Bulletin: OR2017002

Date:
September 27, 2017
To:
All Oregon Issuing Offices
RE:
LEGISLATIVE UPDATE - Oregon Legislation - 2017

Dear Associates:

The following are summaries of some of the bills passed during the 2017 legislative session of interest to the title insurance industry:

HB 2359 - Mailing Requirement for Foreclosure Avoidance Eligibility Notice

Amends ORS 86.741 and 86.748. Deletes the requirement that a beneficiary send to the Attorney General a copy of the notice sent to a homeowner informing that the homeowner is not eligible for foreclosure avoidance measure or that the homeowner has not complied with terms of the foreclosure avoidance measure.

Effective January 1, 2018

NOTE: This will have little effect on title insurance and escrow, except to the extent that title officers are reviewing foreclosure notice documentation.

HB 2920 - Money Judgments in Judicial Foreclosures

Amends ORS 18.950. If a judgment of foreclosure results in an execution of the sale of real property, but there is also a specific money judgment, HB 2920 imposes a requirement that the judgment creditor file a full or partial satisfaction upon receipt of the execution sale proceeds. Includes provisions for enforcement by the judgment debtor, including a right to attorney fees.

Effective January 1, 2018

NOTE: “Enforcement” provisions include filing a motion under ORS 18.235. Under that section, in addition to awarding attorney’s fees, a court can order a release and satisfaction of the lien at issue. If the party requesting the motion is not the debtor, notice must be made to the debtor and creditor.

SB 79 - Dept. of Veterans’ Affairs as Beneficiary of Foreclosing Deed of Trust

Amends ORS 86.752 and 88.010. Modifies the prerequisites for judicial and non-judicial foreclosures of residential trust deeds with respect to loans in which the Director of Veterans’ Affairs is a beneficiary under ORS 407.125.

Previously, in order to comply with the resolution conference requirements of ORS 86.726, the Director had to record or attach to a complaint in foreclosure a certificate of compliance, or an exemption. With this bill, the Director can record or attach the Director’s signed affidavit stating that the DVA is exempt from the requirement under ORS 86.726 regarding resolution conferences.

Effective June 6, 2017

HB 3056 - Reducing an HOA Lien to a Money Judgment Does Not Extinguish the Lien

Amends ORS 94.709 and 100.450. Amends existing law to clarify that an HOA may obtain a money judgment for unpaid assessments without extinguishing its lien, that a partial satisfaction of the money judgment does not extinguish the lien, and that a full satisfaction of the money judgment does not extinguish any portion of the HOA’s lien that is unrelated to the amounts awarded in the judgment.

Effective January 1, 2018

HB 2855 - Non-judicial Transfer of Title for Fulfilled Land Contracts

ORS Chapter 93. Adds new sections to ORS 93 that provide for a non-judicial method of transferring seller’s/vendor’s title in the limited instance where a land sale contract has been fully paid, but the seller has failed to provide a fulfillment deed. Requires service of buyer’s/vendee’s notice of intent to enforce the contract on seller and other interested parties pursuant to ORCP 7 D(2) and (3), as well as by first class mail certified with return receipt. If no objection is received within 30 days, seller’s interest in the real property will be transferred by publishing the required notice and recording an affidavit of compliance within 15 days following the last publication date.

Effective January 1, 2018

NOTE: This is a completely new procedure. While use will be extremely limited, when used, it will be quite beneficial to title agents and officers for their customers to have this tool at their disposal.  

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
8.04 Homeowners' Associations
Exceptions Manual:
None
Forms:
None