Oregon’s legislature must be fed up with all the brouhaha surrounding mortgage assignments because Senate Bill 663 in that state would prohibit “the sale, assignment, conveyance or transfer of the loan or right or obligation to service the loan” for five full years after the closing date[1]. The Oregon Senate Committee on General Government, Consumer and Small Business Protection sponsored the bill. Not surprisingly, this extreme proposal has elicited some extreme responses, and many fear that if it passes, it would decimate the Oregon economy. Bill 663 would effectively tie lenders’ hands once they had made their initial quota of loans because they would be unable to move portfolios, and Andy W. Harris, president of Oregon’s Association of Mortgage Professionals (OAMP), plans to lobby against the bill aggressively. “This bill would devastate our Oregon economy, housing, consumers and small business,” he said yesterday.

Do you think that this type of regulation on the mortgage market could be a good thing for Oregon or another state? How would this impact your investing, or would it impact you at all as a commercial investor?

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[1] http://nationalmortgageprofessional.com/news23680/oregon-small-business-protection-committee-bill-could-eliminate-non-servicing-mortgage-lenders