Or. Admin. Code § 813-070-0020

Current through Register Vol. 63, No. 11, November 1, 2024

Section 813-070-0020 - Approved Lenders

(1) Any commercial bank, savings and loan association, savings bank, mortgage banker or other Person legally authorized to engage in the business of making secured loans for residential housing may apply to become an Approved Lender. An applicant wishing to become an Approved Lender shall submit for the Department's review:

(a) An application in the form prescribed by the Department;

(b) Counsel's opinion regarding power and authority of the applicant to enter into a purchase agreement with the Department;

(c) List and signatures of authorized officers;

(d) Most recent audited financial statements;

(e) Documentation evidencing applicant's bond and insurance coverage; and

(f) $25 application fee.

(2) An applicant may qualify as an Approved Lender if the Department determines that the applicant has the capability and resources to originate Program Loans in a sound and professional manner. The Department shall consider such factors as:

(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 qualifications as holder of a valid Contract of Insurance under Title I of the National Housing Act;

(d) Whether the applicant's deposits are insured by the Federal Deposit Insurance Corporation;

(e) The applicant's reputation, experience and performance in the area of residential lending and any other area of the applicant's business; and

(f) The applicant's geographical service area. Each Approved Lender shall make loans for the improvement of Residential Dwellings in the regular, usual and normal course of business.

(3) To qualify as an Approved Lender, an institution shall enter into an agreement with the Department providing for the manner and terms of sale of Program Loans. This purchase agreement shall be in the standard form prescribed by the Department for all Approved Lenders. Approved Lenders shall carry out such agreement in accordance with procedures set forth in the agreement and the Program's Procedural Guide. The Department may revise these procedures from time to time. Any such revisions shall not affect the eligibility of any Approved Lender or the terms of sale of Program Loans for any commitment previously made by the Department. The Department may terminate its agreement with an Approved Lender at any time on the terms and conditions stated in such agreement and the Program's Procedural Guide.

Or. Admin. Code § 813-070-0020

1HD 5-1983, f. & ef. 9-2-83; 1HD 12-1984, f. & ef. 9-4-84; HSG 3-1989(Temp), f. & cert. ef. 6-8-89; HSG 16-1989, f. & cert. ef. 11-3-89; HSG 2-1991(Temp), f. & cert. ef. 8-7-91; HSG 8-1991, f. & cert. ef. 12-23-91

Publications: The publication(s) referred to or incorporated by reference in this rule are available from the agency.

Stat. Auth.: ORS 90.800 - ORS 90.840, ORS 91.886, ORS 183, ORS 456.515 - ORS 456.723 & ORS 458.210 - ORS 458.650

Stats. Implemented: ORS 456.690