FORM RD 2006-46 (Rev. 01-98)
U.S. DEPARTMENT OF AGRICULTURE MANUAL ISSUE No.
RURAL DEVELOPMENT WSAL PN 460
Washington, D.C 20250 DATE
February 26, 2013
RD MANUAL CHANGES
INTEREST RATES, AMORTIZATION, GUARANTEE FEE, ANNUAL CHARGE, AND FIXED PERIOD. Exhibit B is partially revised to update various program rates and the Treasury Judgement Rate effective January 1, 2013.
Exhibit B: Pages 1 & 2 (Rev 49). Exhibit B: Pages 1 & 2 (Rev 50).
RD INS 1940-L
METHODOLOGY AND FORMULAS FOR ALLOCATIONS OF LOAN AND GRANT PROGRAM FUNDS. Exhibit A, Attachment 1 Part III is revised to reflect the funding for Fiscal Year 2012.
Exhibit A: Attachment 2, Part III: Exhibit A: Attachment 2, Part III revised 02-26-13.
RD INS 1951-O
SERVICING CASES WHERE UNAUTHORIZED LOAN(S) OR OTHER FINANCIAL ASSISTANCE WAS RECEIVED -– COMMUNITY AND INSURED BUSINESS PROGRAMS. Exhibit B is partially revised to update program interest rates, effective January 1, 2013.
Exhibit B: Pages 3 & 4 (Rev 19). Exhibit B: Pages 3 & 4 (Rev 20).
RD HANDBOOK CHANGES
INSERT RD HB-1-3550
DIRECT SINGLE FAMILY HOUSING LOANS AND GRANTS FIELD OFFICE HANDBOOK. This Handbook is partially revised. Specific revisions include:
Paragraph 3.2, to define potential applicant and to clarify that a pre-qualification is not required;
Paragraph 3.3, to provide concise guidance;
Paragraph 3.3.B., to require registration of the potential applicant’s diversity earlier in the pre-qualification process;
Paragraph 3.4,A., to make format and grammar corrections;
Paragraph 3.5.A and 3.6.A., to accept loan applications submitted using Fannie Mae Form 1003, Uniform residential Loan Application;
Paragraph 3.6, 3.6.C., to specify that applications must be date stamped on page 8 of the Form RD 410-4, when they are received;
Paragraph 3.7.A., to clarify that the GFE is a HUD Standard Form;
Paragraph 3.7.A., to simplify language for applicability of Truth-in-Lending disclosures;
Paragraph 3.7.C., to correct the name of the regulation being discussed in this paragraph and to eliminate the signature requirement for Attachment 3-H;
Paragraph 3.9, to clarify that all reasons for rejections must be documented and that the Loan Approval Official, not the Loan Originator, reconsider rejections;
Paragraph 3.10, reviews guidance for making preliminary determinations of eligibility;
Paragraph 3.12, to make format changes;
Paragraph 3.13, to improve clarity;
Paragraph 3.14.D., to indicate that a joint infile credit report should be obtained for applicants residing together;
Paragraph 3.16.A., simplifies the description of verification methods;
Attachment 3-A, to remove certain loan packaging restrictions;
Attachment 3-B, to enhance application review guidance;
Attachment 3-E, revised for guidance consistency and to clarify that Loan Approval Officials, not Community Development Manager, reconsider rejected applications;
Attachment 3-G, to conform with the changes made in this chapter and those made in previous procedure notices;
Attachments 3-H and 3-I, revises acknowledgement language and eliminates applicant signature requirement.
In the following Handbooks, Appendix 6 is partially revised to include the FY 2012 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.
Chapter 3 dated 01-23-03: Chapter 3 dated 01-23-03:
Pages 3-1 & 3-2, 3-5 thru 3-19, Pages 3-1 & 3-2, 3-5 thru 3-19,
3-21 thru 3-23, 3-21 thru 3-23,
Attachment 3-A: Pages 1 thru 4, Attachment 3-A: Pages 1 thru 4 revised,
Attachment 3-B: Pages 1 thru 4, Attachment 3-B: Pages 1 thru 4 revised,
Attachment 3-D: Pages 1 and 2 , Attachment 3-D: Pages 1 & 2 revised,
Attachment 3-E: Page 1, Attachment 3-E: Page 1 revised,
Attachment 3-G: Pages 1 thru 6, Attachment 3-G: Pages 1 thru 6 revised,
Attachment 3-H: Pages 1 & 2, Attachment 3-H: Pages 1 & 2 revised,
Attachment 3-I: Pages 1 & 2, and Attachment 3-I: Pages 1 & 2 revised, and
Appendix 6: Page 7. Appendix 6: Page 7 revised 02-26-13.
MFH LOAN ORIGINATION HANDBOOK. Appendix 1, section 3560.356(a), (b) & (c) is revised to read as follows:
(a) For new construction, to meet major capital expenses of a housing project, applicants must establish and fund a reserve account that meets the requirements of §3560.306. The applicant must agree to make monthly contributions to the reserve account pursuant to a reserve account analysis which sets forth how the reserve account funds will meet the capital needs of the property over an acceptable 20-year period. The reserve account analysis is based on either a Capital Needs Assessment or life cycle cost analysis, provided acceptable to Rural Development by the applicant. Adjustments may be made to the contribution amount at 5 or 10-year intervals, either through an updated Capital Needs Assessment or as part of the original life cycle cost analysis. The cost of conducting either a Capital Needs Assessment or life cycle cost analysis will be paid by the applicant. The cost of the initial Capital Needs Assessment or life cycle cost analysis may be included in the loan financing.
(b) For ownership transfers or sales, the requirements of §3560.406 (d) (5) will be met.
(c) For other existing properties, at a minimum the borrower must agree to make monthly contributions to the reserve account at the rate of 1 percent annually of the amount of total development cost until the reserve account equals 10 percent of the total development cost.
Appendix 1: Appendix 1:
Pages 51 thru 54. Pages 51 thru 54 revised 02-26-13.
DIRECT SINGLE FAMILY HOUSING LOANS AND GRANTS CENTRALIZED SERVICING CENTER HANDBOOK. This Handbook is partially revised. Specific revision include:
To be in accordance with the decision memorandum dated October 23, 2012 signed by Dallas Tonsager, Under Secretary of Agriculture for Rural Development, which adjusted the process for referring debt to the Department of the Treasury for Cross-Servicing in accordance with the Debt Collection Improvement Act (DCIA).
Chapter 7 dated 05-27-98: Chapter 7 dated 05-27-98:
Pages 7-19 thru 7-27. Pages 7-19 thru 7-26 revised 02-26-13.
NO SPECIAL PROCEDURE NOTICES RELEASED:
02-07-13. DISTRIBUTION: WSAL.
(Re: RD Instruction 440.1, 1940-L, 1951-O, HB-1-3550, HB-1-3560 and HB-2-3550, 4280-D and
ADMINISTRATIVE NOTICES RELEASED:
(See AN Checklist.)