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Oregon Bulletin

September 1, 2013

Department of Veterans’ Affairs, Chapter 274

Rule Caption: Relating to on loans made by the Oregon Department of Veterans Affairs.

Adm. Order No.: DVA 4-2013(Temp)

Filed with Sec. of State: 7-23-2013

Certified to be Effective: 7-23-13 thru 1-19-14

Notice Publication Date:

Rules Amended: 274-020-0200, 274-020-0265, 274-020-0280, 274-020-0285, 274-020-0290, 274-020-0348, 274-045-0001

Subject: The 77th Oregon Legislative Assembly - 2013 Regular Session passed SB 34 and SB 35, increasing the number of home loans Oregon veterans are eligible to receive from the Oregon Department of Veterans’ Affairs and increasing the loan-to-value the Department is able to lend to. These bills were effective upon passage.

Rules Coordinator: Nicole Hoeft—(503) 373-2386

274-020-0200

Definitions for OAR 274-020-0200274-020-0450

As used in these regulations or any amendments to them, or any blank form, document, publication, or written instrument of any kind prescribed, provided, published, issued, or used by the director or any of his duly authorized agents or employees in connection with the administration of the provisions of Article XI A of the Oregon Constitution and ORS chapter 407, providing for the loaning of money to qualified persons who served in the Armed Forces of the United States, unless otherwise required by context:

(1) “Armed Forces” means and includes:

(a) Army;

(b) Navy;

(c) Marines;

(d) Air Force;

(e) Coast Guard;

(f) WAC (Since July 1, 1943);

(g) Waves;

(h) Women Marines;

(i) WAFS;

(j) Spars;

(k) Women’s Air Force Service Pilots (WASP);

(l) Commissioned Officers of the Public Health Service. Service with Coast Guard between December 23, 1941, and November 10, 1943, inclusive. Service with the Army, Navy, Marine Corps, or Coast Guard between November 11, 1943, and July 28, 1945, inclusive. Eligible by executive order between July 29, 1945, and July 3, 1952, inclusive. Since July 3, 1952, when serving with the Armed Forces;

(m) Active service of commissioned officers of the National Oceanic and Atmospheric Administration or its predecessor organization, the Coast and Geodetic Survey, after July 29, 1945. Coast and Geodetic Survey officers while serving with the Army or Navy before July 29, 1945.

(2) “Active Duty” means that status in the Armed Forces in which the person on “active duty” is under the command of and subject to discipline and on active duty pay status in the respective branch of the Armed Forces in which the person is serving:

(a) Members of the reserve components; persons on a retired status from the Armed Forces; cadets at West Point, the United States Coast Guard Academy, the United States Air Force Academy, and Midshipmen at Annapolis, were on active duty only after reporting for active duty;

(b) Members of the National Guard were on active duty only after having entered active Federal Service for duty other than training.

(3) “Honorably Discharged” means that the official documents of discharge, service, or separation issued upon the termination of the veteran’s service with the Armed Forces are characterized as “Honorable” or “Under Honorable Conditions”.

(4) “Separated” means the termination of active duty with the Armed Forces.

(5) “Domicile” means the legal residence of a veteran and consists of actual or inchoate residence in conjunction with the intention to maintain that residence, or the home of the veteran, where, when temporarily away, he has the intention of returning:

(a) Temporary absence from the state, such as vacation, military leave, or reasons of health, will not destroy the domicile;

(b) Temporary presence in the state without an intention to establish a permanent home will not support a domicile in the state;

(c) Domicile of an unemancipated minor shall be governed by his legal parent, (if the parents are divorced, the one having custody controls);

(d) Domicile of an emancipated minor shall be determined by choice.

(6) “Acquisition” means:

(a) The purchase and improvement of a home or farm; or

(b) The payment of the balance of a purchase price and interest on purchase contract of a home or farm and its improvements; or

(c) The refinancing of an existing purchase money security instrument on a home or farm or an instrument in the nature thereof, and the improvement of the property purchased; or

(d) Improvements of a home or farm.

(7) “Improvements” means any new construction, or any necessary or beneficial additions, alterations, or changes appurtenant to the house which add to the appraised value of the premises.

(8) “Security” means all of the real property, mobile home, or floating home that is to be acquired for a home and for which purpose the loan is requested.

(9) “Home” means any residential type structure, including outbuildings and the real property in connection with it, if any, including long term leaseholds, which is established, maintained, and used primarily as a principal residence by the veteran.

(10) “Farm” includes:

(a) “Home”; and

(b) A parcel of land being used to obtain a profit in money by utilizing accepted farming practices to raise crops or livestock or poultry or dairying or combinations thereof.

