FORM RD 2006-46 (Rev. 01-98)
U.S. DEPARTMENT OF AGRICULTURE MANUAL ISSUE No.
RURAL DEVELOPMENT WSAL PN 460
Washington, D.C 20250 DATE
February 26, 2013
PROCEDURE NOTICE
RD MANUAL CHANGES
INSERT RD
440.1
(WSAL)
INTEREST RATES, AMORTIZATION, GUARANTEE FEE,
ANNUAL CHARGE, AND FIXED PERIOD.
Exhibit B is partially revised to update
various program rates and the Treasury Judgement Rate effective January 1, 2013.
REMOVE
INSERT
Exhibit B: Pages 1 &
2 (Rev 49). Exhibit B:
Pages 1 & 2 (Rev 50).
INSERT
RD INS 1940-L
(WS)
METHODOLOGY AND FORMULAS FOR ALLOCATIONS OF LOAN AND GRANT PROGRAM FUNDS.
Exhibit A, Attachment 1 Part III is revised to reflect the funding for
Fiscal Year 2012.
REMOVE
INSERT
Exhibit A: Attachment 2, Part III: Exhibit A:
Attachment 2, Part III revised 02-26-13.
INSERT
RD INS 1951-O
(WSAL)
SERVICING CASES WHERE UNAUTHORIZED LOAN(S) OR OTHER FINANCIAL ASSISTANCE WAS
RECEIVED -– COMMUNITY AND INSURED BUSINESS PROGRAMS. Exhibit B is partially
revised to update program interest rates, effective January 1, 2013.
REMOVE INSERT
Exhibit B: Pages 3 & 4 (Rev 19). Exhibit B:
Pages 3
& 4 (Rev 20).
RD HANDBOOK CHANGES
INSERT RD HB-1-3550
(WSAL)
DIRECT SINGLE FAMILY HOUSING LOANS AND GRANTS FIELD OFFICE HANDBOOK. This
Handbook is partially revised. Specific revisions include:
Chapter 3:
Paragraph 3.2, to define potential applicant and to clarify that a
pre-qualification is not required;
Paragraph 3.3, to provide concise guidance;
Paragraph 3.3.B., to require registration of the potential applicant’s diversity
earlier in the pre-qualification process;
Paragraph 3.4,A., to make format and grammar corrections;
Paragraph 3.5.A and 3.6.A., to accept loan applications submitted using Fannie
Mae Form 1003, Uniform residential Loan Application;
Paragraph 3.6, 3.6.C., to specify that applications must be date stamped on page
8 of the Form RD 410-4, when they are received;
Paragraph 3.7.A., to clarify that the GFE is a HUD Standard Form;
Paragraph 3.7.A., to simplify language for applicability of Truth-in-Lending
disclosures;
Paragraph 3.7.C., to correct the name of the regulation being discussed in this
paragraph and to eliminate the signature requirement for Attachment 3-H;
Paragraph 3.9, to clarify that all reasons for rejections must be documented and
that the Loan Approval Official, not the Loan Originator, reconsider rejections;
Paragraph 3.10, reviews guidance for making preliminary determinations of
eligibility;
Paragraph 3.12, to make format changes;
Paragraph 3.13, to improve clarity;
Paragraph 3.14.D., to indicate that a joint infile credit report should be
obtained for applicants residing together;
Paragraph 3.16.A., simplifies the description of verification methods;
Attachment 3-A, to remove certain loan packaging restrictions;
Attachment 3-B, to enhance application review guidance;
Attachment 3-E, revised for guidance consistency and to clarify that Loan
Approval Officials, not Community Development Manager, reconsider rejected
applications;
Attachment 3-G, to conform with the changes made in this chapter and those made
in previous procedure notices;
Attachments 3-H and 3-I, revises acknowledgement language and eliminates
applicant signature requirement.
Appendix 6:
In the following Handbooks, Appendix 6 is partially revised to include the FY
2012 interest rate for unauthorized assistance.
* Number Title
HB-1-3550 DIRECT SINGLE FAMILY HOUSING LOANS AND GRANTS FIELD OFFICE
HANDBOOK.
