Governor Signs Mortgage Protection Legislation

Both bills came from legislative concepts developed in a mortgage lending workgroup that was convened by Governor Kulongoski for the February 2008 session.

Oregon Governor Ted Kulongoski Photo: Tim King Salem-News.com

(SALEM, Ore. ) - Oregon Governor Ted Kulongoski late yesterday signed mortgage lending protection legislation (House Bill 3630 and Senate Bill 1064) passed during the February legislative session.

The bills will protect consumers from fraudulent mortgage rescue schemes, provide better notice for those facing foreclosure and stronger enforcement for those in the loan industry engaging in dishonest and fraudulent practices.

Both SB 1064 and HB 3630 came from legislative concepts developed in a mortgage lending workgroup that was convened by Governor Kulongoski for the February 2008 session.

“People who are facing foreclosure should not have to also fall victim to fraudulent rescue schemes and dishonest lending practices,” said Governor Kulongoski. “These protections will help ensure Oregonians are treated fairly and offered the help they need during a very difficult time.”

House Bill 3630 will protect consumers from mortgage rescue schemes by requiring consultants to provide a written contract that clearly explains what the homeowner will receive in the foreclosure deal, limits their compensation and prohibits consultants from acquiring interest in the home. The bill also mandates a plain language notice be sent to homeowners who are being foreclosed, at least 120 days before the sale, with contact information for legal resources and counseling, and how the homeowner can stop the sale.

Senate Bill 1064 expands enforcement over loan originators by allowing the Department of Consumer and Business Services (DCBS) to ban or suspend loan originators from engaging in dishonest or fraudulent practices. DCBS will maintain a registry of loan originators and list complaints made against them as well as actions taken. The bill also requires lenders to file an annual report with DCBS detailing their lending activity.

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To all: Please note the legislation thus established is direct response in Oregon to the subprime-morgage fiasco --which is direct result of the deregulation of finance firms driven by the long-used "supply-side" economic theory shaping and controlling the Bush-cabal policies.

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