(11) “Security Instrument” means a mortgage, deed of trust, or similar document used to perfect the lien on the security by the Director of Veterans’ Affairs (ODVA). The lien will be a first lien on the home, except:

(a) As otherwise required by Oregon law, or allowed by Oregon law and approved in writing by ODVA; or

(b) When an ALTA mortgagee’s title insurance policy is in force insuring the state against the usual losses covered by an ALTA policy as well as any loss from any prior encumbrance, and the encumbrance is acceptable to both the veteran and ODVA.

(12) “Minor” means any single person under the age of 18 years, but any person shall be deemed to have arrived at the age of majority upon their marriage.

(13) “Transfer” means a change of ownership, either by operation of law, act of the parties, or both, such as deed, contract, certificate, court decree, property settlement, foreclosure, easement, condemnation, or adverse possession of the premises.

(14) “Lease” means the giving of possession and use of profits of secured property for a period of time in return for compensation.

(15) “Possession” means exclusive dominion and physical control of the secured property but occupancy is not necessary.

(16) “Lease Option” means a lease of real property with an option to purchase the property within a stipulated period of time.

(17) “Rent” means the giving of possession of secured property for occupancy for a specific period of time in return for a stipulated amount of compensation.

(18) “Underwriter/Designated Loan Officers” means those employees of the Department whose paramount responsibility shall be the approval or rejection of all applications for loans.

(19) “Department” means the Oregon Department of Veterans’ Affairs (ODVA).

(20) “Net Appraised Value” is also known as loan value,” and both terms mean the lesser of the appraised value or the Purchase Price. The “appraised value” is the value established by an appraisal obtained by or at the direction of ODVA, or an appraisal approved by ODVA.

(21) “Loan to Value Ratio” is the loan amount or balance divided by the net appraised value.

(22) “Original Loan” means: The first loan the veteran receives; or

(23) “Subsequent Loan” means any loan or loans granted after the original loan and are in these categories:

(a) Additional loan;

(b) Veterans’ Home Improvement loan.

(24) “Veteran” means any person eligible to receive a loan under the provisions of Article XI A of the Oregon Constitution and sections (1) through (6) of this rule.

Stat. Auth.: ORS 406.030 & 407.115

Stats. Implemented: ORS 40

Hist.: DVA 22, f. 11-15-57, ef. 11-14-57; DVA 26, f. 12-13-60; DVA 29, f. 7-3-63, ef. 9-2-63; DVA 32, f. 12-2-65, ef. 10-25-65; DVA 33, f. 12-7-66, ef. 1-11-67; DVA 35, f. 12-19-68, ef. 1-11-69; DVA 38, f. 5-10-71, ef. 6-11-71; DVA 43, f. 3-2-73, ef. 3-29-73; DVA 45, f. & ef. 12-1-75; DVA 47, f. & ef. 4-20-76; DVA 48, f. & ef. 1-3-77; DVA 50, f. 11-16-77, ef. 12-1-77; DVA 1-1980, f. & ef. 1-15-80; DVA 4-1980, f. & ef. 12-1-80; DVA 3-1990, f. & cert. ef. 5-1-90; DVA 10-1995, f. 9-11-95, cert. ef. 9-22-95; DVA 12-1995, f. & cert. ef. 9-22-95; DVA 5-1997, f. & cert. ef. 10-22-97; DVA 2-2005, f. & cert. ef. 4-22-05; DVA 2-2013, f. & cert. ef. 7-8-13; DVA 4-2013(Temp), f. & cert. ef. 7-23-13 thru 1-19-14

274-020-0265

Evidence Required to Establish Eligibility

The applicant shall submit to the Director the following evidence to establish eligibility:

(1) Evidence of separation such as a photostat of Discharge or a Certificate of Satisfactory Service and a photostat of Notice or Report of Separation, Transfer, or Discharge.

(2) Certificate of Service and Casualty Report when applicant is the unremarried spouse of a person who died on active duty.

(3) Proof of any change in name since discharge:

(a) Where legally changed, proof shall be by a certified copy of the Court Order, or a marriage certificate, or a divorce decree;

(b) Where not legally changed, proof shall be by an affidavit from the veteran and affidavits from at least two disinterested persons.

Stat. Auth.: ORS 406

Stats. Implemented: ORS 406.030, 407.075, 407.115 & 407.125

Hist.: DVA 22, f. 11-15-57, ef. 11-14-57; DVA 1-1980, f. & ef. 1-15-80; DVA 4-2013(Temp), f. & cert. ef. 7-23-13 thru 1-19-14

274-020-0280

Number of Applications Permitted

(1) A veteran may have only one application for a loan pending at any time.

