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http://www.omniture.com --> Sections Home Page Local News AP News Blogs Archives Business Classifieds Event Calendar Classic Forums Forums Life Opinion Obituaries Multimedia Photo Gallery Readers Photo Gallery Sports Tempo Weather Road Cams Special Coverage 2006 Britt Festivals --> Shop Our Valley AutoFinder HomeFinder JobFinder Search Our Valley Special Sections Distinctly Northwest Women in Business Homelife Magazine Joy Magazine Oregon Golf Info Oregon Wine Info Other Publications Local Links Ashland News eSouthernOregon Newspapers In Education Personals Customer Service Advertise With Us Place Classified Ad Contact Us FAQ's Home Delivery Site Map Email Story to a Friend January 20, 2007 Tougher mortgage lender rules planned SALEM — State regulators say they are going to get tougher on mortgage lenders. The Oregon Department of Consumer and Business Services on Thursday announced several measures it is taking to strengthen its regulation of the mortgage lending industry in response to consumer and industry concerns. The changes include adopting new rules and guidelines, and increasing education and enforcement efforts. "Mortgage lending is a key part of Oregon's economy, and taking out a mortgage is often the single largest financial decision an Oregonian will make," said Cory Streisinger, director of the Department of Consumer and Business Services. "We expect these changes to help the industry stay strong while making sure borrowers are protected." The department's Division of Finance and Corporate Securities adopted new rules, effective Thursday, to tighten education requirements for mortgage professionals and ensure that mortgage lenders are effectively supervising the people who make the loans. Advertisement "We believe more formal requirements will be positive for our industry," said Eric Wiley, senior vice president and chief operating officer of Lake Oswego-based Pacific Residential Mortgage. "Loan officers who are educated and well-informed provide better services to consumers and help the home-buying process go smoothly," Wiley said. The department also is addressing the increasing number of nontraditional loans offered to Oregonians by adopting guidelines for state-regulated lenders. The state guidelines are based on federal guidelines for national banks and institutions. They outline best practices related to two types of nontraditional loans: "payment option" and "interest only" adjustable rate mortgages. With these loans, borrowers exchange lower payments during an initial period for higher payments later. For example, in an interest only mortgage, a borrower only pays interest at first but eventually must pay interest and principal each month. As a result, the payment could increase substantially — even doubling in some cases. The guidelines, which have been adopted by 19 states, will become part of the method used by examiners and investigators during compliance reviews of state law and regulation. On the Net: A complete list of the rules can be found at " target="_blank">www.dfcs.oregon.gov Would you like to respond to this story? If so Click Here to visit our forums. Advertisement Copyright © 1997-2007 Mail Tribune, Inc. All rights reserved. Privacy Policy | Terms & Conditions | Website Feedback online casinos news Home Security Systems Online Casino Reviews Trunks, Footlocker Fundraisers UK Homeowner Loans Casinos Canada Cord Blood Banking Discount Hotel Reservations Texas Electric Choice Compare Electric rates in Texas Online Casino Windermere Van Vleet Men's Clothing Debt Help New Hampshire Primary