274-020-0380 Transfer of Ownership (1) The director shall be notified in writing of any transfer of ownership or the right to possess property that is used as security for a loan with the Oregon Department of Veterans' Affairs (ODVA). (2) The interest rate on any outstanding obligation will be adjusted at the time of the transfer as provided by ORS 407.335. (3) The following are conditions which constitute a transfer of an ownership interest or the right to possess the loan security: (a) A borrower takes title to the property with a person other than his or her legal spouse; (b) Contract of sale; (c) Any deed transfer; (d) Any other indenture that purports to convey or transfer any portion of equitable title except for the following: (A) Deed to create a life estate retained by the eligible veteran mortgagor; or (B) Deed to a government entity for public use as noted in ORS 407.275(2). (4) Other types of transactions that may provide for an automatic adjustment in interest rate include: (a) A purchase option that extends for a period of 12 months and 32 days, or more; (b) A lease that extends for more than the following periods: (A) 60 months for farms of 20 acres or more; (B) 12 months and 32 days for all properties other than farms of 20 acres or more. (c) A purchase option with a consideration of three percent or more of the stated purchase price. (5) An assumption by an eligible veteran may be approved at the rate set under ORS 407.305 under the following conditions: (a) The applicant uses his or her entitlement to make application to the Department for the assumption; and (b) Meets the requirements for a new loan; and (c) Executes an assumption agreement which will release the original veteran borrower from personal liability. (6) The director will not enter into an assumption agreement with a person (or persons) acquiring an ownership interest in ODVA security whereby the existing debtor is relieved of further liability on the debt, unless the new owner (or owners) meets current industry standards determined by the Department to be applicable to the proposed assumption. Applicable industry standards may include, but are not limited to, local lending practices, FannieMae and other lending organization standards, and Federal and state legal requirements. The director may on an individual case and with good and sufficient reason documented in the loan file enter into an assumption agreement which does not meet applicable underwriting requirements or industry property standards, if the director decides it is in the best interest of the Department to do so. (7) The director will not consent to the assignment of a Land Sale Contract whereby the present purchaser is relieved of further liability on the contract, unless the assignee meets current industry standards determined by the Department to be applicable to the proposed assignment. Applicable industry standards may include, but are not limited to, local lending practices, FannieMae and other lending organization standards, and Federal and state legal requirements. The director may on an individual case and with good and sufficient reason documented in the file consent to an assignment which does not meet applicable underwriting requirements or industry property standards, if the director decides it is in the best interest of the Department to do so. Statutory/Other Authority: ORS 406.030, 407.115, 407.275, 407.305 & 407.335 Statutes/Other Implemented: 407.275 & 407.335 History: DVA 3-2007, f. & cert. ef. 9-25-07 DVA 6-2005, f. & cert. ef. 10-24-05 DVA 12-1995, f. & cert. ef. 9-22-95 DVA 10-1995, f. 9-11-95, cert. ef. 9-22-95 DVA 7-1995, f. & cert. ef. 7-21-95 DVA 5-1993, f. 3-16-93, cert. ef. 3-21-93 DVA 3-1991, f. 5-30-91, cert. ef. 6-3-91 DVA 5-1989, f. & cert. ef. 11-15-89 DVA 28-1982, f. 12-30-82, ef. 1-1-83 DVA 25-1982, f. & ef. 10-1-82 DVA 17-1982, f. & ef. 7-1-82 DVA 2-1982(Temp), f. & ef. 1-21-82 DVA 45, f. & ef. 12-1-75 DVA 39, f. 5-27-71, ef. 6-25-71 DVA 36, f. 7-25-69, ef. 8-25-69 DVA 32, f. 12-2-65, ef. 10-25-65 DVA 22-1957, f. 11-15-57, ef. 11-14-57