(2) A veteran may make application for another loan if conditions exist which entitle him to another loan.

(3) A veteran may make an application for an additional loan if he presently has a state loan.

(4) A veteran may make application for an advance for improvements provided the security for the loan is the primary residence.

Stat. Auth.: ORS 406

Stats. Implemented: ORS 407.205

Hist.: DVA 29, f. 7-3-63, ef. 9-2-63; DVA 32, f. 12-2-65, ef. 10-25-65; DVA 1-1980, f. & ef. 1-15-80; DVA 4-2013(Temp), f. & cert. ef. 7-23-13 thru 1-19-14

274-020-0285

Replacement Loans

A veteran may receive this type of subsequent loan to replace an existing home unit on the existing ODVA security with a new home unit when the existing home unit was destroyed by fire or other natural hazard, condemnation, or other compelling reason by no fault of the applicant. The total funds for this loan shall not exceed the maximum allowable single-family loan limit set by Fannie Mae (federal National Mortgage Association) for the State of Oregon.

Stat. Auth.: ORS 406

Stats. Implemented: ORS 407.205 & 407.265

Hist.: DVA 22, f. 11-15-57, ef. 11-14-57; DVA 29, f. 7-3-63, ef. 9-2-63; DVA 42, f. 3-2-73, ef. 3-20-73; DVA 5-1997, f. & cert. ef. 10-22-97; DVA 4-2013(Temp), f. & cert. ef. 7-23-13 thru 1-19-14

274-020-0290

Additional Loans

Before an additional loan may be granted:

(1) The repayment shall have been satisfactory; and

(2) The amount shall not exceed the maximum single-family loan limit set by Fannie Mae (federal National Mortgage Association) for the State of Oregon.

Stat. Auth.: ORS 406

Stats. Implemented: ORS 407.205 & 407.265

Hist.: DVA 22, f. 11-15-57, ef. 11-14-57; DVA 29, f. 7-3-63, ef. 9-2-63; DVA 36, f. 7-25-69, ef. 8-25-69; DVA 42, f. 3-2-73, ef. 3-20-73; DVA 45, f. & ef. 12-1-75; DVA 4-2013(Temp), f. & cert. ef. 7-23-13 thru 1-19-14

274-020-0348

Grounds for Refusing to Make a Loan

The Director may refuse to make a loan to any applicant if he finds any of the following:

(1) Prior loan experience with an applicant was unsatisfactory, including, but not limited to, late payment or nonpayment on loan and impairment of security.

(2) The applicant did not disclose all debts or obligations as required under the terms of the loan credit application.

(3) The applicant has a negative cash flow.

(4) The applicant has declared bankruptcy within the last three years unless:

(a) The applicant or the applicant’s spouse has been regularly employed, other than self-employed, since the discharge; and

(b) The applicant has established credit since the bankruptcy and made timely and satisfactory payments on obligations; and

(c) The bankruptcy was caused by circumstances beyond the applicant’s control, such as uninsured medical expense, layoff, strike, or divorce.

(5) The applicant has declared bankruptcy between three and five years prior to application for a loan, unless: The applicant has reestablished credit since the bankruptcy.

(6) Business bankruptcies will not be grounds for refusing to make a loan if:

(a) The applicant was self-employed and the bankruptcy was not due to misconduct; and

(b) There is no evidence of derogatory credit information prior to the self-employment or after the bankruptcy; and

(c) The applicant has subsequently obtained a permanent position with reliable income.

(7) Chapter 13 bankruptcies will not be grounds for refusing to make a loan if: The applicant has made satisfactory payment of at least three-fourths of the total payments due the trustee.

(8) The applicant’s ability to repay the loan is insufficient, as determined by the Department of Veterans’ Affairs (Department) by applying relevant industry standards.

(9) The applicant is an unsatisfactory credit risk, as determined by the underwriting analysis of the credit rating agency selected by the Director. In that case, the Director shall advise the applicant of his refusal on this basis and supply to the applicant the name and address of any consumer reporting agency which provided the Director with information on the applicant. If the applicant requests in writing within 60 days after being notified of the refusal, the Director shall provide the applicant with the name of any person other than a consumer reporting agency who provided information which was, wholly or in part, a basis of such refusal.

