Current through Register Vol. 63, No. 9, September 1, 2024
(1) The
servicing of loans shall be performed by servicer(s) selected by the
Department. Servicing, unless performed by the Department, shall be conducted
under the terms and conditions contained in a servicing agreement entered into
between the Department and the Approved Servicer. The Department shall
prescribe the form of the servicing agreement. The Approved Servicer shall:
(a) Promptly collect all payments due under
the Loan Agreement and Regulatory Agreement and Declaration of Restrictive
Covenants;
(b) Provide the
Department with a monthly accounting of Program Loan payments and
disbursements;
(c) Ensure that
escrow account balances are maintained at a level sufficient for the payment of
the Project's property taxes, insurance premiums and costs of replacement as
they become due and payable;
(d)
Forward payments to the Department according to the provisions of the servicing
agreement;
(e) Forward payments for
insurance premiums to the insurance company when due;
(f) Forward payments for property taxes to
the county assessor when due;
(g)
Assure that all improvements on the mortgaged premises are kept insured against
fire and extended coverage, casualty, liability and business income loss in
accordance with the Loan Agreement and Regulatory Agreement and Declaration of
Restrictive Convents;
(h) Provide
the Borrower with regular analyses of servicing accounts; and
(i) Perform such other responsibilities as
the Department may prescribe.
(2) In order to qualify as an Approved
Servicer and continue as such, an entity shall demonstrate to the satisfaction
of the Department that:
(a) One of its
principal functions is the servicing of multi-unit or commercial loans secured
by real estate;
(b) Such servicing
is a customary and regular business activity of the applicant;
(c) It can demonstrate qualifications to
engage in the servicing of mortgage loans for specified government agencies or
private institutions engaged in the secondary market for mortgage investments
and have errors and omissions insurance acceptable to the Department;
(d) It deposits funds to accounts in
depositories which comply with the requirements of ORS
295.005,
295.015-295.018 and
295.025 and which are insured to
the full extent legally possible by the Federal Deposit Insurance Corporation,
or other federal insuring department; and
(e) It shall maintain servicing facilities
adequately staffed with personnel familiar with all regulations and
requirements pertaining to or affecting Program Loans serviced for the
Department.
Stat. Auth.: ORS
90.800 -
90.840,
90.630, 183,
456.515 -
456.723,
458.210 -
458.650
Stats. Implemented: ORS
456.625
