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 any 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 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 Covenants;
(h) Provide
Borrower with regular analyses of servicing accounts; and
(i) Perform such other responsibilities as
the Department may prescribe.
(2) If the Department does not act as the
Approved Servicer, the Borrower selects the entity to act as Approved Servicer
for the Loan. 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-family or commercial loans secured by real estate;
(b) Such servicing is a customary and regular
business activity of the applicant;
(c) It is qualified to engage in the
servicing of mortgage loans for specified government agencies or private
institutions engaged in the secondary market for mortgage
investments;
(d) It deposits funds
to accounts in depositories which comply with the requirements of ORS
295.005,
295.015 to
295.018, and
295.025 and which are insured to
the full extent legally possible by the Federal Deposit Insurance Corporation,
the Federal Savings and Loan Insurance Corporation, or other similar federal
insuring agency; and
(e) It shall
maintain servicing facilities adequately staffed with personnel familiar with
all regulations and requirements pertaining to or affecting Loans serviced for
the Department.
Stat. Auth.: ORS
456.555
Stats. Implemented: ORS
456.555 &
456.625