(10) The applicant is involved in the following type of transactions:

(a) The purchase of property from a spouse where the amount which the applicant seeks to borrow from the Department exceeds the unpaid balance on loans used to acquire or improve the property;

(b) The purchase from a corporation wholly or substantially owned by the applicant;

(11) The applicant has or has had any interest, within the past three years, either title or contractual, in the property being purchased, except it will not be grounds for refusing to make a loan:

(a) If the applicant is purchasing a one-half interest from a divorced spouse. The sum shall be stated in the divorce decree;

(b) If the applicant acquired an interest in property by inheritance and is purchasing the interest which co-heirs have in the same property;

(c) If the application is for an improvement or additional loan;

(d) If the application is for a rehabilitation loan or a loan to pay off a bridge loan. A “bridge loan” is temporary financing obtained for the purpose of financing the purchase of a home pending the sale of a home owned by the borrower and listed with a real estate broker or advertised for sale;

(e) If the application is for a loan to pay off an interim loan whose term does not exceed 24 months (not renewable);

(f) If the application is for a loan to pay off a construction period loan obtained not more than 24 months, and the construction was completed not more than 18 months, before submitting an application to the Director;

(g) If the application is for amount spent on the purchase of, or the value of, land only (whichever is less) and construction commences within 24 months of land acquisition and the loan is funded within 18 months of the start of construction.

(12) The applicant does not meet the applicable underwriting or industry property standards as determined by the Department.

(13) Effective with applications received after May 15, 1984, except for farm loans and loans for multi-family dwellings, if the applicant will use the property offered as security for the loan for a purpose that would jeopardize the tax-exempt status of interest to holders of Bonds issued by the Director of Veterans’ Affairs:

(a) Specifically excluded uses are:

(A) As an investment;

(B) As a recreational home;

(C) As a principal place of business for any trade or business of the applicant.

(b) Examples of excluded uses (if a portion of the property is used regularly and exclusively in connection with a trade or business) are:

(A) Using any portion of the residence as a place to meet patients, clients, or customers in the normal course of business;

(B) Storage of inventory in a separate and identifiable fixed location and kept for the wholesale or retail selling of products as a part of the applicant’s trade or business which would entitle the applicant to a “Business Use of the Home” income tax deduction;

(C) Providing care for children, for the elderly, or for handicapped persons, if the nature and character of the care entitles the property owner to a “Business Use of the Home” income tax deduction.

(c) Any use of a residence which does not qualify for a “Business Use of the Home” income tax deduction shall not be considered as a use in a trade or business. Examples of such permitted uses are:

(A) Storage of inventory for the benefit of an employer or in conduct of a direct selling business, if the use is not exclusive of any personal use of that part of the residence;

(B) Babysitting, if the nature and character of the babysitting does not entitle the property owner to a “Business Use of the Home” income tax deduction;

(C) Engaging in person-to-person sales of consumer products to customers in the home, such as Tupperware, Amway, Avon, wicker, crystal, or similar products;

(D) Foster home established by Court Order, or designated by a Government Agency with jurisdiction to make such a designation;

(E) Using part of the residence to write legal briefs, prepare tax returns, read financial periodicals and reports, clip bond coupons, or engage in similar work, if the use is not exclusive of any personal use of that part of the residence.

Stat. Auth.: ORS 183, 286, 406.030, 407.115, 407.135, 407.145, 407.275, 407.305 & 407.375

Stats. Implemented: ORS 407.115, 407.125, 407.179 & 407.225

Hist.: DVA 7-1982, f. & ef. 3-15-82; DVA 8-1983, f. & ef. 6-1-83; DVA 3-1984, f. 5-2-84, ef. 5-15-84; DVA 6-1984, f. 7-25-84, ef. 8-1-84; DVA 3-1991, f. 5-30-91, cert. ef. 6-3-91; DVA 5-1993, f. 3-16-93, cert. ef. 3-21-93; DVA 7-1995, f. & cert. ef. 7-21-95; DVA 8-2001, f. & cert. ef. 11-23-01; DVA 6-2005, f. & cert. ef. 10-24-05; DVA 4-2013(Temp), f. & cert. ef. 7-23-13 thru 1-19-14

274-045-0001

Definitions for OAR 274-045-0001 to 274-045-0480

As used in these regulations or any amendments to them, or any blank form, document, publication, or written instrument of any kind prescribed, provided, published, issued, or used by the director or any of his duly authorized agents or employees in connection with the administration of the provisions of Article XI-A of the Oregon Constitution and ORS Chapter 407, providing for the loaning of money to qualified persons who served in the Armed Forces of the United States, unless otherwise required by context:

(1) “Armed Forces” means and includes:

(a) Army;

(b) Navy;

(c) Marines;

(d) Air Force;

(e) Coast Guard;

(f) National Guard;

(g) Federal Reserve Forces;

(2) “Active Duty” means that status in the Armed Forces in which the person on “active duty” is under the command of and subject to discipline and on active duty pay status in the respective branch of the Armed Forces in which the person is serving:

(a) Members of the reserve components; persons on a retired status from the Armed Forces; cadets at the United States Military Academy, and the United States Air Force Academy, and Midshipmen at the United States Naval Academy and the United States Coast Guard Academy, were on active duty only after reporting for active duty;

(b) Members of the National Guard were on active duty only after having entered active Federal Service for duty other than training.

