SFH Guaranteed Origination
December 18, 2019
FINAL NOTICE: USDA SFH Guaranteed Loan Technology Fee Implementation Scheduled for January 1, 2020!
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.
An advanced copy of Handbook-1-3555 Chapter 16 provides direction on the disclosure and collection of the Technology Fee along with a new section on frequently asked questions for loan closings. Lenders remitting closings via the Lender Loan Closing (LLC) System will notice the Technology Fee is disclosed separately from the Upfront Guarantee Fee in the Fees subsection of the Add Loan Closing page. Although the fees are disclosed separately, they must both be paid using the same Pre-Authorized Debit Account. Once a loan closing transaction has been successfully submitted to USDA, the fee amounts will be listed separately on the Lender Loan Closing Confirmation page with different Pay.gov Tracking IDs. For this reason, it is possible for one fee amount to process and one to reject if the Pre-Authorized Debit Account is not funded in an amount enough to cover the total amount of both fees. Lenders unable to use the LLC System to remit closing packages must send a check for both the Upfront Guarantee Fee and Technology Fee (when applicable).
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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