Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 860 - LICENSING OF MORTGAGE BANKERS AND MORTGAGE BROKERS › Section 441-860-0040 - Supervision of Branch Offices, Home Locations, and Mortgage Loan Originators

Current through Register Vol. 63, No. 7, July 1, 2024
(1) A
			 mortgage banker or a mortgage broker must diligently supervise and control
			 every mortgage loan originator employed by the mortgage banker or the mortgage
			 broker in the mortgage banker or mortgage broker's principal place of business
			 and at each branch office or mortgage loan originator's home, if the mortgage
			 loan originator is permitted to work from home.
(2) A mortgage banker or mortgage broker must
			 personally supervise or designate a control person to supervise every mortgage
			 loan originator and each branch office or, if a mortgage loan originator is
			 working from home, the mortgage loan originator's home to ensure compliance
			 with ORS
			 86A.095 through
			 86A.242 and OAR chapter
			 441, divisions 850 through 885, as applicable.
(3) In order to diligently supervise and
			 control a mortgage loan originator employed by the mortgage banker or the
			 mortgage broker, the mortgage banker or mortgage broker shall:
(a) Ensure that mortgage loan originators,
			 and persons required to be licensed as mortgage loan originators, employed by
			 the mortgage banker or mortgage broker obtain and maintain a license under ORS
			 86A.200 through
			 86A.242 and OAR chapter
			 441, division 880.
(b) Establish,
			 maintain and enforce written procedures to supervise the activities of mortgage
			 loan originators employed by the mortgage banker or mortgage broker and other
			 associated persons that are subject to its supervision and to supervise the
			 operations of each office of the mortgage banker or mortgage broker transacting
			 loans with Oregon consumers. The procedures shall be reasonably designed to
			 achieve compliance with applicable Oregon and federal lending laws and rules,
			 including ORS
			 86A.095 through
			 86A.198.
(c) Review the activities of each office
			 transacting loans with Oregon consumers, which shall include the examination of
			 customer loan files, including closed and opened files. The reviews shall be
			 reasonably designed to assist in detecting violations of, preventing violations
			 of and achieving compliance with applicable mortgage lending laws, regulations
			 and rules, as well as detecting and preventing irregularities or abuses. Each
			 mortgage broker shall retain a record of the dates and findings of each review.
			 The duties of this rule may be delegated to a qualified supervisor.
(d) Provide a copy of the procedures required
			 by this rule to every mortgage loan originator employed by the mortgage banker
			 or mortgage broker in written or electronic format.
(e) Ensure that mortgage loan originators
			 obtain training to address deficiencies identified by the mortgage banker or
			 mortgage broker in loan file and operations reviews or make up deficiencies in
			 continuing education as necessary.
(f) Establish procedures for handling
			 consumer complaints and develop procedures to identify the types of consumer
			 complaints that must be forwarded to a supervisor for review. Complaints that
			 must be forwarded to a supervisor include complaints about material changes in
			 loan terms, fees or expenses, or material omissions about loan terms, fees or
			 expenses. The mortgage banker or mortgage broker shall also develop procedures
			 for investigating, responding to and keeping a record of complaints forwarded
			 to a supervisor.
(g) Visit at least
			 annually each branch the mortgage banker or mortgage broker licenses in Oregon
			 or the mortgage loan originator's home, if the mortgage loan originator is
			 permitted to work from home, to review compliance with the procedures listed in
			 this section. Annual visit of a home may be conducted by means of video or
			 telephonic conference or similar communications equipment that allows all
			 persons participating in the visitation to hear each other, provided that
			 participation is controlled and limited to those entitled to attend, and the
			 identity of participants is determinable and reasonably verifiable.