond required by ORS 59.850 or is
subject to an adjudication of mental incompetence or to the
control of a committee, conservator or guardian, or cannot be
located after reasonable search, the director may cancel the
license or application. - }
{ + (1) The Director of the Department of Consumer and
Business Services may cancel a mortgage banker's, mortgage
broker's or loan originator's license or application if the
director finds that the applicant or licensee:
(a) Has ceased to do business as a mortgage banker, mortgage
broker or loan originator;
(b) Has failed to maintain a corporate surety bond or
irrevocable letter of credit required under ORS 59.850;
(c) Is subject to an adjudication of mental incompetence or to
the control of a conservator or guardian; or
(d) Cannot be located after a reasonable search. + }
(2) A mortgage banker { + , + } { - or - } mortgage
broker { + or loan originator + } may { - withdraw - } { +
surrender + } a license { + issued under ORS 59.840 to
59.980 + } by filing an application to { - withdraw - } { +
surrender + }. Unless the director determines that the license
should be suspended or revoked, the director shall allow the
{ - withdrawal - } { + surrender + } subject to any
conditions, limitations and restrictions the director may impose.
SECTION 6. ORS 59.880 is amended to read:
59.880. The Director of the Department of Consumer and Business
Services { - shall have - } { + has + } general supervision
and control over { - all loan originators, - } mortgage
bankers { + , + } { - and - } mortgage brokers { + and loan
originators + } residing or doing business in this state and
engaged in any activity subject to the provisions of ORS 59.840
to 59.980. { - All such persons and their records and
everything connected with their activities shall be subject to
examination by the director at any time. - } { + Mortgage
bankers, mortgage brokers and loan originators and the records
and activities connected with mortgage bankers, mortgage brokers
and loan originators are subject to examination by the director
at any time. + } The provisions of this section and of any other
section of ORS 59.840 to 59.980 relating to examinations
{ - shall - } extend to any person { - who should have been
reported as a loan originator under ORS 59.969 or - } licensed
as a mortgage banker { + , + } { - or - } mortgage broker { +
or loan originator + }, any person exempted by rule from
{ - those - } { + the + } definitions { + of mortgage
banker, mortgage broker or loan originator under ORS 59.840 + }
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 - } { + the + } examination.
SECTION 7. ORS 59.900 is amended to read:
59.900. (1) In accordance with this section and ORS chapter
183, 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
59.980, 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,
59.710 to 59.830, 59.991 and 59.995 and rules adopted thereunder.
(2) Any financial statement required under ORS 59.840 to 59.980
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 59.980;
(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.
{ + (3) The director shall adopt rules or enter orders
necessary to conform with the requirements of Division A, Title V
of the Housing and Economic Recovery Act of 2008, P.L. 110-289.
(4) The director shall establish a process by means of which a
loan originator may dispute or seek changes to information the
director has entered into the Nationwide Mortgage Licensing
System and Registry under section 1508(d)(4) of Division A, Title
V of the Housing and Economic Recovery Act of 2008, P.L.
110-289. + }
SECTION 7a. ORS 59.905 is amended to read:
59.905. (1) Except as provided in ORS 183.745, upon the entry
of an order under ORS 59.840 to 59.980, 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 ORS 59.973;
or
(c) All interested persons with respect to orders entered
pursuant to any other provision of ORS 59.840 to 59.980.
(2) If { - timely demand for a hearing is filed by - } a
person entitled to notice of the order { + files a timely demand
for a hearing + }, the director shall hold a hearing on the order
as provided by ORS chapter 183. In the absence of a timely demand
for a hearing, a person 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
{ + that was issued under ORS 59.840 to 59.980
+ }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 8. ORS 59.945 is amended to read:
59.945. { + (1) + } A mortgage banker or mortgage broker
{ - shall - } { + may + } not use or cause to be published any
advertisement that:
{ - (1) - } { + (a) + } Contains any false, misleading or
deceptive statement or representation; or
{ - (2) - } { + (b) + } Identifies the mortgage banker or
mortgage broker by any name other than the name listed on
the { + mortgage banker's or mortgage broker's + } license
issued by the Director of the Department of Consumer and Business
Services or an assumed business name registered under ORS chapter
648.
