ORS 86A.151
Liability of person that employs mortgage loan originator

  • recovery of damages
  • limitations on proceeding
  • action against bond or letter of credit
  • attorney fees

(1)

A person that employs a mortgage loan originator or under the provisions of ORS 86A.200 (Definitions) to 86A.239 (Display of license and unique identifier) should employ a mortgage loan originator is liable as provided in subsection (2) of this section for an ascertainable loss of money or property, real or personal, in a residential mortgage transaction if the person engages in a residential mortgage transaction in which the person:

(a)

Violates a provision of ORS 86A.200 (Definitions) to 86A.239 (Display of license and unique identifier), except ORS 86A.236 (Prohibited activities) (11), or ORS 86A.095 (Short title) to 86A.198 (Materials in languages other than English), except ORS 86A.115 (Grounds for denying, suspending, conditioning or revoking license) (4); or
(b)(A)(i) Makes an untrue statement of a material fact; or
(ii)
Omits from a statement a material fact that would make the statement not misleading in light of the circumstances under which the person makes the statement; and

(B)

Fails to prove that the person did not know, or in the exercise of reasonable care could not have known, of the untrue statement or omission.

(2)

The person suffering ascertainable loss may recover damages in an amount equal to the ascertainable loss.

(3)

A person whose sole function in connection with a residential mortgage transaction is to provide ministerial functions of escrow, custody or deposit services in accordance with applicable law is liable only if the person participates or materially aids in the residential mortgage transaction and the plaintiff sustains the burden of proof that the person knew of the existence of the facts on which liability is based or that the person’s failure to know of the existence of the facts was the result of the person’s recklessness or gross negligence.

(4)

Except as otherwise provided in this subsection, an action or suit may not be commenced under this section more than three years after the residential mortgage transaction. An action under this section for a violation under subsection (1)(b) of this section or ORS 86A.154 (Fraud and deceit with respect to mortgage banker or mortgage broker business) may be commenced within three years after the residential mortgage transaction or two years after the person bringing the action discovered or should have discovered the facts on which the action is based, whichever is later, but not later than five years after the date of the residential mortgage transaction. Failure to commence an action on a timely basis is an affirmative defense.

(5)

A person has a right of action under the corporate surety bond or irrevocable letter of credit required under ORS 86A.106 (Procedures for licensing) or 86A.227 (Corporate surety bond required) if the person:

(a)

Initiates a mortgage banking loan or mortgage loan application; and

(b)

Has a right of action against another person under this section.

(6)

Subsection (3) of this section does not limit a person’s liability:

(a)

For conduct other than in the circumstances described in subsection (3) of this section; or

(b)

Under any other law.

(7)

Except as provided in subsection (8) of this section, the court may award reasonable attorney fees to the prevailing party in an action under this section.

(8)

The court may not award attorney fees to a prevailing defendant under the provisions of subsection (7) of this section if the action under this section is maintained as a class action pursuant to ORCP 32. [Formerly 59.925; 2011 c.9 §5]

Source: Section 86A.151 — Liability of person that employs mortgage loan originator; recovery of damages; limitations on proceeding; action against bond or letter of credit; attorney fees, https://www.­oregonlegislature.­gov/bills_laws/ors/ors86A.­html.

(formerly 59.925)

Notes of Decisions

Any person who suffers ascertainable loss in transaction creating security interest in residential property due to mortgage broker or mortgage banker engaging in misrepresentation or violating provision of [former] ORS 59.840 to 59.980 may claim against bond of broker or banker. American Bankers Insurance Co. v. State of Oregon, 337 Or 151, 92 P3d 117 (2004)

86A.095
Short title 86A.100
Definitions 86A.103
License required to engage in residential mortgage transactions as mortgage banker or mortgage broker 86A.106
Procedures for licensing 86A.109
Expiration of initial license 86A.112
Licensees to keep records 86A.115
Grounds for denying, suspending, conditioning or revoking license 86A.118
Action against applicant or licensee for act or omission of associate 86A.121
Cancellation of license or application 86A.124
Supervisory authority of director over mortgage bankers, mortgage brokers and mortgage loan originators 86A.127
Investigations 86A.130
Enjoining violations 86A.133
Procedures where assets or capital of mortgage banker or mortgage broker found impaired 86A.136
Rules 86A.139
Notice of orders 86A.142
Judicial review of orders 86A.145
Oaths and subpoenas in proceedings before director 86A.148
Copies of documents 86A.151
Liability of person that employs mortgage loan originator 86A.154
Fraud and deceit with respect to mortgage banker or mortgage broker business 86A.157
Clients’ Trust Account 86A.160
Notice to bank regarding Clients’ Trust Account 86A.163
Prohibited advertisements 86A.166
Designation of principal place of business 86A.169
Disclosure required before closing mortgage loan or mortgage banking loan 86A.172
Advisory committee 86A.175
Servicing or collecting mortgage banking loan or mortgage loan by mortgage banker or mortgage broker 86A.178
Legislative findings regarding mortgage loan originators 86A.183
Prohibited conduct for mortgage bankers, mortgage brokers and mortgage loan originators 86A.186
Mortgage loan originator criminal records checks 86A.195
Restrictions on negative amortization loans 86A.196
Notice of reverse mortgage prohibition in homestead property tax deferral program 86A.198
Materials in languages other than English 86A.200
Definitions 86A.203
License and unique identifier for mortgage loan originator 86A.206
Application for license 86A.209
Interim license 86A.212
Findings required for issuing license 86A.215
Education and testing requirements for license 86A.218
License renewal 86A.221
Continuing education requirements for mortgage loan originator 86A.224
Denying, suspending, conditioning, revoking or declining to renew license 86A.227
Corporate surety bond required 86A.230
Contracts or agreements with Nationwide Mortgage Licensing System and Registry and other agencies 86A.233
Production of records 86A.236
Prohibited activities 86A.239
Display of license and unique identifier 86A.242
Rules 86A.300
Short title 86A.303
Definitions 86A.306
License requirement 86A.309
Application for license 86A.312
Licensee’s principal place of business 86A.315
Required liquidity, operating reserves and tangible net worth 86A.318
Required notices to director 86A.321
Director’s supervisory authority 86A.324
Duties of mortgage loan servicer 86A.327
Complaints 86A.330
Violations 86A.333
Additional duties of licensee 86A.336
Suspension or removal of licensee’s director or officer 86A.339
Additional duties of mortgage loan servicer 86A.990
Criminal penalties for violations of ORS 86A.095 to 86A.198 86A.992
Civil penalties for violations of ORS 86A.095 to 86A.198
Green check means up to date. Up to date

Current through early 2024

§ 86A.151’s source at oregon​.gov