OR MLO flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Oregon Mortgage Lender Law citation

ORS 86A contains Oregon's mortgage lender, broker, and loan originator licensing framework, including application, bond, net worth, examination, and enforcement provisions administered by the Division of Financial Regulation.

Oregon usury ceiling

For residential mortgage loans not otherwise exempt, the maximum annual interest rate is the greater of 12 percent or 5 percentage points above the Federal Reserve discount rate on 90-day commercial paper.

Home Loan Protection Act triggers

ORS 86A.100 et seq. defines high-cost home loans by APR exceeding the Treasury benchmark by specified margins, points and fees above thresholds, or prepayment penalties exceeding 2 percent of the loan amount.

High-cost loan prohibitions

Oregon bars balloon payments before 15 years, negative amortization, prepayment penalties after 36 months, and interest-rate increases triggered solely by default on high-cost home loans.

Oregon Equal Access to Lending

State law adds sexual orientation, gender identity, marital status, source of income, and familial status to ECOA protected classes for residential mortgage lending in Oregon.

Escrow interest requirement

Under ORS 86A.320, Oregon mortgage servicers must pay interest on borrower escrow balances for first-lien residential loans, calculated at a rate set by statute.

Mortgage servicer licensing statute

ORS 86A.300 and following provisions require a separate Oregon license for entities that service residential mortgage loans, distinct from the lender or broker license.

Nontraditional mortgage disclosure duty

Oregon requires lenders offering payment-option, interest-only, or negative-amortization products to disclose payment shock risk and qualify borrowers at the fully indexed, fully amortizing rate.

Oregon regulator identity

The Oregon Division of Financial Regulation, a division of the Department of Consumer and Business Services, licenses and supervises mortgage bankers, brokers, loan originators, and servicers.

NMLS renewal deadline

Oregon licenses renew annually through NMLS; applications must be submitted by December 31 to be effective January 1, and late submissions require reinstatement and additional fees.

Oregon MLO pre-licensing hours

Oregon mortgage loan originator applicants complete 20 hours of pre-licensing education, including 3 hours federal law, 3 hours ethics, 2 hours nontraditional products, and 12 hours electives.

Oregon annual continuing education

Licensed Oregon mortgage loan originators complete 8 hours of continuing education each year: 3 hours federal law, 2 hours ethics, 2 hours nontraditional products, and 1 hour Oregon law.

Mortgage broker bond minimum

Oregon mortgage brokers must maintain a surety bond of at least $50,000, while mortgage bankers post a bond set by DFR based on annual loan volume.

Change of control notice

Licensees must notify the Oregon Division of Financial Regulation within 30 days of any change in ownership, control, or principal officers; failure is grounds for suspension or revocation.

DFR examination authority

Oregon examiners may inspect books, records, and loan files without advance notice; licensees must respond to examination findings within the period stated in the report.

Civil penalty amounts

Oregon DFR may impose penalties up to $5,000 per violation per day for unlicensed activity and up to $25,000 per violation when the violation involves elder or vulnerable consumers.

MLO sponsorship requirement

An Oregon mortgage loan originator must be sponsored by a licensed mortgage banker or broker; sponsorship changes must be reported through NMLS within 5 business days.

Unlicensed activity consequence

Taking a residential mortgage loan application without an Oregon license is a violation subject to civil penalties, license denial, and potential restitution to affected borrowers.

UtPA mortgage application

Oregon's Unfair Trade Practices Act, ORS 646.605 et seq., prohibits deceptive mortgage advertising, bait-and-switch rate quotes, and undisclosed fees as unfair or deceptive acts.

Unearned fee prohibition

Oregon licensees may not pay commissions or referral fees to unlicensed persons for residential mortgage loan referrals, and may not collect fees for services not actually performed.

Dual tracking prohibition

Oregon servicers may not proceed with foreclosure while a complete loss mitigation application is pending; the servicer must evaluate the application before initiating or continuing foreclosure.

Prepayment penalty acknowledgment

Oregon requires the borrower's written acknowledgment before a lender may charge a prepayment penalty, and bars penalties on high-cost home loans after 36 months.

Provider choice restriction

Oregon prohibits conditioning loan approval on the borrower's use of a specific title company, appraiser, or insurer, unless the lender discloses a legitimate business reason in writing.

Elder exploitation reporting

Oregon licensees who suspect financial exploitation of a vulnerable adult must report to the Oregon Department of Human Services and to the Division of Financial Regulation.

Loan flipping restriction

Oregon prohibits refinancing a loan originated or brokered by the same licensee within 12 months unless the licensee documents a net tangible benefit to the borrower.

Restricted banking terminology

Oregon prohibits using bank, trust, credit union, or savings in a company name or advertisement unless the entity is authorized by law to use that term.

Loan estimate timing

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

Appraisal copy timing

Borrowers must receive a copy of the appraisal at least 3 business days before closing; the timing may be waived in writing, but the right to a copy may not.

Broker agreement requirement

Before performing services, an Oregon mortgage broker must obtain a signed loan origination or broker agreement disclosing fees and the broker's relationship to the lender.

Record retention period

Oregon licensees must retain loan files, disclosures, and transaction records for at least 3 years after loan closing or application denial, and produce them to DFR on request.

Dual capacity disclosure

When a licensee acts as both broker and lender on the same transaction, Oregon requires a written disclosure identifying both roles and the fees earned in each.

Advertising NMLS identifier

Oregon advertisements must include the licensee's licensed name and NMLS unique identifier; rate advertisements must also disclose the APR and any points or fees.