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SFH Guaranteed Origination
November 21, 2023
Advance Notice: Revisions to HB-1-3555, Chapters 4 and 11
The Single Family Housing Guaranteed Loan Program (SFHGLP) is pleased to announce upcoming revisions to technical Handbook 1-3555, Chapter 4, Lender Responsibilities; and Chapter 11, Ratio Analysis. These changes are expected to be implemented on January 5, 2024. Below are the highlighted revisions:
Chapter 4 – Lender Responsibilities
- Updated the point of contact for submission of Form RD 3555-11, Lender Record Change.
- Provided the definition of negligent servicing.
- Added additional clarification to the conditions in which the Agency may seek indemnification and how loss claims will be considered for loans subject to indemnification.
- Provided Agency contact information for various topics (reporting mortgage fraud, ESR system, etc.).
Chapter 11 – Ratio Analysis
- Revised the terminology in Section 11.2 to mirror the verbiage on the Uniform Residential Loan Application.
- Clarified that if an amount other than what is reflected on the credit report is used in the Total Debt Ratio, the lender should provide documentation of the amount utilized.
- Clarified that when a balloon/deferred payment loan is due within 12 months, the lender must evaluate the complete loan application to determine the applicant’s repayment ability.
- Clarified that a copy of the executed escrow agreement for temporary buydown accounts must be retained in the lender’s permanent loan file.
Copies of the upcoming revisions are available for review on the Loan Origination page of the USDA LINC Training and Resource Library, under the sub-heading “New”.
Questions regarding program policy and this announcement may be directed to sfhgld.program@usda.gov or (833) 314-0168.
Thank you for supporting the Single-Family Housing Guaranteed Loan Program!
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