FORM RD 2006-46 (Rev. 01-98)
U.S. DEPARTMENT OF AGRICULTURE MANUAL ISSUE No.
RURAL DEVELOPMENT WSAL PN 455
Washington, D.C 20250 DATE
February 23, 2012
RD MANUAL CHANGES
INTEREST RATES, AMORTIZATION, GUARANTEE FEE, ANNUAL CHARGE, AND FIXED PERIOD. Exhibit B is partially revised to update the Farm Labor Housing State Director Exception rate, effective January 1, 2012., effective December 1, 2011.
Exhibit B: Pages 1 & 2 (Rev 42). Exhibit B: Pages 1 & 2 (Rev 43).
RD HANDBOOK CHANGES
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
FY 2011 interest rate for unauthorized assistance.
* Number Title
HB-1-3550 DIRECT SINGLE FAMILY HOUSING LOANS AND GRANTS FIELD OFFICE
HB-2-3550 DIRECT SINGLE FAMILY HOUSING LOANS AND GRANTS CENTRALIZED
SERVICING CENTER HANDBOOK.
Appendix 6: Page 7; and Appendix 6: Page 7 revised 02-23-12; and
GUARANTEED RURAL RENTAL HOUSING PROGRAM ORIGINATION AND SERVICING HANDBOOK. This Handbook is revised. Specific revisions include:
The Section 538 GRRHP Origination and Servicing Handbook is being revised to include the Continuous Guarantee that was implemented with the Final Rule publication of 7 CFR 3565 dated January 12, 2011. Additionally, each Chapter of the Handbook has been edited to provide clarification on issues that have not been clear. This document serves the purpose of highlighting major changes in Sections throughout the Handbook.
During the clearance process the handbook may be reviewed either in hardcopy or electronically. The electronic version is located at: s:\RHS\mfh-files\grrhp\Handbook Changes\2011 FINAL Handbook Changes.
Chapter 1: Overview of GRRHP Origination and Servicing Handbook
Paragraphs 1.1 through 1.8 Updated referenced websites, minor edits and clarifications.
Paragraph 1.9 Identity of Interest Added language to address a lender's interest in an entity that purchased low income tax credits.
Chapter 2: Lender Eligibility and Approval
Updates include clarification of the distinction between an eligible lender and approved lender. Inserted language to reference Options One, Two and Three.
Paragraph 2.4 Basic Eligibility Test Requirements Updated the Basic Eligibility Test
Paragraph 2.6 Approval Requirements Changed verification of Portfolio Performance Data from 24 months to 12 months. Added language that key personnel resumes must document multi-family housing experience. Removed obsolete language as it relates to top-tier rating for HFAs.
Paragraph 2.9 Overview Identified where lenders should submit applications for lender approval
Paragraph 2.15 Use of Agents and Brokers By the Approved Lender Added language to clarify the definition and role of a correspondent lender
Chapter 3: Lender Underwriting
Paragraph 3.6 Eligible Borrowers Removed second bullet
Paragraph 3.7 Ineligible Borrowers Added a bullet to describe how the borrowing entity's relationship may violate the GRRHP Lender Agreement last paragraph, updated which sites to check borrow eligibility
Changed the Title of Exhibit 3-1
Paragraph 3.10 Borrower Experience and Capacity Added language and several paragraphs to clarify equity requirements and the program's reserve requirements.
Paragraph 3.25 Mortgage Terms Removed the example under the heading, Maximum Loan Terms. Removed reference to the AFR. Added options on how to calculate the interest rate to borrowers. Added language on mitigating the Government's exposure on high loan to value loan guarantees.
Chapter 4: loan Guarantee Application Processing
Several changes and additions to add language as it relates to the Continuous Guarantee. Clarified the NOFA process. Removed the following attachments: Sample Notice to Proceed with Application Processing and State Office Award Letter. Updated the Application Checklist attachment.
