FORM RD 2006-46 (Rev. 01-98)
U.S. DEPARTMENT OF AGRICULTURE MANUAL ISSUE No.
RURAL DEVELOPMENT WSAL PN 414
Washington, D.C 20250 DATE
November 7, 2007
PROCEDURE NOTICE
RD MANUAL CHANGES
INSERT
RD INS 440.1
(WSAL)
Exhibit B, to update the Treasury
Judgement Rate and various program rates effective October 1, 2007 and to change
a Rural Housing program name.
REMOVE INSERT
Exhibit B: Pages 1 & 2 (Rev 36).
Exhibit B:
Pages 1 & 2 (Rev 37).
INSERT
RD INS 1951-O
(WSAL)
SERVICING CASES WHERE UNAUTHORIZED LOAN(S) OR OTHER FINANCIAL ASSISTANCE WAS
RECEIVED – COMMUNITY AND INSURED BUSINESS PROGRAMS. Exhibit B is partially
revised to update program interest rates, effective October 1, 2007.
REMOVE INSERT
Exhibit B: Pages 3 & 4 (Rev 1).
Exhibit B:
Pages 3 & 4 (Rev 2).
INSERT
RD INS 2006-B
(WSAL)
STATE ISSUANCES. This Instruction is partially revised to remove the following:
Table of Content, to delete section 2006.72(d);
§ 2006.53(a), colored paper is no longer required as the National Directives are
online;
§ 2006.66, “State Supplement” on the National Office Instructions is no longer
necessary as the field no longer needs to maintain a master manuals; and
§ 2006.72(b), to include information on obsolete material.
REMOVE INSERT
Table of Contents;
Table of Contents
revised 11-07-07;
Pages 1 & 2, 7 & 8 and
Pages 1 & 2
(Rev 1), 7 & 8 (Rev 1) and
9 & 10 (Rev 1).
9 & 10 (Rev
2).
RD HANDBOOK CHANGES
INSERT
RD HB *
(WSAL)
In the following Handbooks,
Appendix 6 is partially revised to include the
October 1, 2007 interest rate for the Above-moderate Single Family Housing
non-program loans.
* 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.
Table of Contents:
To add Appendix 16.
Chapter 1:
Paragraph 1.9, to incorporate the requirements of RD Instruction 1940-E. There
are three forms of ADR: Mediation, Administrative Informal Review and
Appeals to the National Appeals Division.
Attachments 1-B thru 1-H, to make minor editorial changes and Attachment 1-I is
being removed.
Chapter 3:
Paragraph 3.3, to clarify that the pre-qualification process should only be
followed when Form RD 410-4, "Uniform Residential Loan Application," has not
been received;
Paragraph 3.3 B., to clarify that the Loan Originator may, although is not
required, perform the additional credit steps described in paragraph 4.11 at the
pre-qualification stage, if Form RD 3550-1, "Authorization to Release
Information," has been signed by the applicant;
Paragraph 3.3 D., to make a correction in reference from Loan Approval Summary
to Eligibility Summary;
Paragraph 3.6 C., to add a statement regarding the purpose of the processing
checklists;
Attachment 3-G, in response to recommendations of streamlining
introduced by the "Partners for Successful Homeowners" to 502 processing
checklist has been completely revised by changing the format, updating reference
numbers, and grouping subject matter in a more consistent manner with the
Handbook. These revisions have reduced the checklist from 10 to 6 pages.
Please make note that the changes that were made to the checklist may or may not
be a change to any processing requirement. You should continue to reference the
Handbook when in question about a processing requirement.
Chapter 4:
Paragraph 4.3 B., to clarify that only advanced tax credits regularly received
via the applicant’s employer can be included in repayment income, to add
mortgage credit certificates as a tax credit that may be considered when
determining repayment income, and to clarify that a self-employed person cannot
advance tax credits to themselves;
Paragraph 4.3 D., to add that adoption assistance payments in excess of $480 per
adopted child are not considered when determining annual income and to revise
the example to make reference to advanced earned income tax credit;
Paragraph 4.3 E.1., to outline the preferred and acceptable verification
requirements for advanced tax credits;
Paragraph 4.3 E.2, to remove reference to 90 days and clarify that verifications
are valid for 120 days regardless of the work history.