{ + (2) Residential mortgage loan application forms,
solicitations and advertisements, including business cards or
websites, and other documents the director specifies by rule must
display the unique identifier for an individual that originates a
residential mortgage loan. + }
SECTION 9. 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 - } { + the
name of the mortgage banker or mortgage broker + } or { + in + }
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 59.980, nothing in
subsection (1) of this section { - is intended to grant - }
{ + grants + } 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 { - (5)(a) - } { + (3)(a) + } but also includes
{ - those persons - } { + a person + } exempted from the
definition of mortgage banker in ORS 59.840 { - (5)(b) - }
{ + (3)(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 - } { + a + } suit or
action to collect { - any amounts - } { + an amount + } owed
on a mortgage banking loan or mortgage loan, including but not
limited to the exercise of { - any - } { + a + } contractual,
statutory or common law { - remedies - } { + remedy + } such
as injunction, specific performance, judicial or nonjudicial
foreclosure or receivership.
SECTION 10. ORS 59.969, as amended by section 2, chapter 38,
Oregon Laws 2008, is amended to read:
59.969. { - (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. - }
{ + (1) A mortgage banker or mortgage broker shall maintain
current records through the Nationwide Mortgage Licensing System
and Registry for all loan originators that the mortgage banker or
mortgage broker employs. + }
(2) A person that applies for a license to conduct business as
a mortgage banker or mortgage broker under ORS 59.850 or that
applies to renew a license under ORS 59.855 shall include with
the application evidence acceptable to the Director { + of the
Department of Consumer and Business Services + } that each
individual the person 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 ORS 59.977; and - }
{ - (B) Passed an examination, approved or provided by an
organization described in ORS 59.977, on laws and rules relating
to mortgage lending in this state; or - }
{ - (b) If the individual 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 ORS
59.975. - }
{ - (3) A person that applies for a license to conduct
business as a mortgage banker or mortgage broker under ORS 59.850
or that applies to renew a license under ORS 59.855 shall include
with the application evidence acceptable to the director that
each individual the person has hired or intends to hire who is an
insurance producer or insurance consultant licensed under ORS
744.002 and who is a full-time loan originator as defined in ORS
59.970 has: - }
{ - (a)(A) Successfully completed an entry-level training
course approved or provided by an organization certified by the
director as described in ORS 59.977; and - }
{ - (B) Passed an examination, approved or provided by an
organization described in ORS 59.977, on laws and rules relating
to mortgage lending in this state; or - }
{ - (b) If the individual has been employed as a full-time
loan originator for two or more years in this state, completed
continuing education as required by the director pursuant to ORS
59.975. - }
{ - (4) An applicant under subsection (2) or (3) of this
section shall, at the time of application, certify that the
applicant has conducted criminal records checks required under
ORS 59.970 and 59.972 and: - }
{ - (a) Certify that, to the best of the applicant's belief,
no individual the applicant employs or intends to employ as a
loan originator has engaged in conduct that would constitute a
violation of ORS 59.967 (2) or 59.971; or - }
{ + (a) Has, in accordance with the requirements set forth in
ORS 59.970 (2):
(A) Completed prelicensing and continuing education; and
(B) Passed a written examination.
(b) Has not:
(A) Had a loan originator's license revoked in another state;
or
(B) Pleaded guilty or no contest to, or been convicted of, a
felony in a state or federal court:
(i) During the seven-year period before the date on which the
person applied for or applied to renew the license; or
(ii) At any time before the date on which the person applied
for or applied to renew the license, if the felony involved
dishonesty, money laundering, a breach of trust or an act of
fraud.
(3) A person that submits an application under subsection (2)
of this section shall, at the time the person submits the
application:
(a) Certify that the person has required individuals that the
person has hired or intends to hire as loan originators to
furnish information necessary to conduct a criminal records check
under ORS 59.972; and
(b)(A) Certify that the individuals that the person has hired
or intends to hire as loan originators have not engaged in
conduct that would violate ORS 59.967 (2) or 59.971; or + }
{ - (b) - } { + (B) + } Note any exceptions to the
certification made in
{ - paragraph (a) of this subsection. An applicant - } { +
subparagraph (A) of this paragraph. A person that submits an
application under subsection (2) of this section + } is not
subject to an action at law for making a notation under this
{ - paragraph - } { + subparagraph + } in good faith.
