Or. Admin. Code § 441-910-0135 - Loan Modifications
(1) A
person registered as a debt management service provider may modify or offer to
modify the terms and conditions of a consumer's existing loan or obligation as
described in ORS 697.602 if the modification
meets all the following conditions:
(a) The
existing loan or obligation is in default, is in imminent danger of default, or
there is an objectively reasonable basis to believe that the loan or obligation
will default;
(b) The borrower is
not required to pay fees normally assessed for a new loan or obligation to
receive the modification; and
(c)
The contract or agreement makes or is anticipated to make permanent or
long-term changes to the principal, interest, length of the loan or obligation,
or other key terms of the existing loan or obligation.
(2) A debt management service provider
meeting the requirements of section (1) of this rule may charge the fees
allowed under ORS 697.692.
(3) Section (1) of this rule shall not be
construed to allow a debt management service provider to make or offer to make
a new loan or obligation, including residential mortgage loans.
(4) Notwithstanding section (3) of this rule,
a mortgage loan originator regulated by the director under applicable law may
modify or offer to modify the terms and conditions of an existing residential
mortgage loan without a registration as a debt management service provider.
(5) The term "modifying or
offering to modify terms and conditions of an existing loan or obligation" does
not include an individual who negotiates with a consumer to modify a loan if:
(a) The individual is either an employee or
has contracted to represent a lender or loan servicer;
(b) The loan modification activity is within
the scope of the individual's responsibilities for the lender or loan servicer;
and
(c) The individual receives no
direct compensation from the consumer for the individual's services.
Notes
Stat. Auth.: 2009 OL Ch 604, § 21
Stats. Implemented: ORS 697.602
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