(3) “Acquisition” means:

(a) The purchase and improvement of a home; or

(b) The payment of the balance of a purchase price and interest on purchase contract of a home and its improvements; or

(c) The refinancing of an existing purchase money security instrument on a home or an instrument in the nature thereof, and the improvement of the property purchased; or

(d) Improvements of a home.

(4) “Agreement” means the contract between the Oregon Department of Veterans’ Affairs (ODVA) and the approved lender, setting forth the terms and conditions under which program loans made by the approved lender will be purchased by the ODVA.

(5) “ALTA Mortgagee’s Title Insurance” means a title insurance policy issued in American Land Title Insurance form by a title insurer licensed by the State of Oregon.

(6) “Approved Lender” means any “Lending Institution” as defined in ORS 407.177(8) that has entered into an agreement with ODVA to originate residential loans acceptable to ODVA or to act as a conduit for the origination of residential loans acceptable to ODVA. In determining whether or not to contract with a Lending Institution, ODVA may consider factors including, but not limited to the following:

(a) ODVA’s need for additional Approved Lenders, either on a statewide basis or in a specific geographical area,

(b) Whether or not the Lending Institution has had any complaints filed against it or against any of its employees, agents, officers, directors, owners, or affiliates through the Consumer and Business Services Department of the State of Oregon, through any other regulatory agency or otherwise.

(c) Whether or not representatives of the Lending Institution have attended any ODVA-sponsored training.

(d) The reputation of the Lending Institution, including its employees, agents, officers, directors, owners or affiliates.

(e) The number and experience of Lending Institution employees and other personnel available to originate loans or to act as a conduit for the origination of residential loans acceptable to ODVA.

(f) Status and character of the institution’s loan policies and procedures.

(g) The financial capability of the Lending Institution to originate loans or to act as a conduit for the origination of loans.

(h) The Lending Institution’s qualification as a loan originator or a seller/servicer for the Federal National Mortgage Association, the Federal Home Loan Mortgage Association, or the United States Department of Veterans’ Affairs.

(i) Whether or not the deposits of the Lending Institution are insured by FDIC or some other federal agency or corporation.

(j) The experience, efficiency and performance of the Lending Institution in the area of residential lending and any other area of the Lending Institution’s business.

(k) The willingness and commitment of the Lending Institution to accept and to fulfill the terms of an ODVA proposed contract.

(l) The result of any references which are checked as part of the application process.

(7) “Commitment” means a promise made by the ODVA to an Approved Lender or veteran, evidenced by a written commitment letter, setting forth the terms upon which the ODVA will purchase, originate, or accept by underwriting and closing a specific program loan made or processed by the Approved Lender or ODVA pursuant to a reservation of funds.

(8) “Department” means the Oregon Department of Veterans’ Affairs.

(9) “Director” means the Director of Veterans’ Affairs for the State of Oregon.

(10) “Domicile” means the legal residence of a veteran and consists of actual or inchoate residence in conjunction with the intention to maintain that residence, or the home of the veteran, where, when temporarily away, he or she has the intention of returning:

(a) Temporary absence from the State, such as vacation, military leave, or reasons of health, will not destroy the domicile;

(b) Temporary presence in the State without an intention to establish a permanent home will not support a domicile in the State;

(c) Domicile of an unemancipated minor shall be governed by his legal parent, (if the parents are divorced, the one having custody controls);

(d) Domicile of an emancipated minor shall be determined by choice.

(11) “Home” means any house or dwelling, including outbuildings, and the real property in connection with it, where the veteran has, or will, establish domicile.

(12) “Honorably Discharged” means that the official documents of discharge, service, or separation issued upon the termination of the veteran’s service with the Armed Forces are characterized as “Honorable” or “Under Honorable Conditions”.

(13) “Improvements” means any new construction, or any necessary or beneficial additions, alterations, or changes appurtenant to the house, which add to the appraised value of the premises.

(14) “Lease” means the giving of possession and use of profits of secured property for a period of time in return for compensation.

(15) “Lease Option” means a lease of real property with an option to purchase the property within a stipulated period of time.

