SFH Guaranteed Origination
October 2, 2024
The Policy Desk: Proposed Revisions to Form RD 3555-21 and HB-1-3555
The Single Family Housing Guaranteed Loan Program (SFHGLP) is seeking input on proposed revisions to Form RD 3555-21, Request for Single Family Housing Loan Guarantee, and several chapters of technical Handbook 1-3555. The proposed revisions have been posted to the SFHGLP Policy Desk, accepting comments through November 3, 2024. Below are the highlighted proposed revisions:
Form RD 3555-21, Request for Single Family Housing Loan Guarantee
- Streamlined the form to remove information captured elsewhere, while maintaining the required certifications.
Chapter 4 – Lender Responsibilities
- Revised the conflict of interest guidance to clarify that only employees that have a direct impact on the mortgage transaction are prohibited from having multiple sources of income from a single Rural Development transaction.
Chapter 5 – Origination and Underwriting Overview
- Clarified that all loan applications should be submitted through GUS and referenced the Manual File Submission Job Aid.
- Clarified that lenders must use a login.gov account to access GUS.
Chapter 8 – Applicant Characteristics
- Clarified that upon submission of the application, the lender will ensure a SAM check was performed by documenting the date in GUS.
- Referenced the Manual File Submission Job Aid, which should be used for the submission of files not supported by GUS.
Chapter 9 – Income Analysis
- Clarified that taxable income for housing allowances should be included in annual income.
- Added guidance for verifying previous employment.
- Clarified IRS Form 8821 is an acceptable method to request IRS tax transcripts.
- Clarified the number of household members must be identified in GUS.
- Added direct third-party verifications to the options for verifying assets.
- Clarified that reserves entered into GUS must not exceed the balance on the most recent official monthly bank statement, however lenders may choose to use a lower balance at their discretion.
Chapter 10 – Credit Analysis
- Clarified that multiple Verifications of Rent may be combined to make up the required 12 month history when no gaps exist.
- Combined the disputed accounts guidance into one section.
- Clarified that the credit report for a non-purchasing spouse is maintained in the lender’s permanent loan file.
- Revised the list of community property states and territories.
Chapter 15 – Submitting the Application Package
- Clarified that all loan applications should be submitted through GUS and referenced the Manual File Submission Job Aid.
- Revised checklists to correspond with the numerous chapter revisions being proposed.
Chapter 16 – Closing the Loan and Requesting the Guarantee
- Clarified that attorney opinions letters are acceptable alternatives to title insurance in some instances and provided a chart to clarify the requirements of each.
- Updated the email address for self-reports.
Feedback can be provided using the Stakeholder Comment Form located on the SFHGLP Policy Desk, or by emailing the Policy Desk at sfhgld.policydesk@usda.gov.
Thank you for supporting the Single-Family Housing Guaranteed Loan Program!
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