@ORDems Well Nathan...when they get jousing and I get ignored....Another Tina Kotek for Oregon failure brings light to a much bigger issue. Knowing that she could have prevented a federal investigation that could strip Oregon of its ability to manage its own mortgage industry, is this really who we want leading our state?" Christine Deboy Drazan Christine Drazan
Some of you may remember that the state of Oregon fined a mortgage lender, but left me homeless with no recourse for restitution. This is because there's a lack of consumer protection in the mortgage industry that affects single people, people building 1-4 units, multifamily housing, and housing developments.
Due to being continuously ignored by Governor Kotek since November 2024 and refused a simple 15-minute conversation multiple times as well as all the sm tags on this enforcement gap, this matter has been escalated to the federal government.
That being said, Oregon’s broken mortgage regulatory framework is now being actively investigated by the federal government under 12 U.S.C. § 5108. On September 8, I concluded a critical 13-minute and 7-second conference call with Fannie Mae investigators. Because Oregon’s severe lack of statutory consumer protections introduces profound systemic risk to the pipelines for land developers, homebuilders, and 1-to-4 unit residential projects, Fannie Mae is actively investigating this enforcement failure.
Based on the market-wide implications of this structural breakdown, Fannie Mae explicitly directed me on this call to notify the Federal Trade Commission (FTC) as I had already engaged CFPB.
The structural flaw is written directly into Oregon law: when a mortgage lender commits flagrant misconduct, the state assesses a civil penalty to pad its own budget, but the statutory framework provides absolutely no legal mechanism to reimburse, require restitution or refund the harmed consumer. By prioritizing state revenue over victim restitution, Oregon’s regulatory structure is failing to provide the "effective supervision and enforcement" mandated by federal law under the SAFE Act (12 U.S.C. § 5101 et seq.) and 12 CFR § 1008.113.This is no longer just a local bureaucratic dispute. The Consumer Financial Protection Bureau (CFPB) has been formally engaged, and an official federal enforcement tracking number has been issued. Under 12 U.S.C. § 5108, if a state’s licensing and enforcement system fails to meet these rigorous federal standards, the CFPB is granted the statutory backup authority to strip that state of its independent regulatory power and implement a federal takeover of its mortgage licensing system.When a state's legal code is structured to profit from lender misconduct while stranding private capital and stalling housing development, it violates federal consumer protection mandates. Federal accountability is moving forward.
Future op ed is emminent.
#ConsumerProtection #OregonHousing #HousingCrisis #SAFEAct #CFPB #Accountability #HousingFinance #12USC5108 #FannieMae