{ - (5) Except as provided in subsection (3) of this section,
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 for not less than 10 years,
and shall maintain a registry of loan originators with
information derived from, records of: - }
{ + (4) The director shall keep and maintain a registry of
loan originators. The information in the director's registry, at
a minimum, shall consist of: + }
{ - (a) Notifications filed under subsection (1) of this
section; - }
{ - (b) - } { + (a) + } Exceptions to certifications { +
submitted + } under subsection { - (4)(b) - } { +
(3)(b)(B) + } of this section;
{ - (c) - } { + (b) + } Complaints the director has
determined are justified under ORS 59.973; and
{ - (d) - } { + (c) + } Actions taken in accordance with
the provisions of ORS 59.973.
{ + (5) When the director finds that the Nationwide Mortgage
Licensing System and Registry contains substantially all of the
information kept in the director's registry required under
subsection (4) of this section, the director may discontinue the
director's registry. + }
{ - (7) Notwithstanding subsections (1) to (3) of this
section and ORS 59.865 (17), 59.970, 59.971 (1)(d) and 59.975,
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 individual begins or
resumes employment as a loan originator. - }
SECTION 11. ORS 59.970 is amended to read:
59.970. { - (1) As used in this section, 'loan originator '
means an individual who: - }
{ - (a) Is an insurance producer or insurance consultant
licensed under ORS 744.002; - }
{ - (b) Has not transacted insurance as defined in ORS
731.146 for a period of 60 consecutive days; and - }
{ - (c) Would qualify as a full-time loan originator if not
exempted under ORS 59.840 (4). - }
{ - (2) An individual who is an insurance producer or
insurance consultant licensed under ORS 744.002 and who is
employed full-time as a loan originator shall: - }
{ - (a) Complete an entry-level training course approved or
provided by an organization certified as described in ORS
59.977; - }
{ - (b) Pass an examination, approved or provided by an
organization described in ORS 59.977, on laws and rules relating
to mortgage lending in this state; - }
{ - (c) If the individual has been employed as a loan
originator for two or more years in this state, complete the
continuing education requirements under ORS 59.975; and - }
{ - (d) Undergo a criminal records check as required in ORS
59.972. - }
{ + (1) An individual may not transact business as a loan
originator unless the individual obtains a license from the
Director of the Department of Consumer and Business Services in
the manner provided in this section. In order to obtain or renew
a license to transact business as a loan originator, the
individual must:
(a) Have and maintain a registration with and a valid unique
identifier from the Nationwide Mortgage Licensing System and
Registry;
(b) Provide evidence to the director that the individual has
met the requirements set forth under ORS 59.969 (2) and has
submitted the information required under ORS 59.972 (1); and
(c) Pay all fees charged for the license application, issuance
or renewal directly to the Nationwide Mortgage Licensing System
and Registry.
(2) The director by rule shall establish procedures and
requirements for licensing loan originators in coordination with
the Nationwide Mortgage Licensing System and Registry. Before
issuing or renewing a loan originator's license, the director
shall require the individual who applies to obtain or renew the
license to:
(a) Meet prelicensing or continuing education obligations,
standards and criteria established by the director. The director
shall establish obligations, standards and criteria that are
consistent with obligations, standards and criteria established
by the Nationwide Mortgage Licensing System and Registry.
(b) Pass a written examination developed and administered by
the Nationwide Mortgage Licensing System and Registry. The
director shall establish standards and criteria for passing the
examination that are consistent with standards and criteria
established by the Nationwide Mortgage Licensing System and
Registry. + }
SECTION 12. ORS 59.971, as amended by section 3, chapter 38,
Oregon Laws 2008, is amended to read:
59.971. (1) { - A person employed by a mortgage banker or
mortgage broker as - } A loan originator may not:
(a) 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.
(b) Willfully or repeatedly violate or fail to comply with a
provision of ORS 59.840 to 59.980 or a rule or order of the
Director of the Department of Consumer and Business Services.
(c) Fail to account to persons interested for all money or
property received in connection with a mortgage loan.
