Oregon Veterans Agency considers refinance program amid declining home loan originations

The Joint Committee on Ways and Means Subcommittee on Transportation and Economic Development convened on February 26, 2025, to discuss critical budgetary issues affecting the Oregon Department of Veterans' Affairs. The meeting featured insights from Tamara Brickman, the Chief Financial Officer of the Department of Administrative Services, who provided an overview of the department's budget and highlighted significant trends impacting veterans' home loan originations.

Brickman noted a concerning downward trend in home loan originations for veterans, attributing this decline to the current housing market conditions, which have made homeownership increasingly difficult for many. This trend is particularly troubling as the agency relies on a portion of the revenue generated from these loans to fund its operations. To address this issue, the agency is considering introducing a refinance program to expand revenue sources, as current laws limit assistance to original loans only.

Further discussion revealed that the fluctuations in loan originations have been influenced by various factors, including the pandemic and challenges in the construction environment. Despite a dip in numbers between 2022 and 2023, there are signs of recovery, with the agency working to ensure that its programs remain viable and effective for veterans.

The meeting also touched on staffing issues within the agency, with Brickman commending the efforts of Director Daniels in addressing long-standing vacancies and improving position management. The governor's budget has allocated additional positions to support the agency's mission.

Another key topic was the Roseburg Veterans Home project, which has been prioritized by the U.S. Department of Veterans Affairs. The agency has secured a special purpose appropriation of $35 million for the project, with plans to potentially utilize general obligation bonds if necessary.

Overall, the discussions underscored the agency's commitment to adapting its strategies to better serve Oregon's veterans amidst challenging economic conditions. The subcommittee will continue to monitor these developments as they work towards ensuring adequate support for veterans' services in the state.