Oregon Implements Temporary Rules Regarding New Mortgage Loan Servicer Practices Act

The state of Oregon recently filed a Temporary Administrative Order, which sets forth rules regarding the application requirements, requirements for corporate surety bonds and irrevocable letters of credit, and application and renewal fees in connection with the new Oregon mortgage servicer license requirement.  These rules were effective immediately but are considered temporary because there was not sufficient time for the Oregon regulator to complete the notice and comment procedures for a permanent rule and provide adequate lead time for the industry.

The Mortgage Loan Servicer Practices Act, which sets forth the requirements for a Mortgage Servicer License, was signed into law on August 2, 2017.  It mandates that all Oregon mortgage servicers obtain a license from the Department of Consumer and Business Services by January 1, 2018 (“DCBS”).  The temporary rule was filed by the DCBS, and sets application requirements for the mortgage servicer license, detailing what information must be submitted to the NMLS.  It also clarifies the procedures for when an incomplete application is submitted, lists the branch office licensing requirements, provides a detailed explanation of and timing for the requirements for corporate surety bonds or irrevocable letters of credit for mortgage servicers, sets an initial application fee for the mortgage servicer license of $960, a nonrefundable $330 application fee for each branch the mortgage servicer establishes in Oregon, and a renewal application fee for a mortgage servicer license of $480 plus a nonrefundable $165 application fee for each branch the mortgage servicer establishes in Oregon, and describes which entities are exempt from licensing, among other things.

More information about the mortgage servicer license can be found here: https://www.thewbkfirm.com/industry/oregon-adds-mortgage-servicer-license-requirement.