FORM RD 2006

FORM RD 2006-46 (Rev. 01-98)

U.S. DEPARTMENT OF AGRICULTURE MANUAL ISSUE No.

RURAL DEVELOPMENT WSAL PN 409

Washington, D.C 20250 DATE

May 16, 2007

PROCEDURE NOTICE

NOTICES

(WSAL)

400 SERIES - TABLE OF CONTENTS revised 04-30-07. This revised Table of Contents incorporates procedural changes issued through this PN 409 dated 05-16-07.

(WSAL)

1900 SERIES - TABLE OF CONTENTS revised 04-30-07. This revised Table of Contents incorporates procedural changes issued through this PN 409 dated 05-16-07.

(WSAL)

2000 SERIES - TABLE OF CONTENTS revised 04-30-07. This revised Table of Contents incorporates procedural changes issued through this PN 409 dated 05-16-07.

(WSAL)

3500 SERIES - TABLE OF CONTENTS revised 04-30-07. This revised Table of Contents incorporates procedural changes issued through this PN 409 dated 05-16-07.

(WSAL)

4200 SERIES - TABLE OF CONTENTS revised 04-30-07. This revised Table of Contents incorporates procedural changes issued through this PN 409 dated 05-16-07.

(WSAL)

ADMINISTRATIVE NOTICE (AN) revised 04-30-07. A numerical checklist of all current ANs is being distributed to all State, Area, and Local Offices. Manual holders are to add the lists of ANs Released to the checklist as they are received. Included is a checklist of ANs, listed numerically under “FILED PRECEDING,” that have expired or have been replaced/rescinded.

Administrative Notice Release

Expired AN List

(WSAL)

RURAL DEVELOPMENT FORMS REFERENCE LIST. The attached Rural Development Forms Reference List is revised and updated through this Procedure Notice 409 dated
05-16-07. It contains the following: RD, AD, SF, and Miscellaneous Forms and Form and Guide Letters.

RD Forms Reference List

Departmental Forms Reference List

Guide Letters Forms Reference List

REMOVE INSERT
Forms Reference List dated 08-23-06. Forms Reference List revised 05-16-07.

RD MANUAL CHANGES

INSERT RD INS 440.1
(WSAL)

Exhibit B, to update the Treasury Judgement Rate and various program rates effective May 1, 2007; and

REMOVE INSERT
Exhibit B: Pages 1 & 2 (Rev 32). Exhibit B: Pages 1 & 2 (Rev 33).

INSERT RD INS 2024-A
(WSAL)

ACQUISITION, SALES, LEASING AUTHORITY AND PROGRAM LOAN COSTS. Exhibit F is completely revised to remove and replace references to Non-contractual charges to the revolving funding with Non-contractual Program Loan Costs and to add the use of Form RD 2024-30, “Non-Contractual Program Loan Cost Expense (PLCE) Certification,” for non-contractual obligations.

REMOVE INSERT
Exhibit F. Exhibit F revised 05-16-07.

INSERT RD INS 4279-B
(WSAL)

BUSINESS AND INDUSTRY LOANS. Section 4279.149(a) is revised by replacing the words “greater than a” to “at least”.

REMOVE INSERT
Pages 17 & 18 (Rev 1). Pages 17 & 18 (Rev 2).

RD HANDBOOK CHANGES

INSERT RD HB *
(WSAL)

In the following Handbooks, Appendix 6 is partially revised to include the May 1, 2007 rate.

* Number               Title
   HB-1-3550          DIRECT SINGLE FAMILY HOUSING LOANS AND GRANTS FIELD OFFICE
                      HANDBOOK.

   HB-2-3550          DIRECT SINGLE FAMILY HOUSING LOANS AND GRANTS CENTRALIZED
                      SERVICING CENTER HANDBOOK.

Chapter 5:

Paragraph 5.25 A., to clarify that contractors must have a valid state contractor’s license if required in the state and that the Loan Originator must verify the validity of the license and document the applicant’s file.

