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

 

DIVISION 865

RECORDS AND REPORTS

441-865-0010

General Provisions

All mortgage bankers and mortgage brokers shall maintain and preserve financial records concerning business operations, transactions with customers, and trust account transactions. The records shall be sufficient for an independent accountant to prepare a compiled, reviewed or audited financial statement on the business of the mortgage banker or mortgage broker.

Stat. Auth.: ORS 86A.112 & 86A.136
Stats. Implemented: ORS 86A.112
Hist.: FCS 3-1993, f. & cert. ef. 11-15-93; FCS 14-2009, f. 12-30-09, cert. ef. 1-4-10

441-865-0020

Financial Records

At a minimum the financial records shall include:

(1) A record, such as a cash receipts journal, of all monies received from borrowers showing at least:

(a) Name of payor;

(b) Date of receipt;

(c) Amount received;

(d) Purpose of receipt including identification of the loan to which it relates, if any;

(e) The disposition of all monies received including the date and place of deposit or, if not deposited, the date, name of the person who received the monies and the manner in which the monies were transmitted.

(2) A sequential listing of all checks written for each bank account relating to the mortgage banker or mortgage broker's business, such as a cash disbursement journal, showing at least:

(a) Name of the payee;

(b) Date of payment;

(c) Amount of the payment;

(d) Purpose of the payment including identification of the loan to which it relates, if any.

(3) Bank account activity source documents for every account maintained for the mortgage banker’s or mortgage broker’s business including at least:

(a) Receipted deposit tickets and if "less cash deposits" are made, an explanation of the use of the cash;

(b) Paid checks if available and if these items are truncated, a copy of a document authorizing the director to request and receive copies of processed items from the financial institution;

(c) Bank advices, including but not limited to debit and credit notices and overdraft notices;

(d) Monthly or periodic statements;

(e) Detail on wire transfers into or out of the account(s) including the name of the person who is the payor or payee, date, amount, purpose of receipt or payment, and identification of the loan to which it relates, if any.

(4) A record or file of all monies owed by the mortgage banker or mortgage broker, such as an accounts payable journal.

Stat. Auth.: ORS 59.860 & 59.900
Stats. Implemented: ORS 59.860
Hist.: FCS 3-1993, f. & cert. ef. 11-15-93; FCS 11-1994, f. 11-4-94 cert. ef. 11-15-94; FCS 14-2009, f. 12-30-09, cert. ef. 1-4-10

441-865-0025

Residential Mortgage Lending Reports

No later than March 31 of each calendar year, a mortgage banker or a mortgage broker licensed at any time during the preceding calendar year must file a report with the director concerning the banker’s or broker’s business and operations conducted during the preceding calendar year related to residential mortgage transactions.

(1) A mortgage banker or mortgage broker must report the total number and dollar amount of all loans made or funded by the mortgage banker or mortgage broker in any state and those loans that are Oregon residential mortgage transactions.

(2) For loans made or funded for a property located in Oregon, a mortgage banker or mortgage broker must report the total number and dollar amount of:

(a) First-lien mortgage loans.

(b) Subordinate-lien mortgage loans including, but not limited to, home equity lines of credit.

(c) Mortgage loans having a fixed periodic payment of principal and interest throughout the mortgage term.

(d) Interest-only first-lien mortgage loans having a fixed interest rate.

(e) Interest-only first-lien mortgage loans having an adjustable interest rate.

(f) Negative amortization mortgage loans.

(g) Home equity conversion mortgages, commonly known as reverse mortgages.

(h) Adjustable rate first-lien mortgage loans.

(i) Adjustable rate subordinate-lien mortgage loans.

(j) Loans with a prepayment penalty in the contract at the time of closing.

(k) Mortgage loans closed for the purchase of a primary owner-occupied residential dwelling.

(L) Mortgage loans closed for the purchase of a secondary residence.

(m) Mortgage loans closed for the purchase of a non-owner occupied property that is a one-to-four family residential dwelling.

(n) Mortgage loans closed for the purpose of refinancing an existing mortgage loan secured by a primary owner-occupied residential dwelling.

(o) Mortgage loans closed for the purpose of refinancing an existing mortgage loan secured by a secondary residence.

(p) Mortgage loans closed for the purpose of refinance an existing mortgage loan secured by a non-owner occupied property that is a one-to-four family residential dwelling.

(q) Mortgage loans insured or guaranteed by a federal agency.

(3) For loans made or funded for a property located in Oregon, a mortgage banker or mortgage broker may report the total number and dollar amount of:

(a) Loans that were originated based on all of the following factors:

(A) Income documentation;

(B) Employment documentation; and

(C) Asset documentation.

(b) Loans that were originated based on one or two of the following factors:

(A) Income documentation;

(B) Employment documentation; or

(C) Asset documentation.

