OAR 813-080-0030: Allocation of Mortgage Credit Certificates

(1) Under the program, the issuer may issue Mortgage Credit Certificates to eligible borrowers. (2) An applicant wishing to participate in the program may apply through any lender who is not a related person. The Lender shall sign and agree to the terms of the issuer’s Mortgage Credit Certificate Lender Agreement before a Mortgage Credit Certificate will be issued to the eligible borrower. (3) Mortgage Credit Certificate application shall be made on forms prepared or approved by the issuer. The lender shall provide such forms to prospective applicants and take normal and appropriate measures to verify the information given. The lender shall determine the qualifications of an applicant as an eligible borrower for a Mortgage Credit Certificate. (4) If the applicant meets the Program requirements, the lender shall obtain a completed and signed Application Affidavit from the applicant. Upon receipt of the signed Application Affidavit, the lender shall place with the issuer a reservation for tax credit authority for that applicant in the manner prescribed by the issuer. The issuer shall issue a letter which confirms that tax credit authority has been reserved, and lists the program requirements the applicant must meet to qualify for the Mortgage Credit Certificate. The lender shall notify the issuer, in writing, of any changes in the information furnished in the letter. The issuer shall issue Mortgage Credit Certificates only to applicants for whom a reservation for tax credit authority has been made, and who, at loan closing, meet the program requirements listed in the letter. (5) If a lender determines that an applicant does not qualify for a Mortgage Credit Certificate, the lender shall instruct the issuer to cancel that applicant’s reservation for tax credit authority. (6) The lender shall provide to the issuer evidence of closing and other information the issuer may require within ten working days of loan closing unless the issuer approves a later submission upon written request of the lender. Upon review and approval of the information submitted, the issuer shall issue the Mortgage Credit Certificate. If the issuer disapproves issuance of a Mortgage Credit Certificate, the issuer shall cancel that applicant’s reservation for tax credit authority and notify the lender immediately of the actions taken. (7) The issuer may establish reasonable fees in connection with the issuance of a Mortgage Credit Certificate: (a) The lender shall charge and remit to the issuer a fee of one-half of one percent of the Certified Indebtedness Amount (original loan amount) to cover the issuer’s administrative costs of operating the Mortgage Credit Certificate Program. The lender may retain a discretionary fee from the above administrative fee, of up to $50 to cover the administrative costs of processing the Mortgage Credit Certificate package. The fees are non-refundable unless the issuer or lender, on a case-by-case basis, waives all or part of its fee; (b) The issuer shall charge the borrower a $10 fee for a replacement copy of their Mortgage Credit Certificate; (c) Applicants may be required to pay other fees which are customarily associated with a mortgage or contract loan provided the fees are usual and reasonable. (8) The availability of Mortgage Credit Certificates issued under the Mortgage Credit Certificate Program shall be subject to the issuer’s election not to sell qualified mortgage bonds. (9) The issuer may adopt procedures to allocate Mortgage Credit Certificates to lower-income before higher-income applicants.