OAR 274-020-0386
Temporary Reduction of Payments

(1)

In the event a veteran is unable to make required loan payments due to loss of income because of illness, injury, death, involuntary job loss, or economic stress due to factors beyond the veteran’s control, the veteran may apply for a temporary reduction of payments, provided that:

(a)

The veteran is the original borrower or one who assumed the loan pursuant to ORS 407.305 (Assumption of previous loan by eligible veteran) (formerly 407.063);

(b)

The veteran is residing in the property used as security for the loan at the time he or she requests the payment reduction;

(c)

The veteran must request the loan reduction by writing to the Director of Veterans’ Affairs, c/o Collection Unit, 700 Summer Street, N.E., Salem, OR 97310. The written request must contain a statement describing the reason for the request, current income, source of income, and must be accompanied by a copy of the veteran’s previous two years’ federal income tax returns;

(d)

The veteran must furnish any other documentation requested by the director relating to the reason for request.

(2)

In determining the amount and term for reducing loan payments, the director shall consider the value of the security, the balance owing on the loan, the total assets of the borrower, past payment record of the borrower, and any other matters related to financial hardship to the borrower and the financial position of the loan program:

(a)

Monthly loan payments may not be reduced to an amount less than the monthly loan cancellation life insurance premiums;

(b)

The director may recapture the reduced portion of the monthly payment and any other accrued delinquency by whatever repayment methods are appropriate to individual circumstances;

(c)

The terms and conditions of the payment reduction and repayment must be agreed upon, in writing, and approved by both the veteran and the director;

(d)

The veteran may be required to submit information periodically regarding his income and financial affairs in order to reevaluate the necessity of continuing the reduction in payments. Following such reevaluation, the loan payment reduction may be modified by the director;

(e)

The veteran must continue to reside in the loan security.

(3)

A veteran whose loan is in foreclosure is not eligible under this program.

(4)

Temporary reduction of loan payments is a benefit to be extended only in an extreme emergency and is not to be abused.

(5)

Because of the effect of these reductions on the solvency of the loan program as a whole, on the probable financial position of the program in the future, on the condition of the tax-exempt bond market, and on other borrowers in the program, the director has determined that the maximum number of borrowers that can be accommodated under this program is approximately one percent of the total outstanding borrowers. Therefore, at any time, the director will enter into agreements as provided in subsection (2)(c) of this rule with no more than one percent of the total loan portfolio, the number to be specified by the director.

Source: Rule 274-020-0386 — Temporary Reduction of Payments, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=274-020-0386.

274‑020‑0200
Definitions for OAR 274-020-0200–274-020-0450 274‑020‑0241
Authority to Protect the Security 274‑020‑0260
Who May Apply for Loan 274‑020‑0265
Evidence Required to Establish Eligibility 274‑020‑0266
Eligibility to Apply 274‑020‑0270
Forms and Signature 274‑020‑0280
Number of Applications Permitted 274‑020‑0285
Additional Loans 274‑020‑0290
Second Loans 274‑020‑0295
Modification of Application 274‑020‑0300
Cancellation of Application 274‑020‑0305
Filing Period 274‑020‑0310
Evidence of Acquisition 274‑020‑0315
Evidence of Construction 274‑020‑0322
Requirements for Farm Applicants 274‑020‑0325
Security for the Loan 274‑020‑0330
Legal Description of Property Offered as Security 274‑020‑0335
Appraisal of Property 274‑020‑0340
Terms of Loan 274‑020‑0341
Interest Rates for Loans 274‑020‑0342
Interest Rate on Assumptions by Eligible Veterans 274‑020‑0343
Interest Rates on Loans Secured by Property Transferred to Non-Veterans 274‑020‑0344
Fixed Interest Rate 274‑020‑0345
Approval of the Loan 274‑020‑0348
Grounds for Refusing to Make a Loan 274‑020‑0349
Loan Funding 274‑020‑0350
Evidence of Title 274‑020‑0355
Escrow Closing of Loans 274‑020‑0360
Disbursement of Loan Funds 274‑020‑0375
Lost, Stolen, or Destroyed Warrants or Checks 274‑020‑0380
Transfer of Ownership 274‑020‑0381
Rental 274‑020‑0382
Interest Rate Payable When Property Transferred Back to Original Borrower 274‑020‑0385
Modification of Mortgage 274‑020‑0386
Temporary Reduction of Payments 274‑020‑0387
Reamortization of Loans 274‑020‑0388
Property Tax Amortization and Escrow Accounting 274‑020‑0391
Discount for Early Payoff 274‑020‑0395
Partial Release of Security 274‑020‑0405
Confidential Nature of Information Submitted by the Borrower 274‑020‑0410
Confidential Nature of Information Procured by the Director 274‑020‑0411
Disclosure of Information and Fees 274‑020‑0420
Director’s Decisions Control in All Controversies 274‑020‑0421
Review of Loan Determinations and Other Decisions 274‑020‑0430
Effect 274‑020‑0440
Fees 274‑020‑0445
Assumption of Loan by Eligible Veteran 274‑020‑0450
Due on Sale
Last Updated

Jun. 8, 2021

Rule 274-020-0386’s source at or​.us