HB-2-3550 DIRECT SINGLE FAMILY HOUSING LOANS AND GRANTS CENTRALIZED
SERVICING CENTER HANDBOOK.
REMOVE INSERT
Chapter 3 dated 01-23-03: Chapter 3 dated 01-23-03:
Pages 3-1 & 3-2, 3-5 thru 3-19,
Pages
3-1 & 3-2, 3-5 thru 3-19,
3-21 thru 3-23,
3-21 thru 3-23,
Attachment 3-A: Pages 1 thru 4, Attachment 3-A:
Pages 1 thru 4 revised,
Attachment 3-B: Pages 1 thru 4, Attachment 3-B:
Pages 1 thru 4 revised,
Attachment 3-D: Pages 1 and 2
, Attachment 3-D:
Pages 1 & 2 revised,
Attachment 3-E:
Page 1, Attachment 3-E:
Page 1 revised,
Attachment 3-G: Pages 1 thru 6, Attachment 3-G:
Pages 1 thru 6 revised,
Attachment 3-H: Pages 1 & 2, Attachment 3-H:
Pages 1 & 2 revised,
Attachment 3-I: Pages 1 & 2, and Attachment 3-I:
Pages 1 & 2 revised, and
Appendix 6: Page 7. Appendix 6:
Page 7 revised 02-26-13.
INSERT
RD HB-1-3560
(WSAL)
MFH LOAN ORIGINATION HANDBOOK. Appendix 1, section 3560.356(a), (b) & (c)
is revised to read as follows:
(a) For new construction, to meet major capital expenses of a housing project,
applicants must establish and fund a reserve account that meets the requirements
of §3560.306. The applicant must agree to make monthly contributions to the
reserve account pursuant to a reserve account analysis which sets forth how the
reserve account funds will meet the capital needs of the property over an
acceptable 20-year period. The reserve account analysis is based on either a
Capital Needs Assessment or life cycle cost analysis, provided acceptable to
Rural Development by the applicant. Adjustments may be made to the contribution
amount at 5 or 10-year intervals, either through an updated Capital Needs
Assessment or as part of the original life cycle cost analysis. The cost of
conducting either a Capital Needs Assessment or life cycle cost analysis will be
paid by the applicant. The cost of the initial Capital Needs Assessment or life
cycle cost analysis may be included in the loan financing.
(b) For ownership transfers or sales, the requirements of §3560.406 (d) (5)
will be met.
(c) For other existing properties, at a minimum the borrower must agree to make
monthly contributions to the reserve account at the rate of 1 percent annually
of the amount of total development cost until the reserve account equals 10
percent of the total development cost.
REMOVE INSERT
Appendix 1:
Appendix 1:
Pages 51 thru 54. Pages 51 thru 54 revised 02-26-13.
INSERT
RD HB-2-3550
(WSAL)
DIRECT SINGLE FAMILY HOUSING LOANS AND GRANTS CENTRALIZED SERVICING CENTER
HANDBOOK. This Handbook is partially revised. Specific revision include:
Chapter 7:
To be in accordance with the
decision memorandum dated October 23, 2012 signed by Dallas Tonsager, Under
Secretary of Agriculture for Rural Development, which adjusted the process for
referring debt to the Department of the Treasury for Cross-Servicing in
accordance with the Debt Collection Improvement Act (DCIA).
REMOVE INSERT
Chapter 7 dated 05-27-98: Chapter 7 dated 05-27-98:
Pages 7-19 thru 7-27.
Pages 7-19 thru 7-26 revised 02-26-13.
NO SPECIAL PROCEDURE NOTICES RELEASED:
SPECIAL PROCEDURE
NOTICE dated
02-07-13. DISTRIBUTION: WSAL.
(Re: RD Instruction 440.1, 1940-L, 1951-O, HB-1-3550, HB-1-3560 and
HB-2-3550, 4280-D and
HB-2-3550).
ADMINISTRATIVE NOTICES RELEASED:
(See AN Checklist.)
oOo