1. (1) A lender may be any person, including an issuer of Mortgage Credit Certificates, who provides financing for the acquisition, Qualified Rehabilitation, or Qualified Home Improvement of a single-family residence. This includes, but is not limited to, any commercial bank, savings and loan association, savings bank, mortgage banker, credit union, finance company or other person. A lender shall not provide financing under this program to any certificate holder who is a related person to that lender.
2. (2) A person wishing to become a lender shall sign and agree to the terms of the Department’s Mortgage Credit Certificate Lender Agreement. A lender who has signed this Mortgage Credit Certificate Lender Agreement may provide financing for the purchase, improvement, or rehabilitation of a single-family residence in connection with the issuance of a Mortgage Credit Certificate to an eligible borrower.

3. (3) A lender shall agree to provide financing to the eligible borrower in accordance with the following criteria:

   1. (a) The mortgage shall not be used for the acquisition or replacement of an existing mortgage unless such mortgage was a construction loan, bridge loan, or similar temporary financing of 24 months or less;
   2. (b) The mortgage may not have any portion of the financing from the proceeds of a tax-exempt mortgage bond or a tax-exempt veteran’s mortgage bond;
   3. (c) The purchaser shall not, directly or indirectly, be prohibited or required to obtain financing from one or more lenders;
   4. (d) There shall not be any interest on the certified indebtedness amount paid to a related person to the eligible borrower;
   5. (e) A Mortgage Credit Certificate shall not be transferable.

Statutory/Other Authority

ORS 90.800 - 90.840, 91.886, 183, 456.515 - 456.723 & 458.210 - 458.650

Statutes/Other Implemented

ORS 456.605

History

HSG 8-1991, f. & cert. ef. 12-23-91
HSG 2-1991(Temp), f. & cert. ef. 8-7-91
HSG 17-1989, f. & cert. ef. 11-3-89
HSG 3-1989(Temp), f. & cert. ef. 6-8-89
1HD 4-1986, f. & ef. 12-3-86
1HD 2-1986(Temp), f. & ef. 6-17-86