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The Oregon Administrative Rules contain OARs filed through March 15, 2014
 
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DEPARTMENT OF CONSUMER AND BUSINESS SERVICES,
DIVISION OF FINANCE AND CORPORATE SECURITIES

 

DIVISION 446

DEALER LICENSING

441-446-0100

Purpose and Scope

OAR 441-446-0100 through 441-446-0300 clarify the definitions, rules and requirements pertaining to businesses that engage in the business of selling manufactured structures under ORS chapter 446.

Stat. Auth.: ORS 446.666
Stats. Implemented: ORS 446.661, 446.666
Hist.: BCD 10-2005, f. 4-29-05, cert. ef. 5-1-05; Renumbered from 918-030-0400, FCS 7-2008 f. & cert. ef. 7-28-08; FCS 6-2013, f. & cert. ef. 11-15-13

441-446-0110

Definitions

As used in OAR 441-446-0100 through 441-446-0300 and ORS chapter 446, unless the context clearly indicates otherwise, the following definitions apply:

(1) "Corrected license" means:

(a) A limited manufactured structure dealer license that has been amended by the director to reflect a change in the identified operator of a manufactured dwelling park under ORS 446.706; or

(b) A manufactured structure dealer license that has been amended by the director to reflect an additional place of business, a change in the manufactured structure dealer’s place of business, or a change in the dealer’s business name under ORS 446.716.(2) "Dealer" means a person who is required to be licensed under ORS 446.691, 446.696, 446.701 or 446.706.

(3) "Dealership," "place of business," or "business location" means a physical location within the state where a dealer conducts activity described in ORS 446.671.

(4) "Director" means the Director of the Department of Consumer and Business Services.

(5) “Manufactured dwelling buyer’s disclosure form” means the form developed in April 2010 by the director as authorized under ORS 446.260 and made available on the Internet at http://bcd.oregon.gov/programs/mdprogram/mh_buyer_disclosure_040110.pdf (6) “Mortgage loan originator” has the same meaning given to that term in ORS 86A.200.

(7) “NMLS Consumer Access” means the publicly-available compilation of information on licensed and registered mortgage loan originators maintained by the State Regulatory Registry, LLC and made available on the Internet at http://www.nmlsconsumeraccess.org/.

(8) “Residential mortgage loan” has the same meaning given to that term in ORS 86A.200, but for the purposes of OAR chapter 441, division 446, is limited to a personal property loan obtained to purchase a previously owned manufactured dwelling in a manufactured dwelling park.

Stat. Auth.: ORS 446.666
Stat. Implemented: ORS 86A.203, 446.666
Hist.: BCD 16-2006(Temp), f. 6-30-06, cert. ef. 7-1-06 thru 12-28-06; BCD 13-2006, f. 9-29-06, cert. ef. 10-1-06; Renumbered from 918-030-0410, FCS 7-2008 f. & cert. ef. 7-28-08; FCS 6-2013, f. & cert. ef. 11-15-13

441-446-0200

Supplemental or Corrected Licenses

A supplemental or corrected license shall have the same expiration as the limited or dealer license.

Stat. Auth.: ORS 446.666
Stats. Implemented: ORS 446.666 & 446.716
Hist.: BCD 10-2005, f. 4-29-05, cert. ef. 5-1-05; Renumbered from 918-030-0420, FCS 7-2008 f. & cert. ef. 7-28-08; FCS 6-2013, f. & cert. ef. 11-15-13

441-446-0203

Exemptions from Mortgage Loan Originator Licensing

In addition to the provisions contained in ORS 86A.203(2) through (4) relating to the exemption of a dealer from licensing as a mortgage loan originator, the following conditions apply:

(1)(a) Only one limited manufactured structure dealer licensee per manufactured dwelling park may claim the exemption from licensing under ORS 86A.203.

(b) A manufactured structure dealer may offer or negotiate the terms of a residential mortgage loan in a manufactured dwelling park where a limited manufactured structure dealer claims an exemption under ORS 86A.203(2)(f), but the manufactured structure dealer may not acquire or hold an ownership interest in the manufactured dwelling park or in the business entity holding the limited manufactured structure dealer license.

(2)(a) A licensed or registered mortgage loan originator may offer or negotiate terms for a residential mortgage loan on behalf of a dealer who holds the statutory maximum number of loans set out in ORS 86A.203(3) or (4), as applicable to that dealer.

(b) A dealer must verify, whether through NMLS Consumer Access or other means, that the mortgage loan originator retained to complete a transaction under this section meets the requirements of ORS 86A.200 to ORS 86A.239.

(c) This section does not waive any other legal requirements that may apply to a dealer.

(3) For purposes of establishing the maximum number of residential mortgage loans a dealer may offer or negotiate without a mortgage loan originator license, this rule applies to residential mortgage loans made on or after July 31, 2010.

Stat. Auth.: ORS 446.666
Stats. Implemented: ORS 86A.203
Hist.: FCS 6-2013, f. & cert. ef. 11-15-13

441-446-0210

Dealer Requirements

(1) A dealer shall file all required applications for ownership documents and trip permits, or ensure required applications are completed and filed, as required by OAR chapter 918, divisions 550 and 600.

(2) A manufactured structure dealer selling manufactured homes for installation in Oregon shall present each potential buyer of a new manufactured home with the manufactured dwelling buyer’s disclosure form to read and sign prior to the completion of the purchase agreement for a manufactured home. A dealer shall give one copy of the disclosure form, signed by the buyer and the dealer, to the buyer and retain one copy in the dealer's files for not less than five years from the date of sale. Copies of signed disclosures shall be made available to the director upon request.

