Thursday, April 29, 2010

H R 5017 - USDA Guaranteed Mortgage Funding

I get so many questions about USDA Rural Development's Guaranteed Mortgage funding running out.  I pray that H. R. 5017 will pass the Senate to resolve the situation.

It is my understanding that USDA will run out of funds next week. (By May 7 th. ) Every office is working over to get as many loans obligated between now and then. It's like first come fist serve and the loans must be obligated in the order they come in. It is complicated.

Also, H.R. 5017 has passed the house and now only needs approval by the Senate. This Bill will provide 30 Billion dollars funding to the program. This is more than they can spend between now and the end of the fiscal year.

My gut opinion is that this will happen before they run out of funds. This program is a mayor boost to the housing market. Obama cannot allow the housing market to take another dive. Forclosures are still rising. This is not rocket science.

I would also like to provide my opinion on USDA staffing.  Funding commitments take 3 to 4 weeks.  This is insane!  Most offices have only two underwriters to handle this high volume, and they need at least 4 to handle the work load!  Even three underwriters would be an improvement.  There is no fundng for more personel.

Even the Direct program does not have enough personel to handle the work load.  Hello!  Think about this.  You can provide 30 Billion dollars of funding to a program but if your staff capacity can only process 10 Million, your have a problem.  Is it by Design???    Think about it!

Sorry this is so short.