Oregon Residential Lending Updates

Reverse Mortgages

Oregon House Bill 2562 amends ORS 86A.196 to include the requirement that a reverse mortgage advertisement include a clear and conspicuous summary of terms of the reverse mortgage, including a statement that failing to pay property taxes, insurance, maintenance and related taxes “may subject the property to a tax lien or other encumbrance or possible foreclosure.”

Additionally, a lender shall send a notice each year to any escrow agent, title insurance company or other agent that pays property taxes from an escrow account on behalf of a reverse mortgagee and to the reverse mortgagee’s last known address at least 60 calendar days before the property taxes are due for the property that is subject to the reverse mortgage. This notice must include the statement “the person retains title to the property that is subject of the reverse mortgage until the person sells or transfers the property and is therefore responsible for paying property taxes, insurance, maintence and related taxes. Failing to pay these amounts may cause the reverse mortgage loan to become due immediately and may subject the property to a tax lien or other encumbrance or to possible foreclosure.” However, this notice requirement does not apply to lenders where the reverse mortgage contract includes a reserve account for payment of taxes.

House Bill 2562

 

Mailing of Notices

Oregon Senate Bill 381 amends the requirement for delivery of notices including payoff statements, releases, resolution conference scheduling, foreclosure avoidance eligibility, notice of default and notice of sale to be mailed to all addresses on file with the lender for the borrower or borrower’s agent, including post office boxes.

Senate Bill 381

 

Proceeds of Sale

Oregon House Bill 2920 amends ORS 18.950 to require that “[u]pon receipt of the proceeds of the execution of sale of real property, a judgment creditor shall file a satisfaction document … for the amount credited against any money award portion of a judgment.”

Additionally, where a judgment debtor requests in writing that the judgment creditor file a satisfaction document and if after 10 days of receipt of the written request the document is not filed, “the court may render supplement judgment awarding reasonable attorney fees to the person making the motion, unless the judgment creditor establishes that the failure to file… was not the fault of the judgment creditor.”

House Bill 2920

  • 781-402-6443

Margaret Wright, J.D. is Regulatory Compliance Director at Bankers Advisory. She is a graduate of Stonehill College and earned her Juris Doctor at Suffolk University Law School. She is admitted to the Massachusetts Bar.

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