2 Hour OR SAFE: Oregon Mortgage Regulations and Rules

This course will cover several fundamental state regulations that Oregon mortgage loan originators must be familiar with. Being familiar with important laws in Oregon's residential mortgage loan industry will ensure that mortgage loan originators are compliant with the state's expectations of MLO behavior.

This five-module course starts out with a description of the Department of Consumer and Business Services (DCBS) and its Division of Financial Regulations (DFR). We'll then review licensing requirements, financial statements, reporting changes to the DCBS, and MLO restrictions on working for a single entity in the second module of the course. The third module covers consumer disclosures in certain residential mortgage transactions, handling client trust funds, and regulations with advertising mortgage products. The fourth module covers various prohibited acts that licensees cannot participate in during the course of business, and the fifth module explains the DCBS investigation process.

Topics and Learning Objectives

This course is broken down into several learning topics. At the end of the course a 15-question final exam will be given. The topics included in this course are:

1. Overview of the DCBS and DFR (8 minutes)
2. Oregon Licensing Definitions and Requirements (22 minutes)
3. Disclosures, Limitations, Client Funds, and Advertising (32 minutes)
4. Prohibited Acts (13 minutes)
5. DCBS Investigations (15 minutes)

Total study time: 2 credit hours

This course will prepare Oregon-licensed MLOs to:

• Outline the structure of the DCBS and identify the ten divisions within the Department.
• Describe the purpose of the DFR.
• Identify Oregon’s definition of residential mortgage loan and how it differs from TILA.
• Describe when a company may allow a MLO to originate Oregon loans.
• Review the licensing prerequisites for mortgage lenders, mortgage brokers, and mortgage bankers.
• Explain Oregon’s restriction on originating for more than one mortgage banker or broker.
• Recognize the licensee’s obligations for keeping the NMLS record up-to-date and responding to deficiencies timely.
• Discuss Oregon’s rate-lock disclosure form.
• Identify the disclosures that are required to be provided in a language other than English.
• Describe the limitations on negative amortization loans.
• Discuss the special disclosure for reverse mortgage loans.
• Explain new requirement for reverse mortgages in which lender must send a notice on property taxes unless the loan includes a reserve account for taxes.
• Know that MLO is required to sign initial and final loan applications.
• Explain the requirements for handling of client funds, including determining when funds are considered trust funds, refunds of funds as well as manner of deposit and disbursement of trust funds.
• Know the requirement to keep copies of correspondents with applicants.
• Demonstrate the advertising requirements and prohibitions.
• Explain the definition of dishonest, fraudulent, unfair and unethical practices and prohibited activities for loan originators.
• Define acts or conditions that could result in sanctions.
• Outline various acts that mortgage licensees are specifically prohibited from participating in.
• Describe the proper use of professional designations or certificates.
• Outline the Director's authority over administrative hearings against licensees.
• Describe the types of file the Director may request as part of an investigation.
• List the fines and penalties that can be ordered against a guilty party.

Total study time: 2 clock hours

NMLS ID Required

You must have an NMLS ID to receive credit for this course. You will need this number before you begin the course.

If you already have an NMLS ID but don't remember what it is:

• Login into NMLS
• Click on the Composite View tab.
• Click View Individual on the sub-header row.
• The number that appears in parentheses after your name is your NMLS ID number.

If you do not have an NMLS ID and need to obtain one, use the instructions available in the NMLS Resource Center