OR HB3188

Housing and Community Services Department must create a loan loss reserve program guaranteeing up to 5% of the dwelling purchase price against lender losses on qualifying first-time home buyer mortgages

Qualifying loans must finance 100% of the purchase with no down payment or mortgage insurance required, have a 30-year fixed rate no more than 1 percentage point above comparable Fannie Mae/Freddie Mac-eligible loans, and include a 2-month escrow for taxes and insurance

First-time home buyers must have income not exceeding 120% of the Federal Housing Finance Agency qualifying income for their county/region and complete an approved home buyer education class

Lenders may claim losses only if foreclosure occurs within 5 years of loan closing, the property sale proceeds were insufficient to repay the outstanding balance, and required documentation is provided

Establishes the Welcome Home Assistance Program Fund with $2,500,000 General Fund appropriation for the 2025-2027 biennium; takes effect immediately upon passage as an emergency measure