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 59.860
Stats.
Implemented: ORS 59.860
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
On or before 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 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, until March 31, 2010, 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.
(5)(a) In addition to the report required by this rule, on or before March 31 of each calendar year a mortgage banker or a mortgage broker shall file a call report published by the State Regulatory Registry, LLC for the National Mortgage Licensing System and Registry to report the mortgage banker’s or mortgage broker’s business and operations in Oregon related to residential mortgage transactions.
(b) Subsection (a) of this section applies to reports filed on or after March 31, 2011.
Stat.
Auth.: ORS 59.860
Stat.
Implemented: ORS 59.860
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
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 59.860, 59.900 & 59.945
Stats.
Implemented: ORS 59.945
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 59.860 & 59.900
Stats.
Implemented: ORS 59.860
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 59.860 & 59.900
Stats.
Implemented: ORS 59.860 & 59.969
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
441-865-0060
Residential Borrower Files
(1) In the case of residential loans and applications for residential loans, and in addition to the books and records required under the provisions of OAR 441-865-0010 to 441-865-0090, licensees shall maintain the following:
(a) Copy of each executed loan application form;
(b) 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:
(A) Date of the agreement;
(B) File identification, and property address;
(C) Lock-in rate;
(D) Lock expiration date;
(E) Disclosure that the lock may be subject to change if any of the loan factors change;
(F) Loan type (Fixed, GPM, ARM, other);
(G) Disclosure that if the lock expires, the rate and points are subject to change;
(H) Term of the loan;
(I) Loan fee and discount, if any.
(d) A copy of the Good Faith Estimate prepared pursuant to Federal Regulation X;
(e) A copy of the executed Authorization to Release Credit Information Form;
(f) Copies of Final Credit report, or the report relied upon for the loan decision, if other than the final credit report, received on the borrower including documentation of borrower payment history;
(g) Copies of the Truth in Lending Disclosure Statement made pursuant to Federal Regulation Z; and
(h) A copy of the final HUD 1.
(2) If the loan is funded by an investor other than persons enumerated in ORS 59.035(4) or (5) licensees are required to comply with the records requirements pursuant to OAR 441-865-0080.
Stat. Auth.: ORS 59.860
& ORS 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
4-1999, f. & cert. ef. 12-23-99; FCS 7-2001, f. & cert. ef.
8-1-01 12-23-99
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 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
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 59.860 & 59.900
Stats.
Implemented: ORS 59.935
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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