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The Oregon Administrative Rules contain OARs filed through March 15, 2014
 
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HOUSING AND COMMUNITY SERVICES DEPARTMENT

 

DIVISION 80

MORTGAGE CREDIT CERTIFICATE PROGRAM

813-080-0005

Purpose and Objectives

(1) The rules of this division, are established to administer and enforce ORS 456.515 through 456.725, specifically ORS 456.605. These rules, together with the Program's Procedural Guide, shall implement the Mortgage Credit Certificate Program. The program's objective is to assist and encourage moderate and lower-income persons in the State of Oregon to purchase, improve, or rehabilitate new and existing single-family residences through the issuance of a Mortgage Credit Certificate.

(2) The Mortgage Credit Certificate allows the certificate holder, subject to certain limitations, a federal income tax credit. A Mortgage Credit Certificate is issued in connection with a mortgage that a certificate holder obtains to purchase, improve, or rehabilitate a single-family residence.

[Publications: The publication(s) referred to or incorporated by reference in this rule are available from the agency.]

Stat. Auth.: ORS 456.515 thru ORS 456.720
Stats. Implemented: ORS 456.605
Hist.: 1HD 2-1986(Temp), f. & ef. 6-17-86; 1HD 4-1986, f. & ef. 12-3-86; HSG 3-1989(Temp), f. & cert. ef. 6-8-89; HSG 17-1989, f. & cert. ef. 11-3-89; HSG 2-1991(Temp), f. & cert. ef. 8-7-91; HSG 8-1991, f. & cert. ef. 12-23-91; HSG 5-1993(Temp), f. & cert. ef. 10-1-93; HSG 5-1994, f. & cert. ef. 8-26-94

813-080-0010

Definitions

All terms are used in this Division, as defined in the Act, and as provided in OAR 813-005-0005 and herein. As used in these rules, unless otherwise indicated by the context:

(1) "Acquisition Cost" has the meaning given that term under Section 143(k)(3) of the Internal Revenue Code of 1986, as amended and applicable regulations thereunder. This includes but is not limited to the cost of acquiring a residence (purchase price) from the seller as a completed residential unit.

(2) "Adjusted Basis" has the meaning given that term under Section 1221 of the Internal Revenue Code of 1986, as amended, and applicable regulations thereunder in effect on December 2, 1986. It is determined in the same manner as a capital asset: The original cost of a property plus the value of any capital expenditures for improvements to the property, minus any depreciation taken.

(3) "Affidavit" means a sworn statement in writing made under oath and subject to the penalties of perjury.

(4) "Certificate" means a written document authorizing and verifying the amount of the tax credit allowed under the Mortgage Credit Certificate Program. The document shall include the information required by the Internal Revenue Code of 1986, as amended, and Section 1.25-6T(b)(1) through (20) of the regulations thereunder.

(5) "Certificate Holder" means an eligible borrower(s) meeting the criteria and requirements set forth in these rules and to whom a Mortgage Credit Certificate has been issued.

(6) "Certification" means a signed written statement confirming the truth and accuracy of the information provided.

(7) "Certified Indebtedness Amount" means the amount of indebtedness incurred by the taxpayer to acquire the principal single-family residence, or as a Qualified Home Improvement Loan, or as a Qualified Rehabilitation Loan, and is specified in the Mortgage Credit Certificate.

(8) "Eligible Borrower" means any person meeting the criteria set fourth in OAR 813-080-0040 who has been determined to be eligible but has not been issued a Mortgage Credit Certificate.

(9) "Existing Home" means a single-family residence that has been occupied previously.

(10) "Household" mean any person or persons living together in a single-family residence (e.g., married couples, two-unmarried persons sharing the same single-family residence, a single person, etc.).

(11) "Income" means the total of the gross annualized income, from any source and before taxes and withholding, of all non-minor persons who will reside in the single-family residence.

(12) "Issuer" means the agency of the State of Oregon.

(13) "Lender" means any person, including an issuer of Mortgage Credit Certificates, who provides financing for the acquisition, Qualified Rehabilitation, or Qualified Home Improvement of a single-family residence, and who has entered into a Mortgage Credit Certificate Lender Agreement with the Department.

(14) "Mortgage" means any instrument which evidences the conveyance of an interest in a single-family residence as defined under these rules. This includes but is not limited to mortgages, deeds of trust, land sale contracts, pledges, agreements to hold title in escrow, and any other form of owner financing.

(15) "New Home" means a single-family residence which has not been occupied previously.

