RFA 7385_QA 1_8Feb2023.pdf

RFA #7385: Flex Lending Program Q&A

RFA #7385

Questions & Answers

The answers provided are to questions that were submitted during the live Webinar held on February 6th, 2023 at 10:00am and/or submitted to the SPC via email at OHCS.Contracts@hcs.oregon.gov.

Q1: Given encrypted emails are limited and there is a great deal of data, is there any way other than email to submit?

a. Encryption options:

i. Email – Applicants with Microsoft email may encrypt the email they send to OHCS.

• Select the “Encrypt” function while composing your email it is in the “Options” tab.

• Maximum size per email is 30mb.

ii. Links – Applicants who have an online storage repository may send OHCS a link to download the application package.

• Storage repository cannot require OHCS to create an account.

b. Secure Platforms – Applicants who possess customer communication management systems may utilize them for conveying the application package.

Q2: We expect to submit several attachments to your inbox. Is there a limit/capacity for your inbox? It may take several emails to get to you everything, or is there a drop box we can use?

a. Please see the delivery options available above under “Encryption Options”.

Q3: Will you be emailing the Q&A out to the participants?

a. This information (questions & answers) will be on the Procurement website, along with the webinar recording.

Q4: We are extremely interested in offering the Oregon Housing program to our borrowers. We are looking for this form to begin the application process but are not finding it on the website yet. Are you able to forward it to us so we can begin the process of putting together our application?

a. Regretfully we cannot forward the application, however we invite you to apply at the following link:

https://www.oregon.gov/ohcs/procurement/Pages/procurement-opportunities.aspx

Q5: Can you tell me the steps to get certified?

a. Thank you for your interest in our lending programs, we invite you to apply at the following link:

https://www.oregon.gov/ohcs/procurement/Pages/procurement-opportunities.aspx

Q6: Is there a fillable application available?

a. Yes, the fillable option is available here:

https://www.oregon.gov/ohcs/procurement/Documents/RFA_Lender%20Application_Fillable.docx

Q7: Do we need to execute the sample Agreement? Do you accept electronic signatures?

a. You do not need to execute Sample Agreement, the final agreement, based on the sample, will be completed with lender specific contractual information and provided to the lender upon approval. We do accept electronic signatures at the time of contract execution.

Q8: Under the RFA 7385 application documents Attachment B is the sample agreements. Can you advise when the final agreement will be posted or will this not be provided until Lender’s applications have been reviewed and approved?

a. The sample agreement provided with RFA #7385 is the agreement that has been approved by the Department of Justice. The final agreement, based on the sample, will be completed with lender specific contractual information and provided to the lender upon approval.

mailto:OHCS.Contracts@hcs.oregon.gov https://www.oregon.gov/ohcs/procurement/Pages/procurement-opportunities.aspx https://www.oregon.gov/ohcs/procurement/Pages/procurement-opportunities.aspx https://www.oregon.gov/ohcs/procurement/Documents/RFA_Lender%20Application_Fillable.docx

Q9: I pulled all the documents from your website however the attached Mortgage Loan and Purchase Contract is only a sample. Where can we find an executable version to be reviewed by CMG’s Legal Counsel?

a. The sample agreement provided with RFA #7385 is the agreement that has been approved by the Department of Justice. The final agreement, based on the sample, will be completed with lender specific contractual information and provided to the lender upon approval.

Q10: Is the agreement negotiable?

a. Certain elements of the contract may be negotiable, please see RFA #7385 Section 5.4 – AGREEMENT

NEGOTIATION for details.

Q11: Will you accept general lender’s resolution showing the authorized officer’s able to execute HFA program docs in lieu of the corporate resolution in the RFA?

a. No, our Resolution needs to be utilized.

Q12: This is the application for DPA and offering Flex correct?

a. The application is for Homeownership Lending Programs encompasses both Flex Lending and Oregon

Bond.

Q13: How do we get on board with Oregon Housing’s new FLEX program?

b. We invite you to apply to become an approved lender under RFA# 7385. It can be found on our procurement page here: https://www.oregon.gov/ohcs/procurement/Pages/procurement-opportunities.aspx

Q14: Are you opening up the Oregon Bond program to new lenders?

a. The Lender RFA covers both Flex Lending and Oregon Bond.

