OAR 813-070-0016
Commitment System

Under the commitment system, the Department shall solicit commitment requests by mailing a commitment invitation form to each Approved Lender at the address listed in the records of the Department. The Department shall seek commitment requests before the sale of Bonds or when funds are otherwise expected to become available.


The commitment invitation form shall specify the terms on which the Department will accept commitment requests from Approved Lenders, including:


The minimum commitment amount, if any, which Approved Lenders may request;


The maximum interest rate applicable to Program Loans under the commitment;


The price the Department shall pay for such Program Loans and the origination fees, discounts, appraisal fees, inspection fees, and other expenses which may be charged in connection with Program Loan origination;


The period during which the Department will purchase Program Loans;


The commitment fee the Department shall charge Approved Lenders in connection with commitment requests;


The servicing fees the Department shall pay for Program Loan servicing; and


Such other similar terms as the Department may deem advisable. The Department shall consider:


The cost of borrowing the funds required to carry out the Home Improvement Loan Program;


The estimated cost of improvements to Residential Dwellings within Oregon;


The interest rates the Department estimates Eligible Borrowers can afford to pay when financing improvements of such Residential Dwellings;


The availability and cost to Eligible Borrowers of alternative borrowing sources; and


Other similar factors the Department considers appropriate to increase the availability of funds for financing improvements of Residential Dwellings by Eligible Borrowers and to ensure the security for and the ability of the State to repay the Bonds.


The Department may accept commitment requests as specified in the commitment invitation form. If the Department does not accept any request, the Approved Lender shall be notified promptly.


The Department shall allocate funds, taking into account the following factors:


Geographic area in which the Approved Lender is engaged in residential lending;


Other participants in such area;


Capacity of the Approved Lender to accomplish Program objectives;


Availability of funds to the Department;


Prior experience with the Approved Lender; and


Participation by the Approved Lender in previous Programs.


No allocation to an Approved Lender shall exceed the amount of funds for which the Approved Lender applied, but may be less than the amount requested. The Department’s allocation of funds shall be conclusive. However, Approved Lenders may assign allocations to other Approved Lenders with the Department’s written consent.


To assure that Approved Lenders perform their obligations under commitments entered into with the Department and to defray costs associated with processing and administering commitment requests and commitments, the Department may establish commitment fees in connection with commitment requests under the Home Improvement Loan Program. Commitment fees may be refunded or reduced in accordance with the terms and conditions of the Program Loan purchase agreement.


Disbursements under the commitment shall be subject to availability of Bond proceeds or other funds. Thereafter, the Department shall disburse funds to purchase Program Loans as specified in the commitment invitation form and the Program’s Procedural Guide. The Approved Lender shall submit the Program Loan, related documents and a submission report for the Department’s review before loan purchase. The purchase of any Program Loan is subject to the legal, sufficient and proper form of the loan documents, and adequate evidence the Program Loan satisfies all the criteria provided in the Act, the Program rules and the Program’s Procedural Guide.


Approved Lenders shall report periodically during the commitment term. If, in the judgment of the Department, the Approved Lender will not use the amount of the commitment within the commitment, period, the Department may reallocate the remaining balance.
[Publications: Publications referenced are available from the agency.]
Last Updated

Jun. 8, 2021

Rule 813-070-0016’s source at or​.us