2021 Oregon Revised Statutes
Chapter 086A - Mortgage Lending
Section 86A.324 - Duties of mortgage loan servicer; prohibited conduct; rules.


(a) Assess any fee that the person may assess against a borrower within 45 days after the borrower incurs the fee.
(b) Explain to a borrower in clear language and conspicuous text the reason for any fee the person assesses against the borrower in a written statement that the person mails to the borrower at the borrower’s last-known address not more than 30 days after the person assesses the fee.
(c) Accept and credit, or treat as credited, to the borrower’s account all amounts the person receives at the address to which the borrower has been instructed to send payments on the borrower’s residential mortgage loan. The person must credit the payment, or treat the payment as credited, within one business day after receiving the payment if the borrower has provided sufficient information to credit the account. If the person uses the scheduled method of accounting and the person receives a regularly scheduled payment before the scheduled due date, the person shall credit the payment to the borrower’s account not later than the scheduled due date.
(d) Mail a written notice to a borrower at the borrower’s last-known address within 10 days after receiving a payment if the person did not credit the payment, or treat the payment as credited, to the borrower’s account. In the notice, the licensee shall clearly explain the reason why the licensee did not credit the payment and identify any action the borrower must take to properly credit the payment or otherwise make current the borrower’s account.
(e) Collect funds into an escrow account and make from the escrow account any payments that are due for property taxes, insurance and all other charges related to the real property that secures a residential mortgage loan, if the residential mortgage loan agreement requires the licensee to establish an escrow account and make payments from the escrow account. The person shall perform the person’s duties under this paragraph in a manner that ensures that the borrower is not subject to late fees, penalties or other negative consequences of a failure to make required payments on time. A person complies with the requirements of this section if the person complies with the Real Estate Settlement Procedures Act, 12 U.S.C. 2609.
(f) Make reasonable efforts to respond to a borrower’s request concerning the borrower’s residential mortgage loan account and to any dispute the borrower has with the person or that is related to the borrower’s residential mortgage loan account.
(g) Correct promptly any errors the person makes and refund promptly any fees the person assesses against the borrower in error.
(h) Provide to a borrower each year a written statement that specifies:
(A) Whether the account is current and, if the account is not current, the reasons why the account is not current, including the date on which any default occurred;
(B) The current balance due on the borrower’s residential mortgage loan, including the amount of the principal due, the amount of funds the person holds in a suspense account, the balance in any escrow account the person maintains for the borrower and the amount of any deficiency in the escrow account of which the person is aware;
(C) The name, address and other contact information for the individual or business entity that owns or holds the borrower’s residential mortgage loan, or an assignee of the individual or business entity; and
(D) The name, address, telephone number and any other contact information for a representative of the person from which the borrower can request information or to which the borrower can direct complaints or disputes. The person’s representative must have sufficient information and authority to respond to the borrower’s requests, answer the borrower’s questions and resolve the borrower’s disputes with the person.
(i) Include in each statement or notice the person mails or sends to the borrower under this subsection text that the Director of the Department of Consumer and Business Services prescribes by rule. The text must include contact information for the Department of Consumer and Business Services and must state clearly that, and how, the borrower may submit a complaint to the department concerning any conduct of the person that is unlawful.
(2) A person that services a residential mortgage loan may not, directly or indirectly:
(a) Employ any device, scheme or artifice to defraud another person;
(b) Knowingly make an untrue statement of a material fact or omit a material fact that is necessary to make the person’s statement true in light of the circumstances in which the person makes the statement;
(c) Engage in an act, practice or course of business that operates or that the person intends to operate as a fraud or deceit upon another person; or
(d) Make or file with the department, or cause to be made or filed with the department, a statement, report or document that the person knows is false in any material respect or manner. [2017 c.636 §9]

Structure 2021 Oregon Revised Statutes

2021 Oregon Revised Statutes

Volume : 02 - Business Organizations, Commercial Code

Chapter 086A - Mortgage Lending

Section 86A.100 - Definitions.

Section 86A.103 - License required to engage in residential mortgage transactions as mortgage banker or mortgage broker.

Section 86A.106 - Procedures for licensing; experience required; certification; surety bond or letter of credit; fees; rules.

Section 86A.109 - Expiration of initial license; renewal; duration of renewed license; change in personnel; rules.

Section 86A.112 - Licensees to keep records; inspection; filing financial reports; rules.

Section 86A.115 - Grounds for denying, suspending, conditioning or revoking license.

Section 86A.121 - Cancellation of license or application; application to surrender license.

