Transcript USDA Rural Development Mortgage Training

USDA Rural Development
Mortgage Training
Why use a USDA Loan?
• 100% Financing of purchase price
• Can cover closing costs up to appraised value – IF property appraises
over purchase price
• Low rates
• Low Monthly MI – lowest in industry
• Flexible Credit Qualifications
• Meets income limitations as set by USDA – low/medium income
Basics of a USDA Credit
Qualification
How to know if your borrower qualifies
A borrower will not qualify for USDA IF:
• RD 3555-21, “Request for Single Family Housing Loan Guarantee” requires both the lender and the applicant to certify that
the applicant is unable to secure credit from other sources upon terms and conditions which the applicant can reasonably
fulfill. The certification can be made if the applicant does not meet the requirements to obtain a traditional conventional
credit loan. Traditional conventional credit is defined for Agency purposes as:
• The applicant has available personal non-retirement liquid asset funds of at least 20% of the purchase price that can be
used as a down payment;
• The applicant can, in addition to the 20% down payment, pay all closing costs associated with the loan;
• The applicant can meet qualifying ratios of no more than 28% PITI and 36% TD when applying the 20% down payment;
• The applicant demonstrates qualifying credit for such a loan. Qualifying credit consists of at least two credit bureau trade
lines open and paid as agreed for at least a 24- month period to include that:
• The applicant was not currently 30 days or more past due on any trade line; and
• The applicant had not been 60 days or more past due on any trade line over the past 24 month period; and
• The applicant did not have a foreclosure or bankruptcy in their credit history over the past 36- month period.
• The conventional mortgage loan term is for a 30 – year fixed rate loan term without a condition to obtain
private mortgage insurance (PMI)
• If the applicant meets the cumulative criteria of traditional conventional credit, as defined by USDA above, the applicant is
ineligible for USDA financing.
Borrower Credit Profile
The borrowers credit profile is extremely important.
USDA has added as of 12/1/2014 the following
criteria:
At least one applicant whose income or assets are
used for qualification must have at least three
historical (any account that is open and active with
repayment underway or any account that has been
open, but may now be closed) trade line payment
references that have existed for at least 12 months to
establish a credit reputation and validate the credit
score. If not on the credit report, establish a minimum
payment history through use of a non-traditional
report. Nontraditional credit may not be used to
enhance poor payment records or low credit scores.
Loans underwritten with the assistance of the
Agency’s automated underwriting system that receive
an “Accept” recommendation are also subject to the
credit score validation of this Paragraph. A trade line in
a documented dispute with 12 months of history is
considered an eligible trade line. The inability to
validate credit scores used by GUS will require lenders
to downgrade an “Accept” underwriting
recommendation to a “Refer” and establish minimum
payment history through use of a non-traditional
report.
Any non traditional accounts must be placed on the
credit report as a supplement. Any verification of paid
accounts or ANY update to accounts must be
documented through a supplement to the credit
report.
• 620 credit score or better required for FSB
• Borrower must have at least 3 tradelines that have existed for 12
months. These tradelines can be closed accounts, but must have
been within the most recent 24 – 36 months.
• Tradelines may be non traditional, but must be added to the
credit report as a supplement
• The most important look back at the credit is 12 – 24 months.
• Late payments and collections within the most recent 12 months
are not acceptable
• Open judgments are not allowed and must be paid prior to CTC.
If judgments are within 12 months, may result in a denial.
• Bankruptcy – CH 7 must be 3 years old
• Bankruptcy – CH 13 must be discharged and 12 months old
• Bankruptcy – CH 13 in progress is acceptable, but 12 months of
payment to courts must have elapsed, payment performance
must be satisfactory and written permission from BK
court/trustee must be obtained for new mortgage. A Credit
Waiver by the lender is required and compensating factors must
be part of the loan.
• Foreclosure – must be 3 years old
Derogatory Credit
• Requires LOX on ALL negative credit reporting on credit report.