(c) Loans that were not originated based on any of the following factors:

(A) Income documentation;

(B) Employment documentation; or

(C) Asset documentation.

(d) Loans with a combined loan-to-value ratio of 80% or lower made to an individual having a middle credit bureau risk score of 620 or above.

(e) Loans with a combined loan-to-value ratio of 80% or lower made to an individual having a middle credit bureau risk score below 620.

(f) Loans with a loan-to-value ratio of greater than 80% made to an individual having a middle credit bureau risk score of 620 or above.

(g) Loans with a loan-to-value ratio of greater than 80% made to an individual having a middle credit bureau risk score below 620.

(4) In addition, a mortgage banker or a mortgage broker shall file a report of condition with the National Mortgage Licensing System and Registry of the mortgage banker’s or mortgage broker’s business and operations in Oregon related to residential mortgage transactions. The report shall be filed within 45 days following the end of each calendar quarter.

Stat. Auth.: ORS 86A.112
Stats. Implemented: ORS 86A.112, 86A.239
Hist.: FCS 12-2008, f. 12-8-08, cert. ef. 12-10-08; FCS 14-2009, f. 12-30-09, cert. ef. 1-4-10; FCS 3-2010, f. 3-18-10, cert. ef. 3-22-10; FCS 4-2012, f. & cert. ef 8-1-12

441-865-0030

Advertising

All mortgage bankers and mortgage brokers shall maintain copies of:

(1) All printed advertising published in newspapers, magazines, newsletters or other media designed for mass distribution;

(2) Scripts, or audio and video tapes, for advertising broadcast on radio or television; and

(3) Recorded telephone messages or voice mail messages which contain rate information.

Stat. Auth.: ORS 86A.112, 86A.136 & 86A.163
Stats. Implemented: ORS 86A.163
Hist.: FCS 3-1993, f. & cert. ef. 11-15-93; FCS 14-2009, f. 12-30-09, cert. ef. 1-4-10

441-865-0040

Borrower and Investor Complaints

(1) Copies of all written complaints by borrowers and investors shall be maintained in a separate complaint file by the individual's name in alphabetical order and shall contain at a minimum a copy of the original complaint and response.

(2) Copies of correspondence related to the complaints and a written disposition of the complaint by an officer, director or control person of the company shall be maintained in the complaint file or in the borrower or investor file of the mortgage banker or mortgage broker.

(3) Complaints unrelated to borrower or investor transactions need not be retained.

Stat. Auth.: ORS 86A.112 & 86A.136
Stats. Implemented: ORS 86A.112
Hist.: FCS 3-1993, f. & cert. ef. 11-15-93; FCS 2-2004, f. & cert. ef. 8-5-04; FCS 14-2009, f. 12-30-09, cert. ef. 1-4-10

441-865-0050

Personnel Records

(1) Each employer shall maintain a personnel ledger which shall contain the name, date of birth, position or title and responsibilities, unique identifiers, starting date, and date and reason for termination of salaried employees.

(2) For purposes of this rule, personnel shall include salaried employees, independent contractors, and consultants who are involved in loan origination, loan servicing, loan negotiations, investor solicitation, or who transact business with borrowers or lenders.

Stat. Auth.: ORS 86A.112 86A.112 & 86A.179
Hist.: FCS 3-1993, f. & cert. ef. 11-15-93; FCS 10-2001, f. 12-24-01, cert. ef. 1-1-02; FCS 14-2009, f. 12-30-09, cert. ef. 1-4-10

Additional Borrower Files

441-865-0060

Residential Borrower Files

(1) In addition to the books and records required under the provisions of OAR 441-865-0010 to 441-865-0090, a mortgage banker or mortgage broker that takes an application for a residential mortgage transaction must prepare and maintain the following:

(a) A copy of each executed loan application form, including the unique identifier of the mortgage loan originator that took the residential mortgage loan application and offered to negotiate or negotiated the terms of the loan;

(b) A copy of each executed fee agreement, if prepared;

(c) In the case of residential or single family loans, a borrower acknowledged statement that a loan interest rate will float or a copy of the executed lock agreement. The lock agreement shall specify at a minimum the: date of the agreement; file identification, and property address; lock-in rate; lock expiration date; disclosure that the lock may be subject to change if any of the loan factors change; and disclosure that if the lock expires, the rate and points are subject to change; and the term of the loan.

