On March 5, the Oregon Senate passed House Bill 4116, legislation amending the Oregon Consumer Finance Act to opt out of the federal interest-rate exportation framework under the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA) for certain consumer loans made to Oregon residents. The bill now awaits the governor’s signature and would apply to consumer finance loans of $50,000 or less made to borrowers in Oregon.
HB 4116 expressly declares that Oregon does not permit the DIDMCA’s Section 521 interest-rate exportation authority to apply to consumer finance loans made in the state. DIDMCA generally allows state-chartered banks to lend nationwide at the interest rates permitted in their home states. By opting out of that framework, Oregon seeks to ensure that consumer loans made to Oregon residents remain subject to the state’s interest-rate limits and regulatory framework.
Key provisions of the bill include:
- DIDMCA opt-out provision. The statute declares that the DIDMCA amendments allowing state-chartered banks to export interest rates do not apply to consumer finance loans governed by Oregon’s consumer finance lending laws.
- Expanded scope of covered activity. The law applies to persons making, brokering, or facilitating consumer finance loans of $50,000 or less to Oregon residents.
- Jurisdictional triggers for Oregon lending laws. The statute applies where a consumer negotiates or enters into a loan agreement while physically present in Oregon or makes payments using an Oregon financial account or instrument drawn on an Oregon financial institution.
- Updated licensing application requirements. Amendments to the licensing provisions require applicants for consumer finance lender licenses to submit identifying information, fingerprints, background information, and other materials through the Nationwide Mortgage Licensing System and Registry.
The amendments apply to consumer finance loans made on or after the law’s effective date, which is set for the 91st day after the Oregon Legislature adjourns its 2026 regular session.
Putting It Into Practice: The bank-fintech partnership model continues to be challenged as Oregon follows Colorado’s lead in opting out of the national DIDMCA framework. (previously discussed here). If passed, this law will likely be challenged (as Colorado’s was). Banks, fintech platforms, and other consumer lenders operating multistate lending programs should continue to monitor these developments closely.