Section 86A.124 - Supervisory authority of director over mortgage bankers, mortgage brokers and mortgage loan originators; documents exempt from disclosure.

Section 86A.127 - Investigations; publicity with respect to violations; cease and desist order.

Section 86A.130 - Enjoining violations; fine; appointment of receiver; attorney fees; damages to private parties.

Section 86A.133 - Procedures where assets or capital of mortgage banker or mortgage broker found impaired; involuntary liquidation.

Section 86A.136 - Rules; financial statements.

Section 86A.139 - Notice of orders; hearings on orders.

Section 86A.142 - Judicial review of orders.

Section 86A.145 - Oaths and subpoenas in proceedings before director.

Section 86A.148 - Copies of documents; fees; rules; effect of certification.

Section 86A.151 - Liability of person that employs mortgage loan originator; recovery of damages; limitations on proceeding; action against bond or letter of credit; attorney fees.

Section 86A.154 - Fraud and deceit with respect to mortgage banker or mortgage broker business.

Section 86A.157 - Clients’ Trust Account; examination; deposit of funds; interest; rules.

Section 86A.160 - Notice to bank regarding Clients’ Trust Account.

Section 86A.163 - Prohibited advertisements.

Section 86A.166 - Designation of principal place of business; other offices; change of personnel; registered agent.

Section 86A.175 - Servicing or collecting mortgage banking loan or mortgage loan by mortgage banker or mortgage broker.

Section 86A.178 - Legislative findings regarding mortgage loan originators; prohibited practice.

Section 86A.183 - Prohibited conduct for mortgage bankers, mortgage brokers and mortgage loan originators; conditions affecting employment of mortgage loan originators.

Section 86A.186 - Mortgage loan originator criminal records checks; rules.

Section 86A.195 - Restrictions on negative amortization loans; verification of borrower income; prepayment penalties.

Section 86A.196 - Notice of reverse mortgage prohibition in homestead property tax deferral program; summary of terms of reverse mortgage in advertisement or solicitation; annual notice to person with reverse mortgage or to escrow agent, title insura...

Section 86A.198 - Materials in languages other than English; requirements.

Section 86A.200 - Definitions.

Section 86A.203 - License and unique identifier for mortgage loan originator; requirements; exemptions; rules.

Section 86A.206 - Application for license; information and materials required for application; rules.

Section 86A.209 - Interim license; findings required.

Section 86A.212 - Findings required for issuing license; basis for denial; rules.

Section 86A.215 - Education and testing requirements for license; education and test providers.

Section 86A.218 - License renewal; expiration; reinstatement; rules.

Section 86A.221 - Continuing education requirements for mortgage loan originator; credit allowed.

Section 86A.224 - Denying, suspending, conditioning, revoking or declining to renew license; findings required; order; civil penalty; prohibited activity; criminal liability.

Section 86A.227 - Corporate surety bond required; right of action; rules.

Section 86A.230 - Contracts or agreements with Nationwide Mortgage Licensing System and Registry and other agencies; information sharing; confidentiality; reports of violations; rules.

Section 86A.233 - Production of records; investigations, examinations and subpoenas; possession of records; access to records; powers of director; prohibited activities.

Section 86A.236 - Prohibited activities.

Section 86A.239 - Display of license and unique identifier; rules; report of condition.

Section 86A.303 - Definitions.

Section 86A.306 - License requirement; applicability; exceptions; enforcement; rules.

Section 86A.309 - Application for license; requirements; waiver; fee; conditions for issuance and renewal and for denial, revocation or refusal; license term; rules.

Section 86A.312 - Licensee’s principal place of business; registered agent; assumed business name.

Section 86A.315 - Required liquidity, operating reserves and tangible net worth; compliance with federal standards as compliance with requirements; director’s powers to enforce compliance.

Section 86A.318 - Required notices to director; rules.

Section 86A.321 - Director’s supervisory authority; examinations; confidentiality.

Section 86A.324 - Duties of mortgage loan servicer; prohibited conduct; rules.

Section 86A.327 - Complaints; director’s power to investigate; confidentiality; exceptions.

Section 86A.330 - Violations; civil penalties; costs of investigation.

Section 86A.333 - Additional duties of licensee; required response to borrower’s request for information; account history.

Section 86A.336 - Suspension or removal of licensee’s director or officer.

Section 86A.339 - Additional duties of mortgage loan servicer; prohibited practices.

Section 86A.990 - Criminal penalties for violations of ORS 86A.095 to 86A.198.

Section 86A.992 - Civil penalties for violations of ORS 86A.095 to 86A.198.