Paragraph 4.12 A., to include a 2-year rental history as part of the residential
mortgage credit report (RMCR), to revise that an applicant must have a reliable
credit score of 640 or higher on their RMCR to be automatically classified as
having an acceptable history, and to state that if the RMCR only contains one
score, that a full credit analysis must be completed; and
Paragraph 4.12 B, 4.12 C., 4.13, and 4.24 C., to update the credit score
provisions.
Chapter 5:
Paragraph 5.1 B., to clarify that when a property code match is other than a 1
or 2, the Loan Origination should explain and document the discrepancy in the
case file running record.
Chapter 8:
Paragraph 8.6 B., to clarify that if prior liens will be present as part of a
leveraging strategy, Form RD 1927-8, “Agreement with Prior Lien holder,” must be
executed by the lien holder and recorded in the appropriate Real Estate Mortgage
Records;
Paragraph 8.6 D., to remove reference to 90 days and clarify that verifications
are valid for 120 days regardless of the work history; and
Paragraph 8.10, to clarify that only one Subsidy Repayment Agreement should be
executed by the subject borrower for the subject property. A new agreement
should not be competed when extending additional financing (i.e. subsequent
loans) to an existing borrower with an active agreement.
Chapter 12:
Paragraph 12.4 B., to correct the reference for the preliminary credit check;
Paragraph 12.8 A., to include Handbook Letters required to send to applicant, as
appropriate; and
Attachment 12-C, in response to recommendations of streamlining introduced by
the “Partners for Successful Homeowners” the 504 processing checklist has been
completely revised. Changes were made consistent with changes made to
Attachment 3-G. These revisions have reduced the 504 checklist from 8 to 5
pages. Please make note that the changes that were made to the checklist may or
may not be a change to any processing requirement. You should continue to
reference the Handbook when in question about a processing requirement.
Chapter 13:
Paragraph 13.20 C., to make a minor editorial change.
Acronyms:
To add the acronym SBA “Small Business Administration” and NOFA “Notice of
Funding Availability.” Guidance to the field on disasters requires applicants
to first make contact with the SBA and other agencies before contacting Rural
Development for disaster assistance. The announcement of the availability of
Disaster Relief Funding maybe published in the Federal Register through a NOFA;
To add the acronym CBMC “Community-Based Mediation Center.”
Appendix 16:
This appendix will provide guidance to the field on Disaster Declarations for
Sections 502 and 504.
REMOVE INSERT
Table of Contents dated 01-23-03: Table of Contents dated 01-23-03:
Pages 1 & 2 and 23;
Pages 1 &
2 and 23 revised;
Chapter 1 dated 01-23-03: Chapter 1 dated 01-23-03:
Pages 1-11 & 1-13 and Pages
1-11 & 1-12 and
1-13 thru
1-20
1-13 thru 1-20 revised,
Attachments 1-B thru 1-I;
Attachments 1-B thru 1-H revised;
Chapter 3 dated 01-23-03: Chapter 3 dated 01-23-03:
Pages 3-1 thru 3-4 and
Pages
3-1 thru 3-4 and
3-11 & 3-12,
3-11 & 3-12,
Attachment 3-G: Pages 1 thru 10; Attachment 3-G:
Pages 1 thru 6 revised;
Chapter 4 dated 01-23-03: Chapter 4 dated 01-23-03:
Pages 4-11 thru 4-22, Pages
4-11 thru 4-22,
4-47 thru 4-52 and 4-63 & 4-64;
4-47 thru 4-52 and 4-63 & 4-64 revised;
Chapter 5 dated 01-23-03: Chapter 5 dated 01-23-03:
Pages 5-1 & 5-2;
Pages
5-1 & 5-2;
Chapter 8 dated 01-23-03: Chapter 8 dated 01-23-03:
Pages 8-9 thru 8-14;
Pages 8-9 thru 8-14 revised;
Chapter 12 dated 01-23-03: Chapter 12 dated 01-23-03:
Pages 12-3 & 12-4 and
Pages 12-3 & 12-4 revised;
12-7 & 12-8,
12-7 & 12-8 revised,
Attachment 12-C: Pages 1 thru 8; Attachment 12-C:
Pages 1 thru 5 revised;
Chapter 13 dated 01-23-03: Chapter 13 dated 01-23-03:
Pages 13-35 & 13-36;
Pages 13-35 & 13-36;
Acronyms dated 01-23-03: Acronyms dated 01-23-03:
ALL Pages; and
Pages 1 thru 4
revised;
Appendix 6 dated 01-23-03: Appendix 6 dated 01-23-03:
Pages 3 & 4.