(d) Fail to meet the training, education or continuing
education requirements for loan originators.
(e) Perform an act as a loan originator in a negligent or
incompetent manner.
(2) { - A person - } { + An individual + } may not be
employed { - by a mortgage banker or mortgage broker - } as a
loan originator { - as defined in ORS 59.840 or 59.970 - } if:
(a) The { - person - } { + individual + } has been
convicted of any crime or category of crime specified by the
director by rule;
(b) The { - person - } { + individual + } is suspended or
has been prohibited from employment as a loan originator under
ORS 59.973 (5)(c);
(c) The employment violates any conditions imposed under ORS
59.973 (5)(c); or
(d) The employment violates an order issued by the director, a
state or federal agency or a court of competent jurisdiction.
SECTION 13. ORS 59.972 is amended to read:
59.972. { - (1) A mortgage banker or mortgage broker shall
conduct a criminal records check of each individual who the
mortgage banker or mortgage broker employs or intends to employ
as a loan originator. - }
{ - (2) A mortgage banker or mortgage broker shall report to
the Director of the Department of Consumer and Business Services
the results of each criminal records check conducted under
subsection (1) of this section. - }
{ - (3) The director shall adopt rules: - }
{ - (a) Necessary for the implementation and administration
of criminal records checks required under this section and ORS
59.970; and - }
{ - (b) Specifying categories of criminal convictions that
will prevent a person from acting as a loan originator under ORS
59.971. - }
{ + (1) An individual who applies to obtain or renew a loan
originator's license shall furnish to the Nationwide Mortgage
Licensing System and Registry:
(a) Fingerprints in a form suitable for the Federal Bureau of
Investigation or an authorized government agency or entity to use
to perform a state, national and international criminal records
check;
(b) Personal history and professional experience in a form
prescribed by the Nationwide Mortgage Licensing System and
Registry; and
(c) Authorization for the Nationwide Mortgage Licensing System
and Registry to obtain:
(A) An independent credit report for the individual from a
consumer reporting agency, as defined in 15 U.S.C. 1681a; and
(B) Information about any administrative, civil or criminal
proceedings, findings, judgments or convictions involving the
individual.
(2) The Director of the Department of Consumer and Business
Services may cooperate with and use the Nationwide Mortgage
Licensing System and Registry or an entity authorized by the
Nationwide Mortgage Licensing System and Registry to collect,
obtain, maintain and distribute information to or from an
individual, entity or government agency in connection with the
requirements set forth in subsection (1) of this section.
(3) The director shall adopt rules to:
(a) Implement and administer the criminal records checks
required under this section; and
(b) Specify crimes and categories of crimes for which a
conviction will, under ORS 59.971, prevent an individual from
acting as a loan originator. + }
SECTION 14. ORS 59.973, as amended by section 4, chapter 38,
Oregon Laws 2008, is amended to read:
59.973. (1) If the Director of the Department of Consumer and
Business Services receives a complaint against a loan originator
for a violation of ORS 59.840 to 59.980, 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 chapter 183.
(4) If the director determines, after opportunity for hearing,
that a complaint is justified, the director shall note the
complaint and any action taken in the records kept pursuant to
ORS 59.969 { - (6) - } { + (4) + }.
(5) The director, after finding that a loan originator has
violated a provision of ORS 59.840 to 59.980 or a rule or order
of the director, may:
(a) Impose requirements for supervision and remedial education
of the loan originator;
(b) Assess civil penalties against the loan originator as
provided in ORS 59.996;
(c) { + Deny, + }suspend { + , condition or revoke a loan
originator's license, suspend + } or permanently prohibit the
loan originator from employment as a loan originator or place
conditions on the loan originator's employment; or
(d) Refer the matter for criminal prosecution { - pursuant
to - } { + under + } ORS 59.992.
SECTION 15. ORS 59.975 is amended to read:
59.975. { - 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 ORS
59.977. - }
{ + (1) The Director of the Department of Consumer and
Business Services may use the Nationwide Mortgage Licensing
System and Registry, or an entity authorized by the Nationwide
Mortgage Licensing System and Registry, to process license and
transaction fees collected or imposed under ORS 59.840 to 59.980.
