Current through Register Vol. 63, No. 9, September 1, 2024
(1) A
mortgage banker or a mortgage broker must diligently supervise and control
every mortgage loan originator employed by the mortgage banker or the mortgage
broker in the mortgage banker or mortgage broker's principal place of business
and at each branch office or mortgage loan originator's home, if the mortgage
loan originator is permitted to work from home.
(2) A mortgage banker or mortgage broker must
personally supervise or designate a control person to supervise every mortgage
loan originator and each branch office or, if a mortgage loan originator is
working from home, the mortgage loan originator's home to ensure compliance
with ORS 86A.095 through
86A.242 and OAR chapter 441,
divisions 850 through 885, as applicable.
(3) In order to diligently supervise and
control a mortgage loan originator employed by the mortgage banker or the
mortgage broker, the mortgage banker or mortgage broker shall:
(a) Ensure that mortgage loan originators,
and persons required to be licensed as mortgage loan originators, employed by
the mortgage banker or mortgage broker obtain and maintain a license under ORS
86A.200 through
86A.242 and OAR chapter 441,
division 880.
(b) Establish,
maintain and enforce written procedures to supervise the activities of mortgage
loan originators employed by the mortgage banker or mortgage broker and other
associated persons that are subject to its supervision and to supervise the
operations of each office of the mortgage banker or mortgage broker transacting
loans with Oregon consumers. The procedures shall be reasonably designed to
achieve compliance with applicable Oregon and federal lending laws and rules,
including ORS 86A.095 through
86A.198.
(c) Review the activities of each office
transacting loans with Oregon consumers, which shall include the examination of
customer loan files, including closed and opened files. The reviews shall be
reasonably designed to assist in detecting violations of, preventing violations
of and achieving compliance with applicable mortgage lending laws, regulations
and rules, as well as detecting and preventing irregularities or abuses. Each
mortgage broker shall retain a record of the dates and findings of each review.
The duties of this rule may be delegated to a qualified supervisor.
(d) Provide a copy of the procedures required
by this rule to every mortgage loan originator employed by the mortgage banker
or mortgage broker in written or electronic format.
(e) Ensure that mortgage loan originators
obtain training to address deficiencies identified by the mortgage banker or
mortgage broker in loan file and operations reviews or make up deficiencies in
continuing education as necessary.
(f) Establish procedures for handling
consumer complaints and develop procedures to identify the types of consumer
complaints that must be forwarded to a supervisor for review. Complaints that
must be forwarded to a supervisor include complaints about material changes in
loan terms, fees or expenses, or material omissions about loan terms, fees or
expenses. The mortgage banker or mortgage broker shall also develop procedures
for investigating, responding to and keeping a record of complaints forwarded
to a supervisor.
(g) Visit at least
annually each branch the mortgage banker or mortgage broker licenses in Oregon
or the mortgage loan originator's home, if the mortgage loan originator is
permitted to work from home, to review compliance with the procedures listed in
this section. Annual visit of a home may be conducted by means of video or
telephonic conference or similar communications equipment that allows all
persons participating in the visitation to hear each other, provided that
participation is controlled and limited to those entitled to attend, and the
identity of participants is determinable and reasonably verifiable.
(4) In establishing the procedures
in section (2) of this rule and in determining the frequency of office or home
reviews, the mortgage banker or mortgage broker shall consider the following:
(a) The number of loan transactions made by
the mortgage banker or mortgage broker;
(b) The number of office locations
transacting loans with Oregon consumers;
(c) The number of affiliated persons assigned
to each location;
(d) The nature
and complexity of the loan transactions that the mortgage banker or mortgage
broker predominantly makes;
(e) The
number of mortgage loan originators assigned to a location;
(f) The number of mortgage loan originators
assigned to the supervision of an individual supervisor; and
(g) The results of previous office
reviews.
(5) In
establishing the procedures in section (2) of this rule and in determining the
number of files from each mortgage loan originator to be reviewed, the mortgage
banker or mortgage broker shall consider the following:
(a) The knowledge and years of lending
experience of a mortgage loan originator;
(b) The disciplinary history of and the
number of complaints received about a mortgage loan originator;
(c) The experience and level of
sophistication of the borrowers of a mortgage loan originator, if the mortgage
banker, mortgage broker or mortgage loan originator predominantly serves
specific segments of society;
(d)
The nature and complexity of the loan transactions that the mortgage banker or
mortgage broker predominantly makes; and
(e) The results of previous file reviews for
a particular mortgage loan originator.
(6) The mortgage banker or mortgage broker is
subject to disciplinary action of the director for any violation of ORS
86A.095 through
86A.198 or corresponding rules
committed by a mortgage loan originator authorized to make or negotiate
residential mortgage loans for the mortgage banker or mortgage broker, whether
or not that accountability is documented in any written agreement.
Statutory/Other Authority: ORS
86A.136 &
86A.242
Statutes/Other Implemented: ORS
86A.166(1)
