DIVISION 880
LOAN ORIGINATORS
441-880-0010
Certified Authority
(1) Until July 31, 2010, an organization may apply to the director to become a certified authority by filing an application in a form acceptable to the director. The application must include:
(a) Name, address, contact person, phone number and e-mail address;
(b) Names of the principals of the organization; and
(c) The bylaws or rules that will be utilized by the organization in selecting providers.
(2) The director’s approval for certification will be dependent upon:
(a) The experience, knowledge, and professional ethics of the membership of the organization; and
(b) The bylaws or rules for approval and withdrawal of provider applications and test and course content.
(3) Certification will remain effective until surrendered by the certified authority, revoked or suspended by the director, or until July 31, 2010, whichever occurs sooner.
(4) Revocation or suspension of a certified authority will occur if the certified authority fails to follow its own bylaws or rules or fails to consider in good faith the test and course content in provider applications.
(5) The certified authority will review and approve or disapprove providers and the following matters:
(a) The requirements and contents of the entry-level training course;
(b) The examination on state and federal laws and rules relating to mortgage lending in this state;
(c) The contents of all continuing education.
(6) The certified authority will be responsible for approving education offered by another state's mortgage lender program, provided the director has determined that the laws of that state provide protection to the public that exceeds or is substantially similar to the protection provided by Oregon's mortgage lender law and rules.
Stat. Auth.:
ORS 59.977
Stats.
Implemented: ORS 59.977
Hist.:
FCS 10-2001, f. 12-24-01, cert. ef. 1-1-02; FCS 2-2004, f. & cert. ef. 8-5-04;
FCS 14-2009, f. 12-30-09 cert. ef. 1-4-10
441-880-0020 [Renumbered to 441-880-0215]
441-880-0021
Mortgage Loan Originator Examination Requirements
An applicant for a mortgage loan originator license shall take and pass an examination on state and federal statutes and rules relating to mortgage lending in this state before taking an application for a residential mortgage loan or negotiating the terms of a residential mortgage loan, consistent with the requirements of this rule.
(1) Between January 1, 2010 and July 16, 2010, an applicant for a mortgage loan originator license shall take and pass either:
(a) An examination approved by the Mortgage Lending Education Board and administered by a provider approved by the Mortgage Lending Education Board under ORS 59.977 and OAR 441-880-0010; or
(b) The national and Oregon state components of the examination approved by the Nationwide Mortgage Licensing System and Registry.
(2) On or after July 16, 2010, an applicant for a mortgage loan originator license shall take and pass the national and Oregon state components of the examination approved by the Nationwide Mortgage Licensing System and Registry.
(3) A passing score on either examination described in section (1) of this rule is 75 percent or greater. A passing score on a certified authority approved examination is valid for two years or until July 16, 2010, whichever occurs sooner. A person must apply for a license within two years of successfully passing an examination under this rule.
Stat.
Auth.: ORS 59.975, 2009 OL Ch 863, ¦ 13a
Stats.
Implemented: ORS 59.969, 59.975, 2009 OL Ch 863, ¦ 5
Hist.:
FCS 14-2009, f. 12-30-09 cert. ef. 1-4-10
441-880-0022
Mortgage Loan Originator Continuing Education Requirements
A mortgage loan originator shall take continuing education courses in order to take an application for a residential mortgage loan or negotiate the terms of a residential mortgage loan, consistent with the requirements of this rule.
(1)(a) Between January 1, 2010 and December 31, 2010, a mortgage loan originator shall take either a continuing education course approved by the Mortgage Lending Education Board under ORS 59.977 and OAR 441-880-0010 or by the Nationwide Mortgage Licensing System and Registry. Each mortgage loan originator must complete 20 hours of continuing education within 24 months of the mortgage loan originator’s notification date and every subsequent 24-month period. There shall be no carryover of hours of continuing education between periods. A mortgage loan originator is not required to complete continuing education if there is less than 24 months between the end of the last education period and December 31, 2010.
(b) A mortgage loan originator who fails to meet the continuing education requirement between January 1, 2010 and December 31, 2010 shall not take an application for a residential mortgage loan or negotiate the terms of a residential mortgage loan until the mortgage loan originator makes up any continuing education required by this section.