(16) "Principal Residence" means the primary dwelling in which one lives.

(17) "Qualified Home Improvement" means financing (whether or not secured by a mortgage), in an amount which does not exceed $15,000 in relation to any residence, of alterations, repairs, and improvements by the owner on or in connection with an existing owner-occupied single-family residence, but only if such items substantially protect or improve the basic livability or energy efficiency of the residence. It does not include financing of luxury items such as swimming pools, saunas, hot tubs, or hobby shops.

(18) "Qualified Rehabilitation" means financing of any rehabilitation of a residence if there is a period of at least 20 years between the date on which the building was first used and the date physical work on the rehabilitation begins; if in the rehabilitation process, 50 percent or more of the existing external walls of such building are retained in place as external walls, 75 percent or more of the existing external walls of the building are retained in place as internal or external walls, 75 percent or more of the existing internal structural framework of such building is retained in place; and the expenditures of such rehabilitation are 25 percent or more of the mortgagor's adjusted basis in the single-family residence (including the land on which the residence is located). It does not include financing of luxury items such as swimming pools, saunas, hot tubs or hobby shops.

(19) "Related Person" has the meaning given that term under Section 144(a)(3) of the Internal Revenue Code of 1986, as amended, and Section 1.103-10(e)(1) of the regulations thereunder. This includes, but is not limited to, mother; father; son; daughter; grandmother; grandfather; brother; sister; other lineal descendants by full or partial blood, marriage, or contract of law; or persons with an ownership interest in a business.

(20) "Single-Family Residence" means a housing unit intended and used for occupancy by one household. This shall be real property or manufactured housing located in Oregon. A single-family residence may include a single-family residence, condominium unit, a dwelling in a Planned Unit Development (PUD), a mobile or manufactured home which has a minimum of 400 square feet of living space and a minimum width in excess of 102 inches and is of a kind customarily used at a fixed location, or a unit in a housing cooperative.

(21) "Tax Credit Rate" means the percentage rate specified by the issuer on the Mortgage Credit Certificate which the certificate holder shall use in calculating the allowable tax credit.

(22) "Total Proceeds" means the sum of the products determined by multiplying the certified indebtedness amount of each Mortgage Credit Certificate issued pursuant to such issue by the tax credit rate specified in such certificate.

[Publications: The publication(s) referred to or incorporated by reference in this rule are available from the agency.]

Stat. Auth.: ORS 90.800 - ORS 90.840, ORS 91.886, ORS 183, ORS 456.515 - ORS 456.723 & ORS 458.210 - ORS 458.650
Stats. Implemented: ORS 456.605
Hist.: 1HD 2-1986(Temp), f. & ef. 6-17-86; 1HD 4-1986, f. & ef. 12-3-86; HSG 3-1989(Temp), f. & cert. ef. 6-8-89; HSG 17-1989, f. & cert. ef. 11-3-89; HSG 2-1991(Temp), f. & cert. ef. 8-7-91; HSG 8-1991, f. & cert. ef. 12-23-91; HSG 5-1993(Temp), f. & cert. ef. 10-1-93

813-080-0015

Tax Credit

(1) The Mortgage Credit Certificate shall authorize the certificate holder to claim a federal income tax credit in connection with a mortgage loan on a single-family residence which is the certificate holder's principal residence. The amount of the tax credit is determined by multiplying the amount of the mortgage interest paid or accrued on the principal residence of the certificate holder during the taxable year by the tax credit rate.

(2) The issuer shall determine the Tax Credit Rate in accordance with Section 25(d) of the Internal Revenue Code of 1986, as amended, and applicable regulations thereunder.

[Publications: The publication(s) referred to or incorporated by reference in this rule are available from the agency.]

Stat. Auth.: ORS 90.800 - ORS 90.840, ORS 91.886, ORS 183, ORS 456.515 - ORS 456.723 & ORS 458.210 - ORS 458.650
Stats. Implemented: ORS 456.605
Hist.: 1HD 2-1986(Temp), f. & ef. 6-17-86; 1HD 4-1986, f. & ef. 12-3-86; HSG 3-1989(Temp), f. & cert. ef. 6-8-89; HSG 17-1989, f. & cert. ef. 11-3-89; HSG 2-1991(Temp), f. & cert. ef. 8-7-91; HSG 8-1991, f. & cert. ef. 12-23-91

813-080-0020

Public Notice Requirement

The issuer shall issue Mortgage Credit Certificates only after making generally available a notice of the proposed plan of distribution of the certificates at least 90 days before the Mortgage Credit Certificates are made available. The notice shall include all information required by Section 25 of the Internal Revenue Code of 1986, as amended, and Section 1.25-7T of the regulations thereunder. The notice shall also provide a brief description of the methods by which the certificates are to be issued and the address and telephone number for obtaining further information.

