OAR 813-070-0055: Approved Servicer

(1) Any commercial bank, savings and loan association, savings bank, mortgage banker or other Person legally authorized to engage in the business of servicing loans for residential housing may apply to become an Approved Servicer. An applicant wishing to become an Approved Servicer shall submit the following information for the Department’s for 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 Loan servicing agreement with the Department; (c) List and signatures of authorized officers; (d) Most recent audited financial statements; (e) Documentation evidencing bond and insurance coverage; and (f) $25 application fee. (2) To qualify as an Approved Servicer and continue as such, a financial institution shall demonstrate to the Department’s satisfaction that: (a) One of its principal functions is servicing loans secured by residential real estate; (b) Such servicing is a customary and regular business activity of the applicant; (c) It holds a valid Title I Contract of Insurance; (d) It will maintain servicing facilities adequately staffed with trained personnel familiar with all rules, regulations and requirements pertaining to or affecting Program Loans; and (e) It deposits funds to accounts in depositories which comply with the requirements of ORS 295.005, 295.015 to 295.018 and 295.025 which are insured to the full extent legally possible by the Federal Deposit Insurance Corporation or other similar federal insuring department. (3) The Department shall adopt uniform servicing rates as specified by the Department in the Procedural Guide which shall apply to the servicing of Program Loans by all Approved Servicers. In setting these rates, the Department shall consider the estimated costs of servicing Program Loans and prevailing rates for similar services. (4) The Department may allocate Program Loans to Approved Servicers after considering the area in which the mortgaged property is located. To encourage participation in the Program and for convenience, the Department ordinarily requests that the Approved Lender originating a Program Loan continue to service the Program Loan for the Department. (5) Approved Servicers shall service Program Loans in accordance with the servicing agreement, the Program rules, and the Program’s Procedural Guide. The servicing agreement is subject to termination as provided for in such agreement. Any compensation for termination will be provided in accordance with the terms of the agreement. [Publications: Publications referenced are available from the agency.]