(16) “Lending Institution” means an entity which is licensed, or otherwise legally authorized, to conduct business in the State of Oregon exclusively or in part as a mortgage lender or a conduit for mortgage loans and that, in the judgment of ODVA, is capable of meeting the needs of ODVA in carrying out the purposes of ORS Chapter 407. In determining whether or not an entity that is licensed, or otherwise legally authorized, to conduct business in Oregon exclusively or in part as a mortgage lender or a conduit for mortgage loans is capable of meeting the needs of ODVA in carrying out the purposes of ORS Chapter 407, ODVA may consider factors including, but not limited to the following:

(a) Whether or not the entity qualifies as a “Banking Institution” or similar entity including, but, not limited to an “Extranational Institution,” a “Federal Bank,” a “Federal Savings Bank,” or a “Financial Institution” under ORS 706.005, 706.008, 707.744, or 723.042.

(b) Whether or not the entity qualifies as a “mortgage broker” under ORS 59.840 through 59.965 for a period of three years.

(c) Whether or not the representatives of the entity have attended any ODVA-sponsored training.

(d) The reputation of the entity or of any of its employees, agents, officers, directors, affiliates or owners.

(e) The financial capability of the entity to originate loans or to act as a conduit for the origination of loans.

(f) The entity’s qualification as a loan originator or a seller/servicer for the Federal National Mortgage Association, the Federal Home Loan Mortgage Association, or the United States Department of Veterans Affairs.

(g) The experience, efficiency, and performance of the entity in the areas of residential lending and any other area of the entity’s business.

(17) “Loan Origination Guide/Mortgage Loan Origination Guide” means the manual containing the origination instructions for the Post Vietnam Era Veterans’ Home Loan Program, and any subsequent changes as they are effected.

(18) “Loan to Value Ratio” is the loan amount or balance divided by the net appraised value.

(19) “Minor” means any single person under the age of 18 years, but any person shall be deemed to have arrived at the age of majority upon their marriage.

(20) “Net Appraised Value” is also known as “loan value,” and both terms mean the lesser of the appraised value or the purchase price. The “appraised value” is the value established by an appraisal obtained by or at the direction of ODVA, or an appraisal approved by ODVA.

(21) “ODVA” means the Oregon Department of Veterans’ Affairs acting by and through the director as defined in ORS 407.085(2)(b).

(22) “Original Loan” means:

(a) The first loan the veteran receives; or

(b) The first loan based on a restored loan right.

(23) “Possession” means exclusive dominion and physical control of the secured property but occupancy is not necessary.

(24) “Post Vietnam Era Veterans’ Home Loan Program “ means all home loans originated under this Division.

(25) “Qualified Insurer” means private mortgage insurance company(ies) licensed to do business in Oregon and with which ODVA has agreed to accept mortgage insurance coverage. When an ALTA mortgagee’s title insurance policy is in force insuring the State against the usual losses covered by an ALTA policy as well as any loss from any prior encumbrance, and the encumbrance is acceptable to both the veteran and ODVA.

(26) “Rent” means the giving of possession of secured property for occupancy for a specific period of time in return for a stipulated amount of compensation.

(27) “Reservation of Funds” (Rate Lock) means the setting aside of specific funds at a designated interest rate for a specific period of time.

(28) “Security” means all of the real property that is to be acquired for a home and for which purpose the program loan is requested.

(29) “Security Instrument” means a mortgage, deed of trust, or similar document used to perfect the lien on the security by the ODVA. The lien will be a first lien on the home, except:

(a) As otherwise required by Oregon law, or allowed by Oregon law and approved in writing by ODVA; or

(b) When an ALTA mortgagee’s title insurance policy is in force insuring the State against the usual losses covered by an ALTA policy as well as any loss from any prior encumbrance, and the encumbrance is acceptable to both the veteran and ODVA.

(30) “Separated” means the termination of active duty with the Armed Forces.

(31) “Subsequent Loan” means any loan or loans granted after the original loan and are in these categories:

(a) Replacement loan;

(b) Additional loan; and

(c) Veterans’ Home Improvement loan.

(32) “Transfer” means a change of ownership, either by operation of law, act of the parties, or both, such as deed, contract, certificate, court decree, property settlement, foreclosure, easement, condemnation, or adverse possession of the premises.

(33) “Underwriter/Designated Loan Officers” means those employees of ODVA whose paramount responsibility shall be the approval or rejection of all applications for loans.

(34) “Veteran” means any eligible veteran as described in OAR 274-045-0001 through 274-045-0001(2)(b) eligible to receive a loan under the provisions of Article XI-A of the Oregon Constitution.