Pages 3 &
4 revised; and
Appendix 16 added 11-07-07.
Pages
1 thru 7.
INSERT RD HB-1-3565
(WSAL)
GUARANTEED RURAL RENTAL HOUSING ORIGINATION AND SERVICING HANDBOOK.
This Handbook is partially revised.
Specific revisions include:
Table of Contents:
To reflect the changes in Chapter 5.
Chapter 5:
Paragraph 5.3, to clarify when construction will be discussed, and to change the
words “competed” to “completed” and “access” to “assess.” To add a sentence to
the second paragraph to direct readers to permanent only section.
Paragraph 5.5, to clarify when the general contractor should be on the debarment
list.
To renumber Exhibit 5-5 to Exhibit 5-2 and to change the title from
“Construction Documents That Must Be Submitted for Any Loan Guarantee” to
“Credit Quality Requirements for Letters of Credit,” and to remove Exhibit 5-4.
Paragraph 5.10, to move the paragraph, “In addition to the inspections described
above...” to a bullet entitled, “Prior to Payment.”
Paragraph 5.11, to clarify when the first annual inspection is done;
Paragraph 5.12, to clarify construction certification;
Paragraph 5.16, to make minor editorial corrections and to add text to the
fourth and fifth bullet and to add a new bullet;
Paragraph 5.17, to give guidance on how long retainage amount must be held;
Paragraph 5.18, to explain why contract orders must be approved;
Paragraph 5.19, to add text to the title and to make minor editorial changes;
To renumber “Exhibit 5-6” to “Exhibit 5-3;”
Paragraph 5.21, to add reference 5.16;
Paragraph 5.22, to add reference 5.21;
To add Attachment 5-A.
REMOVE INSERT
Table of Contents dated 12-18-98: Table of Contents dated 12-18-98:
Pages; 7 & 8; and
Pages 7 & 8 revised;
Chapter 5 dated 12-18-98: Chapter 5 dated 12-18-98:
ALL Pages.
Pages
5-1 thru 5-14 revised; and
Attachment 5-1 added
11-07-07.
INSERT RD HB-2-3550
(WSAL)
DIRECT SINGLE FAMILY HOUSING LOANS AND
GRANTS CENTRALIZED SERVICING CENTER HANDBOOK. Specific revisions include:
Table of
Contents:
Section 1.7 B., to replace “FASTeller” with “MortgageServ”;
Section 1.9 C., to read “Informal Administrative Review;”
Attachment 1-E, to read “Attachment For Notifying Customs Who Have Requested
Mediation of the Assignment of Their Case to: A USDA-Funded State Mediation
Program or a Community-Based Mediation Center or Certified Mediation Provider
for Mediation;”
Attachment 1-F, to read “Attachment for Assignment by Rural Development/USDA of
a Customer Mediation Request to a Mediation Service Provider;”
Attachment 1-G, to read “Attachment for Notifying Customers of Expiration of the
10 days to Select a Mediation Service Provider;”
Attachment 1-H, to read “Attachment for Customer Notification of Unresolved
Result of the Mediation of the Adverse Decision;” and
Attachment 1-I is removed.
Chapter 1:
Paragraph 1.7 B., to remove the reference to “FASTeller” and replace with “MortgageServ”;
and
Paragraph 1.9 A., to incorporate the requirement of RD Instruction 1940-E.
