OAR 274-025-0010: Purpose and Objectives

This Division 25 is established to administer and enforce ORS 407.075 through 407.595. Where context allows, the provisions of Divisions 20, 21, and 22, apply equally to the loans originated after April 1, 1990. The loans originated under this Division 25 are known as the " Veterans' Loan Program 1990" means all ODVA home loans originated after April 1, 1990, except financed contract sales of Department-owned properties. (1) As used in this Division 25: (1) "Acquisition" means the purchase of a home. (2) "Agreement" means the contract between the Department and the approved lender, setting forth the terms and conditions under which program loans made by the approved lender will be purchased by the Department. (3) "ALTA Mortgagee's Title Insurance" means a title insurance policy issued in American Land Title Insurance form by a title insurer licensed by the State of Oregon (4) "Approved Lender" means any "Lending Institution" as defined in ORS 407.177(8) that has entered into an agreement with the Department to originate residential loans or to act as a conduit for the origination of residential loans that are acceptable to ODVA. In determining whether or not to contract with a Lending Institution, the Department may consider factors including, but not limited to; (a) The Department’s need for additional Approved Lenders, either on a statewide basis or in a specific geographical area. (b) Whether the Lending Institution has had any complaints filed against it or against any of its employees, agents, officers, Directors, owners, or affiliates through the Consumer and Business Services Department of the State of Oregon, through any other regulatory agency or otherwise. (c) Whether representatives of the Lending Institution have attended any ODVA-sponsored training. (d) The reputation of the Lending Institution, including its employees, agents, officers, Directors, owners or affiliates. (e) The number and experience of Lending Institution employees and other personnel available to originate loans or to act as a conduit for the origination of residential loans acceptable to the Department. (f) Status and character of the institution's loan policies and procedures. (g) The financial capability of the Lending Institution to originate loans or to act as a conduit for the origination of loans. (h) The Lending Institution's qualification as a loan originator that is duly registered with the National Mortgage Licensing Service (NMLS). (i) Whether the deposits of the Lending Institution are insured by FDIC or some other federal agency or corporation. (j) The experience, efficiency and performance of the Lending Institution in the area of residential lending and any other area of the Lending Institution's business. (k) The willingness and commitment of the Lending Institution to accept and to fulfill the terms of a proposed contract with the Department. (l) The result of any reference checks conducted by the Department. (5) "Commitment" means a promise made by the Department to an Approved Lender, evidenced by a written commitment letter, setting forth the terms upon which the Department will purchase or accept by underwriting and closing a specific program loan made or processed by the Approved Lender pursuant to a commitment request, or commitments to make an individual loan to a qualified veteran. (6) "Commitment Request" means a verbal or written request from an Approved Lender to the ODVA to purchase or accept for underwriting and closing a specific program loan. (7) "Department" means the Oregon Department of Veterans’ Affairs established under ORS 406.005. (8) “Director” means the means Director of the Oregon Department of Veterans' Affairs. (9) "Home" means a residential structure, including a manufactured home or a condominium unit, which is established, maintained and used primarily as a principal residence by a veteran, and includes real property connected to a residential structure, including any long-term leasehold and any outbuildings. (10) “Manufactured home” means a structure that is: (a) At least 20 feet in width; (b) Constructed for movement on the public highways and that has sleeping, cooking and plumbing facilities; (c) Intended for human occupancy; (d) Being used for residential purposes; (e) Classified and taxed as real property in the county where the structure is located; and constructed in accordance with the Oregon Manufactured Dwelling Installation Specialty Code adopted under ORS 446.155 or the Model Manufactured Home Installation Standards established by the Department of Housing and Urban Development. (11) “Mortgage” means a loan in which real property is used as collateral. (12) "Lending Institution" means an entity which is licensed, or otherwise legally authorized, to conduct business in the State of Oregon exclusively or in part as a mortgage lender or a conduit for mortgage loans and that, in the judgment of the Department, is capable of meeting the needs of the Department in carrying out the purposes of ORS Chapter 407. In determining whether or not an entity that is licensed or otherwise legally authorized to conduct business in Oregon exclusively or in part as a mortgage lender or a conduit for mortgage loans is capable of meeting the needs of ODVA in carrying out the purposes of ORS Chapter 407, ODVA may consider factors including, but not limited to the following: (a) Whether or not the entity qualifies as a "Banking Institution" or similar entity including, but, not limited to an "Extranational Institution," a "Federal Bank," a "Federal Savings Bank," or a "Financial Institution" under ORS 706.005, 706.008, 707.744, or 723.042. (b) Whether or not the entity qualifies as a "mortgage broker" under ORS 59.840 through 59.980 for a period of three years. (c) Whether or not the representatives of the entity have attended any ODVA-sponsored training. (d) The reputation of the entity or of any of its employees, agents, officers, Directors, affiliates or owners. (e) The financial capability of the entity to originate loans or to act as a conduit for the origination of loans. (f) The entity's qualification as a loan originator that is duly registered with the National Mortgage Licensing Service (NMLS). (g) The experience, efficiency, and performance of the entity in the areas of residential lending and any other area of the entity's business (13) "Loan Origination Guide/Mortgage Loan Origination Guide" means the manual containing the origination instructions for the Veterans' Loan Program 1990, and any subsequent changes as they are effected. (14) "ODVA" means the Oregon Department of Veterans' Affairs established under ORS 406.005. (15) "Qualified Insurer" means a private mortgage insurance company licensed to do business in this state and that has entered into a master policy agreement with the Department. (16) “Resides in the State of Oregon” means a person who: (a) Maintains a primary legal residence in Oregon, or (b) Intends to occupy a home in Oregon that will be secured by an ODVA loan a primary legal residence. (17) "Security" means all of the real property that is to be acquired for a home and which serves as collateral for the loan. (18) “Trust deed” means a deed, executed in conformity with ORS 86.705 to 86.815, that conveys an interest in real property to a trustee in trust to secure the performance of an obligation the grantor or other person named in the deed owes to a beneficiary. (19) "Veteran" means a person who: (a) Resides in the State of Oregon at the time of applying for a loan from the fund; (b) Is a veteran, as that term is defined by Oregon law in ORS 407.087; (c) Served under honorable conditions on active duty in the Armed Forces of the United States; and (d) Satisfies the requirements applicable to the funding source for the loan from the Oregon War Veterans' Fund. (20) "Veterans' Loan Program 1990" means all ODVA home loans originated after April 1, 1990, except financed contract sales of Department-owned properties.