• Letter from borrower must explain all occurrences and demonstrate
how situation was out of their control and how it was resolved to
insure it will not happen again.
• Financial Mismanaging, divorce and “forgetting” are not acceptable
reasons for negative credit.
• The letter must make sense and if required, be supported by
documentation. The letter is signed by the borrower making it a legal
document to prosecute for fraud.
Collection Accounts
• 1) Determine if the total outstanding balance of all collections accounts of all applicants is equal
to or greater than $2,000. Unless excluded by state law, collection accounts of a non-purchasing
spouse in a community property state are included in the cumulative balance of all collections.
• 2) Remove all medical collections and charge off accounts from the total balance. Medical
collections and charge off accounts must be clearly identifiable on the credit report.
• 3) If the remaining outstanding balance of collection accounts are equal to or greater than
$2,000, any of the following actions will apply:
a. Payment in full of all collection accounts at or prior to closing.
b. Payment arrangements are made with each creditor for each collection account
remaining outstanding. A letter from the creditor or evidence on the credit report is
required to validate the payment arrangements. The agreed upon monthly payment for
each outstanding collection account will be included in the borrower’s debt-to-income
ratio.
c. In the absence of a payment arrangement, the lender will utilize in the debt-to-income
ratio a calculated monthly payment. For each collection utilize 5% of the outstanding
balance to represent the monthly payment.
Disputed Accounts
• Disputed accounts are not considered in the score calculation for the
borrower’s credit scores.
• For the disputed accounts to be disregarded they must 1) have a zero
balance 2) be marked “paid in full” or resolved and 3) balance owed is
less than $500 and is more than 24 months old.
• If the disputed account does not meet the above criteria the loan will
be downgraded to a manual underwrite.
Basics of Income Qualification
Does your borrower make too much money for USDA loan?
Income Eligibility Check
• VERY, VERY important to check that your borrower does not exceed
the income limitations for the county he/she is purchasing in prior to
working the loan in this direction.
• Utilize USDA’s online calculator to confirm Income Eligibility
• http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
• All income for the household must be included – even for adults that
are not on the loan but will be living in the home.
• The calculator will walk you through several screens and provide a
final answer. Accuracy of information is very important.
Site will provide Eligible or Ineligible Response
How to calculate Qualifying Income
Wage Earner
Self Employed
Paystubs for most recent 30 days
2 years tax returns for personal and business as applicable
(signed)
2 Years most recent W-2’s
YTD P&L – to be signed by borrower
Cash Flow Analysis worksheet
If using Overtime, Bonus or other income
Verification of Employment must be provided to show
breakdown of income for calculation purposes
Proof of receipt for a 2 year consecutive period must be
demonstrated
Further information may be requested from the underwriter for
clarification purposes
If borrower does not have a 2 year history of being selfemployed, the borrower is not eligible for financing
Further information may be requested from the underwriter for
clarification purposes
2nd Job
Only allowed if a 2 year history of having multiple employment
is demonstrated.
Verification of employment for all employment is required
Child Support
Must be documented accordingly
• Receiving Child Support
• 12 months proof of receipt required to consider in income totals
• Divorcee decree required
• Birth certificates of children may be required to establish continuance of 3 years
•
• Paying Child Support
• May not be delinquent – verified through credit report or other verification
process
• Must be included in Ratios – include on 1003
• Divorce Decree required
Employment
• Borrower must be currently employed
• Employment must be stable and a history of 2 years in same line of work
preferred. However, if the borrower can demonstrate a valid and
documentable reason for a career change, the income may be used at the
underwriter’s discretion
• New employment under 6 months is generally not acceptable as it has not
determined stability, however if in the same line of work it can be
considered. Previous specialized training will allow use of new
employment if not in the same line of work. Training must be documented
and can include recent graduation from college if degree shows they have
been trained for the job they are in.
