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

 

U.S. DEPARTMENT OF AGRICULTURE                            MANUAL    ISSUE No.

RURAL DEVELOPMENT                                           WSAL       PN 430

Washington, D.C  20250                                     DATE

                                                              July 8, 2009

 

 

 

PROCEDURE NOTICE

 

  

 

 

 

 

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 and various program rates, effective June 1, 2009.

REMOVE                                INSERT
Exhibit B:  Pages 1 & 2 (Rev 11).      Exhibit B:  Pages 1 & 2 (Rev 12).
 

 

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:

Chapter 3:

Paragraph 3.10, to clarify that a decision to deny assistance can be made during the preliminary eligibility review based on the information provided and confirmed by the applicant without having to obtain third party verifications.  Also, to remove language regarding the infile credit report since an infile credit report may only be ordered for potential applicants during the pre-qualification process or for applicants who will be placed on the waiting list;

Paragraph 3.16 A.1 and A.2, to revise the types of verifications required.  Oral third-party verifications are acceptable and preferred to verify income and assets if acceptable documentation is provided by the applicant.  Written third-party verifications are required when documentation is not complete or consistent;

Attachment 3-E, to update the fax number for Field Support Services; and

Attachment 3-F and Attachment 3-G, to limit the pre-qualification review to a potential applicant only; someone who yet to submit Form RD 410-4, “Uniform Residential Loan Application.”

Chapter 4:

Paragraph 4.2 A.5, to specify time frame when establishing reasonable continuance of income;

Paragraph 4.3 E, to revise the preferred forms of wages and salary, child support, and assets verifications;

Paragraph 4.6, to revise that the net family assets, not the parties to the note, are used to determine if the applicant(s) must pay for the costs related to the purchase of the home;

Section 3, to clarify that an infile credit report may only be ordered for potential applicants during the pre-qualification process or for applicants placed on the waiting list, to note that both infile credit reports and residential mortgage credit reports are considered a hard inquiry on the applicant’s credit report, and to add guidance on how to handle a match against U.S. Department of the Treasury’s Office of Foreeign Assets Control database;

Paragraph 4.22 B.2, to revise how deferred debt is handled when establishing an applicant’s total debt; and

Paragraph 4.25, to note that a Certificate of Eligibility will be honored even if the area loan limit changes before the expiration of the commitment, but area loan limits must be considered on any COE extension.

Chapter 6:

Paragraph 6.15, to require bank statements if the applicants is making a down payment or paying for closing costs;

Paragraph 6.16, to clarify that compensating factors could be considered as long as it does not result in risk layering; and

Attachment 6-A, to remove the infile credit report as a required document prior to approving a loan, to add MortgageServ’s Borrower Cross Reference screen and to add oral verification of employment and 4 weeks worth of consecutive paystubs as income documentation.

Chapter 13:

The Helpful Hint Box “Debt Settlement,” Paragraph 13.20 A.2, and Attachment 13-B, to update phone and fax numbers to various departments in the Centralized Servicing Center.

REMOVE                                INSERT
Chapter 3 dated 01-23-03:             Chapter 3 dated 01-23-03:
  Pages 3-1 thru 3-17 and               Pages 3-1 thru 3-17 and
  3-21 & 3-22,                          3-21 & 3-22,
  Attachment 3-B:  Pages 1 & 2,         Attachment 3-B:  Pages 1 & 2 revised,
  Attachment 3-D:  Pages 3 & 4,         Attachment 3-D:  Pages 3 & 4 revised,
  Attachment 3-E:  Page 1,              Attachment 3-E:  Page 1 revised,
  Attachment 3-F:  Pages 1 thru 3,      Attachment 3-F revised,
  Attachment 3-G:  Pages 1 & 2,         Attachment 3-G:  Pages 1 & 2 revised,
  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:
  Pages 4-5 & 4-6, 4-17 & 4-18,         Pages 4-5 & 4-6, 4-17 & 4-18,
  4-21 thru 4-24, 4-37 & 4-38,          4-21 thru 4-24, 4-37 & 4-38,
  4-43 thru 4-48, 4-51 & 4-52,          4-43 thru 4-48, 4-51 & 4-52
  4-57 thru 60, 4-63 & 4-64;            4-57 thru 60, 4-63 & 4-64 revised;
Chapter 6 dated 01-23-03:             Chapter 6 dated 01-23-03:
  Pages 6-29 & 6-30,                    Pages 6-29 & 6-30,
  Attachment 6-A:  Pages 1 & 2;         Attachment 6-A revised;
Chapter 13 dated 01-23-03:            Chapter 13 dated 01-23-03:
  Pages 13-11 & 13-12 and               Pages 13-11 & 13-12 and
  13-33 & 13-34,                        13-33 & 13-34,
  Attachment 13-B:  Page 1.             Attachment 13-B revised.                      


 

INSERT RD HB-3-3560 
(WSAL) 


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

Table of Contents:

To reflect the changes in Chapter 7.

Chapter 7:

Chapter 7 is completely revised to provide the necessary guidance for processing MFH ownership transfers or sales effectively and efficiently.  The goal is to assist Field Staff and Loan Approval Officials process applications timely while making sure the applicable legal and administrative requirements are met.

REMOVE                                      INSERT
Table of Contents dated 02-24-05:           Table of Contents dated 02-24-05:
  Pages 5 thru 21;                            Pages 5 thru 23 revised;
Chapter 7 dated 02-24-05:                   Chapter 7 dated 02-24-05:
  Pages 7-1 thru 7-32;                        Pages 7-1 thru 7-52 revised;
  All Attachments.                            Attachments 7-A, 7-B-1, 7-B-2,
                                              7-B-3, 7-B-4, 7-B-5, 7-C,
                                              7-D and 7-E revised 07-08-09.

 

 

SPECIAL PROCEDURE NOTICES RELEASED.

 

  SPECIAL PROCEDURE NOTICE dated 06-15-09DISTRIBUTION:  WSAL.
  (Re:  Forms RD 9004-1, 9004-2, 9004-3, 9005-1, 9005-2 and 9005-3).

 

 

ADMINISTRATIVE NOTICES RELEASED:

  (See AN Checklist.)

 

oOo