USDA Rural Development Continues to Accept and Process Application Packages
In an announcement dated May 26, 2010, USDA Rural Development confirmed that the Agency will continue to accept and process application packages. As in the past when program funds were not available, USDA Rural Development will now issue loan approvals (Conditional Commitment: RD Form 1980-18) with modified language. During this timeframe, these modified approvals from USDA Rural Development will state that the approval is subject to:
- The availability of funds and statutory authority to obligate such funds to support the proposed guarantee;
- The statutory authority to charge a sufficient guarantee fee, if any is needed, to support the proposed guarantee with available funding; and
- Should the lender pass on to the borrower a guarantee fee (described as a loan origination fee in USDA’s announcement dated May 26, 2010), that is higher than the guarantee fee that Rural Housing Service is ultimately authorized to charge on the proposed guaranteed loan, the lender agrees to promptly return the difference to the borrower.
By using this option, lenders can continue to close and fund USDA Guaranteed Rural Housing loans when working with Chase Rural Housing.
If you have further questions, please contact your Chase Rural Housing Account Executive.