For the servicing of any residential, manufactured dwelling, manufactured dwelling park or manufactured dwelling park nonprofit cooperative loan made or acquired by the Housing and Community Services Department under ORS § 456.515 to 456.725 and ORS Chapter 458 the department may:

(1) Provide for servicing of the loan by its own staff.

(2) Contract with the Director of Veterans’ Affairs for the performance of servicing functions for the loan.

(3) For loans purchased by the department under ORS § 456.635, contract with the lending institution selling such loans or any other lending institution for the servicing of such loans, subject to such terms and conditions as the department considers necessary to protect the interests of the department in such loans. The department may provide for the payment of such fees for servicing performed by a lending institution under this subsection as it considers necessary. [1973 c.828 § 23; 1979 c.60 § 8; 1979 c.327 § 15; 1995 c.79 § 266; 2007 c.607 § 21]