[Publications: The publication(s) referred to or incorporated by reference in this rule are available from the agency.]

Stat. Auth.: ORS 90.800 - ORS 90.840, ORS 91.886, ORS 183, ORS 456.515 - ORS 456.723 & ORS 458.210 - ORS 458.650
Stats. Implemented: ORS 456.605
Hist.: 1HD 2-1986(Temp), f. & ef. 6-17-86; 1HD 4-1986, f. & ef. 12-3-86; HSG 3-1989(Temp), f. & cert. ef. 6-8-89; HSG 17-1989, f. & cert. ef. 11-3-89; HSG 2-1991(Temp), f. & cert. ef. 8-7-91; HSG 8-1991, f. & cert. ef. 12-23-91

813-080-0025

Targeted Area Requirements

(1) A portion of the total proceeds of any issue shall be reserved for one year after the date on which Mortgage Credit Certificates are first made available to provide Mortgage Credit Certificates in connection with financing of Targeted Area single-family residences.

(2) Mortgage Credit Certificates shall be considered first made available on the date the issuer first begins to accept applications for Mortgage Credit Certificates provided under that issue.

(3) The reserved portion of the total proceeds of an issue shall be the lesser of:

(a) Twenty percent of the total proceeds;

(b) Eight percent of the average annual aggregate principal amount of Mortgages executed during the immediately preceding three calendar years for owner-occupied single-family residences in Targeted Areas within the jurisdiction of the issuing authority; or

(c) To compute the required portion of the total proceeds, the issuer may rely on the formulas provided in Section 143(h) of the Internal Revenue Code of 1986, as amended, and the regulations thereunder.

[Publications: The publication(s) referred to or incorporated by reference in this rule are available from the agency.]

Stat. Auth.: ORS 90.800 - ORS 90.840, ORS 91.886, ORS 183, ORS 456.515 - ORS 456.723 & ORS 458.210 - ORS 458.650
Stats. Implemented: ORS 456.605
Hist.: 1HD 2-1986(Temp), f. & ef. 6-17-86; 1HD 4-1986, f. & ef. 12-3-86; HSG 3-1989(Temp), f. & cert. ef. 6-8-89; HSG 17-1989, f. & cert. ef. 11-3-89; HSG 2-1991(Temp), f. & cert. ef. 8-7-91; HSG 8-1991, f. & cert. ef. 12-23-91

813-080-0030

Allocation of Mortgage Credit Certificates

(1) Under the program, the issuer may issue Mortgage Credit Certificates to eligible borrowers.

(2) An applicant wishing to participate in the program may apply through any lender who is not a related person. The Lender shall sign and agree to the terms of the issuer's Mortgage Credit Certificate Lender Agreement before a Mortgage Credit Certificate will be issued to the eligible borrower.

(3) Mortgage Credit Certificate application shall be made on forms prepared or approved by the issuer. The lender shall provide such forms to prospective applicants and take normal and appropriate measures to verify the information given. The lender shall determine the qualifications of an applicant as an eligible borrower for a Mortgage Credit Certificate.

(4) If the applicant meets the Program requirements, the lender shall obtain a completed and signed Application Affidavit from the applicant. Upon receipt of the signed Application Affidavit, the lender shall place with the issuer a reservation for tax credit authority for that applicant in the manner prescribed by the issuer. The issuer shall issue a letter which confirms that tax credit authority has been reserved, and lists the program requirements the applicant must meet to qualify for the Mortgage Credit Certificate. The lender shall notify the issuer, in writing, of any changes in the information furnished in the letter. The issuer shall issue Mortgage Credit Certificates only to applicants for whom a reservation for tax credit authority has been made, and who, at loan closing, meet the program requirements listed in the letter.

(5) If a lender determines that an applicant does not qualify for a Mortgage Credit Certificate, the lender shall instruct the issuer to cancel that applicant's reservation for tax credit authority.

(6) The lender shall provide to the issuer evidence of closing and other information the issuer may require within ten working days of loan closing unless the issuer approves a later submission upon written request of the lender. Upon review and approval of the information submitted, the issuer shall issue the Mortgage Credit Certificate. If the issuer disapproves issuance of a Mortgage Credit Certificate, the issuer shall cancel that applicant's reservation for tax credit authority and notify the lender immediately of the actions taken.