• Gaps in employment must be explained. Gaps longer than 6 months are
only allowed at underwriter’s discretion
4506T Form & Transcripts
• A 4506T form will be required on all adult household members that will
reside in the home.
• Transcripts will be ordered on all members
• USDA will not accept a file for review without transcripts included
• IF transcripts are not included, the file WILL be rejected for submission by
USDA and the waiting period will start over once transcripts are added to
the file
• If a correspondent will be requesting the commitment from USDA, they will
be required to order the transcripts and include in the package to FSB
• 4506T forms are extremely sensitive and must be filled out correctly to
avoid being rejected by the IRS.
4506T Completion
Transcript orders are taking 5 – 14 days. With a
form that is completed correctly, we can
expedite the first time it is submitted. A few
pointers to follow:

Insure that only the address is showing in
the address sections. Verbiage such as “lives
with family” or “lives rent free” sometimes
sneaks in from your LOS system. Make sure
this is not showing.

Addresses should match what the IRS has on
file. It is wise to compare with the borrower
tax returns to insure correct information.

Recently married or divorced women may
have different names on previous returns. It
will matter and may require more than one
4506T to be signed. It will be better to have
several signed than to go back to the
borrower multiple times.

Make sure the correct years are showing
that are needed. They must match the
income information you are providing to us.
Ratios
Allowed per USDA Guidelines
DTI Ratios
Are a hot topic on USDA loans.
Delinquency in the past has been
reported as higher on USDA loans
than their FHA or VA counterparts.
In an effort to control excessive
delinquency, USDA has adopted a
stance on DTI that does not allow
for exceptions. This section will
outline the DTI rules that are in
effect as of 12/1/14.
• For loans under 680, the general
rule of thumb is DTI will not
exceed 29/41 unless the loan
receives an Approve/Eligible
through GUS allowing for higher
ratios.
• For loans above 680, a higher DTI
is allowed with compensating
factors. The higher ratios allowed
are 32/44
Compensating Factors for higher ratios
There are only 3 Compensating Factors that will be allowed for a higher ratio to be used
and the borrower must have a credit score above 680 and meet one of these for use of the
higher ratios:
1) The proposed PITI is equal to or less than the applicant’s
current verified housing expense for the 12 month period
preceding loan application. Verification of housing expenses
may be documented on a verification of rent (VOR) or credit
report. The VOR or credit report must include the actual
payment amount due and report no late payments or
delinquency for the previous 12 months. Rent or mortgage
payment histories from a family member will not be
considered unless 12 months of canceled checks, money
order receipts, or electronic payment confirmations are
provided. A history of less than 12 months will not be
considered an acceptable compensating factor.
2)Accumulated savings or cash reserves available post loan
closing are equal to or greater than 3 months of PITI
payments. A verification of deposit (VOD) or two most
recent consecutive bank statements document the average
balance held by the applicant are required. Cash on hand is
not eligible for consideration as a compensating factor.
3) The applicant(s) (all employed applicants) has
been continuously employed with their current
primary employer for a minimum of 2 years. A
“Request for Verification of Employment” (VOE)
(Form RD 1910-5, comparable HUD/FHA/VA or
Fannie Mae form, or other equivalent), or VOEs
prepared by an employment verification service
(e.g., The Work Number.) must be provided.
This compensating factor is not applicable for selfemployed applicants.
A debt ratio waiver must be prepared by the
lender for any requests of DTI exceptions that
exceed the standard 29/41 outlining the
compensating factors.
Student Loans
• Must be included in ratios regardless of deferment status.
• Lenders must include the greater of one (1%) percent of the loan
balance reflected on the credit report or the verified fixed payment
due by the loan servicer. Fixed payments have a monthly amount that
is not subject to change through the fixed repayment time frame.
Income Based Repayment (IBR) plans, graduated plans, adjustable
rates, interest only and deferred plans are examples of repayment
plans that will require a calculation of one percent of the loan as
these plan types do not represent a fixed payment.
