Department of Consumer and Business Services
Finance and Securities Regulation - Chapter 441
Division 870
DISHONEST, FRAUDULENT, UNFAIR AND UNETHICAL PRACTICES
441-870-0081
Use of Certification or Professional Designations by Mortgage Banker, Mortgage Broker, or Mortgage Loan Originator
(1) The use of a certification or professional designation by any mortgage banker, mortgage broker, or mortgage loan originator in connection with making, negotiating or offering to make or negotiate a mortgage banking loan or a mortgage loan, taking a residential mortgage loan application, offering or negotiating the terms of a residential mortgage loan, selling real estate paper, or accepting funds for investment in real estate paper, that indicates or implies that the person has special certification or training, in such a way as to mislead any person is a dishonest, fraudulent or illegal practice or conduct under ORS 86A.115. Prohibited use of a certification or designation under this rule includes, but is not limited to, the following activities:
(a) Use of a certification or professional designation by a person who has not actually earned or is otherwise ineligible to use the certification or designation.
(b) Use of a nonexistent or self-conferred certification or professional designation.
(c) Use of a certification or professional designation that indicates or implies a level of occupational qualifications obtained through education, training or experience that the person using the certification or professional designation does not have.
(d) Use of a certification that falsely states or implies specialized knowledge of the financial needs of a particular segment of the population or class of borrowers that the person using the certification or professional designation does not have.
(e) Use of a certification or professional designation that was obtained from a designating or certifying organization that:
(A) Is primarily engaged in the business of instruction in sales or marketing, or both;
(B) Does not have reasonable standards or procedures for assuring the competency of its designees or certificants;
(C) Does not have reasonable standards or procedures for monitoring and disciplining its designees or certificants for improper or unethical conduct; or
(D) Does not have reasonable continuing education requirements for its designees to maintain the designation or certificate.
(2) The director recognizes a rebuttable presumption that a designating or certifying organization is not disqualified solely for purposes of section (1) (e) of this rule when the organization is accredited by:
(a) The American National Standards Institute;
(b) The National Commission for Certifying Agencies;
(c) The National Association of Mortgage Brokers;
(d) The Mortgage Bankers Association; or
(e) An organization that is on the United States Department of Education’s list entitled “Accrediting Agencies Recognized for Title IV Purposes” and the designation or credential issued from the organization does not primarily apply to sales or marketing, or both.
(3) The director will consider whether a combination of words or an acronym would constitute a certification or professional designation that falsely indicates or implies that a person has special certification or training in advising or servicing a particular segment of the population or class of borrower.
(4) This rule does not apply to use of any of the following designations, titles, degrees, or certifications used by a person unless the facts and circumstances associated with the use of the designation indicate that the designation suggests or implies a greater degree of certification or training than the person possesses or that the designation otherwise misleads borrowers:
(a) A job title within an organization that is licensed, registered, or authorized by a state or federal financial services regulatory agency, when that job title:
(A) Indicates seniority or standing within the organization; or
(B) Specifies an individual’s area of specialization within the organization.
(b) A degree, certificate, or designation evidencing completion of an academic program at an institution of higher education that has been accredited by an organization that is on the United States Department of Education’s list entitled “Accrediting Agencies Recognized for Title IV Purposes.”
(5) Violation of section (1) of this rule is an act, practice, or course of business which operates or would operates as a fraud or deceit upon a person, for the purposes of ORS 86A.154.
(6) The prohibitions in this rule and the remedy available to the director do not limit the director’s authority to enforce existing provisions of law and apply existing remedies.
Statutory/Other Authority: ORS 86A.136, 86A.163 & 86A.242
Statutes/Other Implemented: ORS 86A.115, 86A.154 & 86A.163
History:
FCS 3-2010, f. 3-18-10, cert. ef. 3-22-10