Or. Admin. Code § 441-875-0030 - Manner of Deposit
(1) A mortgage
banker or mortgage broker shall deposit all trust funds received from a client
into the trust account or neutral escrow depository and shall keep such funds
in the trust account or neutral escrow depository until:
(a) In the case of a neutral escrow
depository, the written escrow instructions prepared pursuant to the provisions
of OAR 441-875-0040(3)
and agreed to by all parties have been fulfilled; or
(b) In the case of a trust account, the
instructions for disbursement of trust funds have been fulfilled as contained
in:
(A) The loan application form;
or
(B) A separate fee agreement, if
any.
(2) A
mortgage banker or mortgage broker shall not commingle any monies received from
a client for deposit into a trust account with personal funds of the mortgage
banker or mortgage broker. For purposes of OAR 441-875-0010 through
441-875-0040, the following
shall not constitute commingling of trust funds with personal funds if the
funds are removed from the trust account within 30 days:
(a) Earned, but untransferred interest income
accruing to the mortgage banker or mortgage broker pursuant to a written
agreement with the client;
(b)
Earned, but untransferred fees due the mortgage banker or mortgage
broker.
(3) Every
deposit into a trust account shall be made with deposit slips or other evidence
of deposit identifying each transaction by a written notation of the file
identification assigned to the transaction on whose behalf the deposit is made.
Compliance with this rule may be satisfied when a mortgage banker or mortgage
broker has attached a copy of the client's check to the deposit
slips.
(4) Every deposit into a
neutral escrow depository shall be accompanied by a letter of transmittal which
shall include a written notation of the file identification assigned to the
transaction on whose behalf the deposit is made. Compliance with this rule may
be satisfied when a mortgage banker or mortgage broker has attached a copy of
the client's check to the letter of transmittal.
(5) All customer securities must be held in
trust and kept in a secure depository. The securities must be held in such a
manner that they will be free from claims, levy, or attachment by creditors of
the mortgage banker or mortgage broker.
(6) All funds, whether in the form of money,
checks, drafts, or warrants belonging to others and accepted by any mortgage
banker or mortgage broker engaged in professional activity shall be deposited
prior to the close of business of the third banking day following the date of
the receipt of the funds into a trust account or neutral escrow depository
established by the mortgage banker or mortgage broker. The mortgage banker or
mortgage broker shall account for all funds received.
(7) Every mortgage banker or mortgage broker
which requires a residential loan client to pay an amount for services prior to
the time that the services are rendered may maintain a separate trust account
in this state for prepayments and shall keep prepayment funds subject to refund
in the trust account until the services are performed according to the
provisions contained in OAR
441-875-0040(5) and
(6), or the loan is rejected.
(8) In the event that the mortgage banker or
mortgage broker accepts fees in advance of completing professional services, or
accepts fees paid as a retainer to secure the availability of the mortgage
banker or mortgage broker, or accepts a consulting fee for professional
services, the fees shall be refundable and are trust funds unless the mortgage
banker or mortgage broker provides written notice to the client prior to or at
the time of receipt of the fees that such fees are not refundable. A record of
this written notice to a client shall be maintained in the client file pursuant
to the provisions of OAR
441-865-0020 through
441-865-0090.
Notes
Stat. Auth.: ORS 86A.136 & 86A.157
Stats. Implemented: ORS 86A.157
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