Debts that should be included in ratios:
• Any open installment or revolving debts showing on credit report
• Any new debts that have not reported to credit, yet…but show as an
inquiry on the credit report
• Any debts that are owed but do not report to credit reporting
agencies. We will need a supplement added to credit report to verify
terms.
• Full PITI of new home
• If retaining current residence, full PITI payment
• Child support payments
Debts that are allowed to be excluded from
DTI:
• 401K loans
• Co-signed loans that have documentation that an outside party is
paying the debt. This can be proven with 12 months cancelled checks
or bank statements showing the payment from their account. Any
late payment will negate the removal of the payment from the DTI.
• Business debt that can be documented as paid by the business for 12
consecutive, most recent months. The debt must show paid from the
business account and proof supplied accordingly.
Application Verification
Validating the 1003 information
1003/Application
The information contained in the 1003 must
be fully documented. This section will
provide tips and clarification on how your
1003 should be completed for the best
possible outcome in underwriting.
The highlighted section should be accurate
and match the GFE/TIL. If a Joint account,
the top section should be signed by both
applicants.
The refinance section should only be
completed IF a refinance and all sections
should be completed.
It is important to list their current address
and any addresses the borrower/coborrower may have had over the past 2
years.
If the address does not match the Driver’s
License that is submitted, the underwriter
will require an LOX.
If RENT is marked in the residence history, a
VOR will be requested.
If Own is marked in the residence history, the
REO section should contain coordinating
information.
IF the applicant does not rent or own,
neither should be marked and an LOX from
the originator or processor should be
included noting the circumstances of the
housing for the borrower.
All forms that show a section for initials or
signatures must be fully executed to meet
compliance requirements.
The employment history section must be
completed in detail. Any missing information
will result in conditions from the underwriter
to complete the section.
Phone number should be accurate and not a
number that will reach the borrower. This
number will be used to complete the Verbal
Verification of Employment that will be
completed within 48 hours of closing.
If a borrower has multiple W-2’s for the most
recent 2 years, all W-2 employment must be
listed on the 1003. Dates must be correct
and a verification may be requested at the
discretion of the underwriter.
Monthly Income and Housing Expense
Accurate income is always crucial in a
mortgage loan. Income should be broken
down according to its correct classification
and not lumped together if containing OT,
Bonus or Commission.
SSI can be grossed up 125% and will be listed
under Other Income. Self employment
income will also be referenced in this
section.
If rent/own are checked in the residence
history, then Present Housing Expense must
be completed. This section allows the
underwriter to verify how much payment
shock the borrower will experience.
Proposed housing should include the full PITI
payment that the loan will generate.
Assets:
If assets are listed in the application, then 2
months bank statements MUST be provided.
Bank statements will also be required regardless
if on application or not when verifying fixed
income, down payment funds (to verify
borrower used own funds for Earnest Money
Deposit if cancelled check not provided) or cash
to close is noted in details of transaction.
If bank statements note NSF, overdrafts or other
negative activity on accounts, USDA does note
that this is financial mismanagement and will
not approve the borrower for a loan. It is
important that the Loan Officer/Processor
review statements prior to submission to
underwriting. If the circumstance was a one
time occurrence, an exception may be made
based on the reason for the NSF.
Liabilities:
Must all be included that are on the credit
report and any that might not report on the
report, but should be a part of the DTI.
Paystubs should be reviewed for child support
garnishments prior to underwriting submission.
Under Assets Section, many LO’s will list
household goods and Automobiles in this
section. For the purposes of mortgage loans,
this information is not required. Liquid
assets are more important to an applications
than non liquid assets.
Alimony, Child Support, Maintenance will
required documentation to support. A
divorce decree and verification of children’s
ages are basic documents needed.
Job related expenses:
Listed here will be union dues, unreimbursed
expenses taken from tax returns and other
misc amounts that are the borrower’s
responsibility based on their employment.