[Publications: Publications referenced are available from the agency.]

Stat. Auth.: ORS 406.030 & 407.115

Stats. Implemented: ORS 407

Hist.: DVA 2-2001, f. & cert. ef. 5-23-01; DVA 3-2001(Temp), f. & cert. ef. 6-15-01 thru 12-11-01; DVA 9-2001, f. & cert. ef. 11-23-01; DVA 2-2005, f. & cert. ef. 4-22-05; DVA 3-2007, f. & cert. ef. 9-25-07; DVA 2-2013, f. & cert. ef. 7-8-13; DVA 4-2013(Temp), f. & cert. ef. 7-23-13 thru 1-19-14


Rule Caption: Relating to the creation of the Veterans’ Extended Outreach Grant Program.

Adm. Order No.: DVA 5-2013(Temp)

Filed with Sec. of State: 7-24-2013

Certified to be Effective: 7-24-13 thru 1-20-14

Notice Publication Date:

Rules Adopted: 274-030-0625

Subject: For the 2013–2015 biennium, the Oregon Legislature approved approximately $1 million in one-time monies to be used to create the Veterans’ Extended Outreach Grant Program (VEOGP). Each of the 34 counties with a county veteran service officer is to receive $10,000 as a base amount from the grant program for the biennium. At least $600,000 must be awarded in the form of competitive grants to the counties with a county veteran service officer. Only those counties that successfully apply for and are approved for funding by the grant committee will receive a portion of the $600,000.

   The Oregon Department of Veterans’ Affairs shall administer the VEOGP as outlined in the agency’s budget note for its 2013–2015 biennium budget. The intent of the VEOGP is to increase outreach to veterans statewide to greatest effect, to inform them of their benefits, and to file claims on their behalf. It is the Legislature’s intent that the additional investment shall supplement and not supplant existing services to veterans provided by counties, and that from the additional investment, accountability and measurable outcomes result.

Rules Coordinator: Nicole Hoeft—(503) 373-2386

274-030-0625

Veterans’ Extended Outreach Grant Program

(1) For the 2013–2015 biennium, the Oregon Legislature approved approximately $1 million in one-time monies to be used to create the Veterans’ Extended Outreach Grant Program (VEOGP).

(2) The intent of VEOGP is to serve veterans statewide to greatest effect, to improve outreach to veterans, to inform them of their benefits, and to file claims on their behalf.

(3) The Oregon Department of Veterans’ Affairs shall administer the VEOGP as outlined in the agency’s budget note for its 2013–2015 biennium budget.

(4) The Oregon Department of Veterans’ Affairs shall develop the grant application with clear instructions as to the grants requirements, including but not limited to:

(a) Target outreach population.

(b) Strategic plan to reach that population, including a detailed proposed budget.

(c) How the county will measure outcomes and success of their grant program.

(d) Reporting requirements for both outreach outcomes and financial expenditures.

(e) Application deadlines and other administrative procedures.

(5) Each county with a county veteran service officer is:

(a) To receive $10,000 as a base amount from the VEOGP for the biennium; and

(b) Eligible to submit a grant application for additional funds through a competitive grant process.

(6) The Director shall appoint a five-member grant committee consisting of:

(a) Two members from the Oregon Department of Veterans Affairs; and

(b) Two county veteran service officer representing one urban and one rural region in consultation with the County Veteran Service Officer Association; and

(c) One member of the Veterans’ Affairs Advisory Committee to the Director of Veterans’ Affairs, selected by the Chair.

(7) The Director may appoint ad hoc, non-voting grant committee members.

(8) The grant committee shall review submitted grant application and determine appropriations based on criteria including but not limited to:

(a) Target outreach population; and

(b) Maximum return on investment which includes increased Power of Attorneys, increased new claims, increase federal dollar recoveries.

(c) Measurable outcomes that include program analytics to determine effectiveness of grant.

(9) The grant committee may approve part or all of a grant application or may deny a grant application due to insufficiency, not meeting program goals, limitation of funds, or any other reasonable criteria determined by the grant committee.

(10) The grant committee shall send a letter to the county veteran service officer explaining its decision for approval, partial approval, or denial of a grant request.

(11) The grant committee may revoke a grant and withhold funds in accordance with OAR 274-030-0630 should the grantee not implement its proposal in accordance with their application.

(12) A grantee may request of the grant committee to amend its proposal but may do so only with the approval of the grant committee.

(13) If a grant is approved, funds will be released in accordance with Legislative guidance and the needs of the grant proposal.

