OAR 813-070-0017: Reservation System

(1) Under the reservation system, the Department purchases Program Loans pursuant to first-come first-served reservations made by Approved Lenders, and in compliance with the Program’s Procedural Guide. The Department shall solicit participation in the Program by mailing a reservation invitation and request form to each Approved Lender at the address listed in the records of the Department. The Department shall solicit participation in the Program before the sale of Bonds or when funds are otherwise expected to become available. (2) The reservation invitation form specifies the terms on which the Department will accept participation in the Program by Approved Lenders, including: (a) The date by which requests to participate must be received by the Department; (b) The term during which Program Loan fund reservations may be placed and during which Program Loans may be purchased by the Department; (c) The maximum interest rate which Program Loans purchased shall bear; (d) Any fees payable by an Approved Lender to the Department; (e) The price the Department shall pay for such Program Loans and the origination fees, discounts, and other expenses which may be charged in connection with Program Loan origination; (f) The servicing fees the Department shall pay for Program Loan servicing; and (g) Any special terms or conditions of the Program. (3)(a) The Department may accept requests to participate as specified in the reservation invitation and request form. With each Program, the Department may take into consideration the following factors: (A) Geographic area of the Approved Lender’s residential lending; (B) Other participants in the area; (C) Capacity of the Approved Lender to accomplish Program objectives; (D) Availability of funds to the Department; (E) Prior experience with the Approved Lender; and (F) Participation by the Approved Lender in previous Programs. (b) If the Department does not accept any request, the Approved Lender shall be notified promptly. (4)(a) Program Loan funds shall be reserved on a first-come first-served loan by loan basis. Approved Lenders must place reservations as instructed in the invitation, and must provide the applicant’s name, property address, loan amount and any other information the Department deems necessary. The Department shall confirm each reservation with the Approved Lender in a timely manner; (b) As needed, the Department shall maintain a list of standby reservations to be moved to the active reservation list on a first-come first-served basis in the event any confirmed reservation is cancelled by an Approved Lender. (5) An Approved Lender may assign a reservation to another Approved Lender with the written consent of both Approved Lenders and approval by the Department. (6) The Department may charge a non-refundable reservation fee to the Approved Lender in connection with each reservation. The Department shall specify the reservation fee rate and remittance instructions in connection with each Program in the invitation. (7) The Approved Lender shall submit the Program Loan, related documents and a submission report for the Department’s review before loan purchase. The purchase of any Program Loan is subject to the legal, sufficient and proper form of the loan documents, and adequate evidence that the Program Loan satisfies all the criteria provided in the Act, the Program rules and the Program’s Procedural Guide. (8) Approved Lenders shall report periodically during the Program term on a form designated by the Department. The Approved Lender shall report and confirm to the Department for each reservation, the correct borrower name, property address, loan amount, and the dates on which the loan was cancelled or approved and closed. [Publications: Publications referenced are available from the agency.]