441-870-0030 Borrower Transactions A dishonest, fraudulent or illegal practice or conduct under ORS 86A.115 includes, but is not limited to, the following conduct by a person in connection with a mortgage loan: (1) Making any representation or guarantee to a customer that a loan can be secured by a date certain; (2) Entering into a lock agreement for a specific interest rate or advertising the availability of a lock agreement for a specific interest rate unless: (a) The agreement or advertisement also specifies the terms of the lock agreement including the length of the lock period and the costs to the borrower associated with the lock agreement; and (b) The mortgage banker or mortgage broker can demonstrate that they have successfully closed loans under lock agreements, which provided for similar interest rates within similar time frames; (3) Making a representation to a customer that interest rates, points, or other financing terms are available at the time the representation was made unless the interest rates, points, or terms are actually available within the time frame represented from: (a) A lender with whom the mortgage banker or mortgage broker maintains a correspondent or loan brokerage agreement; (b) A person exempt from licensing pursuant to ORS 86A.100(5)(b); or (c) One or more persons, other than persons exempt under ORS 59.035(4), if the mortgage banker or mortgage broker has a written commitment from such persons to fund the mortgage loan at the interest rate, points or other financing term offered to the borrower. (4) Failing to disclose in writing to a borrower before negotiating loan terms for a mortgage loan that the person, mortgage banker or mortgage broker, or mortgage loan originator has a verbal or written contract, joint venture agreement or any other type of understanding with a builder or a realtor who is a party to the transaction and that this relationship may result in the borrower getting less favorable loan terms. (5) Failing to refund within 72 hours of rejecting a loan, the advance fees paid which have not been distributed pursuant to a signed loan agreement or, in the event the loan agreement does not contain provisions for acceptance and distribution of advance fees, pursuant to a fee agreement; (6) Failing to account, after reasonable notice, to any person whose property secures a loan made by the mortgage banker or mortgage broker for any money which that person has paid to the mortgage banker or mortgage broker for the payment of third party obligations including, but not limited to, appraisal fees, title search fees, taxes, and insurance premiums; (7) Failing to comply within 30 working days of a written request by a borrower made within 90 days of notice that the loan will not be obtained, for copies of any appraisal, title report, or credit report paid for by the borrower, unless the agreement between the mortgage banker or mortgage broker and the credit service prohibits such distribution; (8) Providing a savings statement to the borrower, unless: (a) The amount of savings the borrower will realize can be projected with certainty; (b) The amount of savings actually realized is within $1,000.00 of the amount projected; (c) The savings statement includes a disclaimer that the actual amount of savings may vary; and (d) The savings statement shows changing payments over the life of the loan when the loan being offered is an adjustable rate product. (9) Requiring or permitting a consumer to sign promissory notes and trust deeds prior to: (a) The loan receiving final written loan approval; (b) Full disclosure to the consumer of repayment terms; and (c) The lender having funds available to fund the loan. (10) Delaying release of loan funds to the borrower, the borrower's approved representative or escrow for more than one business day following recording of the lien. Statutory/Other Authority: ORS 86A.136 Statutes/Other Implemented: ORS 86A.115 History: FCS 14-2009, f. 12-30-09, cert. ef. 1-4-10 FCS 3-2008, f. 5-2-08, cert. ef. 5-7-08 FCS 10-2001, f. 12-24-01, cert. ef. 1-1-02 FCS 4-1999, f. & cert. ef. 12-23-99 FCS 11-1994, f. 11-4-94, cert. ef. 11-15-94 FCS 3-1993, f. & cert. ef. 11-15-93