On June 24th, the Oregon Legislature voted in favor of two important bills designed to protect homebuyers and borrowers. (Posted 06/24/09)
Summary:
On June 24th, the Oregon Legislature voted in favor of two important bills designed to protect homebuyers and borrowers. HB 2189 will require loan originators to be licensed with the Oregon Department of Consumer and Business Services. HB 2189 now moves to the Senate.
HB 3004 will prevent lenders or their affiliates from pursuing further action against a second mortgage once the home has already been foreclosed and sold. HB 3004 was approved by the Senate and now goes back to the House for concurrence.
House Democrats Vote to Protect Homebuyers
HB 2189 provides safeguards by requiring loan originators to be licensed
On June 24th, House Democrats voted to provide protections for homebuyers by requiring loan originators to be licensed with the Oregon Department of Consumer and Business Services. The bill was introduced in the wake of the housing crisis brought on in part by predatory mortgage lending.
“Homebuyers need confidence in their loan originators in order for the housing market to rebound,” said Representative Paul Holvey (D-Eugene), Chair of the House Consumer Protection Committee. “This bill does not only protect consumers, but helps ensure the future integrity of the housing market.”
Under HB 2189, licensed mortgage brokers will be required to register their loan originators with DCBS, ensure their loan originators have met education standards about lending practices and have passed background checks.
HB 2189 brings Oregon into compliance with the federal Safe and Fair Enforcement Mortgage Licensing Act.
HB 2189 now moves to the Senate.
For further information, contact Michael Cox (503) 986-1904.
Relief for Oregonians with 80/20 mortgages finds support in Senate
HB 3004 will protect borrowers from being targeted by lenders twice
On June 24th, the Oregon Senate voted in favor of HB 3004, legislation that prevents lenders or their affiliates from pursuing further action against a second mortgage once the home has already been foreclosed and sold. Under the bill, if a lender or its affiliate holds two mortgages, one for 80 percent and one for 20 percent, and forecloses and sells the home, the lender is barred from suing the former homeowner for their interest in the second lien for 20 percent.
“It is well-known by now that some lenders gave Oregon borrowers complicated loans that trapped them with high payments,” said Senator Suzanne Bonamici (D-NW Portland/Washington Co.), who carried the bill on the Senate Floor. “If Oregonians lose their homes, they’re already paying the price. They shouldn’t have to pay a second time.”
HB 3004 applies retroactively, potentially relieving beleaguered Oregonians of millions of dollars of debt, and applies only to lenders that hold both mortgages. Local bankers and credit unions have supported the bill, decrying the deceptive practices of a few out of state lenders.
“This bill ensures that if a homeowner defaults on a loan, the lender gets the property and the homeowner doesn’t face further indebtedness,” said Senator Vicki Walker, (D-Eugene). “We are effectively closing a loophole that will help Oregonians who are already facing hard times.”
HB 3004 was introduced by Representatives Brian Clem (D-Salem) and Chris Edwards (D- Eugene) and now goes to the House for concurrence.
For further information, contact Molly Woon (503) 986-1074, molly.woon@state.or.us
For more information on the Senate Majority Caucus, please visit oregonsenatedemocrats.com