OAR 441-175-0055
Rules of Fair Practice for Mortgage Banker and Mortgage Broker Licensees

Any mortgage banker or mortgage broker licensed under ORS 59.840 to 59.980 and relying upon exclusion from the definition of “broker-dealer” pursuant to 59.015 (Definitions for Oregon Securities Law)(1)(h) in connection with the offer and sale of registered offerings of securities involving real estate paper shall comply with the following rules of fair practice:

(1)

Securities Registration: All offerings shall be registered pursuant to the provisions of ORS 59.065 (Registration procedures) and OAR chapter 441, division 065.

(2)

Salesperson Licensing. All natural persons involved in the offer and sale of securities shall be licensed as issuer salespersons pursuant to the provisions of ORS 59.175 (Procedures for notice filing and licensing) and OAR 441-175-0120 (Licensing of Salespersons or Representatives to Non-FINRA Broker-Dealers, State or Federal Covered Investment Advisers, Issuers and Owners of Securities). In addition, the employing mortgage banker or mortgage broker must file material amendments to the salesperson license application pursuant to the provisions of 441-175-0105 (Material Changes, Amendments and Notice of Civil and Criminal Actions).

(3)

Advertising. All advertising involving the offering must be filed with and accepted by the director prior to its use.

(4)

Supervision: The responsibility for supervision of all persons engaged by a licensee to effect securities transactions is that of the licensee. This supervision includes reviewing and authorizing all securities activities of the licensee’s salespersons.

(5)

Investor Funds and Securities: All funds received in connection with an offering must be segregated from those of the licensee, and:

(a)

All investor funds must be deposited in a client trust account which is free from all claims attachment or levy by creditors of the licensee; and

(b)

All investor securities must be held in trust in a secure depository and the securities must be free from all claims, attachment or levy by creditors of the licensee.

(6)

Books and Records: The licensee must create and maintain those books and records required in OAR chapter 441, division 865.

(7)

Investor Suitability:

(a)

A licensee shall not recommend a securities transaction to an investor unless the licensee has reviewed the terms of the transaction and, after reasonable inquiry by the licensee, the licensee has reasonable grounds to believe that the recommendation is suitable for the investor on the basis of:

(A)

Information furnished by the investor (including the investor’s investment objectives and financial situation); and

(B)

Any other relevant information known to the licensee.

(b)

The requirements of subsection (a) of this section, except for the requirement to review the terms of the transaction, may be satisfied if the investment is in fact suitable for the particular investor;

(c)

Specific investor suitability requirements established pursuant to rule or order of the director shall take precedence over the general investor suitability requirements of subsection (a) of this section.

Source: Rule 441-175-0055 — Rules of Fair Practice for Mortgage Banker and Mortgage Broker Licensees, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=441-175-0055.

441‑175‑0002
Fees for Licensing or Notice Filing of Firms and Individuals 441‑175‑0010
Definitions 441‑175‑0015
When Licensing Application Deemed Abandoned 441‑175‑0020
Exclusion from Definition of “Broker-Dealer” 441‑175‑0030
Exclusion from Definition of “Investment Adviser” 441‑175‑0040
Exclusion from Definition of “Salesperson” 441‑175‑0041
Exclusion from Definition of “Investment Adviser Representative” 441‑175‑0046
Federal Covered Investment Advisor Representative 441‑175‑0050
Rules of Fair Practice for Real Estate Licensees 441‑175‑0055
Rules of Fair Practice for Mortgage Banker and Mortgage Broker Licensees 441‑175‑0060
Licensing Rule Implementing, 1997 Oregon Laws Chapter 772 and the National Markets Improvement Act of 1996 441‑175‑0070
General Licensing Rules for Broker-Dealers, Investment Advisers and Salespersons, Succession and Acquisition 441‑175‑0080
Applications for Licensing of Broker-Dealers 441‑175‑0085
Limited Licensing of Canadian Broker-Dealers and Salespersons 441‑175‑0100
Applications for Licensing of Investment Advisers 441‑175‑0105
Material Changes, Amendments and Notice of Civil and Criminal Actions 441‑175‑0110
Surety Bond 441‑175‑0120
Licensing of Salespersons or Representatives to Non-FINRA Broker-Dealers, State or Federal Covered Investment Advisers, Issuers and Owners of Securities 441‑175‑0130
Licensing of Salespersons to FINRA Broker-Dealers 441‑175‑0140
Disqualification from Automatic Licensing 441‑175‑0150
Termination or Cancellation of Salesperson or Investment Adviser Representative License 441‑175‑0160
Renewal of FINRA Broker-Dealer and Salesperson Licenses 441‑175‑0165
Renewal of the Licenses of Non-FINRA Broker-Dealers or State Investment Advisers, and Their Salespersons or Investment Adviser Representatives 441‑175‑0171
Use of Trade Name or Assumed Business Name 441‑175‑0175
Internet Communications 441‑175‑0185
Errors and Omissions Coverage under ORS 59.175
Last Updated

Jun. 8, 2021

Rule 441-175-0055’s source at or​.us