Oregon AG Proposes Expanding 'Mortgage Servicer' To Include Trustees

Oregon AG John Kroger

The Oregon Attorney General proposed an emergency rule effective January 25th that would alter the definition in the state of ‘mortgage servicers’. The definition of ‘mortgage servicer’ would include Trustees, attorneys involved with judicial and nonjudicial foreclosures and escrow agents. The new rule would affect legal and foreclosure representation for mortgage lenders.

UTA provided comment to the proposed rule. The Association requested the exclusion of attorneys and Trustees from the definition of ‘mortgage servicer’.  UTA noted that ‘a trustee, if deemed a ‘mortgage loan servicer’, could be cowed by a threatening borrower into a position of paralysis that is unfair to the lender under any circumstances, putting the trustees in the middle of the battle that actually should remain between the real parties in interest, namely the borrower and the lender.

Read UTA Comments to Oregon AG