Sunday, September 12, 2010

USDA Guaranteed Mortgage Funding Update - 09/07/2010

On September 7th. 2010, USDA Rural Housing sent the following release to Lenders about guaranteed funding availability.  Keep in mind the funds that were redirected to this program are only available until Sept 30th., which is the end of Fiscal Year 2010.  After that date new funds will have to be appropriated.

No one knows, ... or is telling how long that wait will be.  It could be November, or even as late as January.  I guess if we look at the glass as half-full, we have a three week window of funding.

News Release:

TO: Participating Lenders

FROM: Tammye Trevino, Administrator, Housing and Community Facilities Programs

SUBJECT: Single Family Housing Guaranteed Loan Program Funding Notice

Rural Development's interim systems enhancements will complete on September 8, 2010, at which time the Agency will begin obligating Section 502 Single Family Housing Guaranteed Loans. The systems enhancements will:

Phase out the old 2 percent fee structure for purchase loan guarantees;

Allow for a new up-front fee of 3.5 percent as authorized by Congress in Public Law 111-212, sec. 102(7/29/10);

Enable lenders with access to Rural Development's Guaranteed Underwriting System (GUS) to begin submitting new loan requests through GUS.

The first priority on September 8, 2010 will be for Rural Development to fund the backlog of approximately $1.6 billion in Conditional Commitments that were issued after May 26, 2010, with the proviso "subject to availability of funds" language. Beginning September 8, lenders may submit their final closing packages and guarantee fees. After those commitments have been processed, Rural Development will begin processing new Conditional Commitment requests. Sufficient funds will be available for all requests during the remainder of the fiscal year (FY).

Requests for refinance will remain at the present fee structure of .5 percent for the remainder of the FY. However, the system has been enhanced to accommodate the increased refinance fee of 2.25 percent which will be effective October 1, 2010.

We appreciate your continued support of the Single Family Housing Guaranteed Loan Program (SFHGLP). Questions regarding this notice may be directed to the SFHGLP division at 202.720.1452.

End of Release

You can research the guaranteed home mortgage guidelines or the rd direct home loan guidelines from these sites.

Good Luck.