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

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

(f) A copy of all documents submitted by a borrower to the mortgage banker or mortgage broker in connection with the loan application;

(g) If required to be prepared for the residential mortgage transaction, a copy of the good faith estimate required by Regulation X, 12 C.F.R. Part 1024, and translated as applicable to comply with 86A.198;

(h) A copy of the executed Authorization to Release Credit Information Form;

(i) Copies of every credit report accessed by the mortgage banker or mortgage broker in connection with the transaction;

(j) If required to be prepared for the residential mortgage transaction, copies of the Truth in Lending Disclosure Statement required by Regulation Z, 12 C.F.R. Part 1026 and translated as applicable to comply with ORS 86A.198;

(k) If required to be prepared for the residential mortgage transaction, a copy of the final HUD-1 settlement statement required by 12 C.F.R. Part 1024; and

(2) In addition to the books and records required under the provisions of section (1) of this rule and OAR 441-865-0010 to 441-865-0090, a mortgage banker that funds a residential mortgage transaction must also prepare and maintain the following in the loan file:

(a) A summary of information on the loan funding program parameters required for the loan’s key terms;

(b) A copy of each executed loan application form, including on the form the unique identifier of the mortgage loan originator that took the residential mortgage loan application and offered to negotiate or negotiated the terms of the loan;

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

(d) A copy of the borrower executed note and executed trust deed;

(e) A copy of the good faith estimate prepared under Regulation X, 12 C.F.R. Part 1024 and translated as applicable to comply with ORS 86A.198;

(f) If required to be prepared for the residential mortgage transaction, a copy of the every credit report accessed by the mortgage banker or mortgage broker in connection with the transaction;

(g) If required to be prepared for the residential mortgage transaction, a copy of any disclosure required by Regulation Z, 12 C.F.R. Part 1026 and translated as applicable to comply with ORS 86A.198, including, but not limited to, the Truth in Lending disclosure statement;

(h) A copy of the final HUD-1 settlement statement required by 12 C.F.R. Part 1024; and

(i) A copy of the statement that notifies the borrower that loan documents associated with the transaction will be in English and that advises the borrower to obtain appropriate assistance, with any necessary translations as required by ORS 86A.195.

(3) A mortgage broker that closes a residential mortgage loan in the name of the broker shall retain the records required in Sections (1) and (2) of this rule.

(4) If the loan is funded by an investor other than persons enumerated in ORS 59.035(4) or (5), the mortgage banker or mortgage broker must comply with the records requirements under OAR 441-865-0080.

Stat. Auth.: ORS 86A.112 & 86A.136
Stats. Implemented: ORS 86A.112
Hist.: FCS 3-1993, f. & cert. ef. 11-15-93; FCS 11-1994, f. 11-4-94, cert. ef. 11-15-94; FCS 4-1999, f. & cert. ef. 12-23-99; FCS 7-2001, f. & cert. ef. 8-1-01; FCS 3-2010, f. 3-18-10, cert. ef. 3-22-10; FCS 4-2012, f. & cert. ef 8-1-12

441-865-0080

Investor Files

(1) In addition to all other books and records required under the provisions of OAR 441-865-0010 to 441-865-0090, a mortgage banker or a mortgage broker must maintain the following documents and records when borrower loans are funded by investors who are persons other than those exempt under ORS 59.035(4) or (5):

(a) A copy of the written disclosure document described in OAR 441-870-0050(1);

(b) A written statement, signed and dated by the investor acknowledging receipt of the written disclosure document and an opportunity to review the supporting documentation;

(c) The supporting documentation evidencing the summarized information contained in the disclosure document.

(d) A copy of the written evidence of obligation and the instrument creating the investor's lien or assignment of the lien as required pursuant to OAR 441-870-0060;

(e) A copy of documents evidencing that the instrument creating the lien or assignment has been recorded pursuant to the provisions of OAR 441-870-0060;

(f) Copies of guarantees, surety agreements, "with-recourse" agreements or guarantees, and correspondence related to the sale of real estate paper to the investor.

(2) The documents required under the provisions of subsections (1)(a) through (f) of this rule may be maintained in separate files designated "Investor Files" or in the borrower file at the option of the mortgage banker or mortgage broker.

(3) For those documents which do not contain the original executed signature of the investor, the requirements of this rule shall be deemed to be satisfied if the mortgage banker or mortgage broker maintains computerized records from which hard copies or reports can be generated if the reports contain all the information required under the provisions of this rule.

Stat. Auth.: ORS 86A.112 & 86A.136
Stats. Implemented: ORS 86A.112
Hist.: FCS 3-1993, f. & cert. ef. 11-15-93; FCS 11-1994, f. 11-4-94, cert. ef. 11-15-94; FCS 14-2009, f. 12-30-09, cert. ef. 1-4-10

Client Funds

441-865-0090

Trust Account and Escrow Depository

In addition to the books and records required pursuant to the provision of OAR 441-865-0010 to 441-865-0080, a mortgage banker or a mortgage broker is required to maintain the books and records required under the provisions of OAR chapter 441, division 875.

Stat. Auth.: ORS 86A.112 & 86A.136
Stats. Implemented: ORS 86A.157
Hist.: FCS 3-1993, f. & cert. ef. 11-15-93; FCS 14-2009, f. 12-30-09, cert. ef. 1-4-10

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