Oregon Administrative Rules › Chapter 274 - DEPARTMENT OF VETERANS' AFFAIRS › Division 45 - POST VIETNAM ERA VETERANS' HOME LOAN PROGRAM › Section 274-045-0150 - Property Tax Amortization and Escrow Accounting

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Except as otherwise provided herein,
			 payments required on all loans shall include an amount, which represents
			 advances, for taxes paid by the Director of Veterans' Affairs (Director) on the
			 security. If for any reason the taxes cannot be paid on November 15th, the
			 Director will send the notice as soon as possible after the taxes are
			 paid.
(2) All applications, for
			 permission to pay taxes and hazard insurance directly, will receive a written
			 approval or disapproval from the Director. If the application is approved, the
			 applicant will be advised of the date when the Director will discontinue making
			 disbursements, if applicable, and the date the loan payment will be adjusted,
			 if necessary.
(3) The Director may
			 revoke any permission granted concerning the payment of taxes and hazard
			 insurance on the security by giving the owner of the security 30 days written
			 notice of the revocation, except as otherwise provided herein. If the Director
			 advances funds to pay unpaid taxes and/or hazard insurance, any advance by the
			 Director for such a shortage/deficiency also will constitute immediate
			 revocation by the Director of permission for the owner to pay directly any
			 taxes and hazard insurance due on the security, and the account will revert to
			 the last signed agreement between the Director and borrower for the payment of
			 taxes, hazard insurance and other obligations. Any advances by the Director,
			 including any interest and fee, shall be paid back within the remaining
			 payment/escrow year. The borrower may not change this obligation without prior
			 written approval from the Director.
(4) Pursuant to the provisions of ORS
			 407.169,
			 under this division, escrow accounts are available for the prepayment of
			 estimated property taxes and hazard insurance premiums.
(5) On monthly simple interest loans with
			 escrow accounts, the required escrow payment may be based, inter alia, on the
			 preceding year's disbursements for such items as property taxes, hazard
			 insurance premiums, other required insurance premiums such as mortgage
			 insurance, and condominium or homeowner's association dues. In cases of
			 unassessed new construction, the estimate may be based, inter alia, on the
			 assessment of comparable residential property in the market area.
(6) The Director will pay interest on the
			 escrow account as provided by ORS
			 86.245(1)
			 to (4).
(7) Under this Division, all escrow accounts
			 on monthly simple interest loans will be administered in the following manner:
(a) The Director may require a cushion that
			 shall be no greater than 1/6 of the estimated total annual disbursements from
			 the escrow account. Estimated disbursements may be modified by an amount not
			 exceeding the most recent year's change in the national Consumer Price Index
			 (CPI) for all urban consumers (CPI, all items);
(b) At the end of an escrow account
			 computation year, an aggregate analysis will be completed on each escrow
			 account to determine the borrower's escrow account payment(s) for the new
			 payment year. The borrower will be notified of any shortage, deficiency, or
			 surplus in the escrow account and the amount of escrow account payment to be
			 included in the loan payment;
(c)
			 Except if a loan is two (2) months or more delinquent in payments, an analysis
			 will not be done until the loan is brought current;
(d) If the analysis determines there is not
			 sufficient money in the escrow account to pay the required disbursements, the
			 Director may advance the shortage/deficiency. The required escrow payments on
			 the loan will be increased to recover any interest, fee or other advance by the
			 Director for such a shortage or deficiency, or the borrower may repay the
			 advance, interest or fee in a lump sum;
(e) If the analysis determines there is a
			 surplus in the escrow account equal to or greater than $25, the entire surplus
			 shall be refunded to the borrower. If the surplus is less than $25, this amount
			 will be retained in the escrow account and credited against the next year's
			 escrow payments;
(f) A statement
			 itemizing all escrow account activity, (annual escrow analysis) will be
			 provided to the borrower each year.