Section 1: Introduction
1.1 Forward
The Flex Lending NextStep loan product, developed by Oregon Housing and Community Services (OHCS), aims to provide mortgage financing to help Oregonians on low to moderate incomes to purchase homes without the capacity constraints of qualified mortgage loans like FirstHome. Approved lenders delivering mortgage loans to the department must be approved by both OHCS and the department’s servicer.
OHCS’ expectation is that mortgage loans originated by approved lenders are underwritten and approved using prudent and sound rationalization. The department aims to avoid purchasing mortgage loans that may cause financial hardship for borrowers or result in default.
1.2 Mortgage Loan Requirements
As a prerequisite for delivering mortgage loans to the department, the credit and underwriting requirements of the department’s servicer must be met. Additionally, all mortgage loans must meet the requirements established by the department set forth in this manual.
1.3 Lender Requirements
OHCS has a local office requirement for lenders participating in Flex Lending programs and products. As part of the Mortgage Lending Program Origination Agreement and Mortgage Loan Purchase Contract (Section 4.01, Lender General Requirements, item J), lenders and staff originating and processing mortgages under the program lenders must be in Oregon or within 50 miles of Oregon.
These offices should be:
- Open to the public.
- Fully staffed with experienced personnel who make purchase money mortgages for owner-occupied homes in Oregon.
- The staff originating and processing mortgages under the program must be in Oregon or within 50 miles of Oregon’s border.