Oregon Adopts Consumer Finance Licensing Rules
by: Paul McSheffrey
The Oregon Department of Consumer and Business Services has adopted rules establishing the process for accepting consumer finance licensing applications, renewals, and administrative actions via the Nationwide Mortgage Licensing System. The Division of Finance and Corporate Securities has enacted 41-730-0010 regarding definitions, 441-730-0025 regarding license applications, and 441-730-0030 regarding charges to be paid.
Applications must be submitted via the Nationwide Mortgage Licensing System and Registry (NMLS). For applicants who currently hold a license, the applicant must provide five years of previous employment history for the proposed manager of the office. The employment history must demonstrate verifiable recent experience in traditional lending. “Recent” is defined as no less than three years out of the five preceding years from the date of the application. At the discretion of the Director of the Department of Consumer and Business Services, education may be substituted for three of the five required years of experience.
Those applicants who are not currently licensed must submit the employment history of all executive officers, owners, directors, and managing partners. At least half of those members of the office must have verifiable recent experience in banking, consumer finance, or mortgage lending. Additionally, a business plan must be submitted including the financial history of the applicant, copies of proposed loan documents, a description of the types of loans to be made, the process in which the applicant will ensure the loans made comply with Oregon law, and the funding sources of the loans.
A consumer finance lending license expires on December 31 of each year. Each licensee must submit a renewal request along with the required fees at least thirty days prior to the expiration of the license. The fees include $600 for an initial application for each location to be licensed and $600 for each renewal.
These rules are effective immediately.
About the Author
Paul McSheffrey, J.D. is Regulatory Compliance Consultant at Bankers Advisory, Inc. He is a graduate of Northeastern University and earned his Juris Doctor at the New England School of Law. Paul is admitted to the Bar in Massachusetts and New York. He can be reached at paul@bankersadvisory.com
Paul McSheffrey, JD, is a senior regulatory compliance consultant with CLA. He is a graduate of Northeastern University and earned his juris doctor at the New England School of Law. He is admitted to the Bar in both Massachusetts and New York.
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