Oregon Adopts New Mortgage Servicer Licensing Provisions
Effective immediately, the Oregon Department of Consumer and Business Services has issued updates and adopted new provisions regarding the licensing of mortgage servicers.
The updated provisions include the addition of definitions for mortgage lending and mortgage servicing, specifically including new definitions for “contract or agreement for servicing the residential mortgage loan,” “originates,” “tangible net worth,” “liquidity,” and “NMLS call report.”
The new provisions regarding mortgage servicing set requirements for Oregon mortgage servicers. The provisions include information regarding the following:
- Application requirements for a mortgage servicer license;
- What biographical information must be included on mortgage servicer license applications;
- Procedures for how incomplete license applications will be handled;
- A requirement that mortgage servicers obtain a license to open a branch office;
- The correct procedure for renewal of servicing licenses;
- Liquidity, operating reserves, and tangible net worth requirements;
- Requirements for obtaining a corporate surety bond or irrevocable letter of credit;
- License application fees;
- Examination charges;
- Rules for use of assumed business names;
- Financial responsibility criteria for individuals;
- A clarification that the preexisting duty to service a mortgage loan is not affected by a servicer’s failure to obtain and maintain a license;
- Exemptions for certain entities from the mortgage servicing license requirement, including, but not limited to, employees of a licensed mortgage servicer or exempt entity acting within the scope of the person’s employment and a person who owns the right to service a mortgage loan but does not otherwise service a residential mortgage loan, including having an ongoing contractual obligation to provide financial support to a subservicer; and
- The model language for disclosing that consumer complaints may be submitted to the Department of Consumer and Business Services.
