FORM RD 2006

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

U.S. DEPARTMENT OF AGRICULTURE MANUAL ISSUE No.

RURAL DEVELOPMENT WSAL PN 416

Washington, D.C 20250 DATE

December 19, 2007

PROCEDURE NOTICE

RD MANUAL CHANGES

INSERT RD INS 440.1
(WSAL)

Exhibit B, to update the Treasury Judgement Rate effective December 1, 2007.

REMOVE INSERT
Exhibit B: Pages 1 & 2 (Rev 38). Exhibit B: Pages 1 & 2 (Rev 39).

INSERT RD INS 1924-A
(WSAL)

PLANNING AND PERFORMING CONSTRUCTION AND OTHER DEVELOPMENT. The Rural Housing Service published a Final Rule in the Federal Register on December 11, 2007 (72 FR 70220), effective on January 10, 2008. Exhibit D is revised as follows:

To remove the last sentence in paragraph II,

To remove and reserve paragraph IV B;

To revise the words “paragraphs IV A and B” in paragraph IV C 1 to read “paragraph IV A”;

To revise the words “paragraph IV A and B” in paragraph IV C 2 to read “paragraph IV A”;

To revise the words “paragraph IV A or IV B” in the first and last sentence of paragraph IV C 2 b, and in paragraph IV C 3 introductory text IV C 3a and IV C. 3 b to read paragraph IV A”, and

To remove the words “or B” in paragraph IV C introductory text and IV C 3c.

REMOVE INSERT
Exhibit D dated 05-12-87. Exhibit D revised 12-19-07.

INSERT RD INS 1944-N
(WSAL)

PLANNING AND PERFORMING CONSTRUCTION AND OTHER DEVELOPMENT. Section 1944.656 and Exhibit C, paragraph XI are partially to remove thermal standards for existing single family housing.

REMOVE                                INSERT
Pages 3 & 4 (Rev 2) and               Pages 3 & 4 (Rev 3) and
5 & 6 (Rev 3);                        5 & 6 (Rev 4);
Exhibit C: Page 19.                  Exhibit C: Page 19 (Rev 1).

RD HANDBOOK CHANGES

INSERT RD HB-1-3550
(WSAL)

DIRECT SINGLE FAMILY HOUSING LOANS AND GRANTS FIELD OFFICE HANDBOOK. This Handbook is partially revised. Specific revisions include:

Chapters 3, 5, 6, 12 & 15:

To remove the reference to the Agency Thermal Standards for existing homes. Agency Thermal Standards for existing homes no longer exist. The Agency will consider the thermal performance of a home as part of its overall condition, rather than a separate factor.

Chapters 3, 8 and 12, and Appendix 2:

To correct any references to the Obsolete Forms RD 1927-16.

Chapter 5:

Paragraph 5.7, to clarify that homes with older effective age or in fair condition should be thoroughly and carefully inspected to ensure the overall soundness of the home.

Appendix 1:

Sections 3550.57(c) and 3550.106(b) are partially revised to remove the references to the thermal performance requirements for existing dwellings.

REMOVE                                INSERT
Chapter 3 dated 01-23-03:             Chapter 3 dated 01-23-03:
Attachment 3-D: Pages 1 & 2 and    Attachment 3-D: Pages 1 & 2 and
Attachment 3-G: Pages 3 thru 6;      Attachment 3-G: Pages 3 thru 6 revised;
Chapter 5 dated 01-23-03:             Chapter 5 dated 01-23-03:
Pages 5-13 & 5-14, and              Pages 5-13 & 5-14 and
Attachment 5-A: Pages 1 & 2;       Attachment 5-A: Pages 1 & 2 revised;
Chapter 6 dated 01-23-03:             Chapter 6 dated 01-23-03:
Attachment 6-A;                     Attachment 6-A revised;
Chapter 8 dated 01-23-03:             Chapter 8 dated 01-23-03:
Pages 8-1 & 8-2, 8-3 thru 8-12,     Pages 8-1 & 8-2, 8-3 thru 8-12,
8-15 & 8-16, and                    8-15 & 8-16, and
Attachment 8-A;                     Attachment 8-A revised;
Chapter 12 dated 01-23-03:            Chapter 12 dated 01-23-03:
Pages 12-5 & 12-6; and              Pages 12-5 & 12-6; and
Attachment 12-B: Pages 3 & 4 and   Attachment 12-B: Pages 3 & 4, and
Chapter 15 dated 01-23-03:            Chapter 15 dated 01-23-03:
Pages 15-15 & 15-16, and            Pages 15-15 & 15-16, and
Attachment 15-C: Pages 1 & 2;      Attachment 15-C: Pages 1 & 2 revised;
Appendix 1 dated 01-23-03:            Appendix 1 dated 01-23-03:
Pages 33 & 34 and 57 & 58; and      Pages 33 & 34 and 57 & 58 revised; and
Appendix 2 dated 01-23-03:            Appendix 2 dated 01-23-03:
Pages 1 thru 4.                     Pages 1 thru 4 revised 12-19-07.

