Request for Applications #7385: Mortgage Origination/Flex Lending

The Oregon Housing and Community Services (OHCS) department has issued Request for Applications (RFA) #7385 for a Mortgage Origination/Flex Lending Program targeting Marion County and the City of Salem. The procurement seeks to identify up to 100 approved mortgage lenders to originate, underwrite, and deliver Ginnie Mae and Conventional Mortgages, often paired with Second Lien Mortgages. Lenders must be located in Oregon or within 50 miles of the state border and must meet specific qualifications, including appropriate licensing, agency/investor approvals, and financial stability. Applicants must submit a comprehensive application packet including company information, financial statements, key personnel details, warehouse line documentation, and a $250 non-refundable application fee. The RFA evaluation will be conducted on a pass/fail basis, with OHCS reserving the right to select applicants who best meet program requirements. The application period began on February 7, 2023, and will remain open until January 31, 2028, with successful applicants entering into 10-year agreements subject to annual renewal.

The procurement does not specify explicit set-aside designations or restrictions on organizational types. The Flex Lending Program aims to increase homeownership opportunities by offering mortgage products with down payment assistance, with a focus on lower-income borrowers and those meeting specific demographic criteria. Borrowers must meet income limits (maximum of $125,000), be first-time homebuyers, complete homebuyer education, and comply with occupancy requirements. The program offers various loan types including FHA, VA, USDA, and conventional loans, with down payment assistance structured as either a silent second mortgage or an amortizing second mortgage. While specific award values are not explicitly stated, the program provides mortgage loan purchase pricing, lender compensation, and extension fees. Idaho Housing and Finance Association (IHFA) has been designated as the master servicer, and lenders must be approved by both OHCS and IHFA to participate in the program.