USDA Technology Fee Implementation

USDA Rural Development sent this bulletin at 06/12/2019 01:00 PM EDT

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June 12, 2019

USDA Technology Fee Implementation

On January 1, 2020 the USDA Single Family Housing Guaranteed Loan Program will begin to assess and collect a fee (aka technology fee) from lenders on each closed loan that was submitted via the Guaranteed Underwriting System (GUS). Specifically, any file submitted via GUS that is issued Form RD 3555-18E, “Conditional Commitment for Single Family Housing Loan Guarantee,” on or after January 1, 2020, will require lenders to remit a one-time $25 technology fee with their loan closing package (i.e. the same time a lender currently remits the upfront guarantee fee).

This authority is provided by The Housing Opportunity Through Modernization Act of 2016 which was signed into law on July 29, 2016. The law created Section 502(i) in the Housing Act of 1949 (42 U.S.C. 1472(i)), later amended by Section 758 of the Consolidated Appropriations Act, 2018, and permits the Secretary to assess and collect a guarantee underwriting user fee from lenders for their use of the Rural Housing Service’s (Agency’s) automated guaranteed loan systems. The collection of the fee will enable the Agency to fund future information technology enhancements needed to improve program delivery and reduce burden to the public.

A Notice to Implement a Guarantee Systems User Fee for Lender Use of the Single Family Housing Section 502 Guaranteed Loan Program Automated Systems was published in the Federal Register on July 13, 2018.

A 3555-1 Chapter16_Final Advanced Copy 6-2019 includes direction on the disclosure and collection of the technology fee along with a new section on frequently asked questions for loan closings.

KEY MESSAGE:

Single Family Housing guaranteed loans submitted via the USDA Guaranteed Underwriting System (GUS), that are issued a Conditional Commitment on or after January 1, 2020, will be charged a one-time $25 technology fee when the Loan Note Guarantee is requested by the lender (i.e. loan closing submission).

Questions regarding this announcement may be directed to SFHGLP in the Rural Housing National Office at 202-720-1452.

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