Q15: We have originators in the Oregon area who are interested in offering your programs. We reached out about a year or so ago regarding if you were accepting new lenders and that option was closed at the time. Has this changed or is this still closed?

a. The application is for Homeownership Lending Programs the application encompasses both Flex Lending and Oregon Bond.

Q16: Is this program replacing the Oregon Bond program?

a. No, the Flex Lending program is not replacing the Oregon Bond Program.

Q17: To be eligible for enrollment in the Flex Lending program is it required to currently be an approved lender for Oregon Bond?

a. No, being an approved lender for Oregon Bond is not a pre-requisite for becoming a Flex Lending Program Approved Lender.

Q18: We are interested in getting signed up to offer Flex, Cash Advantage and Rate Advantage Bond programs.

I was given the below application to complete, but it doesn’t seem correct. Can you please confirm if this is what I need to complete to begin approval process for these programs?

a. The application is for Homeownership Lending Programs the application encompasses both Flex Lending and Oregon Bond under RFA #7385 and can be found on our procurement page here:

https://www.oregon.gov/ohcs/procurement/Pages/procurement-opportunities.aspx

Q19: Is the application process the same for Lenders that are already approved with the OHCS Bond program?

a. Yes, the application process is the same for all lenders, even lenders already approved with Oregon Bond.

Oregon Bond approved lenders will still need to apply to provide Flex lending.

Q20: Just checking into to see if the program parameters are available so we know how to serve our clients through this program. Let me know when have time.

https://www.oregon.gov/ohcs/procurement/Pages/procurement-opportunities.aspx

a. More information on Flex Lending can be found at https://www.oregon.gov/ohcs/homeownership/Pages/flex-lending.aspx

Q21: I understand OHCS will be launching a new DPA program called Flex Lending. Umpqua Bank would be interested in learning more about this program. Do you have program guidelines and/or closing documents you can share?

a. More information on Flex Lending can be found at https://www.oregon.gov/ohcs/homeownership/Pages/flex-lending.aspx

Q22: Can you also explain the difference between the Flex Lending and Oregon Bond programs?

a. In the simplest of terms the main difference is in funding, Flex Lending’s mortgage loans are funded by the

Private Sector and Traded in the global capital markets like most mortgages are today. Oregon Bond is funded using bond funds which follow federal eligibility requirements. The best way to compare the programs would be to review the guidelines. Flex Lending Guidelines can be found here:

https://www.oregon.gov/ohcs/homeownership/Flex%20Lending%20Materials/OHCS%20Guideline%20M anual_Final%202023.0131.pdf Oregon Bond information can be found here:

https://www.oregon.gov/ohcs/homeownership/Pages/lender-toolkit.aspx

Q23: Are you looking specifically just for the state of Oregon, or for all states we are licensed in?

a. Lenders must verify they are licensed in Oregon.

Q24: Hello, before we submit an application I wanted to know if this program requires us to be a non-profit organization or if someone can tell me the qualifications for this program would be great.

a. No, lenders do not have to be a non-profit in order to become an approved lender. Qualifications are in our Lender RFA# 7385 on our procurement page The Lender RFA# 7385 can be found here:

https://www.oregon.gov/ohcs/procurement/Pages/procurement-opportunities.aspx

Q25: I saw that your division is not accepting new Lenders, but I was hoping that would change. Only large Lenders are allowed? Not mid-size?

a. OHCS does not determine the size of the organization that may apply. The Lender RFA is open to lenders that meet the minimum application requirements in Section 3.1 Minimum Applicant Requirements of the Lender RFA #7385 and can adhere to Section 2.2.3 Scope of Work in the Lender RFA #7385. The Lender RFA #7385 can be found here: https://www.oregon.gov/ohcs/procurement/Pages/procurement-opportunities.aspx

Q26: Are new lenders limited to seller servicers, or will TPO (Third Party Originations) lenders be allowed to participate?

a. Approved Lenders may deliver TPO under the program, at this time OHCS is not a lender and cannot provide TPO/wholesale lending.

Q27: If a lender is approved to sell loans through FHLB, does that meet the third requirement?

a. Per RFA #7385 in Section 3.1, Minimum Applicant Requirements: Organization must be an approved seller/servicer of the GSE and Housing and Urban Development (HUD) Department for the loans presented to OHCS. The Lender RFA #7385 can be found here:

https://www.oregon.gov/ohcs/procurement/Pages/procurement-opportunities.aspx

Q28: We originate both retail and wholesale. May we offer this program to our wholesale partners?

a. Yes, you may offer this to your wholesale partners. TPO is acceptable.

