Current through Register Vol. 63, No. 9, September 1, 2024
(1) A
bank, savings bank or other financial institution that is authorized under the
laws of a state or of the United States to engage in the business of making
secured loans for residential housing may apply to become a lender under the
Single Family Mortgage Program. An applicant shall submit to the Department:
(a) An application in the form prescribed by
the Department;
(b) An opinion by
the counsel of the applicant regarding the power and authority of the applicant
to enter into a loan purchase agreement with the Department;
(c) A list of the authorized officers of the
applicant and the signature of each officer;
(d) The most recent audited financial
statements of the applicant;
(e)
Documentation evidencing the applicant's bond and insurance coverage;
and
(f) An application charge in an
amount established by the Department for its costs of evaluation and
administration.
(2) An
applicant may qualify as a lender under the program if the Department
determines that the applicant:
(a) Makes loans
for single family residences in the regular, usual and normal course of its
business;
(b) Has the capability
and resources to originate loans under the program in a sound and professional
manner; and
(c) Has or will have a
valid and binding contract with a loan servicer approved by the Department
under OAR 813-020-0050.
(3) A determination by the
Department under section (2) of this rule is subject to the Department's
consideration of factors that include but are not limited to the following:
(a) The number and experience of employees
available to originate program loans;
(b) The applicant's financial capability to
originate program loans;
(c) The
applicant's qualification as a seller or servicer for the Federal National
Mortgage Association, the Federal Home Loan Mortgage Corporation or the Federal
Housing Administration, or as a "Special Lender" under the federal Servicemen's
Readjustment Act;
(d) Whether the
applicant's deposits are insured by the Federal Deposit Insurance Corporation;
and
(e) The applicant's reputation,
experience and performance in the area of residential lending and any other
area of the applicant' business.
(4) Before a lender that is qualified by the
Department under section (2) of this rule may make a program loan, the lender
shall enter into an agreement with the Department providing for the manner and
terms of sale of program loans, according to a standard form prescribed by the
Department.
Stat. Auth.: ORS
456.555
Stats. Implemented: ORS
456.625