(c) The director may refuse to renew, deny or suspend the mortgage loan originator’s license until the mortgage loan originator makes up any continuing education required by this section.
(2)(a) On or after January 1, 2011, a mortgage loan originator shall take a continuing education course approved by the Nationwide Mortgage Licensing System and Registry. A mortgage loan originator shall complete at least ten hours of continuing education per year.
(b) A mortgage loan originator who fails to meet the continuing education requirement after July 31, 2011 shall not take an application for a residential mortgage loan or negotiate the terms of a residential mortgage loan until the mortgage loan originator makes up any continuing education required by this section.
(c) The director may refuse to renew, deny or suspend the mortgage loan originator’s license until the mortgage loan originator makes up any continuing education required this section.
(3) For purposes of this rule:
(a) “Notification date” is the date the director receives the first initial, renewal, or amended mortgage banker/broker mortgage banker or mortgage broker application which lists the mortgage loan originator's name. For an existing mortgage banker or mortgage broker, the notification to the director of a person functioning as a loan originator is considered an amended application and establishes the notification date for that loan originator.
(b) For a mortgage loan originator not subject to continuing education requirements while employed by an exempt entity, but who was previously the subject of notification to the director as a mortgage loan originator, the date of the director's receipt of an initial, renewal or amended application which again lists that loan originator's name is a new notification date for that loan originator.
Stat.
Auth.: ORS 59.975, 2009 OL Ch 863, ¦ 13a
Stats.
Implemented: ORS 59.969, 59.975, 2009 OL Ch 863, ¦ 6
Hist.:
FCS 14-2009, f. 12-30-09 cert. ef. 1-4-10
441-880-0030
Employer's Requirements
(1) All persons employing mortgage loan originators shall provide the director with a list of all mortgage loan originators and the information in section (3) of this rule.
(2) Between January 1, 2010 and July 31, 2010, within 30 days of a person starting to function as a mortgage loan originator or ending functioning as a mortgage loan originator, the employer must notify the director by amending their licensee application in a form approved by the director.
(3) If the notice is for a person starting to function as a mortgage loan originator, the amendment shall include the following information about the mortgage loan originator:
(a) Name;
(b) The start date as a loan originator;
(c) Current business and home address, telephone, and e-mail address;
(d) Social Security number;
(e) Date of birth; and
(f) Certification of compliance with ORS 59.967(2), 59.969(4)(a) & (b) and 59.971.
(4) If the notice is for a person ending functioning as a mortgage loan originator, the amendment should include the following information:
(a) Name;
(b) The ending date as a mortgage loan originator;
(c) Last known contact information; and
(d) The reason for termination if it was for failure to comply with state or federal laws, regulations or rules.
(5) Between January 1, 2010 and July 31, 2010, at the time for each mortgage banker/broker license application or renewal, the employer must notify the director of the names and current contact information of the loan originators employed, including certification of compliance with ORS 59.967(2), 59.969(4)(a) & (b) and 59.971.
(6) No employer may hire, or continue to employ, a person to serve as a mortgage loan originator who has not met the educational requirements of ORS 59.840 through 59.980, 59.969 & 59.975 and OAR 441-880-0020.
(7) As courses are satisfactorily completed by the mortgage loan originators, the employer shall retain a copy of the completion certificate in the loan originator's personnel file for review by the director at the time of the next occurring examination or for five years, whichever first occurs.
(8) On or after July 31, 2010, all mortgage brokers or mortgage bankers employing mortgage loan originators shall provide notice to the Nationwide Mortgage Licensing System and Registry within 30 days of a person starting to function as a mortgage loan originator or ending functioning as a mortgage loan originator.
(9) Sponsorship or termination of sponsorship of a loan originator through the Nationwide Mortgage Licensing System and Registry is deemed compliance with this rule.
Stat.
Auth.: ORS 59.900
Stats.
Implemented: ORS 59.969
Hist.:
FCS 10-2001, f. 12-24-01, cert. ef. 1-1-02; FCS 2-2004, f. & cert. ef. 8-5-04;
FCS 1-2007, f. & cert. ef. 1-17-07; FCS 14-2009, f. 12-30-09 cert. ef. 1-4-10
441-880-0040
Mortgage Loan Originator Requirements
(1) It is unlawful for any person to act as a mortgage loan originator unless the educational requirements in ORS 59.840 to 59.980, 2009 Or Laws ch. 863, Sections 1 to 13, and OAR 441-880-0020 are met.
