ORS 407.225
Processing of loan application

  • security

(1)

When the Department of Veterans’ Affairs receives an application pursuant to ORS 407.205 (Application for loan), the department shall immediately process the application.

(2)

The security for the loan must consist of the property to be acquired by the applicant and must be secured by a mortgage or trust deed in the full amount of the loan.

(3)

The mortgage or trust deed must:

(a)

Be either a first lien on the property, subject to subsection (4) of this section, or a lien insured by mortgagee’s title insurance against loss from any prior encumbrance; and

(b)

Provide that the borrower, or any subsequent owner of the secured property, may pay all or any part of the loan at any time without penalty.

(4)

The department may make subordinate loans secured by the same security if there are no intervening liens between the first lien of the department created under this section and the recorded liens securing repayment of such subordinate loans. Such consecutive liens, for the purposes of this chapter, shall be deemed collectively as a first lien upon the security. [Formerly 407.050; 1985 c.296 §3; 1997 c.214 §2; 2003 c.49 §1; 2005 c.20 §1; 2005 c.625 §31; 2013 c.228 §1; 2019 c.223 §12; 2021 c.13 §2]

Source: Section 407.225 — Processing of loan application; security, https://www.­oregonlegislature.­gov/bills_laws/ors/ors407.­html.

See also annotations under ORS 407.050 in permanent editions.

Notes of Decisions

There is no indication that legislature intended other than standard mortgage transaction with normal protections and priorities for DVA secured loans. Director of Veterans’ Affairs v. Vickery, 299 Or 315, 702 P2d 1070 (1985)

Attorney General Opinions

Department of Veterans Affairs fee appraisers as agents of state for purposes of tort liability, (1981) Vol 42, p 103

407.075
Purpose 407.085
Definitions 407.087
Definition of “veteran.” 407.095
Policy against foreclosure 407.125
Loans to qualified person 407.131
Discount of principal 407.135
Authority of department 407.145
Purchase and control of property 407.155
Execution and custody of documents 407.165
Authority to hold certain funds received from borrower 407.169
Escrow accounts 407.177
Loan processing and servicing contracts with lending institutions 407.179
Additional powers delegated to lending institution 407.181
Authority of lending institution 407.185
Cash flow projection 407.195
Loans not being amortized 407.201
Required disclosure of credit information and loan terms 407.205
Application for loan 407.215
Certain loans excludable from maximum loan amount 407.225
Processing of loan application 407.275
Terms of loan to veteran and transferee 407.285
Rate of interest payable by certain transferees 407.295
Transfer to spouse 407.305
Assumption of previous loan by eligible veteran 407.315
Interest rate for veteran’s assumption 407.325
Rate of interest on loans 407.327
Department to prescribe fixed or variable interest rates 407.335
Rate of interest payable by transferee 407.349
Late charges authorized for periodic payments 407.375
Sale of foreclosed properties 407.377
Sale or management of foreclosed property under personal services contract 407.385
Prohibition against using loan for purpose other than farm or home acquisition 407.415
Issuance of bonds 407.425
Factors considered before requesting bond issuance 407.435
Issuance of bonds for tax payment 407.465
Loan cancellation life insurance 407.475
Persons insurable under ORS 407.465 407.480
Definitions for ORS 407.480 to 407.490 407.485
Agreements for mortgage insurance 407.490
Mortgage insurance claims 407.495
Oregon War Veterans’ Fund 407.505
Loan moneys to be reserved for borrower prior to loan commitment 407.515
Oregon War Veterans’ Bond Sinking Account 407.525
Transfer of sinking account moneys to veterans’ fund 407.555
Auditing and payment of claims 407.565
Revolving account 407.595
Loans not subject to execution or assignment
Green check means up to date. Up to date

Current through early 2024

§ 407.225’s source at oregon​.gov