On June 27, the Oregon Department of Consumer and Business Services’ (“Department”) Division of Financial Regulation (“Division”) finalized new regulations implementing Senate Bill 485, which requires companies to obtain a license from the Division in order to service student loans in Oregon, unless an exemption applies. The new regulations also establish related servicer requirements and prohibited acts, the supervisory authority of the Director of the Department (“Director”), and the obligations of a student loan ombudsman appointed or designated by the Department pursuant to Senate Bill 485. The new regulations are effective as of July 1, and the Division started accepting student loan servicer applications as of June 1.
The Division administers licensing through the NMLS. The new regulations create two licenses, a Student Loan Servicer License and a Student Loan Servicer License – Federal Contract.
The new regulations’ provisions regarding licensing requirements, servicer duties and prohibitions, licensee notifications, and exemptions are described in detail here.