Source: https://www.oregonlaws.org/ors/407.225?highlight=407.050
Timestamp: 2016-12-08 14:16:40
Document Index: 674995779

Matched Legal Cases: ['§ 407', 'art 36', '§3', '§2', '§1', '§1', '§31', '§1']

ORS 407.225 - Investigation and processing of loan application - 2015 Oregon Revised Statutes
Chapter 407 >
Loan Procedures And Conditions
407.205 Applica­tion for loan
407.215 Loan transferred by annul­ment or dissolu­tion judg­ment excluded in determining max­i­mum allowable
407.225 Investiga­tion and processing of loan applica­tion
407.265 Loans for home or farm improve­ments
407.275 Terms of loan to veteran and transferee
407.285 Rate of interest payable by certain transferees
407.295 Transfer to spouse
407.305 Assump­tion of pre­vi­ous loan by eligible veteran
407.315 Interest rate for veterans assump­tion
407.325 Rate of interest on loans
407.327 Depart­ment to prescribe fixed or variable interest rates
407.335 Rate of interest payable by transferee
407.349 Late charges authorized for periodic pay­ments
407.377 Sale or manage­ment of foreclosed prop­erty under per­sonal services contract
407.385 Prohibi­tion against using loan for purpose other than farm or home acquisi­tion
2015 ORS § 407.225¹
Investigation and processing of loan application
• maximum amounts of loans
(1) When the Department of Veterans Affairs receives an application pursuant to ORS 407.205 (Application for loan), the department shall immediately investigate and process it as provided by law. The security for the loan shall consist of the property to be acquired by the veteran as a home or a farm. The security shall be secured by a mortgage or security agreement in the full amount of the loan which mortgage or security agreement shall be either a first lien or a lien insured by mortgagees title insurance against loss from any prior encumbrance. The department may make subsequent loans for improvements to the security if there are no intervening liens between the first lien of the department created under this section and the recorded liens upon the security securing repayment of such subsequent improvement loans. Such consecutive liens, for the purposes of this chapter, shall be deemed collectively as a first lien upon the security. The mortgage or security agreement shall provide that the borrower, or any subsequent owner of the secured property, may pay all or any part of the loan at any time without penalty.
(2) A mobile home shall be secured by a security agreement in the full amount of the loan and the department shall perfect a security interest in favor of the State of Oregon. The security agreement shall provide that the borrower or any subsequent owner of the mobile home, may pay all or any part of the loan at any time without penalty. The security agreement shall provide for immediate acceleration of the unpaid balance of the loan if the mobile home is moved from the original site listed in the security agreement without first obtaining the written consent of the department. The security agreement shall also provide that removal of the mobile home to a site outside of this state shall constitute an act of default and result in immediate acceleration of the unpaid balance of the loan.
(3) Loans may not exceed:
(a) The maximum loan-to-value ratio or combined loan-to-value ratio permitted by the United States Department of Veterans Affairs for its Home Loan Guaranty Program (38 U.S.C. 3701 et seq.; 38 C.F.R. part 36);
(b) 85 percent of the net appraised value on homes that are not real property; and
(c) 90 percent of the net appraised value on farms that are real property. [Formerly 407.050; 1985 c.296 §3; 1997 c.214 §2; 2003 c.49 §1; 2005 c.20 §1; 2005 c.625 §31; 2013 c.228 §1]
See also annota­tions under ORS 407.050 in permanent edi­tions.
There is no indica­tion that legislature intended other than standard mortgage transac­tion with normal protec­tions and priorities for DVA secured loans. Director of Veterans Affairs v. Vickery, 299 Or 315, 702 P2d 1070 (1985)
Depart­ment of Veterans Affairs fee appraisers as agents of state for purposes of tort liability, (1981) Vol 42, p 103
407.165 Authority to hold certain funds received from borrower
407.179 Addi­tional powers delegated to lending institu­tion
1 Legislative Counsel Committee, CHAPTER 407—Veterans Loans, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors407.­html (2015) (last ac­cessed Jul. 16, 2016).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2015, Chapter 407, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano407.­html (2015) (last ac­cessed Jul. 16, 2016).