Q29: If at some point TPO is added how would that be communicated?

a. All updates will be made available via electronic communication. Sign up for our updates at https://signup.e2ma.net/signup/1963877/1943072/ https://www.oregon.gov/ohcs/homeownership/Pages/flex-lending.aspx https://www.oregon.gov/ohcs/homeownership/Pages/flex-lending.aspx https://www.oregon.gov/ohcs/homeownership/Flex%20Lending%20Materials/OHCS%20Guideline%20Manual_Final%202023.0131.pdf https://www.oregon.gov/ohcs/homeownership/Flex%20Lending%20Materials/OHCS%20Guideline%20Manual_Final%202023.0131.pdf https://www.oregon.gov/ohcs/homeownership/Pages/lender-toolkit.aspx https://www.oregon.gov/ohcs/procurement/Pages/procurement-opportunities.aspx https://www.oregon.gov/ohcs/procurement/Pages/procurement-opportunities.aspx https://www.oregon.gov/ohcs/procurement/Pages/procurement-opportunities.aspx https://signup.e2ma.net/signup/1963877/1943072/

Q30: Is there a deadline for submissions?

a. The Lender RFA closes January 31, 2028.

Q31: What is the application timeline (application to lender approval) expected to be?

a. We expect application to lender approval to be 2-3 weeks, depending on demand that could extend to 4 weeks.

Q32: Is there a limit to the number of new lenders that will be accepted?

a. The Department anticipates the award of up to one hundred (100) agreements from this RFA. The

Department desires geographic coverage throughout the State of Oregon. The Department reserves the right to select the number of Lenders to meet the business need of the Department. The number of Lenders who offer Department programs within certain counties may be limited.

Q33: Can the lender be outside of Oregon? I work with a lender for South Dakota that offers HUD Section 184.

a. Yes, the lender can be outside of Oregon. There is not a limitation on the domicile of a lender.

Q34: You mentioned originating and processing within 50 miles. Can Underwriting and funding occur outside these boundaries?

a. Underwriting and funding may occur outside Oregon, we understand funding and underwriting occurs outside the boundaries on a regular basis.

Q35: Does the Oregon branch need to have been in operation for a specific length of time, and do Loan officers need to reside in the state in order to originate?

a. No there is no specific amount of time the branch must have been in operation. Per RFA #7385 Section

3.1 - Minimum Applicant Requirements: The staff originating and processing mortgages under the

Department’s Lending Programs must be located in an office in Oregon or within 50 miles of Oregon’s border.

Q36: Will you have a brick and mortar requirement for originators?

a. Please refer to RFA #7385 Section 3.1 - Minimum Applicant Requirements: The staff originating and processing mortgages under the Department’s Lending Programs must be located in an office in Oregon or within 50 miles of Oregon’s border.

Q37: If a lender has "centralized" processing of loans that is outside the 50mile radius of Oregon will this eliminate a lender from being approved even if the Loan Originators are located in the State of Oregon?

a. Yes, the staff originating and processing mortgages under the Department’s Lending Programs must be located in an office in Oregon or within 50 miles of Oregon’s border. Loan officers must be 50 miles of Oregon border.

Q38: To clarify, is it permissible for a loan officer to originate a loan if working remotely from home as long as the NMLS brick and mortar office they are affiliated with is located within 50 miles of the OR border?

a. Please refer to RFA #7385 Section 3.1 - Minimum Applicant Requirements: The staff originating and processing mortgages under the Department’s Lending Programs must be located in an office in Oregon or within 50 miles of Oregon’s border.

Q39: Movement will have loan officers and loan officer assistants within the state, however our processing, underwriting, and closing groups function out of our corporate office locations – will having our processing teams located outside of the defined area make Movement ineligible for consideration/approval?

a. Yes, please refer to Lender RFA #7385 Section 3.1 - Minimum Applicant Requirements: The staff originating and processing mortgages under the Department’s Lending Programs must be located in an office in Oregon or within 50 miles of Oregon’s border.

Q40: The RFA asks for production numbers for 2020 and 2021 and YTD. Are you not looking for 2022 volume or is it a typo on the form?

a. We need 2021, 2022 and YTD.

