Earlier this year, 2013 Oregan Laws. Ch. 200 (H.B. 2528), which amended the definitions found in Ore. Rev. Stat. Ann. § 86.205 (West 2013), was passed into law with an effective date of January 1, 2014.
A significant change made by this bill was to the definition of a “real estate loan agreement” or “real estate loan” in Subsection (7) of the aforementioned section. Currently, a “real estate loan” is limited to a loan on residential property in an amount of $100,000 or less which is occupied by the borrower. This means that all parts of Chapter 86, Title 9 of Oregon’s Revised Statutes, which apply to “real estate loans,” limit such laws to loans of $100,000 or less.
Due to 2013 Oregon Laws. Ch. 200, Subsection (7) has been revised to eliminate the $100,000 limitation, so now these laws apply to all loans on residential property occupied by the borrower.
One of the laws affected by this change (Or. Rev. Stat. Ann. § 86.255) requires a notice to be provided to borrowers in situations where an escrow account (or a “lender’s security protection provision”) is not required, but in which the parties to the transaction agree to allow the borrower to commit assets in advance to pay for items such as taxes, insurance premiums, and other charges for which an escrow account is normally established.
The notice discloses that such an arrangement is not a condition for the extension of the loan, whether the borrower must pay the lender a charge for this arrangement, and if the arrangement is in fact the establishment of an escrow account, whether the lender will pay interest on the account (and the amount thereof).
We provide Cx2775 for this requirement. One of the conditions for the document to print is that the field “Loan Amount Greater than 100k” must equal “No.” Due to the changes in the definition, we will be configuring the document to print when this field equals “Allow Any,” in order to remove the restriction.
This change will take effect on January 1, 2014. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
December 31, 2013