(2) The mortgage loan originator must retain the original completion certificate provided following satisfactory course completion for five years and provide a copy to the employer.
(3) Only mortgage loan originators employed by exempt employers may file notification of completed education directly with the director. A copy of the completion certificate may be provided or notification may be provided electronically of the course name and number, the number of hours of each course, the completion date, and the score or pass/fail result, if applicable.
(4) A mortgage loan originator may notify the director of termination of the mortgage loan originator's employment including the end date, reason for termination, and current contact information for the mortgage loan originator.
(5) Sections (1) to (4) of this rule apply to mortgage loan originators before July 31, 2010.
(5) A mortgage loan originator shall be required to notify the director within 30 days of the occurrence of any of the following significant developments:
(a) Filing for bankruptcy.
(b) Notification of the institution of license revocation procedures against the mortgage loan originator by any state.
(c) Filing of a felony indictment against the mortgage loan originator.
(d) Convictions for a felony or misdemeanor involving fraud.
(e) Instances of material litigation occurring against the mortgage loan originator.
(f) Changes in the information required on the mortgage loan originator’s application form, including, but not limited to address changes, phone number changes, etc. and
(g) Changes in the employment status of a mortgage loan originator.
(6) Section (5) of this rule applies to mortgage loan originators on or after August 1, 2010.
Stat.
Auth.: ORS 59.975
Stats.
Implemented: ORS 59.975
Hist.:
FCS 10-2001, f. 12-24-01, cert. ef. 1-1-02; FCS 2-2004, f. & cert. ef. 8-5-04;
FCS 14-2009, f. 12-30-09 cert. ef. 1-4-10
441-880-0050 [Renumbered to 441-860-0045]
441-880-0200
Application Process
An applicant for a license as a mortgage loan originator shall submit all information required by the National Mortgage Licensing System and Registry to the Nationwide Mortgage Licensing System and Registry. This rule applies to mortgage loan originators licensed on or after July 31, 2010.
Stat.
Auth.: 2009 OL Ch 863, § 13a
Stats.
Implemented: 2009 OL Ch 863, § 4
Hist.:
FCS 14-2009, f. 12-30-09 cert. ef. 1-4-10
441-880-0205
Interim Licenses
If the director issues an interim mortgage loan originator license, it shall only be valid during the period of July 31, 2010, to December 31, 2010. This rule applies to mortgage loan originators on or after July 31, 2010.
Stat.
Auth.: 2009 OL Ch 863, § 13a
Stats.
Implemented: 2009 OL Ch 863, § 3a
Hist.:
FCS 14-2009, f. 12-30-09 cert. ef. 1-4-10
441-880-0210
Financial Responsibility Criteria
(1) For purposes of this rule, an applicant is not financial responsible if the applicant has shown a disregard of his or her own financial circumstances, taking into consideration the totality of the applicant’s financial circumstances.
(2) Factors that the director may consider in determining whether an applicant has not demonstrated financial responsibility include, but are not limited to, the following:
(a) Current outstanding judgments or material litigation, excluding judgments solely as a result of medical expenses;
(b) Current outstanding tax liens or other government liens and filings;
(c) A foreclosure within the past three years and the type of property subject to foreclosure, whether residential or commercial;
(d) Pending or completed bankruptcy proceedings, and the nature of the proceedings, occurring within the past five years; or
(e) A pattern of seriously delinquent accounts within the past three years.
(2) In assessing the financial responsibility of the applicant, the director may consider extenuating or mitigating factors, including but not limited to the following:
(a) Involuntary loss of job or income;
(b) Involuntary medical expenses;
(c) Divorce;
(d) Attempting workout arrangements with creditors; or
(e) Any other factor the director believes reflects circumstances beyond the control of the applicant.
(3) This rule applies to mortgage loan originators licensed on or after July 31, 2010.
Stat.
Auth.: 2009 OL Ch 863, § 13a
Stats.