Chapter 13:

Paragraph 13.17 A., to emphasize that all Net Recovery Value (NRV) calculations are based upon market value, with deductions and additions made, as appropriate. In no case is a “quick sale” or “distressed sale” value to be used for the calculation; and

Paragraph 13.17 E., to emphasize the need to consider effect of lead-based paint (LBP) on the value of the security property. Prior to the sale, the property should be examined to determine the likelihood of LBP. This assessment will not include a formal LBP assessment, but will consider observations of the age, style and condition of all structures on the property. The agency will consider a deduction from market value for certain repairs and possible LBP abatement. This will include items not considered when establishing the market value – Rural Development requirements that the typical buyer would not consider.

Chapter 16:

Paragraph 16.7 C, to clarify how equally acceptable bids on real estate owned (REO) properties are considered.

REMOVE                                INSERT
Chapter 5 dated 01-23-03:             Chapter 5 dated 01-23-03:
Pages 5-35 thru 5-44;               Pages 5-35 thru 5-44 revised;
Chapter 13 dated 01-23-03:            Chapter 13 dated 01-23-03:
Pages 13-27 thru 13-30;             Pages 13-27 thru 13-30 revised;
Chapter 15 dated 01-23-03:            Chapter 15 dated 01-23-03:
Pages 15-3 thru 15-12;              Pages 15-3 thru 15-12 revised;
Chapter 16 dated 01-23-03:            Chapter 16 dated 01-23-03:
Pages 16-13 & 16-14; and            Pages 16-13 & 16-14 revised; and
Appendix 6 dated 01-23-03:            Appendix 6 dated 01-23-03:
Pages 3 & 4.                        Pages 3 & 4 revised 05-16-07.

INSERT RD HB-1-3560
(WSAL)

MFH LOAN ORIGINATION HANDBOOK. This Handbook is partially revised to incorporate an added procedure for the handling of Memorandums of Understanding (MOUs) as it pertains to the processing of preliminary applications for Section 515 New Construction funds. The revised procedure appears in the Unnumbered Letter (UL) dated February 28, 2007 entitled “Guidance to Improve the Scoring of Preliminary Loan Applications.” The revised procedure is as follows:

When an initial application has been awarded MOU or National Office Initiative points, a copy of the MOU or other documentation evidencing the applicant’s eligibility for the points must be maintained with the Application Review Checklist and Point Score Sheet. These documents are contained in Attachment 2 of the UL dated April 10, 2006 entitled “Processing Section 515 New Construction Loan Requests Fiscal Year 2006” and are submitted to the National.

REMOVE                                INSERT
Chapter 4 dated 02-24-05:             Chapter 4 dated 02-24-05:
Pages 4-23 thru 4-40.               Pages 4-23 thru 4-40 revised 05-16-07.

NOTICE
(WSAL)

The following Spanish translated forms have been revised to conform to the most current revisions to the English forms. These forms are available on the Rural Development Instructions home page (http://www.rurdev.usda.gov/regs). These documents are made available for the convenience of our Spanish-speaking customers. Applicant/Borrower case files must contain the signed English version of the form. Any documents used for third party verification should include the English translation as well.

FORM No.         REVISION DATE      TITLE

RD 440-58S       07-05              Estimate of Settlement Costs
RD 1910-5S       11-06              Request for Verification of Employment
RD 1927-16S      06-06              Notification of Loan Closing
RD 1944-59S      10-06              Certification of Eligibility
RD 3550-7S       10-06              Funding Commitment
RD 3550-9S       10-06              Initial Escrow Account Disclosure Statement
RD 3550-23S      11-06              Applicant Orientation Guide

FORMS

REPLACEMENT

RD 4279-14
(WSAL)

UNCONDITIONAL GUARANTEED dated 05-07. Prescribed in RD Instruction 4279-B. The Form and FMI are revised to provide for limited guarantees based on percentage of stock ownership borrower. Supplies dated prior to the revision date will be disposed of or recycled. This Form and FMI are available on the Rural Development Instructions home page (http://www.rurdev.usda.gov/regs/). No paper copy distribution of this form will be made, and it will not be stocked in the warehouse.

REMOVE INSERT
FMI dated 12-01-06. FMI revised 05-16-07.

NO SPECIAL PROCEDURE NOTICES RELEASED.

oOo