(1) A person registered as a debt management service provider may modify or offer to modify the terms and conditions of a consumer’s existing loan or obligation as described in ORS 697.602 if the modification meets all the following conditions:
- (a) The existing loan or obligation is in default, is in imminent danger of default, or there is an objectively reasonable basis to believe that the loan or obligation will default;
- (b) The borrower is not required to pay fees normally assessed for a new loan or obligation to receive the modification; and
- (c) The contract or agreement makes or is anticipated to make permanent or long-term changes to the principal, interest, length of the loan or obligation, or other key terms of the existing loan or obligation.
- (2) A debt management service provider meeting the requirements of section (1) of this rule may charge the fees allowed under ORS 697.692.
- (3) Section (1) of this rule shall not be construed to allow a debt management service provider to make or offer to make a new loan or obligation, including residential mortgage loans.
- (4) Notwithstanding section (3) of this rule, a mortgage loan originator regulated by the director under applicable law may modify or offer to modify the terms and conditions of an existing residential mortgage loan without a registration as a debt management service provider.
(5) The term “modifying or offering to modify terms and conditions of an existing loan or obligation” does not include an individual who negotiates with a consumer to modify a loan if:
- (a) The individual is either an employee or has contracted to represent a lender or loan servicer;
- (b) The loan modification activity is within the scope of the individual’s responsibilities for the lender or loan servicer; and
- (c) The individual receives no direct compensation from the consumer for the individual’s services.
Statutory/Other Authority
2009 OL Ch 604 & § 21
Statutes/Other Implemented
ORS 697.602
History
FCS 13-2009, f. 12-18-09, cert. ef. 1-1-10