These are recurring expenses.
Unreimbursed expenses are typically a
surprise to the LO and 8 out of 10 times a
deal killer. FSB strongly suggests requesting
the tax returns from the borrower to verify
there are not any surprises before it is
underwritten.
REO Section
Full disclosure of properties owned is required.
This should include lots, land, commercial property,
residential property, etc. USDA is very specific
about a borrower only retaining a single residential
property in addition to purchase the new one.
They must qualify with BOTH PITI payments.
Only one USDA loan per borrower is allowed at a
time. If they currently have a USDA loan, there are
a couple of exceptions to that rule:
1)
The current home must be documented as
unlivable or inadequate for the family needs
2)
The borrower must be relocating closer to
his/her employment
Both reasons must be completely documented and
borrower must qualify with both payments.
Properties that are pending sale or recently sold
should be referenced in this section, too.
Details of transaction:
a)
Purchase price should match the contract
b) If escrow is being held for repairs to property, include this
amount here.
c)
N/A – only for construction lending
d) If a refi – debts to be paid off should transfer to this section
from marked to be paid liabilities
e)
Prepaid items as showing on GFE
f)
Closing costs as showing on GFE
g)
USDA Guarantee Fee of 2.00%
h) Discount points – if applicable
i)
Total costs of transaction
j)
DPA/Grant will show in this box
k)
Closing costs paid by seller per contract
l)
Other Credits such as property tax credit, broker credit, etc
will reflect here
m) Base loan amount
n) USDA Guarantee Fee of 2.00% (should match g)
o) Total Loan amount
p) Cash from/to borrower. If cash from borrower, assets to
cover this amount need to show in Assets section of 1003.
No cash back allowed to borrower except for
reimbursement of fees paid in advance
All questions must be marked correctly. The
borrower does sign acknowledging that all
information contained in the applications is
true and accurate.
The questions we see that are normally
marked inaccurately are:
B
C
G
Double check the answers with the borrower
to insure accuracy and eliminate surprises
later in the loan process.
Borrowers signatures will be matched to
driver’s license signatures to confirm identity
and verify matching.
Date of application should match date of
GFE/TIL and other initial application
disclosures.
Date of 1003 may be after credit report date
on a purchase. Typically the receipt of the
purchase contract is a simple reference date
for determining when the 3 day rules begins
for disclosures. On a refinance it should be
dated within 3 days of the credit report per
compliance rules.
Ethnicity, Race and Sex should be checked
based on information from the LO.
Originator to indicate how application was
taken.
LO’s information and signature required.
Should be dated within the 3 days required
per RESPA for initial disclosure.
RD Form 3555-21
This form is the equivalent of a 1003 for
USDA. The information on page 1 must be
fully completed by the Loan Officer. The full
document is 7 pages total and we will require
all 7 to be submitted to us. The form can be
found on our website (www.fsbtpo.com)
under Forms & Docs in the USDA Section.
3555-21 Page 2
Certifications sections
Lender’s Authorization will be completed by
the underwriter prior to loan being sent to
RD.
Applicant’s names are to be filled out at the
top and signatures needed at the bottom of
the form.
3555-21 Page 3
All household members must be listed on the
form and complete information supplied.
For pages 3 – 7, the underwriter will
complete the remainder of the information
from the documentation submitted in the
file.
Notice to Applicant
Income and Household
Members Disclosure
This is a required form that certifies all
income for the household is being disclosed.
It is also certifying that the family assets of
$500 or greater have been disclosed for
income calculation purposes.
FSB does require this form for every USDA
loan and it is a 2 page document.
GUS
Guaranteed Underwriting System
GUS
• Is the equivalent of DO or LP for all Rural Development Loans
• GUS does NOT read credit reports – just scores
• It is the underwriters discretion and responsibility to analyze the credit and
determine if it meets guidelines
• A GUS approve/eligible will streamline the file submission to USDA and allow for
a higher DTI as indicted in the approval.
