Current through Register Vol. 63, No. 3, March 1, 2024
(1)
Subject to the provisions of this rule, effective June 1, 1989, borrowers with
ODVA loans being charged 7.2 percent variable interest may convert the loan to
a fixed interest rate.
(2) Subject
to the provisions of this rule, effective February 1, 1990, borrowers with ODVA
loans being charged 7.7 percent variable interest may convert the loan to a
fixed interest rate.
(3) The
following loans do not qualify for the interest rate conversion:
(a) Accounts with 12 or less monthly
payments, or one annual payment remaining before the loan will be paid in
full;
(b) Accounts of borrowers in
bankruptcy;
(c) Accounts in
foreclosure;
(d) Accounts two or
more months delinquent;
(e)
Accounts coded as questionable loans (propriety of loan being
investigated);
(f) Loans, any
portion of which is being charged an interest rate other than 7.2 percent or
7.7 percent (composite interest rate).
(4) Accounts on semi-annual or annual payment
schedules can convert to a fixed interest rate. If the holder of a loan with
semi-annual or annual payments would like a fixed interest rate loan, all
provisions of this rule will apply, except sections (7) and (8) of this rule.
Matters covered by sections (7) and (8) of this rule will be negotiated with
the borrower.
(5) The remaining
term on loans converted to a fixed interest rate will be shortened. The shorter
term will be arrived at by using the current retirement date, or the remaining
term on loans paying off earlier than the retirement date (larger than required
payments were made), and deducting ten percent:
(a) The maximum term on loans converting to a
fixed interest rate shall be 40 years;
(b) The fixed interest rate available will be
based upon the remaining term of the loan (after shortening the term as
provided above) and shall be as follows: Remaining Term On Loans Being Charged
7.2% Interest -- Fixed Interest Rate:
(A) 5
years or less -- 7.3%;
(B) 5 years
1 month to 9 years 11 months -- 7.4%;
(C) 10 years to 14 years 11 months --
7.5%;
(D) 15 years to 19 years 11
months -- 7.6%;
(E) 20 years to 24
years11 months -- 7.7%;
(F) 25
years or more -- 7.8%.
(c) Loans Being Charged 7.7% Interest --
Fixed Interest Rate: All Loans -- 7.8%.
(6) In order to convert a 7.2 or a 7.7
percent variable interest rate loan to a fixed interest rate loan, the borrower
must agree to the following:
(a) Each year
ODVA may adjust the payment on principal and interest to an amount that will
cause the loan to pay in full by its retirement date. The payments on principal
and interest will not be reduced to an amount lower than the amount established
at the time of conversion to a fixed interest rate;
(b) If ownership of the property securing the
ODVA loan is transferred, or ownership of any portion of the property securing
the loan is transferred, the interest rate on the loan will be as provided by
ORS 407.275(2), the
due date on the loan will be the due date on the latest Note and Mortgage,
Trust Deed, or Security Agreement, and the agreement allowing ODVA to annually
adjust the payment on the loan to assure proper amortization will
terminate.
(7) The
procedure for implementing the interest rate conversion on loans being charged
7.2 percent variable interest rate shall be as follows:
(a) Whether the account qualifies for
interest rate conversion will be determined by the status of the account on
June 1, 1989, if payments are due on the first day of the month or June 15,
1989, if payments are due on the 15th day of the month;
(b) Borrowers desiring to make the interest
rate conversion must notify ODVA in writing, by either mailing a post card
furnished by ODVA, or by other written notification:
(A) By June 30, 1989, if payments are due on
the 1st day of the month;
(B) By
July 14, 1989, if payments are due on the 15th day of the month.
(c) Interest owing on June 1,
1989, or June 15, 1989 (as applicable) shall be added to the balance of the
loan on August 1, 1989, or August 15, 1989 (as applicable);
(d) Any "paid ahead" or "delinquency"
existing on the loan on June 1, 1989, or June 15, 1989, (as applicable), will
be eliminated;
(e) The new terms of
the loan shall be effective August 1, 1989, or August 15, 1989, (as applicable)
and the new payments will begin September 1, 1989, or September 15, 1989 (as
applicable).
(8) The
procedure for implementing the interest rate conversion on loans being charged
7.7 percent variable interest shall be as follows:
(a) Whether the account qualifies for
interest rate conversion will be determined by the status of the account on
February 1, 1990, if payments are due on the 1st day of the month or March 15,
1990, if payments are due on the 15th day of the month;
(b) Borrowers desiring to make the interest
rate conversion must notify ODVA in writing, by either mailing a postcard
furnished by ODVA, or by other written notification:
(A) By February 23, 1990, if payments are due
on the 1st day of the month;
(B) By
April 9, 1990, if payments are due on the 15th day of the month.
(c) Any "paid ahead" or
"delinquency" existing on the loan on February 1, 1990, or March 15, 1990 (as
applicable), will be eliminated;
(d) The new terms of the loan shall be
effective April 1, 1990, or May 15, 1990 (as applicable) and the new payments
will begin May 1, 1990, or June 15, 1990 (as applicable).
(9) This rule does not apply to contracts for
the purchase of State-owned property.
Stat. Auth.: ORS
406.030, ORS
407.115 & ORS
407.327
Stats. Implemented: ORS
407.327