(14) A minimum of $600,000 will be expended on successful grant applications approved by the grant committee defined in these rules.

(15) Distribution of funds available for this grant purposes will be made upon approval of grant application

Stat. Auth.: ORS 406.030 & 406.050

Stats. Implemented:

Hist.: DVA 5-2013(Temp), f. & cert. ef. 7-24-13 thru 1-20-14


Rule Caption: Relating to County Veteran Services.

Adm. Order No.: DVA 6-2013(Temp)

Filed with Sec. of State: 7-24-2013

Certified to be Effective: 7-24-13 thru 1-20-14

Notice Publication Date:

Rules Amended: 274-030-0630

Subject: Requires funds retained by Director of Veterans’ Affairs out of distribution to county without county veteran service officer to be spent to provide veterans services in that county in a manner deemed appropriate by director until such time as the county appoints or reinstates a county veterans services to veterans, spouses, dependents and survivors of veterans. Also adds to the criteria for withholding funds from a county governing body the necessary purchase and coordination of a statewide computer system or other technology to facilitate efficient claims and appeals development and processing for veterans.

Rules Coordinator: Nicole Hoeft—(503) 373-2386

274-030-0630

Withholding Funds

(1) Funds may be withheld by the Department due, but not limited, to the following conditions:

(a) Reports are not submitted in the timeline established in OAR 274-030-0620, Quarterly Reports and Audits.

(b) Reports do not contain accurate or verifiable information.

(c) Lack of evidence that previous funds were used in a manner established in OAR 274-030-0602, County Responsibilities.

(d) Lack of evidence that acceptable progress has been made in accomplishing the timelines, goals, and objectives as contained in the county’s approved plan.

(e) If a county governing body has not appointed a County Veteran Service Officer the funds for that county may be retained by the Agency to provide veteran services in that county.

(f) To the purchase and coordination of a statewide computer system or other technology or both to facilitate efficient claims and appeals development and processing for veterans, spouses, dependents, and survivors of veterans.

(g) The determination that a county is supplanting funds.

(A) Establishment of a Baseline. For purposes of the Expansion and Enhancement Program, county funding for the fiscal year ending on June 30, 2005, will be considered the minimum level of funding that a county must maintain for their Service Officer Program in order for the county to receive state expansion and enhancement appropriations. Exceptions may be granted by the Department for one-time county funding made in fiscal year 2005, such as funds used to purchase a vehicle for transportation of veterans, or other extenuation circumstances.

(B) Except as outlined in ORS 406.460, counties must annually fund their County Veterans’ Service Program at or above the established baseline to avoid supplanting.

(C) Noncomplicance. The amount of supplanted monies will be withheld dollar for dollar from that county’s expansion and enhancement funds. When sufficient evidence has been received by the Department showing supplanted funds have been restored to the County Veterans’ Service Program, withheld funds will be released to the county, subject to budgetary limitations and if all required reports were in a current received status at the time supplanting was discovered.

(2) Withheld funds will be released at the conclusion of the quarter following the Department’s receipt of:

(a) Prior quarterly reports and supporting documentation.

(b) Amended reports with accurate and verifiable information.

(c) Sufficient evidence that funds were used in the manner established in ORS 406.450 and OAR 274-030-0602(2), County Responsibilities.

(d) Sufficient evidence has been received that acceptable progress has been made in accomplishing the timelines, goals, and objectives as outlined in the county plan.

(3) In order for any withheld expansion and enhancement funds to be released, the current quarter’s reports and any required attachments must be received within the timeframe outlined in OAR 274-030-0620

(4) Unless otherwise legislatively restricted, funds withheld by the Department at the conclusion of the biennium may be disbursed to all remaining qualified counties as determined by the Director, with the advice of the Advisory Committee.

Stat. Auth.: ORS 406.030, 406.050, 406.310 - 406.340, 406.450 - 406.462 & 408.410

Stats. Implemented: ORS 406.030, 406.050, 406.450 - 406.462 & 408.410

Hist.: DVA 7-2005(Temp), f. 12-22-05, cert. ef. 12-23-05 thru 6-21-06; DVA 6-2006, f. & cert. ef. 6-16-06; DVA 1-2007(Temp), f. & cert. ef. 7-25-07 thru 1-18-08; DVA 4-2007, f. 12-20-07, cert. ef. 1-1-08; DVA 6-2013(Temp), f. & cert. ef. 7-24-13 thru 1-20-14

Notes
1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2012.

2.) Copyright 2013 Oregon Secretary of State: Terms and Conditions of Use

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Phone: (503) 986-1523 • Fax: (503) 986-1616 • oregon.sos@state.or.us

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