441-890-0065 - Exempt Entities

441-890-0065. Exempt Entities

(1) A person need not obtain a mortgage servicer license under section (3)(1) of 2017 Or Laws ch 636 if the person:

(a) Is an employee of a licensed mortgage servicer or an exempt entity acting within the scope of the person's employment;

(b) Owns the rights to service a mortgage loan but does not otherwise service a residential mortgage loan as defined under section 2(12) of 2017 Or Laws ch 636, including having an ongoing contractual obligation to provide financial support to a subservicer;

(c) Is an escrow agent licensed by the Oregon Real Estate Agency operating a collection escrow but does not otherwise service a residential mortgage loan as defined under section 2(12) of 2017 Or Laws ch 636;

(d) Is a licensed money transmitter under ORS 717, conducting a money transmission at the borrower's request, and does not otherwise service a residential mortgage loan as defined under section 2(12) of 2017 Or Laws ch 636; or

(e) Is a nonprofit organization that:

(A) Has been granted a tax-exempt status under section 501(c)(3) of the Internal Revenue Code of 1986, 26 U.S.C. § 501(c)(3);

(B) Promotes affordable housing, affordable housing financing, or other similar services approved by the director; and

(C) Has not violated a state or federal law and has not engaged in a course of dealing that is fraudulent, deceptive, or dishonest.

(2)

(a) A person qualifies for the exemption under section 3(2)(a) of 2017 Or Laws ch 636 for a particular calendar year if it, along with all affiliates in all operations within the United States, serviced fewer than 5,000 residential mortgage loans in the twelve month period preceding September 30th of the prior year.

(b) If a person exceeds the threshold in the twelve months prior to September 30th of a given year, the person does not qualify for the exemption under section 3(2)(a) of 2017 Or Laws ch 636 for the following year and must comply with the licensing requirement under section 3 of 2017 Or Laws ch 636 beginning on January 1st of the following year.

(c) A person that does not qualify for the exemption under section 3(2)(a) of 2017 Or Laws ch 636 for a given year but has serviced fewer than 5,000 loans for six consecutive months may apply to the director to surrender its license. The director may approve a licensee to surrender its license after finding that:

(A) The licensee has an adequate business plan to operate below the 5,000 loan threshold for at least the next twelve months;

(B) The licensee's business plan adequately protects the interests of borrowers; and

(C) Surrender of the license is otherwise in the public interest.

(FSR 3-2018, adopt filed 04/16/2018, effective 4/17/2018; FSR 17-2018, minor correction filed 05/16/2018, effective 5/16/2018)

Statutory/Other Authority: 2017 Or Laws ch 636 § 3

Statutes/Other Implemented: 2017 Or Laws ch 636 § 3

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