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.
(1) ODVA will
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
processed.
(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.
(3) 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.
(4) The
commitment letter to the Approved Lender will contain the following
information:
(a) The dollar amount of the
commitment;
(b) The interest rate
for the loan;
(c) The term of the
loan;
(d) The mortgage insurance or
guarantee required, if any;
(e) The
period of time during which the ODVA will purchase the loan;
(f) The veteran who will be the
borrower;
(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
reasons.
Notes
Or. Admin. R.
274-045-0250
DVA 2-2001, f. & cert.
ef. 5-23-01; DVA 1-2020, temporary amend filed 01/21/2020, effective 01/22/2020
through 07/10/2020;
DVA
6-2020, amend filed 07/10/2020, effective
7/11/2020
Statutory/Other Authority: ORS
406.005
& 407.115
Statutes/Other Implemented: ORS
407.075
to
407.385;
Oregon Constitution Article XI-A, Section 3
