Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 880 - LICENSING OF MORTGAGE LOAN ORIGINATORS › Section 441-880-0009 - Commercial Construction Lending Exemption

Current through Register Vol. 63, No. 7, July 1, 2024
(1) An individual need not obtain a mortgage
			 loan originator license under ORS
			 86A.200 to
			 86A.239 to make a residential
			 mortgage loan in which the borrower will use the funds to construct, alter,
			 move, enlarge, replace, repair, or develop land for one to four dwelling units
			 designed or suitable for residential occupancy subject to the following
			 conditions:
(a) The borrower does not intend
			 to reside in the completed dwelling;
(b) The lender verifies that the borrower is
			 licensed by the Construction Contractors Board as a contractor and holds an
			 endorsement as a:
(A) Residential general
			 contractor;
(B) Residential
			 specialty contractor;
(C)
			 Residential limited contractor; or
(D) Residential developer.
(c) The lender determines that the
			 loan is not for personal, family, or household purposes. In making this
			 determination, the lender shall consider:
(A)
			 The borrower's relationship between her primary occupation and the acquisition;
(B) The degree to which the
			 borrower will personally manage the acquisition;
(C) The ratio of income from the acquisition
			 to the total income of borrower;
(D) The size of the transaction;
(E) The borrower's stated purpose of the
			 loan; and
(F) Other relevant
			 factors that would indicate the loan is for commercial purposes.
(d) The lender does not collect a
			 consumer's financial information that would require the lender to provide a
			 loan estimate under
			 12 C.F.R. §
										1026.19(e);
(e) The lender does not advertise that, or
			 otherwise suggest by statements or conduct that, the limited liability company
			 engages in the business of making residential mortgage loans;
(f) Neither the borrower nor the lender
			 structures a transaction as to evade licensing requirements for mortgage
			 bankers, mortgage brokers, or mortgage loan originators;
(g) The lender does not engage in prohibited
			 conduct or activities under ORS
			 86A.183;
(h) The individual does not engage in
			 prohibited conduct or activities under ORS
			 86A.236;
(i) The lender maintains records documenting
			 its compliance with all conditions under this exemption and makes such records
			 available to the Director upon request. Records must be maintained for a period
			 of five years after each loan is made. A lender may maintain records in any
			 electronic format capable of being reduced to written form; and
(j) In addition to the records that the
			 lender is required to maintain under OAR 441-880-0010 (1)(k), the lender
			 maintains records used to make the residential mortgage loan, including, but
			 not limited to, tax returns, bank statements, financial statements, annual
			 operating statements, and business operating statements. Applications for
			 commercial construction loans should be limited to balance sheets and other
			 information customarily collected for commercial real estate lending.