(2) The director shall report violations of ORS 59.840 to
59.980 and the enforcement actions the director took in response
to the violations, together with other relevant information, to
the Nationwide Mortgage Licensing System and Registry in
compliance with section 1508(d)(3) of Division A, Title V of the
Housing and Economic Recovery Act of 2008, P.L. 110-289. + }
SECTION 16. ORS 59.992 is amended to read:
59.992. (1) Violation of any provision of ORS 59.840 to 59.980
or any rule adopted by the Director of the Department of Consumer
and Business Services under ORS 59.840 to 59.980, except ORS
59.915 (2) { - and 59.975 - } , is a Class C felony.
(2) Violation of ORS 59.915 (2) is a Class A misdemeanor.
SECTION 17. ORS 725.230 is amended to read:
725.230. (1) The Director of the Department of Consumer and
Business Services may revoke { - any - } { + a + } license
under this chapter upon 10 days' notice to the licensee stating
the contemplated action and in general the grounds therefor and
upon reasonable opportunity for a hearing in connection
therewith, if the director finds that:
(a) The licensee has failed to pay the annual license fee or to
comply with { - any - } { + a + } demand, ruling or
requirement of the director made pursuant to this chapter or to
comply with the provisions of law to keep the corporation in good
standing if
{ - such - } { + the + } licensee is a corporation;
(b) The licensee has violated any provisions of this chapter or
{ - any - } { + a + } rule made by the director under the
authority of this chapter; or
(c) { - Any - } { + A + } fact or condition exists which,
if { - it - } { + the fact or condition + } had existed at
the time of the original application for { - such - } { +
the + } license, clearly would have warranted the { - director
in refusing originally - } { + director's original refusal + }
to issue the license.
{ + (2) If the licensee employs a loan originator, as defined
in ORS 59.840, the director may revoke a license in the manner
provided in subsection (1) of this section if the director finds
that the licensee failed to:
(a) File a corporate surety bond or irrevocable letter of
credit required under ORS 59.850;
(b) Ensure that a loan originator employed by the licensee met
the requirements set forth in ORS 59.970 and 59.972; or
(c) Comply with applicable provisions of ORS 59.865. + }
{ - (2) - } { + (3) + } The director, without notice or
hearing, may suspend { - any - } { + a + } license for a
period not exceeding 30 days, pending investigation.
{ - (3) - } { + (4) + } The director may revoke or suspend
only the particular license with respect to which grounds for
revocation or suspension may occur or exist, or, if the director
finds that
{ - such - } { + the + } grounds for revocation or suspension
are of general application to all offices or to more than one
office operated by a licensee, the director may revoke or suspend
all the licenses or such number of licenses issued to the
licensee as the grounds for revocation or suspension apply to, as
the case may be.
SECTION 18. { + (1) ORS 59.977 is repealed.
(2) Section 7, chapter 526, Oregon Laws 2003, as amended by
section 42, chapter 22, Oregon Laws 2005, is repealed. + }
SECTION 19. { + (1) The amendments to ORS 59.840, 59.845,
59.850, 59.860, 59.865, 59.875, 59.880, 59.900, 59.905, 59.945,
59.962, 59.969, 59.970, 59.971, 59.972, 59.973, 59.975, 59.992
and 725.230 by sections 1 to 17 of this 2009 Act and the repeal
of ORS 59.977 and section 7, chapter 526, Oregon Laws 2003, by
section 18 of this 2009 Act become operative on January 1, 2010.
(2) The Director of the Department of Consumer and Business
Services may take any action before January 1, 2010, that is
necessary to enable the director to exercise, on and after
January 1, 2010, all of the duties, functions and powers
conferred on the director by the amendments to ORS 59.840,
59.845, 59.850, 59.860, 59.865, 59.875, 59.880, 59.900, 59.905,
59.945, 59.962, 59.969, 59.970, 59.971, 59.972, 59.973, 59.975,
59.992 and 725.230 by sections 1 to 17 of this 2009 Act and the
repeal of ORS 59.977 and section 7, chapter 526, Oregon Laws
2003, by section 18 of this 2009 Act. + }
SECTION 20. { + This 2009 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2009 Act takes effect on
its passage. + }
----------