(3) A dealer must maintain accurate records for a period of five years from the last date for the transaction, including after the dealer has ceased doing business in the state. A dealer may maintain records in any electronic format capable of being reduced to written form. Records required to be maintained include but are not limited to:

(a) A legible copy of any disclosure statement provided to a purchaser;

(b) A legible copy of any trip permit issued by the dealer;

(c) A record of the names and addresses of all contractors retained or hired by the dealer to engage in any aspect of manufactured structure installation or service work and a record identifying the manufactured structures on which each contractor performed work;

(d) Records of any correction notices the dealer has sent to a manufacturer for repairs arranged by the dealer;

(e) A record of any alterations a dealer made to a manufactured structure prior to sale or as a part of a sales agreement;

(f) A legible copy of all records relating to a sale, including but not limited to confirmation orders, diagrams, purchase options, written agreements, financing applications, financing agreements, change orders, price changes, ownership documents, and applications to record a structure in deed records; (g) A copy of the verification, whether completed through NMLS Consumer Access or by other means, of a mortgage loan originator’s license or registration required by OAR 441-446-0203; and

(h) Records associated with consignment sales.

(4) Records specified under this section must be readily accessible to the director upon request. Records may be stored at the dealer’s principal place of business, an additional place of business indicated on the dealer’s license, or in a location within the state that the dealer may produce the records for the director’s examination.

(5) In addition to the bond or letter of credit requirements in ORS 446.726, a dealer shall authorize their bond or letter of credit company to notify the director upon any change to or cancellation of the insurance required for their dealer license, and notify the director of any change to or cancellation of the bond or letter of credit required for their dealer license.

(6) A dealer shall, within 10 business days, notify the director of any name, ownership, address changes or additions, through a director approved form including any change of registration status with the Secretary of State, and obtain all required licenses.

(7) A dealer shall exercise due care and diligence that is consistent with industry practice in all transactions involving a manufactured structure and shall not, by act or omission, endanger the economic welfare or the health or safety of the public through such transactions.

(8) A dealer shall not engage in conduct which demonstrates habitual disregard for the law.

Stat. Auth.: ORS 446.666
Stats. Implemented: ORS 446.225, 446.260, 446.666, 446.691, 446.696, 446.701, 446.706, 446.716, 446.726, 446.736, 446.741 & 446.751
Hist.: BCD 10-2005, f. 4-29-05, cert. ef. 5-1-05; Renumbered from 918-030-0430, FCS 7-2008 f. & cert. ef. 7-28-08; FCS 6-2013, f. & cert. ef. 11-15-13

441-446-0230

Recordkeeping Requirements for Residential Mortgage Loans

In addition to the recordkeeping requirements contained in 441-446-0210, a dealer that takes an application for a residential mortgage loan must prepare and maintain all documentation related to the loan, including but not limited to the following:

(1) A copy of each loan application form signed by the borrower;

(2) A copy of all documentation relied upon in making the loan decision;

(3) A copy of all documents submitted by a borrower to the dealer in connection with the loan application;

(4) A copy of any documents noting approval or denial of a borrower’s mortgage loan application;

(5) A copy of all correspondence with the borrower in writing or in a format easily converted to writing;

(6) A copy of all Truth in Lending Act disclosure statements required by Regulation Z, 12 C.F.R. Part 1026;

(7) A copy of an authorization signed by the borrower to release credit information to the dealer for evaluating whether to extend credit to the borrower;

(8) A copy of every credit report accessed by the dealer in connection with the loan;

(9) A copy of the retail installment contract signed by both parties, the note, or a copy of another form of agreement signed by the parties evidencing the terms of the transaction for the manufactured structure;

(10) A copy of the purchase agreement signed by the borrower;

(11) A copy of the ownership documents filed with the director under ORS 446.561 et seq.; and

(12) A copy of the borrower’s payment schedule and a copy of receipts for loan payment received by the dealer.

Stat. Auth.: ORS 446.666
Stat. Implemented: ORS 86A.203
Hist.: FCS 6-2013, f. & cert. ef. 11-15-13

441-446-0300

Violations

In addition to any grounds for sanction specified in ORS chapter 446, the director may deny, suspend, revoke or place conditions on a dealer’s license if a dealer:

(1) Fails to maintain records or any other requirements under OAR 441-446-0210;

(2) Engages in conduct which constitutes a Class A misdemeanor or any felony arising out of actions related to the selling, brokering, trading or exchanging of manufactured structures or conviction of such Class A misdemeanor of felony; or

(3) Engages in conduct constituting an unlawful practice under ORS 646.607 or 646.608;

(4) Fails to maintain the required surety bond or letter of credit under ORS 446.721; or

(5) Engages in a pattern or practice of conduct that violates any provision of ORS 86A.203 to 86A.239, 446.003 to 446.200, 446.225 to 446.285, 446.395 to 446.420, and 446.561 to 446.756 or any rules adopted thereunder.

Stat. Auth.: ORS 446.741
Stats. Implemented: ORS 446.666, 446.741, 446.746, 446.751 & 446.756
Hist.: BCD 10-2005, f. 4-29-05, cert. ef. 5-1-05; Renumbered from 918-030-0490, FCS 7-2008 f. & cert. ef. 7-28-08; FCS 6-2013, f. & cert. ef. 11-15-13

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