Implemented: 2009 OL Ch 863, § 4
Hist.:
FCS 14-2009, f. 12-30-09 cert. ef. 1-4-10
441-880-0215
Oregon Examination of Mortgage Loan Originators
(1) Each applicant for a mortgage loan originator license must pass an entry-level examination approved by the National Mortgage Licensing System and an examination on Oregon statutes and rules approved by the National Mortgage Licensing System prior to engaging in activities as an Oregon mortgage loan originator.
(2) A passing score on either examination described in section (1) of this rule is 75 percent or greater.
(3) A passing score on either examination described in section (1) of this rule is valid for 2 years from the date of passing the examination.
(4) This rule applies to mortgage loan originators on or after July 31, 2010.
Stat.
Auth.: ORS 2009 OL Ch 863, § 13a
Stats.
Implemented: ORS 2009 OL Ch 863, § 5
Hist.:
FCS 10-2001, f. 12-24-01, cert. ef. 1-1-02; FCS 2-2004, f. & cert. ef. 8-5-04;
FCS 1-2007, f. & cert. ef. 1-17-07; Renumbered from 441-880-0020 by FCS 14-2009,
f. 12-30-09 cert. ef. 1-4-10
441-880-0300
License Renewal; Reinstatement Process
(1) A mortgage loan originator license shall expire on December 31 of each calendar year. At least 30 days prior to the expiration of a mortgage loan originator license, a mortgage loan originator shall submit all information required by the National Mortgage Licensing System and Registry to the Nationwide Mortgage Licensing System and Registry. The renewal application shall include evidence that:
(a) The applicant continues to meet the minimum requirements for a mortgage loan originator license in 2009 Or Laws ch. 863, § 4;
(b) The applicant paid any required fee, as applicable, under OAR 441-880-0400; and
(c) The applicant completed ten hours of continuing education approved by the Nationwide Mortgage Licensing System and Registry.
(2) A person applying to reinstate a mortgage loan originator license that has lapsed for a period of five or more years, whether or not the applicant was employed or continued to engage in business as a mortgage loan originator during the period of the lapse, shall:
(a) Complete the continuing education requirements under this section (1) of this rule; and
(b) Pass a qualified written test under 2009 Or Laws ch. 863, § 5 and OAR 441-880-0215.
(3) This rule applies to mortgage loan originators on or after July 31, 2010.
Stat.
Auth.: 2009 OL Ch 863, § 13a
Stats.
Implemented: 2009 OL Ch 863 , §§ 5, 6
Hist.:
FCS 14-2009, f. 12-30-09 cert. ef. 1-4-10
441-880-0310
Deficiencies in Continuing Education
(1) A mortgage loan originator may submit a written request to make up deficiencies in continuing education due to hardship or illness. A written request shall:
(a) Describe the hardship or illness; and
(b) Describe why the mortgage loan originator was unable to meet requirements for continuing education.
(2) In all requests under this rule, the mortgage loan originator has the burden of proving the hardship or illness responsible for the deficiency in continuing education.
(3) The director shall consider and may grant a request, but the director shall not grant a request for the following:
(a) Failure or inability to pay applicable fees to obtain or maintain a mortgage loan originator license;
(b) A suspension of business activities as a mortgage loan originator; or
(c) Incapacity due to imprisonment
(4) Sections (1) to (3) of this rule apply to mortgage loan originators on or after July 31, 2010.
(5) Nothing in this rule affects the director’s authority to require by order a mortgage loan originator to make up deficiencies in continuing education under 2009 Or Laws ch. 863, § 6 or to decline to renew the person’s mortgage loan originator license.
Stat.
Auth.: 2009 OL Ch 863, § 13a
Stats.
Implemented: 2009 OL Ch 863, § 6
Hist.:
FCS 14-2009, f. 12-30-09 cert. ef. 1-4-10
441-880-0400
Fees Payable to the Director
In addition to any fees required to participate in the National Mortgage Licensing System and Registry, a person applying for or renewing a mortgage loan originator license shall pay to the director a nonrefundable fee of $100 for the issuance or renewal of a mortgage loan originator license.
Stat.
Auth.: 2009 OL ch. 863, § 13a
Stat.
Implemented: ORS 59.900, 2009 OL ch. 863, § 3
Hist.:
FCS 12-2009, f. 12-2-09, cert. ef. 1-1-10
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