Q41: Who is the master servicer?

a. Idaho Housing and Finance Association is OHCS’s Master Servicer.

Q42: If we have standard reports/documents which contain the same information that is on the questionnaire, is it acceptable to reference those documents on the application and provide those documents?

a. For consistency the questionnaire needs to be completed.

Q43: What is the name of the servicer? And is there an agency approval required prior to closing?

a. Idaho Housing & Finance Association (IHFA), the lender will need to be approved with both OHCS and

IHFA as a condition of becoming an Approved Lender. Per our RFA #7385 in Section 3.1, Minimum Applicant Requirements: Organization must be an approved seller/servicer of the GSE and Housing and Urban Development (HUD) Department for the loans presented to OHCS. The Lender RFA# 7385 can be found here: https://www.oregon.gov/ohcs/procurement/Pages/procurement-opportunities.aspx

Q44: If we already do business with Idaho Housing and Finance Association (IHFA), would this be a separate approval or will the current approval be sufficient?

a. IHFA approves each lender for the Flex Lending program, please contact IHFA for their process and procedures.

Q45: Is there backroom training to approved lenders?

a. Yes, training will be part of the onboarding process for approved lenders.

Q46: The training being held today, is this the program training or just lenders who need want to participate in the program?

a. The webinar held for the Lender RFA #7385 on Monday, February 6th, 2023 was not a training, it was held to review the Lender RFA with potential applicants and answer any questions. The recording for that webinar is posted on the Procurement webpage at https://www.oregon.gov/ohcs/procurement/Pages/procurement-opportunities.aspx. There will be additional training as part of the onboarding process for approved lenders.

Q47: For those of us that are new to OHCS, can you go over the products that will be available? Fixed and ARM products for Conv, FHA, VA, USDA? also, what is the repayment term for DPA?

a. All products are fixed rate at this time, there are no Adjustable Rate Mortgage (ARM) products. We are offering Conventional (Fannie Mae and Freddie Mac), Government (FHA, VA, USDA, Section 184). DPA terms depend on income and product. For borrowers <80% AMI, DPA is a silent second mortgage that is forgiveable over time. For borrowers >80% AMI, DPA is a amortizing second mortgage that is repayable in monthly installments. Details on DPA terms can be found in Section 6 of our guidelines here:

https://www.oregon.gov/ohcs/homeownership/Flex%20Lending%20Materials/OHCS%20Guideline%20M anual_Final%202023.0131.pdf

Q48: What is the income limit for these loans?

a. Flex Lending’s maximum allowable income is $125,000. Oregon Bond’s current income limits may be found here:

https://www.oregon.gov/ohcs/homeownership/PublishingImages/Lists/LenderToolkit/AllItems/Income% 20Limits%20Revised%202022.pdf

Q49: Will OHCS have an underwriter review a loan package for a clear to close approval before the lender funds the loan?

https://www.oregon.gov/ohcs/procurement/Pages/procurement-opportunities.aspx https://www.oregon.gov/ohcs/procurement/Pages/procurement-opportunities.aspx https://www.oregon.gov/ohcs/homeownership/Flex%20Lending%20Materials/OHCS%20Guideline%20Manual_Final%202023.0131.pdf https://www.oregon.gov/ohcs/homeownership/Flex%20Lending%20Materials/OHCS%20Guideline%20Manual_Final%202023.0131.pdf https://www.oregon.gov/ohcs/homeownership/PublishingImages/Lists/LenderToolkit/AllItems/Income%20Limits%20Revised%202022.pdf https://www.oregon.gov/ohcs/homeownership/PublishingImages/Lists/LenderToolkit/AllItems/Income%20Limits%20Revised%202022.pdf

a. There will be a Pre-Closing and Post-Closing Compliance review that must meet OHCS’s approval, however, OHCS does not make underwriting decisions, underwriting decisions are the responsibility of the delegated underwriter.

Q50: On individual loans, is an OHCS pre-approval required?

a. OHCS requires Pre-Closing Compliance, however, OHCS does not make underwriting decisions, underwriting decisions are the responsibility of the delegated underwriter

Q51: We are a correspondent lender but use our own funds to fund the loan, then sell to the investor. Is that allowed?

a. Yes.

Q52: Do you allow for escrow hold-backs?

a. No.