2008 Legislation

House Bill 3630 - Regulation of home mortgage loan foreclosure consultants and equity purchasers.

On March 11, 2008, Governor Ted Kulongoski signed into law House Bill 3630, which requires "foreclosure consultants" to provide a homeowner with a written contract with plain language disclosures; limits the compensation such consultants can receive; and prohibits them from acquiring any interest in the home in foreclosure. The foreclosure consulting contract must include a full description of services to be provided and the total costs of the contract.

The bill also requires "equity purchasers" to provide the homeowner with a written contract in plain language; it requires equity purchasers to ensure the homeowner has the ability to buy back the home; it entitles the homeowner to a share of proceeds if the home is re-sold quickly; and it requires the transfer to take place in escrow. The homeowner has the right to cancel a foreclosure consulting or an equity purchasing contract.

For those facing foreclosure, HB 3630 will require the homeowner to be sent a notice, in plain language, with information about how to stop the foreclosure process; the amount needed to bring the loan current; and sources of counseling and advice. It also will require commercial mortgage lenders to provide a toll-free telephone number for the homeowner to get loan delinquency and repayment information and for person-to-person consultation to discuss the payment and loan term negotiation and modification options.

The division has developed a model foreclosure notice for use by the industry. It is designed to be filled out electronically - the trustee must complete all forms that are blank before mailing it to the homeowner. The form is available in Word or PDF versions.

A model Notice of Cancellation form is also available in Word version.

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