There are three forms of Alternative Dispute Resolution (ADR): Mediation,
Administrative Informal Review, Appeals to the National Appeals Division;
Attachments 1-B thru 1-H, to make minor editorial changes and Attachment 1-I is
removed.
Chapter 2:
Paragraph 2.23 B., to define “Principal Reduction Attributable to Subsidy” and
to remove incorrect verbiage regarding application of subsidy as being interest
only after 1990;
Exhibit 2-1, to replace "Principal reduction at subsidized interest rate" with
"Principal Reduction Attributable to Subsidy (PRAS);"
Paragraph 2.23 C.2., to remove two sentences from this section;
Paragraph 2.24, to add the Centralized Servicing Center (CSC) process for
handling recapture calculation on loans that payoff without contracting the CSC
for a final payoff statement or final installment payment (early payoff);
Paragraph 2.24 B., to add language to state when recapture is calculated and a
final payoff is used if the borrower pays off the loan without first contacting
CSC;
Paragraph 2.24 B.1., to explain the process of determining market value for
purposes of determining recapture when the borrower pays off the loan without
first contacting the CSC;
Paragraph 2.24 B.2., to explain the process of informing the borrower of
recapture calculation and the interface between the CSC and field office. Also,
to state the number of days the borrower has to pay the recapture and receive a
25% discount;
Paragraph 2.25, clarifies the requirements for approval of a Subordination; and
Paragraph 2.25 A., to amend the number of days that the borrower will have to
pay the recapture and receive a 25% discount on accounts that payoff without
contacting the CSC for a final payoff statement or final installment payment;
Paragraph 2.25 B., to replace "Final Installment Payment" with "Incentive to Pay
Recapture." Also, to change the number of days the borrower has to pay
recapture from 60 to 120 days; and
Paragraph 2.25 C., to remove "Incentive to Pay Recapture".
REMOVE INSERT
Table of Contents dated 05-27-98:
Table of Contents dated 05-27-98:
Pages 1 thru 4;
Pages 1
thru 4 revised;
Chapter 1 dated 05-27-98: Chapter 1 dated 05-27-98:
Pages 1-5 & 1-6, 1-9 & 1-10,
Pages
1-5 & 1-6, 1-9 & 1-10,
1-13 thru 1-24,
1-13 thru 1-26 revised,
Attachment 1-B thru 1-I;
Attachment 1-B thru 1-H revised;
Chapter 2 dated 05-27-98: Chapter 2 dated 05-27-98:
Pages 2-29 thru 2-38.
Pages 2-29 thru 2-38 revised 11-07-07.
FORM
REPLACEMENT
RD 449-30
(WSAL)
GUARANTEED LOAN REPORT OF LOSS revised 11-07. Prescribed in RD Instruction
1980-E and Handbook 2-FLP. The Form and FMI are revised to include the
collection of unpaid annual fees and interest. 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 04-19-00.
FMI revised 11-07-07.
RD 3550-27
(WSAL)
USDA - RURAL HOUSING SERVICE - SUBSTITUTE PAYMENT COUPON revised 11-07.
Prescribed in RD Handbooks 3550. The Form and FMI are revised to delete line
item #5 and the name on the addressee to be USDA-RD. The FMI is revised due to
all payments are being sent to one financial institution. 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 12-23-96.
FMI revised 11-07-07.
OBSOLETE
RD 3550-26
(WSAL)
USDA - RURAL HOUSING SERVICE - SUBSTITUTE PAYMENT COUPON. This Form is made
obsolete USDA/RD/CSC currently has one retail lockbox to receive payments;
therefore, this form is no longer necessary.
SPECIAL
PROCEDURE NOTICES RELEASED:
SPECIAL
PROCEDURE NOTICE
dated 10-29-07. DISTRIBUTION: WSAL.
(Re: RD Instruction 1951-A, 1951-D, 1951-E, 1951-F, 1951-O, 1955-A,
1955-B,
1955-C and 1956-C
ADMINISTRATIVE NOTICES
CHECKLIST:
(See AN Checklist.)
oOo