SFH Guaranteed Origination
April 23, 2020
FAQs, Use of the Online Lender Loan Closing System, and Reminder that Conditional Commitments are Required Before Closing
IMPORTANT NOTICE
Frequently Asked Questions (FAQs): Additional guidance related to the origination and servicing of USDA single family housing guaranteed loans is now available. A document providing responses to FAQs has been posted to the USDA LINC Training and Resource Library.
Lender Loan Closing System: Lenders are encouraged to submit loan closing packages through the online Lender Loan Closing (LLC) system and use the Pay.gov interface within the LLC to submit the upfront guarantee and/or technology fees. Loan closings where paper checks have been generated to pay guaranteed fees manually are not processed as quickly. Loan closings submitted through the LLC continue to be processed in a timely manner.
All agency operations and functions continue business as usual. The agency continues to issue conditional commitments and loan note guarantees via its new integrated virtual platform. Please note that given this virtual model, the program’s activities are not affected by the operating status of local USDA offices.
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Timeframes: Turnaround timeframes will continue to be posted on the Lending Partner Webpage. Agency timeframes will be promptly communicated on the webpage.
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Conditional Commitments: This is a reminder to all lenders that closing USDA single family housing guaranteed loans prior to receipt of “Conditional Commitment for Single Family Housing Loan Guarantee” (Form RD 3555-18) from the Agency is a violation of the regulation found at 7 CFR 3555, section 3555.107 (f). Closing a loan prior to obtaining a Conditional Commitment from the Agency will result in the lender not receiving a Loan Note Guarantee (LNG) and may affect their approval status to participate in the program.
Thank you for your partnership and dedication to join us in serving rural American homebuyers. Questions regarding this announcement may be directed to sfhgld.program@wdc.usda.gov or (202) 720-1452.
Links to websites:
Rural Development COVID-19 Response: https://rd.usda.gov/coronavirus
SFHGLP Lending Partner Webpage: https://www.rd.usda.gov/page/sfh-guaranteed-lender
SFHGLP webpage: https://www.rd.usda.gov/programs-services/single-family-housing-guaranteed-loan-program
USDA LINC Training and Resource Library:
https://www.rd.usda.gov/programs-services/lenders/usda-linc-training-resource-library
Procedure Notices: https://www.rd.usda.gov/resources/directives/procedures-notices
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