Reservation of Funds and Commitments
(1)ODVA will reserve funds for applications at the time of:
(a)Acceptance of application for processing by ODVA; or
(b)A verbal or written request from an Approved Lender that an application for funding is being processed.
(2)When ODVA reserves funds, an interest rate will be committed to this reservation and will be effective for a period of 60 days. The loan must be closed before the end of 60 days or the committed interest rate will expire. If the reservation is reissued, will bear an interest rate at the higher of the expired/cancelled rate or the then-current interest rate at the time of reissue. If a veteran withdraws an application and subsequently re-applies for a loan on the same security, the “higher of” rule will apply for a period of 120 days from the date of withdrawal.
(3)If the loan is not presented to ODVA for purchase with all documentation in place within 90 calendar days of the final HUD-1 settlement date, ODVA may charge the Approved Lender a fee of one basis point of the loan amount per calendar day, until loan is approved for purchased.
(4)The commitment letter to the Approved Lender will contain the following information:
(a)The dollar amount of the commitment;
(b)The interest rate for the loan;
(c)The term of the loan;
(d)The mortgage insurance or guarantee required, if any;
(e)The period of time during which the ODVA will purchase the loan;
(f)The veteran who will be the borrower;
(g)The property identification (i.e., property address);
(h)Any additional information or conditions the ODVA considers appropriate in the commitment.
(5)The ODVA will promptly notify Approved Lenders when it will not accept a commitment request, for whatever reasons.
Rule 274-045-0250 — Reservation of Funds and Commitments,