(7) The issuer may establish reasonable fees in connection with the issuance of a Mortgage Credit Certificate:

(a) The lender shall charge and remit to the issuer a fee of one-half of one percent of the Certified Indebtedness Amount (original loan amount) to cover the issuer's administrative costs of operating the Mortgage Credit Certificate Program. The lender may retain a discretionary fee from the above administrative fee, of up to $50 to cover the administrative costs of processing the Mortgage Credit Certificate package. The fees are non-refundable unless the issuer or lender, on a case-by-case basis, waives all or part of its fee;

(b) The issuer shall charge the borrower a $10 fee for a replacement copy of their Mortgage Credit Certificate;

(c) Applicants may be required to pay other fees which are customarily associated with a mortgage or contract loan provided the fees are usual and reasonable.

(8) The availability of Mortgage Credit Certificates issued under the Mortgage Credit Certificate Program shall be subject to the issuer's election not to sell qualified mortgage bonds.

(9) The issuer may adopt procedures to allocate Mortgage Credit Certificates to lower-income before higher-income applicants.

Stat. Auth.: ORS 456.515 thru ORS 456.720
Stats. Implemented: ORS 456.605
Hist.: 1HD 2-1986(Temp), f. & ef. 6-17-86; 1HD 4-1986, f. & ef. 12-3-86; HSG 5-1988(Temp), f. 11-15-88, cert. ef. 11-22-88; HSG 6-1988, f. & cert. ef. 12-19-88; HSG 3-1989(Temp), f. & cert. ef. 6-8-89; HSG 17-1989, f. & cert. ef. 11-3-89; HSG 16-1990, f. & cert. ef. 12-27-90; HSG 2-1991(Temp), f. & cert. ef. 8-7-91; HSG 8-1991, f. & cert. ef. 12-23-91; HSG 9-1992, f. & cert. ef. 9-2-92; HSG 5-1993(Temp), f. & cert. ef. 10-1-93; HSG 5-1994, f. & cert. ef. 8-26-94

813-080-0035

Mortgage Credit Certificate Lender

(1) A lender may be any person, including an issuer of Mortgage Credit Certificates, who provides financing for the acquisition, Qualified Rehabilitation, or Qualified Home Improvement of a single-family residence. This includes, but is not limited to, any commercial bank, savings and loan association, savings bank, mortgage banker, credit union, finance company or other person. A lender shall not provide financing under this program to any certificate holder who is a related person to that lender.

(2) A person wishing to become a lender shall sign and agree to the terms of the Department's Mortgage Credit Certificate Lender Agreement. A lender who has signed this Mortgage Credit Certificate Lender Agreement may provide financing for the purchase, improvement, or rehabilitation of a single-family residence in connection with the issuance of a Mortgage Credit Certificate to an eligible borrower.

(3) A lender shall agree to provide financing to the eligible borrower in accordance with the following criteria:

(a) The mortgage shall not be used for the acquisition or replacement of an existing mortgage unless such mortgage was a construction loan, bridge loan, or similar temporary financing of 24 months or less;

(b) The mortgage may not have any portion of the financing from the proceeds of a tax-exempt mortgage bond or a tax-exempt veteran's mortgage bond;

(c) The purchaser shall not, directly or indirectly, be prohibited or required to obtain financing from one or more lenders;

(d) There shall not be any interest on the certified indebtedness amount paid to a related person to the eligible borrower;

(e) A Mortgage Credit Certificate shall not be transferable.

Stat. Auth.: ORS 90.800 - ORS 90.840, ORS 91.886, ORS 183, ORS 456.515 - ORS 456.723 & ORS 458.210 - ORS 458.650
Stats. Implemented: ORS 456.605
Hist.: 1HD 2-1986(Temp), f. & ef. 6-17-86; 1HD 4-1986, f. & ef. 12-3-86; HSG 3-1989(Temp), f. & cert. ef. 6-8-89; HSG 17-1989, f. & cert. ef. 11-3-89; HSG 2-1991(Temp), f. & cert. ef. 8-7-91; HSG 8-1991, f. & cert. ef. 12-23-91

813-080-0040

Borrower Eligibility

(1) A borrower, to be eligible to receive a Mortgage Credit Certificate, shall, on the date of application:

(a) Be a resident of Oregon;

