OR MLO cheat sheet

Oregon Mortgage Lender Law (ORS 86A) governs mortgage bankers, brokers, and loan originators; the Oregon Mortgage Loan Servicer Law (ORS 86A.300 et seq.) separately licenses servicers.

Oregon usury ceiling for residential mortgage loans is the greater of 12% per year or 5 percentage points above the Federal Reserve discount rate on 90-day commercial paper; most first-lien purchase-money and refinance loans are exempt from the ceiling.

Oregon APR disclosure: mortgage lenders must disclose the annual percentage rate using the federal Truth in Lending method; state law incorporates Regulation Z definitions for triggers and tolerances.

Oregon Home Loan Protection Act (ORS 86A.100 to 86A.190) restricts "high-cost home loans" using APR, points-and-fees, and prepayment-penalty triggers tied to Fannie Mae conforming limits.

High-cost home loans may not include prepayment penalties after 36 months, balloon payments before 15 years, negative amortization, or increased interest rates after default.

Oregon requires mortgage loan originators to register with NMLS and hold a state license before taking a residential mortgage loan application; a single unlicensed application is a violation.

Oregon Equal Access to Lending: a licensee may not discriminate based on sexual orientation, gender identity, marital status, source of income, or familial status in addition to federal ECOA protected classes.

Oregon first-lien mortgage lending is subject to the state's escrow requirements: escrow accounts may be required for high loan-to-value loans, and servicers must pay interest on escrow balances as prescribed by ORS 86A.320.

The Oregon Division of Financial Regulation (DFR) licenses mortgage bankers, brokers, and loan originators; the National Mortgage Licensing System (NMLS) is the system of record for applications and renewals.

License renewal is annual and aligns with NMLS deadlines: applications and renewals must be submitted by December 31 for a license effective January 1; late renewals incur a reinstatement fee and may be denied.

Pre-licensing education: 20 hours for mortgage loan originators (including 3 hours federal law, 3 hours ethics, 2 hours nontraditional mortgage products, and 12 hours electives); Oregon-specific content is included in the 20-hour package.

Continuing education: 8 hours annually, including 3 hours federal law and regulations, 2 hours ethics, 2 hours nontraditional mortgage products, and 1 hour Oregon-specific law.

Surety bond and net worth: Oregon mortgage bankers must maintain a surety bond in an amount set by DFR based on loan volume; mortgage brokers must maintain a bond of at least $50,000; net worth minimums apply and are verified at application and renewal.

DFR examination authority: examiners may inspect books, records, and loan files without prior notice; licensees must respond to examination findings within the time specified in the report, typically 30 days.

Licensee must notify DFR of changes in ownership, control, or principal officers within 30 days; failure to notify is grounds for suspension or revocation.

DFR may impose civil penalties up to $5,000 per violation per day for unlicensed activity, and up to $25,000 per violation for violations involving elder or vulnerable consumers.

Mortgage loan originators must be sponsored by a licensed mortgage banker or broker; sponsorship changes must be reported in NMLS within 5 business days.

Oregon Unfair Trade Practices Act (ORS 646.605 et seq.) prohibits unfair or deceptive acts in mortgage lending, including misleading advertising, bait-and-switch rate quotes, and undisclosed fees.

Oregon prohibits steering, unearned fees, and fee splitting with unlicensed persons; a licensee may not pay a commission or referral fee to an unlicensed party for a residential mortgage loan.

Oregon Mortgage Loan Servicer Law prohibits dual tracking: a servicer may not proceed with foreclosure while a complete loss mitigation application is pending.

Oregon requires a borrower's written acknowledgment before a lender may charge a prepayment penalty; penalties are prohibited on high-cost home loans after 36 months.

Oregon prohibits requiring a borrower to use a specific title company, appraiser, or insurance provider as a condition of loan approval, except where the lender has a legitimate business reason disclosed in writing.

Oregon's elder financial exploitation rules require licensees to report suspected exploitation of a vulnerable adult to the Oregon Department of Human Services and to DFR.

Oregon prohibits flipping: arranging a refinance of a loan originated or brokered by the same licensee within 12 months without a documented net tangible benefit to the borrower.

Oregon prohibits false or misleading use of the terms "bank," "trust," "credit union," or "savings" in a company name or advertising unless the entity is authorized to use them.

Oregon requires a written loan estimate or good faith estimate within 3 business days of receiving a residential mortgage loan application, consistent with Regulation Z timing.

Oregon requires disclosure of the borrower's right to receive a copy of the appraisal at least 3 business days before closing; the borrower may waive the timing but not the right.

Oregon requires a signed Mortgage Loan Origination Agreement or broker agreement before a mortgage broker performs services; the agreement must disclose fees and the broker's relationship to the lender.

Oregon requires a disclosure of the borrower's right to request a copy of the loan file and a servicing transfer disclosure at least 15 days before the transfer effective date.

Recordkeeping: licensees must retain loan files, disclosures, and transaction records for at least 3 years after the loan is closed or the application is denied, and make them available to DFR on request.

Oregon requires a written disclosure when a licensee acts as both broker and lender on the same transaction, identifying the dual capacity and the fees earned in each role.

Advertising rules: all advertisements must include the NMLS unique identifier of the licensee and the licensed name; rate advertisements must disclose APR and any points or fees.

Oregon requires a disclosure of the borrower's right to a copy of the promissory note and deed of trust at closing, and the licensee must deliver executed copies within a reasonable time after recording.

