FORM RD 2006-46 (Rev. 01-98)
U.S. DEPARTMENT OF AGRICULTURE MANUAL ISSUE No.
RURAL DEVELOPMENT WSAL PN 451
Washington, D.C 20250 DATE
September 1, 2011
RD MANUAL CHANGES
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 August 1, 2011.
Exhibit B: Pages 1 & 2 (Rev 37). Exhibit B: Pages 1 & 2 (Rev 38).
RD INS 1980-D
RURAL HOUSING LOANS. This Instruction is is partially revised as follows:
Section 1980.308, to allow the Agency to seek indemnification from originating lenders if a loss is paid, and the Agency determines the lender did not originate the loan in accordance with programs requirements; and
Sections 1980.320 and 1980.353, to eliminate the lender’s published VA rate for first mortgage loans with no discount points as an option for a maximum interest rate on loans. Elimination of the VA rate option, allows lenders to only use the Fannie Mae rate to determine the maximum interest rate for a loan.
Table of Contents: Table of Contents:
Pages 1 & 2 (Rev 1); Pages 1 & 2 (Rev 2);
Pages 9 & 10 (Rev 1), 10A (Rev 1), Pages 9 & 10 (Rev 2), 10A (Rev 2),
25 & 26, 45 & 46 (Rev 1), and 10B added 09-01-11, 25 & 26 (Rev 1),
81 & 82. 45 & 46 (Rev 2) and 81 & 82 (Rev 1).
RD INS 2015-B
Public Information Functions of Rural Development Employees. Section 2015.54(b)(5)(ii), to grant approval rights to State Directors for paid advertising that supports the Rural Development mission area and removed
§ 2015.54(b)(15)(ii)(A), (B) and (C).
Pages 5 & 6. Pages 5 & 6 (Rev 1).
RD HANDBOOK CHANGES
HB-1-3550 DIRECT SINGLE FAMILY HOUSING LOANS AND
(WSAL) GRANTS FIELD OFFICE HANDBOOK. This
Handbook is partially revised. Specific
Section 3, Paragraph 3.5.A and 3.6.A, to accept loan applications submitted using Fannie Mae Form 1003, Uniform residential Loan Application;
Paragraph 3.7, to define Federal regulations applicable to mortgage transactions and outline disclosure requirements;
Paragraph 3.16, to clarify that available documentation such as paystubs and landlord information on the RMCR may be used in lieu of, and are preferred over, written third party verifications;
Attachment 3-G, is revised to conform with the changes made in this chapter, to include timely disclosure of the GFE and verification of employment before closing; and
New Attachment 3-I, Settlement Service Providers and RESPA Related Disclosures, includes language that meets RESPA requirements.
Section 1, Paragraph 4.2.A, to require applicants to provide an explanation letter for employment gaps in excess of 30 days. Also, to define and expand guidance for irregular income, which includes seasonal income;
Paragraph 4.3, to clarify that unemployment income requires a two-year documentation, to remove foster care income and food stamps from repayment income and to define and exclude from annual and repayment income special purpose payments;
Paragraph 4.3.E. (table), to document the source of information for oral verifications of employment, to require IRS Form 1099 for unearned income, and enhanced guidance regarding assets documentation;
Paragraph 4.3.E.3, to clarify that loan documentation should not be more than 120 days old (180 days for new construction) by loan closing;
Section 2, Paragraph 4.5, to require assets statements and provide guidance to review transactions;
Paragraph 4.7 and 4.8, to update examples for calculating income from asset using newer limitation on assets;
Section 3, Paragraph 4.12 A, to establish parameters for reliable credit score;
Paragraph 4.12 C, includes guidance to verify and confirm non-traditional credit providers and outlines preferred sources to obtain non-traditional credit;
Exhibit 4-5, to enhance guidelines for evaluating credit reports;
Paragraph 4.14 A, to clarify that exceptions for adverse credit can be made if there were extenuating circumstances leading to the adverse credit and the applicant provides a credit explanation letter;
Paragraph 4.14 B, to expand guidance on resolving collection accounts;
Paragraph 4.22 B, to clarify that minimum monthly payments for revolving accounts, contingent liabilities, and new trade lines must be included in the total debt ratio if the conditions noted are not met; and
Attachment 4-C, to expand guidance on self-employment income calculation.
Attachment 6-C, to enhance underwriting review questionnaire.
Section 1, Paragraph 8.3 C, to update CSC mailing address; and
Section 2, Paragraph 8.6, to require re-verification of income 10 days before closing and to outline steps to confirm accuracy of the note rate also before closing.
Table of Contents: Table of Contents:
Pages 3 thru 6; Pages 3 thru 6 revised;
Chapter 3 dated 01-23-03: Chapter 3 dated 01-23-03:
Pages 3-7 thru 24, Pages 3-7 thru 3-24 revised,
Attachment 3-G: Pages 1 thru 6. Attachment 3-G: Pages 1 thru 6 revised,
Chapter 4 dated 01-23-03: Attachment 3-I added;
Pages 4-5 thru 4-8, 11 thru 42, Chapter 4 dated 01-23-03:
49 thru 54 and 57 thru 66, Pages 4-5 thru 4-8, 11 thru 42,
Attachment 4-C: Pages 1 & 2; 49 thru 54 and 57 thru 69,
Chapter 6 dated 01-23-03: Attachment 4-C: Pages 1 thru 5; revised;
Attachment 6-C: Pages 1 thru 3; Chapter 6 dated 01-23-03:
Chapter 8 dated 01-23-03: Attachment 6-C: Pages 1 thru 3; and
Page 8-3 & 8-4, 8-7 & 8-8, Chapter 8 dated 01-23-03:
and 8-9 thru 8-12. Page 8-3 & 8-4, 8-7 & 8-8,
and 8-9 thru 8-12 revised 09-01-11.
LOAN NOTE GUARANTEE. The Form and FMI are revised in item #2, to include language that the Agency may seek indemnification if the originating Lender nonconforming action or failure to act resulted in the Agency paying a loss claim. 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.
FMI dated 03-18-98. FMI revised 09-01-11.
PROCEDURE NOTICES RELEASED:
ADMINISTRATIVE NOTICES RELEASED:
(See AN Checklist.)