(b) If acquiring a single-family residence, be a person who has had no present ownership interest in a principal residence at any time during the three-year period prior to the execution date of the mortgage in connection with the Mortgage Credit Certificate. A principal residence, as used in this subsection, includes a single-family residence, condominium unit, a dwelling in a Planned Unit Development (PUD), a mobile or manufactured home, a unit in a housing cooperative, or occupancy of a unit in a multifamily building owned by the applicant. This requirement does not apply to any residence located in a Targeted Area:

(A) Examples of interests that are considered present ownership interest in a principal single-family residence:

(i) Fee simple interest;

(ii) As an individual (in severalty);

(iii) Tenants by the entirety (husband and wife);

(iv) Tenants in common (each has an undivided interest whose portion of ownership will revert to their heirs);

(v) With the right of survivorship (each has an undivided interest whose portion of ownership will revert to the other owners in the property);

(vi) Interest of a tenant shareholder in a cooperative;

(vii) Life estate;

(viii) Land sales contract (i.e., a contract pursuant to which possession and the benefits and burden of ownership are transferred although legal title is not transferred until some later date);

(ix) Interest in a mobile or a manufactured home located on land owned by the borrower and considered part of the real property;

(x) Interest in a mobile or manufactured home located on leased or rented land.

(B) Examples of interests that are not considered present ownership interests:

(i) Applicants who have had an ownership interest in, but not occupied, a residential property for the three years prior to executing a mortgage in connection with the Mortgage Credit Certificate;

(ii) Remainder interest;

(iii) Lease with or without an option to purchase;

(iv) Mere expectancy to inherit an interest in a principal residence;

(v) Interest that a purchaser of a residence acquires upon execution of a purchase or sales agreement;

(vi) Interest in unimproved land or business property.

(c) Be a person who in good faith intends to use or continues to use the single-family residence for a Principal Residence;

(d) Be a person whose total Household Income, as defined in Section 143(f) of the Internal Revenue Code of 1986, as amended, and the regulations thereunder, does not exceed the limit established by the issuer pursuant to the Act.

(2) The eligible borrower shall meet the requirements established by the lender for the particular mortgage made in connection with a Mortgage Credit Certificate.

[Publications: The publication(s) referred to or incorporated by reference in this rule are available from the agency.]

Stat. Auth.: ORS 90.800 - ORS 90.840, ORS 91.886, ORS 183, ORS 456.515 - ORS 456.723 & ORS 458.210 - ORS 458.650
Stats. Implemented: ORS 456.605
Hist.: 1HD 2-1986(Temp), f. & ef. 6-17-86; 1HD 4-1986, f. & ef. 12-3-86; HSG 3-1989(Temp), f. & cert. ef. 6-8-89; HSG 17-1989, f. & cert. ef. 11-3-89; HSG 2-1991(Temp), f. & cert. ef. 8-7-91; HSG 8-1991, f. & cert. ef. 12-23-91

813-080-0045

Eligible Single-Family Residence

A single-family residence, to be eligible for the program, shall:

(1) Be located in Oregon.

(2) Consist of only one residential unit.

(3) Have no more than 15 percent of the total living area of the residence be of a character subject to being rented for or used in the operation of a trade or business conducted on any part of the land or improvements (i.e., any use which would qualify as a deduction for federal income tax purposes under Section 280A of the Internal Revenue Code).

(4) Have an acquisition cost (purchase price) which does not exceed the limit established by the issuer pursuant to the latest average purchase price limitations for mortgage subsidy bonds published by the Internal Revenue Service. The issuer shall publish these acquisition costs annually.

Stat. Auth.: ORS 90.800 - ORS 90.840, ORS 91.886, ORS 183, ORS 456.515 - ORS 456.723 & ORS 458.210 - ORS 458.650
Stats. Implemented: ORS 456.605
Hist.: 1HD 2-1986, f. & ef. 6-17-86; 1HD 4-1986, f. & ef. 12-3-86; HSG 3-1989(Temp), f. & cert. ef. 6-8-89; HSG 17-1989, f. & cert. ef. 11-3-89; HSG 2-1991(Temp), f. & cert. ef. 8-7-91; HSG 8-1991, f. & cert. ef. 12-23-91

813-080-0050

Lender Reporting and Record Keeping

(1) The following are the Internal Revenue Service regulations in effect on the effective date of these rules.

(2) Any lender who makes a mortgage that is a certified indebtedness amount with respect to a Mortgage Credit Certificate is required by the Internal Revenue Service to file an annual report with the Internal Revenue Service on their Form 8329:

(a) This report shall be filed on or before January 31 for the year following the calendar year to which the report relates;

(b) A separate Internal Revenue Service Form 8329 shall be filed for each issue of Mortgage Credit Certificates with respect to which the lender made mortgages during the preceding calendar year.