Chapter 5: Construction Requirements
Paragraph 5.3 Overview
Updated the paragraphs to include Continuous Guarantee Language. Removed Exhibit I, GRRHP Construction Loan Requirements
Paragraph 5.6 Architectural Services Added Capital Needs Assessment requirements
Paragraph 5.7 Plans, Specifications and Cost Estimates Added a paragraph to reference the Life Cycle Cost Analysis
Paragraph 5.10 Inspections Removed paragraph under inspections "Prior to Payment", added language that an Agency inspector must inspect the buildings.
Paragraph 5.23 Overview of Process Removed first paragraph
Paragraph 5.24 Overview of Process Added a paragraph to indicate that the Agency will provide a guarantee that is less than 90%.
Updated Attachment 5-A
Chapter 6: Program Fees
Added language to indicate that changes to program fees will be published in the Federal Register. Update Lockbox Addresses. Added language regarding Preauthorized Debit. Clarified when fees are due, making payments and how the Agency processes payments. Removed all specific dollar amounts of fees.
Chapter 7 Servicing Permanent Loans
Added a new objective and update each objective, clarified how interest credit will be requested and applied, renumbered Exhibits, Added Attachment B, Supplemental Government Auditing Standard's Guide
Paragraph 7.9 Transfer of Loans or Mortgage Servicing Added language to clarify when a transfer of servicing is permitted.
Section 3 Asset Management, Clarified when construction reports are due, added additional bullet identifying what information should be sent to the Agency when a loan is in default.
Chapter 8: Property Management
Minor edits and clarifications. Added language that the AFHMP must be posted in the rental office
Chapter 9: Insurance Requirements
Edits and clarifications. Outlines that proper insurance coverage must be in place.
Chapter 10: Claims
Update Exhibit 10-1
Paragraph 10.6 Approval of Liquidation Plan Added language on the process and approval for a liquidation plan.
Paragraph 10.18 Protective Advances Added a limit on protective advances
Chapter 11: Environmental Requirements
Minor edits to Phase I Environmental Site Assessment
Chapter 12: Secondary Market
Expanded on the definition of participant. Removed the minimum loan servicing fee of 25 basis points.
Table of Contents dated 12-18-98: Table of Contents revised 02-23-12;
Chapter 1 dated 12-18-98: Chapter 1 revised 02-23-12;
Chapter 2 dated 12-18-98: Chapter 2 revised 02-23-12;
Chapter 3 dated 12-18-98: Chapter 3 revised 02-23-12;
Chapter 4 dated 12-18-98: Chapter 4 revised 02-23-12;
Chapter 5 dated 12-18-98: Chapter 5 revised 02-23-12;
Chapter 6 dated 12-18-98: Chapter 6 revised 02-23-12;
Chapter 7 dated 12-18-98: Chapter 7 revised 02-23-12;
Chapter 8 dated 12-18-98: Chapter 8 revised 02-23-12;
Chapter 9 dated 12-18-98: Chapter 9 revised 02-23-12;
Chapter 10 dated 12-18-98: Chapter 10 revised 02-23-12;
Chapter 11 dated 12-18-98: Chapter 11 revised 02-23-12;
Chapter 12 dated 12-18-98: Chapter 12 revised 02-23-12.
LOAN NOTE GUARANTEE revised 02-12. Prescribed in RD Instruction 1980-D. The Form and FMI are revised to inform the Lender that the Loan Note Guarantee is subject to an annual fee. 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 09-01-11. FMI revised 02-23-12.
CONDITIONAL COMMITMENT FOR SINGLE FAMILY HOUSING LOAN GUARANTEE revised 02-12. Prescribed in RD Instruction 1980-D. The Form and FMI are revised to inform the Lender that the conditional commitment is subject to an annual fee. 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 01-27-10. FMI revised 02-23-12.
REQUEST FOR SINLE FAMILY HOUSING LOAN GUARANTEE revised 02-12. Prescribed in RD Instruction 1980-D. The Form and FMI are revised to capture acknowledgement by the applicant(s) of an imposed annual fee for the life of the loan, effective with loans obligated on/after October 1, 2011. 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 09-30-11. FMI revised 02-23-12.
PROCEDURE NOTICES RELEASED:
ADMINISTRATIVE NOTICES RELEASED:
(See AN Checklist.)