ODVA reserves funds for individual loans in the name of the
veteran upon request from an Approved Lender or from authorized ODVA staff.
ODVA may solicit applications and accept loan fund reservations from Approved
Lender(s) subject to the terms of the appropriate agreements, and the rate and
availability of funds.
reserve funds for applications at the time of:
(a) Acceptance of application for processing
by ODVA; or
(b) A verbal or written
request from an Approved Lender that an application for funding is being
(2) When ODVA
reserves funds, an interest rate will be committed to this reservation and will
be effective for a period of 60 days. The loan must be closed before the end of
60 days or the committed interest rate will expire. If the reservation is
reissued, will bear an interest rate at the higher of the expired/cancelled
rate or the then-current interest rate at the time of reissue. If a veteran
withdraws an application and subsequently re-applies for a loan on the same
security, the "higher of" rule will apply for a period of 120 days from the
date of withdrawal.
If the loan
is not presented to ODVA for purchase with all documentation in place within 90
calendar days of the final HUD-1 settlement date, ODVA may charge the Approved
Lender a fee of one basis point of the loan amount per calendar day, until loan
is approved for purchased.
Example: $150,000 loan closed and presented for purchase 120
calendar days after settlement date. The fee charged and deducted from the
amount due to the Approved Lender is calculated as follows: $150,000 x .01% x
30 days = $450.
commitment letter to the Approved Lender will contain the following
(a) The dollar amount of the
(b) The interest rate
for the loan;
(c) The term of the
(d) The mortgage insurance or
guarantee required, if any;
period of time during which the ODVA will purchase the loan;
(f) The veteran who will be the
(g) The property
identification (i.e., property address);
(h) Any additional information or conditions
the ODVA considers appropriate in the commitment.
(5) The ODVA will promptly notify Approved
Lenders when it will not accept a commitment request, for whatever
Or. Admin. R.
DVA 2-2001, f. & cert.
ef. 5-23-01; DVA 1-2020, temporary amend filed 01/21/2020, effective 01/22/2020
6-2020, amend filed 07/10/2020, effective
Statutory/Other Authority: ORS
Statutes/Other Implemented: ORS
Oregon Constitution Article XI-A, Section 3