Oregon’s Senate Bill 879 – Exemptions from Mortgage Loan Originator (MLO) License Requirement

Oregon bill exempts certain individuals from the requirement to hold a mortgage loan originator’s license

By Jeff Sorg, OnlineEd Blog

onlineed news(December 24, 2015) – Senate Bill 879 exempts an individual from the requirement to hold a mortgage loan originator’s license who sells, offers, or negotiates terms of up to three residential mortgage loans secured by dwelling unit owned by an individual or a limited liability company, of which individual is a member, during any 12-month period. The exemption is limited to liability companies consisting of an individual and family members and prohibits an individual or limited liability company from advertising that it is in business of making loans. Finally, the bill limits to holding no more than eight residential loans and requires the individual claiming this exemption to disclose all loans that the limited liability companies hold in aggregate.

In addition, Senate Bill 879 exempts an attorney from having to hold a mortgage loan originator’s license if the attorney negotiates the terms of a residential mortgage loan in representing a client and does not receive compensation from a mortgage banker, broker, loan originator, or lender unless the compensation is from a client who has specified an exemption from the requirement to hold a mortgage loan originators license.

SB 879 becomes effective January 1, 2016.


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About Jeff Sorg

Jeff Sorg holds vocational and post-secondary school instructor licenses in several states and has authored numerous real estate continuing education and pre-licensing courses. Sorg is awarded the International Distance Education Certification Center's CDEi Designation for distance education. Memberships include ARELLO (Association of Real Estate License Law Officials), REEA (Real Estate Educators Association) the National Association of REALTORS®, Oregon Association of REALTORS®, and Portland Metro Association of REALTORS®. Awards and service include REALTOR® Emeritus; Life Member award; 2020, 2021, 2022 Chairperson of the Oregon Real Estate Forms Committee; Oregon REALTORS State Director. More on request.