INSERT RD HB-2-3560
(WSAL)

MFH ASSET MANAGEMENT HANDBOOK. This handbook is partially revised as follows:

Chapter 9:

To reflect the changes in Chapter 9, Paragraph 9.9. These changes to the annual physical inspection are to inspect properties annually where outstanding physical findings exist and allow for third party inspection reports in lieu of Agency report. The number of units to be inspected at the annual physical inspection is the greater of 5 percent of all occupied units or at least two units and if the project has vacancies, the greater of 5 percent of all vacant units or at least 2 vacant units must also be inspected;

Paragraph 9 9 B, clarifies the inspection requirements; and

Paragraph 9 9 C, clarifies that annual inspections are required for all properties with outstanding physical findings identified in the Multi-Family Information System (MFIS) while still allowing the Loan Servicer to schedule an annual inspection at any time if warranted.

REMOVE                                INSERT
Table of Contents dated 02-24-05:     Table of Contents dated 02-24-05:
Pages 15 through 17;                Pages 15 through 17 revised;
Chapter 9 dated 02-24-05:             Chapter 9 dated 02-24-05:
Pages 9-13 thru 9-40.               Pages 9-13 thru 9-40 revised 12-19-07.

FORMS

REPLACEMENT

RD 1927-8
(WSAL)

AGREEMENT WITH PRIOR LIENHOLDER revised 11-07. Prescribed in RD Instruction 1927-B and HB-1-3550 and FSA Transferred Instructions 1941-A, 1943-A and 1943-B. The Form and FMI are revised as follows:

To add acknowledgment of notary on the signature page; and

To correct the references to the government loan as the government form has been removed.

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 04-26-06. FMI revised 12-19-07.

RD 3550-7
(WSAL)

FUNDING COMMITMENT AND NOTIFICATION OF LOAN CLOSING revised 10-07. Prescribed in HB-1-3550 and HB-2-3550. The Form and FMI are revised to combine Form RD 3550-7 with Form RD 1927-16. 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 04-18-07. FMI revised 12-19-07.

RD 3550-19
(WSAL)

TRANSMITTAL-CLOSING DOCUMENTS revised 11-07. Prescribed in HB-13550. The Form and FMI
are revised to make corrections to the list of forms to be faxed to CSC by the closing agent. 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 06-21-06. FMI revised 12-19-07.

RD 3550-25
(WSAL)

LOAN CLOSING INSTRUICTIONS AND LOAN CLOSING STATEMENT revised 11-07. Prescribed in RD Instruction 1927-B. The Form and FMI are revised to make corrections to the name and form number of the form to notify of loan closing and to the forms to be faxed to CSC and the RD Field Office by the closing agent. 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 12-19-07.

RD 3560-13
(WSAL)

MULTI-FAMILY OWNER’S/MANAGEMENT AGENT’S MANAGEMENT CERTIFICATION revised 11-07. Prescribed in HB-2-3560. The Form and FMI are revised as follows:

To add a certification effective date and to add a section check boxes for fee type and for add-on fees;

To delete section concerning upfront review and to move the signature box to page 4;

To delete the "Attachment-Calculation Estimated Yield from Proposed Management Fee;" and

The Form Manual Insert (FMI), to provide additional clarification.

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 02-24-05. FMI revised 12-19-07.

OBSOLETE

RD 1927-16
(WSAL)

NOTIFICATION OF LOAN CLOSING. This Form and FMI is no longer required.

REMOVE
FMI dated 08-01-07.

NO SPECIAL PROCEDURE NOTICES RELEASED.

ADMINISTRATIVE NOTICES CHECKLIST:
(See AN Checklist.)

oOo