OAR 813-060-0055: Loan Servicing

(1) The servicing of loans shall be performed by servicer(s) selected by the Department. Servicing, unless performed by the Department itself, 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 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 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 department; 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.