For all residential mortgage loans originated on or after Jan. 1, 2010, in which a mortgage banker, mortgage broker, or mortgage loan originator advertises or solicits a loan in a language other than English, and conducts a significant part of the communication about the mortgage loan in that language, ORS 86A.198 requires that the borrower must be provided certain disclosures translated in the language they are using. Mortgage bankers, mortgage brokers, and mortgage loan originators must use these translated disclosures only if they advertise, negotiate the terms, or receive an application for a residential mortgage loan (secured by one to four residential dwelling units) in a language other than English. A mortgage banker, mortgage broker, or mortgage loan originator who conducts business only in English is not affected by this law. ORS 86A.198(3) directs the Department of Consumer and Business Services to develop and make available the above loan disclosures in the three most commonly used languages in Oregon, other than English.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, directed the Consumer Financial Protection Bureau (CFPB) to adopt rules and publicize forms combining key mortgage loan disclosures under the Truth-in-Lending Act (TILA), and the Real Estate Settlement Procedures Act (RESPA), applicable to most closed-end federally related mortgage loan transactions. These newly developed forms are also known as "Integrated Loan Disclosures." The rule is effective and applicable to transactions originated on or after Oct. 3, 2015. The CFPB's website has information about the new disclosure requirements and which transactions are subject to the requirement to provide the Integrated Loan Disclosures.
Because the CFPB's rules affect the key disclosures required to be translated in ORS 86A.198, the department implemented a rule, OAR 441-865-0060, that ensures that consumers continue to receive the new key disclosure in the language used in the transaction. As a result, for loans originated on or after Oct. 3, 2015, the consumer must be provided the following documents translated into the language used in the transaction:
For loans subject to the TILA/RESPA Integrated Loan Disclosures:
- The Loan Estimate
- The Closing Disclosure
- The general disclosure
For loans not subject to the TILA/RESPA Integrated Loan Disclosures:
- The general disclosure
The department further recommends that mortgage bankers, mortgage brokers, and mortgage loan originators that are required by ORS 86A.198 to provide translated documents for loans subject to the integrated loan disclosures also provide a translation of Form H-27(A), as developed and publicized by the CFPB. This will ensure that the consumers have all their key disclosures in the language used in the transaction. To aid in this, the department has translated Form H-27 (A) Mortgage Loan transaction - Written List of Providers Model Form, which we recommend using when the above disclosures have been provided to borrowers as required by RESPA and TILA.
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