| Oregon's foreclosure laws |
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| New Laws |
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Foreclosure prevention – SB 628 (2009) Oregonians facing foreclosure often have difficulty contacting their lender to discuss their options, such as a possible loan modification. SB 628 requires that the lender or loan servicer notify a homeowner facing foreclosure of the right to a meeting (either face-to-face or by phone) and that the lender/loan servicer assess whether the borrower is eligible for a loan modification.
Tenants in foreclosure – SB 952 and HB 3004 (2009). These bills help Oregon renters living in foreclosed homes by requiring advance notice of the foreclosure proceedings and providing protections related to leases and security deposits. The notice will provide information about tenants’ rights and where they can go for assistance.
Deficiency judgments after foreclosure – HB 3004 (2009). Prior to the mortgage lending crisis, many homebuyers financed 80 percent of the purchase price with a mortgage and trust deed and the remaining 20 percent with second mortgage financed from the same lender. However, these consumers did not have the same protections under Oregon’s foreclosure laws as borrowers with a single mortgage loan. HB 3004 closes that loophole by precluding lenders that foreclosure on borrower with an 80/20 loan from collecting from the second loan if the home sells for less than what the borrower owes.
Mortgage lending practices – HB 2188 (2009). Protects Oregon mortgage borrowers against abusive lending practices by restricting the sale of negative amortization loans and by requiring lenders to provide translated disclosures when loans are marketed and negotiated in languages other than English.
Enforcement of new federal mortgage lending standards – HB 2189 (2009). Protects mortgage borrowers by allowing the department to enforce new federal laws that require additional disclosures to borrowers and restrict loan servicing abuses and misleading advertising. The bill also increases surety bond requirements and enables Oregon to participate in a national licensing system for loan originators, to ensure they have met education requirements, passed background checks, and followed the laws in other states.
Mortgage “rescues” and foreclosure notification – HB 3630 (2008). Protects consumers at risk of foreclosure from both “consultants” who offer to help homeowners avoid foreclosure,” and “equity purchasers” who acquire a financial interest in the property. The bill requires consultants and equity purchasers to provide a written contract with clear disclosures to the homeowners and other safeguards. It also gives the homeowner rights to cancel the contract. The bill also requires a trustee acting for the lender to send the homeowner facing foreclosure a clearly written notice at least 120 days before the sale, with helpful information about the homeowner’s options.
Enhanced loan originator enforcement – SB 1064 (2008). Expands enforcement over loan originators, the individual “salespeople” who work for mortgage lenders and interact directly with borrowers. The Department of Consumer and Business Services can ban or suspend loan originators from the industry for fraudulent practices, negligence or incompetence, or violating industry rules.
Debt management services – HB 2191 (2009). Protects financially vulnerable Oregonians who are increasingly turning to consumer debt management services for assistance, by prohibiting misleading advertising, requiring specific disclosures, and requiring all providers of debt management services to be registered with the state, including debt settlement companies and loan modifiers.
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Foreclosure Laws
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| Mortgages, trust deeds ......................................................... |
ORS Chapter 86 |
Statutory liens ......................................................................
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ORS Chapter 87
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| Foreclosure of mortgages and other liens ............................. |
ORS Chapter 88 |
| Foreclosure of property tax liens .......................................... |
ORS Chapter 312 |
Mortgage Lending Laws
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| Securities regulation; mortgage bankers and brokers .......... |
ORS Chapter 59
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| Custody of client funds ......................................................... |
OAR Chapter 441, Div. 875 |
| License cancellation ............................................................. |
OAR Chapter 441, Div. 885 |
| Licensing .............................................................................. |
OAR Chapter 441, Div. 860 |
| Loan originators ................................................................... |
OAR Chapter 441, Div. 880 |
| Public records, fees, opinion requests, rulemaking ............... |
OAR Chapter 441, Div. 850 |
| Records and reports requirements ....................................... |
OAR Chapter 441, Div. 865 |
| Unethical practices ............................................................... |
OAR Chapter 441, Div. 870 |
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