Oregon Mortgage Lender Law (ORS 86A) governs mortgage bankers, brokers, and loan originators; the Oregon Mortgage Loan Servicer Law (ORS 86A.300 et seq.) separately licenses servicers.

Oregon usury ceiling for residential mortgage loans is the greater of 12% per year or 5 percentage points above the Federal Reserve discount rate on 90-day commercial paper; most first-lien purchase-money and refinance loans are exempt from the ceiling.

Oregon APR disclosure: mortgage lenders must disclose the annual percentage rate using the federal Truth in Lending method; state law incorporates Regulation Z definitions for triggers and tolerances.

Oregon Home Loan Protection Act (ORS 86A.100 to 86A.190) restricts "high-cost home loans" using APR, points-and-fees, and prepayment-penalty triggers tied to Fannie Mae conforming limits.

High-cost home loans may not include prepayment penalties after 36 months, balloon payments before 15 years, negative amortization, or increased interest rates after default.

Oregon requires mortgage loan originators to register with NMLS and hold a state license before taking a residential mortgage loan application; a single unlicensed application is a violation.

Oregon Equal Access to Lending: a licensee may not discriminate based on sexual orientation, gender identity, marital status, source of income, or familial status in addition to federal ECOA protected classes.

Oregon first-lien mortgage lending is subject to the state's escrow requirements: escrow accounts may be required for high loan-to-value loans, and servicers must pay interest on escrow balances as prescribed by ORS 86A.320.

The Oregon Division of Financial Regulation (DFR) licenses mortgage bankers, brokers, and loan originators; the National Mortgage Licensing System (NMLS) is the system of record for applications and renewals.

License renewal is annual and aligns with NMLS deadlines: applications and renewals must be submitted by December 31 for a license effective January 1; late renewals incur a reinstatement fee and may be denied.

Pre-licensing education: 20 hours for mortgage loan originators (including 3 hours federal law, 3 hours ethics, 2 hours nontraditional mortgage products, and 12 hours electives); Oregon-specific content is included in the 20-hour package.

Continuing education: 8 hours annually, including 3 hours federal law and regulations, 2 hours ethics, 2 hours nontraditional mortgage products, and 1 hour Oregon-specific law.

Surety bond and net worth: Oregon mortgage bankers must maintain a surety bond in an amount set by DFR based on loan volume; mortgage brokers must maintain a bond of at least $50,000; net worth minimums apply and are verified at application and renewal.

DFR examination authority: examiners may inspect books, records, and loan files without prior notice; licensees must respond to examination findings within the time specified in the report, typically 30 days.

Licensee must notify DFR of changes in ownership, control, or principal officers within 30 days; failure to notify is grounds for suspension or revocation.

DFR may impose civil penalties up to $5,000 per violation per day for unlicensed activity, and up to $25,000 per violation for violations involving elder or vulnerable consumers.

Mortgage loan originators must be sponsored by a licensed mortgage banker or broker; sponsorship changes must be reported in NMLS within 5 business days.

Oregon Unfair Trade Practices Act (ORS 646.605 et seq.) prohibits unfair or deceptive acts in mortgage lending, including misleading advertising, bait-and-switch rate quotes, and undisclosed fees.

Oregon prohibits steering, unearned fees, and fee splitting with unlicensed persons; a licensee may not pay a commission or referral fee to an unlicensed party for a residential mortgage loan.

Oregon Mortgage Loan Servicer Law prohibits dual tracking: a servicer may not proceed with foreclosure while a complete loss mitigation application is pending.

Oregon requires a borrower's written acknowledgment before a lender may charge a prepayment penalty; penalties are prohibited on high-cost home loans after 36 months.

Oregon prohibits requiring a borrower to use a specific title company, appraiser, or insurance provider as a condition of loan approval, except where the lender has a legitimate business reason disclosed in writing.

Oregon's elder financial exploitation rules require licensees to report suspected exploitation of a vulnerable adult to the Oregon Department of Human Services and to DFR.

Oregon prohibits flipping: arranging a refinance of a loan originated or brokered by the same licensee within 12 months without a documented net tangible benefit to the borrower.

Oregon prohibits false or misleading use of the terms "bank," "trust," "credit union," or "savings" in a company name or advertising unless the entity is authorized to use them.

Oregon requires a written loan estimate or good faith estimate within 3 business days of receiving a residential mortgage loan application, consistent with Regulation Z timing.

Oregon requires disclosure of the borrower's right to receive a copy of the appraisal at least 3 business days before closing; the borrower may waive the timing but not the right.

Oregon requires a signed Mortgage Loan Origination Agreement or broker agreement before a mortgage broker performs services; the agreement must disclose fees and the broker's relationship to the lender.

Oregon requires a disclosure of the borrower's right to request a copy of the loan file and a servicing transfer disclosure at least 15 days before the transfer effective date.

Recordkeeping: licensees must retain loan files, disclosures, and transaction records for at least 3 years after the loan is closed or the application is denied, and make them available to DFR on request.

Oregon requires a written disclosure when a licensee acts as both broker and lender on the same transaction, identifying the dual capacity and the fees earned in each role.

Advertising rules: all advertisements must include the NMLS unique identifier of the licensee and the licensed name; rate advertisements must disclose APR and any points or fees.

Oregon requires a disclosure of the borrower's right to a copy of the promissory note and deed of trust at closing, and the licensee must deliver executed copies within a reasonable time after recording.