Or. Admin. Code § 813-020-0090 - Mortgage Loan Servicing

All Program Loans shall be serviced in accordance with the requirements of the Department's Servicer to include:

(1) Oregon Bond Residential Loan Program
(a) The Servicer or Department's Servicer, shall service a loan under the Oregon Bond Residential Loan Program in accordance with the servicing agreement and the rules of this division.
(b) A Servicer shall charge for Mortgage Loan servicing according to uniform servicing rates established by the Department that are based on the estimated costs of servicing Mortgage Loans and prevailing rates for servicing similar loans.
(c) For the term of a Mortgage Loan, the borrower shall make monthly escrow payments for real estate property taxes and assessments, hazard insurance premiums and, if necessary, mortgage insurance premiums, except as otherwise provided in the terms of the Mortgage Loan agreement.
(d) Upon approval by the Department, a Servicer may take one or more actions to protect the Department's security in a residence financed by a Mortgage Loan. The actions may include but are not limited to the following:
(A) Loan modification;
(B) Property maintenance and repair;
(C) Foreclosure or deed-in-lieu of foreclosure proceedings; and
(D) Representation of the Department's interest in bankruptcy proceedings.
(e) If a Servicer fails to comply with the Department's servicing, reporting or remittance requirements, the Department may assess a penalty or may terminate the servicing agreement.
(2) Flex Lending FirstHome Loan Product
(a) A borrower is eligible for a mortgage loan under the program if they meet the eligibility requirements set forth in the OHCS Flex Lending Program's NextStep FirstHome Product Guideline Manual.
(b) A residence is eligible for a mortgage loan under the program if:
(A) The property is residential property located in Oregon;
(B) The property contains one to four residential dwelling units.
(C) The property is structurally sound and functionally adequate; and
(D) The property meets the requirements of the Department's Servicer.

Notes

Or. Admin. Code § 813-020-0090
OHCS 20-2025, adopt filed 04/16/2025, effective 4/16/2025

Statutory/Other Authority: ORS 456.555

Statutes/Other Implemented: ORS 456.620, 456.625, 456.635 & 456.640

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