Oregon Administrative Rules › Chapter 137 - DEPARTMENT OF JUSTICE › Division 20 - MISLEADING PRICE REPRESENTATIONS › Section 137-020-0250 - Loan Brokers and Misleading Activities

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Definitions: As used in this rule:
(a) The definitions of terms set forth in ORS
			 646.605 are
			 applicable;
(b) "Advance Fee" means
			 any consideration which is assessed or collected, prior to the closing of a
			 loan, by a loan broker and includes, but is not limited to, payments to
			 information providers as defined under ORS
			 759.700 et seq.;
(c) "Advertise" means any form of
			 solicitation including but not limited to newspaper, radio and television
			 advertisements;
(d) "Borrower"
			 means a person obtaining or attempting to obtain a loan of money or a line of
			 credit for personal use;
(e) "Loan
			 Broker" means any person who:
(A) For or in
			 expectation of consideration arranges or attempts to arrange or offers to find
			 a loan of money or a line of credit;
(B) For or in expectation of consideration
			 assists or advises a borrower in obtaining or attempting to obtain a loan of
			 money, a line of credit, or related guarantee, enhancement, or collateral of
			 any kind or nature; or
(C) Acts for
			 or on behalf of a loan broker for the purpose of soliciting
			 borrowers;
(D) "Loan broker" does
			 not include:
(i) Any person making a direct
			 loan to a consumer;
(ii) Any bank
			 or savings and loan association, trust company, building and loan association,
			 credit union, mutual bank and savings bank, consumer finance company,
			 securities broker-dealer, real estate broker or salesperson, attorney, Federal
			 Housing Administration or Veterans' Administration approved lender, mortgage
			 broker or lender, or insurance company, provided that the person excepted is
			 licensed by or approved by and subject to regulation or supervision of any
			 agency of the United States or this state and is acting within the scope of the
			 license or approval; and also excepting subsidiaries of licensed or chartered
			 consumer finance companies, banks, credit unions, savings and loan
			 associations;
(iii) Mortgage
			 brokers exempt from licensing under ORS Chapter 59 or as defined in ORS
			 59.015(10);
(iv) Mortgage bankers as defined in ORS
			 59.015(9);
(v) A person making a retail installment
			 sales;
(vi) Any person who has a
			 contractual correspondent agreement with any qualified lender to deliver first
			 or second mortgages secured by real estate; and
(vii) Any employee of the above exempted
			 persons.
(f)
			 "Principal" means any officer, director, partner, joint venturer, branch
			 manager, or other person with similar managerial or supervisory
			 responsibilities for a loan broker;
(g) "Qualified Lender" means any bank or
			 savings and loan association, trust company, building and loan association,
			 credit union, consumer finance company, retail installment sales company,
			 Federal Housing Administration or Veterans' Administration approved lender or
			 person who has available through a state or federally regulated financial
			 institution $250,000 which the person has agreed to use to finance loans and
			 who has executed a written contract with a loan broker according to this
			 rule.