Legislation to affect lending
Authored by: John Benazzi
As published in The Daily Journal of Commerce
The 2010 special session of the Oregon Legislature resulted in two bills that will impact real estate lending in Oregon. Both came out of the Committee on Consumer Protection and Governmental Accountability and are intended to address consumer protection problems that have arisen during the mortgage crisis.
HB 3656, signed by Gov. Ted Kulongoski on March 10 and now in effect, is designed to protect borrowers of “80/20″ residential loans from deficiency judgments on their “20″ loan after foreclosure of the “80″ loan.
HB 3706, passed by the state House and Senate on Feb. 10, will extend the application of Oregon’s Unfair Trade Practices Act to mortgage banks and other institutions that extend credit and allow consumers and the state to sue lenders for unfair and deceptive dealings. HB 3706 is awaiting the governor’s signature. (read full DJC article)