FORM RD 2006

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

U.S. DEPARTMENT OF AGRICULTURE MANUAL ISSUE No.

RURAL DEVELOPMENT WSAL PN 425

Washington, D.C 20250 DATE

December 17, 2008

PROCEDURE NOTICE

NOTICE
(WSAL)

RD Instruction 1901-A, Exhibit B, is partially revised to provide a $1 million maximum in authority a Program Director can delegate to District/Field Offices for the Business and Industrial Guaranteed and Direct Loan Programs is included with this PN since pages 1 & 2 (Rev 3) was inadvertently omitted from Procedure Notice 420 dated 06-25-08.

REMOVE INSERT
Exhibit B: Pages 1 & 2 (Rev 2). Exhibit B: Pages 1 & 2 (Rev 3).

RD MANUAL CHANGES

INSERT RD 440.1
(WSAL)

INTEREST RATES, AMORTIZATION, GUARANTEE FEE, ANNUAL CHARGE, AND FIXED PERIOD.

Exhibit B is partially revised to update the Treasury Judgement Rate, effective December 1, 2008.

REMOVE INSERT
Exhibit B: Pages 1 & 2 (Rev 5). Exhibit B: Pages 1 & 2 (Rev 6).

INSERT RD 2063-H
(WSAL)

EMPLOYEE RESPONSIBILITIES AND CONDUCT. This Instruction is being issued to set for Rural Development’s procedures and standards on employee responsibilities and conduct. This Instruction is in accordance with the Departmental Regulation, DR 4070-735-001 dated October 4, 2007.

INSERT
Table of Contents; and
Pages 1 thru 13.

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:

In the following Handbooks, Appendix 6 is partially revised to include the
November 1, 2008, 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.

Chapter 4:

To update Attachment 4-D guidance for the SAVE program.

Chapter 1, 3 and Appendix 3:

Exhibit 1-2, Attachment 3-H and Handbook Letter 15, to reflect the name change of the Agency’s credit service provider from TransUnion to MDA Lending Solutions. Attachment 3-H is further revised to amend the credit service provider’s contact information.

Chapter 8:

Attachment 8-A, to remove Form RD 3550-4, “Employment and Asset Certification” as a document needed at loan closing. This form is needed prior to loan approval.

REMOVE                                INSERT
Chapter 1 dated 01-23-03:             Chapter 1 dated 01-23-03:
Pages 1-11 & 1-12;                  Pages 1-11 & 1-12 revised;
Chapter 3 dated 01-23-03:             Chapter 3 dated 01-23-03:
Attachment 3-H: Pages 1 & 2;       Attachment 3-H: Pages 1 & 2 revised;
Chapter 4 dated 01-23-03:             Chapter 4 dated 01-23-03:
Attachment 4-D: Pages 1 thru 9;    Attachment 4-D: Pages 1 thru 9 revised;
Chapter 8 dated 01-23-03:             Chapter 8 dated 01-23-03:
Attachment 8-A: Pages 1 & 2;       Attachment 8-A: Pages 1 & 2 revised;
Appendix 3 dated 01-23-03:            Appendix 3 dated 01-23-03:
Handbook Letter 15; and             Handbook Letter 15 revised; and
Appendix 6 dated 01-23-03:            Appendix 6 dated 01-23-03:
Pages 3 & 4.                        Pages 3 & 4 revised 12-17-08.

INSERT RD HB-2-3560
(WSAL)

MFH ASSET MANAGEMENT HANDBOOK. This Handbook is partially revised. Specific revisions include:

Table of Contents:

to reflect the changes in Chapter 9 and to add Section 6.

Chapter 9:

Paragraph 9.4 B., Exhibit 9-2, to clarifies the requirements on the on-site reviews;

Paragraph 9.6 B., to change a reference from Section 3 to Section 2;

Paragraph 9.8 C., to add a reference to transfer;

Paragraph 9.8 F., added references to “On-Site” reviews;

Paragraph 9.10, to clarify the requirements and timing of the on-site reviews;

Paragraph 9.10 E., to clarify the steps needed to be taken to prepare for the supervisory visit;

Paragraph 9.10 F., to change the number of interior units and tenant files to be reviewed during the supervisory visit. This also explains how the tenant files will be randomly selected for review. The requirements for borrower compliance review are also clarified in this paragraph;

Paragraph 9.12, added a sentence to reference completing the “Supervisory Visit Worksheets from MFIS;”

Paragraph 9.16 is renumbered to 9.15 and to remove paragraph containing Fiscal Year 2006 appropriation language. An Unnumbered Letter will be issued each fiscal year for guidance and allocation information;

Exhibits 9-6 through 9-8 are removed;

Section 6 is added to provide guidance and procedures when responding to disasters and to identify special Actions and Waivers that may be provided by the Agency and the required monitoring that must occur by Servicing Officials in a disaster situations; and

Attachment 9-B, to revise first sentence under “Part A.”

REMOVE                                INSERT
Table of Contents dated 02-24-05:     Table of Contents dated 02-24-05:
  Pages 15 thru 17;                   Pages 15 thru 17 revised;
Chapter 9 dated 02-24-05:             Chapter 9 dated 02-24-05:
Pages 9-3 & 9-4, 9-7 & 9-8,         Pages 9-3 & 9-4, 9-7 & 9-8,
9-11 thru 9-40,                     9-11 thru 9-40,
Attachment 9-B.                     Attachment 9-B revised 12-17-08.

INSERT RD HB-3-3560
(WSAL)

MFH PROJECT SERVICING HANDBOOK. This Handbook is partially revised. Specific revisions include:

Table of Contents and Chapter 15:

To add Attachment 15-I “Subordination Agreement.”

The Table of Contents is also revised to add Attachments 15-F, 15-G and 15-H since they were inadvertently omitted from SPECIAL PN dated 11-07-08.

REMOVE                                INSERT
Table of Contents dated 02-24-05:     Table of Contents dated 02-24-05:
Page 21.                            Page 21 revised; and
                                      Chapter 15 dated 02-24-05:
                                      Attachment 15-I added 12-17-08.

FORM

REPLACEMENT

RD 1922-15
(WSAL)

ADMINISTRATIVE APPRAISAL REVIEW FOR SINGLE FAMILY HOUSING revised 10-08. Prescribed in RD Instruction 1980-D and HB—3550. The Form and FMI are revised to change the format and additional Instructions for completion of this Form. 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 09-27-06. FMI revised 12-17-08.

REPLACEMENT

RD *
(WSAL)

The following Forms and FMIs are revised to replace the “Notice to Applicant Regarding Privacy Act Information” with “Privacy Act Statement to References,” and to remove Farm Service Agency (FSA) since they no longer sues these Forms. 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.

Form No.    Title                        FMI dated      FMI revised

410-8       Applicant Reference Letter   06-25-08       12-17-08

1910-5      Request for Verification     05-07-08       12-17-08
            of Employment

1944-60     Landlord’s Verification      07-26-06       12-17-08

1944-62     Request for Verification     05-07-08       12-17-08

3550-2      Request for Verification     07-26-06       12-17-08
            of Gift/Gift Letter

3550-30     Verification of Debt         01-17-07       12-17-08

Proposed

SPECIAL PROCEDURE NOTICES RELEASED:

SPECIAL PROCEDURE NOTICE dated 11-07-08. DISTRIBUTION: WSAL.
(Re: RD Instructions 440.1, 2060-A, HB-1-3550 and HB-3-3560.)

ADMINISTRATIVE NOTICES RELEASED:

(See AN Checklist.)

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