Regulatory Advocacy Update: Proposed Oregon Mortgage Servicing Rules Cause Concerns
July 5, 2012
July 5, 2012
The Oregon Department of Justice (DOJ) has proposed new rules related to mortgage servicing applicable to all organizations engaging in the servicing of residential mortgage loans in Oregon. The proposed rules are heavily based on the national mortgage settlement agreement entered into between the five largest national mortgage loan servicers and the states that were party to the suit (including both Oregon and Washington).
The DOJ has stated that the proposed rules are intended to establish certain mortgage servicer practices as unfair and deceptive, and to establish a uniform standard of conduct in the mortgage servicing industry with regard to the services offered to consumers. Importantly, in the event that a servicer fails to comply, the rules also provide consumers a private right of action under the Oregon Unlawful Trade Practices Act.
Representatives from the Northwest Credit Union Association (NWCUA) have participated in rulemaking advisory groups, have provided initial comments on the rule, and have provided the DOJ with input at its June hearings on this issue. At present, the Association continues to have concerns over the impact of the rules and urges credit unions doing mortgage lending in Oregon to review them, consider commenting on the proposal and/or provide the Association with input as it crafts its comment letter on the proposal.
For a more detailed analysis of the rule, a series of questions your credit union may want to consider in providing feedback, and links to the DOJ’s proposed rule, please visit the NWCUA’s Regulatory Comment Call page.
The NWCUA Regulatory Advocacy team works with state and federal regulators to help reduce the regulatory burden on credit unions and protect the credit union movement. The Association encourages members to participate in the regulatory process. If you have any questions on these or any regulatory issues, please contact Senior Vice President and General Counsel Stacy Augustine at email@example.com, or at 206.340.4816.