(3) Any lender who makes a mortgage that is a certified indebtedness amount with respect to any Mortgage Credit Certificate shall retain the following information for six years following the year in which the mortgage was made:

(a) The name, address, and Tax Identification Number (TIN) of each Certificate Holder;

(b) The name, address, and TIN of the issuer of the Mortgage Credit Certificate; and

(c) The date the mortgage for the certified indebtedness amount closed, the certified indebtedness amount, and the certificate credit rate.

(4) Any person required to file a report with respect to any Mortgage Credit Certificate who fails to file the report at the time and in the manner required may be subject to a penalty imposed by the Internal Revenue Service of $200 for each Mortgage Credit Certificate not reported. This penalty shall not apply if failure is due to reasonable cause and not willful neglect:

(a) The aggregate amount of the penalty shall not exceed $2,000 for any one report;

(b) The required reports shall be filed at the Internal Revenue Service Center, Philadelphia, Pennsylvania 19225.

Stat. Auth.: ORS 90.800 - ORS 90.840, ORS 91.886, ORS 183, ORS 456.515 - ORS 456.723 & ORS 458.210 - ORS 458.650
Stats. Implemented: ORS 456.605
Hist.: 1HD 2-1986(Temp), f. & ef. 6-17-86; 1HD 4-1986, f. & ef. 12-3-86; HSG 3-1989(Temp), f. & cert. ef. 6-8-89; HSG 17-1989, f. & cert. ef. 11-3-89; HSG 2-1991(Temp), f. & cert. ef. 8-7-91; HSG 8-1991, f. & cert. ef. 12-23-91

813-080-0055

Revocation

(1) The issuer may revoke a Mortgage Credit Certificate when the certificate holder no longer occupies the single-family residence to which the Mortgage Credit Certificate relates as a Principal Residence. Mortgage Credit Certificates shall not transfer with the property.

(2) A Mortgage Credit Certificate may be revoked if it is found the certificate Holder did not meet the program requirements for a Mortgage Credit Certificate when certified.

(3) Upon revocation the issuer shall notify the certificate holder and the Internal Revenue Service in writing of the revocation.

Stat. Auth.: ORS 90.800 - ORS 90.840, ORS 91.886, ORS 183, ORS 456.515 - ORS 456.723 & ORS 458.210 - ORS 458.650
Stats. Implemented: ORS 456.605
Hist.: 1HD 2-1986(Temp), f. & ef. 6-17-86; 1HD 4-1986, f. & ef. 12-3-86; HSG 3-1989(Temp), f. & cert. ef. 6-8-89; HSG 2-1991(Temp), f. & cert. ef. 8-7-91; HSG 8-1991, f. & cert. ef. 12-23-91

813-080-0060

Penalties for Misstatement

(1) If any person makes a material misstatement in any affidavit or certification made in connection with the application for, or the issuance of, a Mortgage Credit Certificate and such misstatement is due to negligence of that person, that person shall be subject to a fine of $1,000, imposed by the Internal Revenue Service for each Mortgage Credit Certificate for which a misstatement was made.

(2) If any person makes a material misstatement in any affidavit or certification made in connection with application for, or issuance of, a Mortgage Credit Certificate and such misstatement is due to fraud, then that person shall be subject to a penalty imposed by the Internal Revenue Service of $10,000 for each Mortgage Credit Certificate with respect to which the fraudulent misstatement was made.

(3) A lender shall inform any applicant required to sign a Program Affidavit or certification that any fraudulent statement may result in the revocation of the individual's Mortgage Credit Certificate and a $10,000 penalty imposed by the Internal Revenue Service. Other persons required by a lender to provide affidavits or certifications must receive a similar notice.

(4) The above-described penalties shall be imposed in addition to any other criminal penalty provided by the law.

Stat. Auth.: ORS 90.800 - ORS 90.840, ORS 91.886, ORS 183, ORS 456.515 - ORS 456.723 & ORS 458.210 - ORS 458.650
Stats. Implemented: ORS 456.605
Hist.: 1HD 2-1986(Temp), f. & ef. 6-17-86; 1HD 4-1986, f. & ef. 12-3-86; HSG 3-1989(Temp), f. & cert. ef. 6-8-89; HSG 2-1991(Temp), f. & cert. ef. 8-7-91; HSG 8-1991, f. & cert. ef. 12-23-91

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