Manufactured structures questions & answers

A mortgage loan originator license is required to take an application for a residential mortgage loan or for offering or negotiating the terms of a residential mortgage loan. There are few exceptions to the requirement.​

No. If a mortgage loan originator license is required, even one transaction requires a license. ​

No, there is no temporary license available.​

Yes. The definition of dwelling includes manufactured homes, whether or not they are attached to real property. Financing to purchase a manufactured home in a park setting is still subject to the licensing requirements.​

Maybe. The law provides an exemption for an individual licensed as a manufactured structure dealer to originate up to three loans per 12-month period as long as the individual uses a written sale agreement form that complies with the requirements of ORS 646A.050, 646A.052, and 646A.054, along with any rules adopted under those statutes. However, the individual may not hold more than eight mortgage loans at any given time. This means if a person previously has made eight or more loans and still has the right to receive payments under at least eight of these loans, the individual may not make a ninth loan without obtaining a loan originator license or using a licensed loan originator to originate the loan. ​

Maybe. The law provides an exemption for an individual licensed as a limited manufactured structure dealer license with ownership interest in a manufactured home park to originate up to five loans per 12-month period as long as the individual uses a written sale agreement form that complies with the requirements of ORS 646A.050, 646A.052, and 646A.054, along with any rules adopted under those statutes. However, the individual may not hold more than 12 mortgage loans at any given time. This means if a person previously has made 12 or more loans and still has the right to receive payments under at least 12 of those loans, the individual may not make a 13th loan without obtaining a loan originator license or using a licensed loan originator to originate the loan. ​

Yes. There is no MLO license required to sell the home, but the employee must be a licensed MLO to take the application and negotiate financing for the transaction. ​

No. Rent-to-own contracts that do not contain financing terms do not fall within the scope of MLO licensing requirements to have a mortgage loan originator negotiate the terms.​

ORS 86A.203(2)(c) provides an exception from the MLO licensing requirements for an individual providing financing as part of the sale of the individual's residence, but the exemption is limited. Most people do not need a license to provide seller-carry financing; however, if you have previously made loans using a licensing exemption and you are still entitled to receive payment on eight loans, then you may not use this exemption.

ORS 86A.203(2)(d) provides an exception from the MLO licensing requirements for an individual providing seller-carry financing for non-owner occupied property, such as an investment property. A person can use this exemption only to provide financing for up to three loans in a 12-month period and may not use this exemption if the person is already entitled to receive payments on eight loans made under this exemption. ​

Only a licensed mortgage loan originator can negotiate or discuss the terms with the buyer in a seller-carry transaction in which a mortgage loan originator must be used. This means that the licensed mortgage loan originator would have to negotiate the transaction until the negotiations are complete. ​​

There are two different license requirements that must be analyzed: a mortgage broker/banker (company) license and a mortgage loan originator (individual) license. ORS 86A.100(3)(b)(C) and (5)(b)(F) provide a limited exemption from the requirement to obtain a company license. Without obtaining a company license, individuals can make up to 10 loans a year using their own money for their own investment purposes as long as they do not hold themselves to be in the business of making loans. Thus, individuals may not have a commercial business location for making loans, may not advertise that they make loans, and must make the loan in their own name. Although a company license is not required for an individual investor to make a limited number of loans, there is no corresponding exemption for an MLO license. An individual must have a MLO license to make these loans or use a licensed loan originator to facilitate the loan. ​

An investor may work with different loan originators and different mortgage companies in making private money loans.​

An MLO license is required for a business loan secured by the borrower’s residence because licensing is based on the type of property. The purpose of the funds is irrelevant. Thus, a mortgage loan originator license is required even if the loan is a business loan, unless some other exemption applies. ​

A company or mortgage loan originator license is not required for all types of property. The requirements are tied to residential mortgage loans. These are loans secured by residential one-to-four family property or land where residential one-to-four family property will be built. The requirements apply to bare land and construction loans if the property will have a one-to-four family home built on it. For example, a loan to a person buying a lot to build his or her home on requires a license. Commercial or multi-family properties of more than four family units do not require either a company or MLO license. If a manufactured home, but not the land underneath it, will secure the loan, a company license is not required but an MLO license is, unless some other exemption applies.​

The application must be submitted through the Nationwide Mortgage Licensing System (NMLS). More information is available from NMLS, and our frequently asked licensing questions. ​​​

​We do not require the file to be a full document file in the conventional sense of that term; however, we require that the file comply with the private money investor requirements of OAR 441-870-0050, OAR 441-870-0060, and OAR 441-865-0060.​

Oregon law requires an analysis of a borrower's ability to repay the loan if the loan contains provisions for negative amortization. Oregon also enforces certain federal laws, including the Truth in Lending Act (TILA), which requires the lender to analyze ability to repay. Thus, Oregon will require an analysis of ability to repay for any loan that is subject to TILA and that act's requirements to determine ability to repay. ​

The mortgage loan originator can do loans only through the company that sponsors the MLO's license; therefore, the transaction is really done in the company's name. The company must supervise the MLO and is responsible for the transaction. Although Oregon law is silent on the issue of collecting the fee, it is anticipated that the companies will collect the fee due to the supervision requirements. ​

There are no specified limits in Oregon law on the fees that can be charged. ​