| News & Updates for www.oregonbond.us |
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| Cash Advantage Suspension |
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Suspension of Cash Advantage Program
Dear Lenders,
We have all witnessed the events of the last year that have dramatically affected the conventional housing finance industry. Those events whether directly related or not, have also changed the face of the public finance market for housing.
The investment climate has changed for the mortgage revenue bonds OHCS uses to provide the Oregon Bond program, and hence you have seen the rate changes we have recently experienced. A significant casualty of the current bond market is a lack of interest at any price for Premium PAC bonds. PAC bonds are used to finance the 3% cash assistance to borrowers under the Cash Advantage program. As a result of the unfavorable market for PAC bonds, we have no source of funding for the cash assistance.
Effective at 12:01amthis morning (March 26, 2008), OHCS has suspended until later notice, the Cash Advantage Loan program. We hope that a more cooperative rate environment will occur later this Spring and once again there will be a market appetite for the bond product that supports the Cash Advantage program. We recognize suspending the Cash Advantage loan program will cause a hardship for prospective borrowers you are currently working with that need the assistance. But rather than continuing to accept program reservations for Cash Advantage loans that we may not be able to honor at closing, we have therefore temporarily suspended the Cash Advantage loan program.
Previous Cash Advantage reservations you have submitted will be processed and proceeds provided at closing as planned.
Although we have previously allowed borrowers to switch between Rate Advantage and Cash Advantage loan reservations, we will no longer allow moving from a Rate Advantage to a Cash Advantage loan reservation. We additionally encourage you to move any previously submitted Cash Advantage reservation to the Rate Advantage program if that is a viable loan product for the borrower to close - without the cash assistance.
If you have any questions , please contact me at 503 986-2120 or Dona.Lanterman@state.or.us
Dona Lanterman
Home Ownership Programs Manager
Oregon Housing and Community Services
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| On Line Reservation System |
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Online Reservation System
We are so excited; our reservation system is now available online. What does that mean to you? You can now enter your own reservations, change, cancel and extend locks yourself right on line. You may start using the new system immediately. You no longer will fax in your reservations.
- If you are a new Loan Officer or Processor click HERE
- If you are an existing Loan Officer and have not recieved your log in information please call 877-788-2663 or email debbie.roberts@hcs.state.or.us to have your information emailed to you.
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| Income Limit Changes |
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March 12, 2008
Oregon Bond Income Limit Change
New Oregon Bond Program Income Limits have changed effective March 14, 2008. Please be aware the limits for some areas of the state have slightly decreased. To view the new income limits, click HERE. To find the new Recapture Provision for the new income limits, under Lender Resources, click on Forms.
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