RFA 7385_QA 6_21Sept2023_REVISED~1.pdf

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RFA #7385: Mortgage Lending Program/Flex Lending Questions & Answers

The answers provided are to questions that were submitted to the SPC via email at

OHCS.Contracts@hcs.oregon.gov.

Q1: Program states borrower may not own any other properties but does allow for non-occupant borrowers to help with qualification. Is a non-occupant borrower allowed to own property or is the exclusion of property ownership for all borrowers, regardless of living in the home or not?

a. The requirement that borrowers may not own any other property at the time of closing is for the occupying borrower only.

Q2: Does the program allow for Fannie HomeReady and Freddie Home Possible?

a. No. Fannie Mae’s HFA Preferred and Freddie Mac’s HFA Advantage mortgages are required.

Q3: If yes, does the program allow for discounted MI under when tied to HomeReady or Home Possible approval?

a. HFA homeownership programs have lower MI requirements than standard mortgages for borrowers at or below 80%AMI, however buying down the MI with an additional fee is not supported at this time.

Q4: Does a veteran with VA disability rating of 10% or more, count as a disabled person when determining Focused Demographics qualifications?

a. Yes.

Q5: How are the first lien position rates determined? Are these not impacted by a borrower’s credit score? If the first lien is a standard FHA loan, for example, a 620 score would have hits (cost) to the rate, making any given rate for that borrower more expensive than a similar borrower with a 700 credit score. Is this not the case for this program?

a. At this time there are no FICO score adjusters.

Q6: Are borrowers able to buy the interest rate down?

a. No

Q7: Does OHCS require a brick-and-mortar within Oregon or can we have a branch within 50 miles of the Oregon border to be able to participate?

a. The Branch, Loan originator and processor must be located in Oregon or within 50 miles of Oregon’s border.

Q8: On the Corporate Resolution, is it acceptable to type the names of the authorized signers, have the board approve and have the Secretary sign with Corporate Seal? Or does the Corporate Resolution have to be wet signed or electronically signed by the authorized signers?

a. We will accept Secretary signature with a corporate seal or electronic signatures.

Q9: I just want to make sure, I just need my broker to fill out the attached form? How long does it take from there to be approved?

a. Lender approval should take between 2-3 weeks as long as the application package is complete.

mailto:OHCS.Contracts@hcs.oregon.gov dlewelling Highlight

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Q10: And then does underwriting happen through you guys? How long is a typical underwriting period?

a. Underwriting is completed by the lender.

Q11: For the Corporate Resolution, is our version acceptable to use in lieu of the copy you provided with your application package?

a. No, the Corporate Resolution form in the RFA package is required to be completed. We will not accept any other version or form.

Q12: For the items that require a Corporate Seal or Notary, are these acceptable to send electronically or will you need physical copies sent? This would include the Corp Reso (if ours is not acceptable), Limited Irrevocable POA, and Tax Affidavit Forms.

a. Electronic copies are acceptable.

Q13: For the List of HFAs, Is this something truly needed for the application? We participate with around 55+ other HFA’s and have not provided it before to any others so we are needing clarification.

a. A list of Western states HFA’s completed per the application requirements will be acceptable in this case.

Q14: Are you still accepting applications for the Oregon Bond Program?

a. Lenders who apply for RFA# 7385 will be approved for both Flex Lending and the Oregon

Bond program. However, it should be noted that currently the Oregon Bond program is at capacity for active lenders. Newly approved lenders will not be available to offer the Oregon Bond program until they are activated. When capacity becomes available Oregon Bond will activate approved lenders in the order they were approved under RFA# 7385.

Q15: We are needing to confirm what information will be requested when reaching out to our Warehouse Lender? We need to make sure we are providing the proper information on this sheet for who would be able to answer questions from the Warehouse Lender side of things. We would also like to confirm if this is done via phone call or email?

a. The Warehouse Line of Credit Verification Form on page 29 of “Attachment A_Lender Application Packet” form needs to be completed and signed by the warehouse lender via mail or email. OHCS does not have a requirement as to what personnel at the warehouse lender completes the document, only that they identify their role in the organization.

Q16: Does the application need to be completed or can we note: “see attached”?

a. The application needs to be completed in its entirety. All questions must be answered, “see attached” is not acceptable.