Oregon Amends Exemption Provisions for Certain Entities & MLO Licensing
by: Paul McSheffrey
Provisions Regarding Exemption from Licensing for Mortgage Loan Originators
The Oregon Legislative Assembly recently passed Enrolled House Bill 2856, making changes to the licensing requirements for mortgage loan originators found in ORS 86A.203. The amendments add an exemption from licensing requirements for an individual who as seller within a twelve month period, negotiates no more than three residential mortgage loans that are not secured by the individual’s residence. However, the exemption applies only if the Consumer Financial Protection Bureau does not determine after the amendments take effect, that the definition of “loan originator” includes the activities described above. Additionally, the exemption requires that the individual hold no more than eight residential mortgage loans without meeting the licensing requirements.
The amendments declare an emergency and therefore are effective immediately with an operative date of September 3, 2013.
Provisions Regarding Exemptions for Certain Entities
Oregon recently passed Enrolled House Bill 2239. The Bill amends ORS 86A.100, relating to licensing for mortgage loan lending. The amendments change definitions used within the statute for “mortgage banker” in 86A.100(3)(b)(B) and “mortgage broker” in 86A.100(5)(b)(B).
The definitions now do not include a financial holding company or bank holding company where the company does no more than control a subsidiary or affiliate, and does not engage in the business of a mortgage banker or mortgage broker. Additionally, Federal Regulation H, 12 C.F.R. part 1008 is now referenced in 86A.100(5)(b)(M)(ii), relating to good faith estimates.
These changes are effective on January 1, 2014.
About the Author
Paul McSheffrey, Esq. is Associate Counsel and Compliance Specialist 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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