• A Refer/Eligible will require a manual underwrite and limit the DTI ratios to 29/41
• TBD files CANNOT be ran through GUS
• Multiple submissions by underwriter to GUS will negate the findings
• Lenders use extreme caution in insuring correct information is in the GUS system
to avoid multiple submissions
• FSB will not run GUS until a full file has been submitted for underwriting
Property
Identifying a USDA Eligible Property
USDA Property Eligibility
• Always check website
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
• Enter address into map and it will identify if property is in an eligible
USDA area. If ineligible, loan must us a different program for
financing.
• Although property is deemed eligible due to location, it must still pass
criteria for safety and soundness per HUD guidelines.
Property Restrictions
• Manufactured homes are eligible BUT must be brand new, just set up
homes
• Condos are acceptable as long as FHA, FNMA, FHLMC or VA approved
• Purchase price not restricted as long as DTI criteria is met…no limit to
loan amount except cannot exceed conforming loan amounts
• Income producing farms are ineligible
• Multi-family dwellings are not allowed
The property meets minimum requirements
of HUD handbooks 4905.1 and 4105.2
• This verbiage must be on every USDA appraisal.
• FHA and USDA share the same minimum property requirements as
reference in HUD Handbooks 4905.1 & 4105.2
• If property does not meet handbook criteria, appraiser must provide
a detailed explanation of what repairs are required
• Repairs must be completed prior to closing if possible or an escrow
repair holdback may be set up.
Escrow Repair Holdback
• Per USDA, only 10% of loan amount is allowed to be escrowed for
repairs. FSB does require 150% of bids/repairs to be escrowed.
• Escrow repair agreement to be executed – available on our website
• Bids for repairs must be provided by a licensed contractor. Licensing
laws are determined by the state in which the property resides. FSB
will not allow borrower to complete the repairs.
• Repairs are to be completed within 30 days of closing, unless weather
related.
• A final inspection will be required to approve the release of the funds.
Basic Repairs Usually Needed….
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Chipped and peeling paint
Missing handrails or steps
Flooring – subflooring is not acceptable flooring
HVAC not working
Plumbing not working
Roof
Holes in drywall
Broken windows or doors
These are just a few examples….anything that affects safety and soundness
will be required to be repaired.
Outbuildings & Farm Land
Income-Producing Buildings. The property must not include
buildings designed and to be used principally for incomeproducing purposes. For example barns, silos, greenhouses, or
livestock facilities used primarily for income producing
agricultural, farming or commercial enterprise are ineligible.
However, barn, silos, livestock facilities or greenhouses no
longer in use for a commercial operation, used for storage,
and outbuildings such as storage sheds are permitted if they
are not used primarily for income producing agricultural,
farming or commercial enterprise. A minimal incomeproducing activity, such as maintaining a garden that
generates a small amount of additional income, does not
violate this requirement. Home-based operations such as
childcare, product sales, or craft production that do not
require specific features are not restricted. A qualified
property must be predominantly residential in use, character
and appearance.
Income-Producing Land. The site must not
have income-producing land that will be
used principally for income producing
purposes. vacant land or properties used
primarily for agricultural, farming or
commercial enterprise are ineligible. Sites
that have income-producing characteristics
(e.g. large tracts of arable land ready for
planting) are considered income-producing
property. However maintaining a garden for
personal use is not in violation of this
requirement. A minimal income-producing
activity, such as a garden that could
generate a small amount of additional
income does not violate this requirement
Additional Property Requirements
• If property contains a private well, a water test must be performed. The test may
not be older that 120 days at loan closing. Well distances must meet HUD
Handbook 4150.2 and noted in the appraisal or by the well inspection
• A septic inspection will be required for properties using a septic system. If an FHA
appraiser certifies the septic meets HUD requirements and notates the distance
of the septic from the home and water source, a full inspection may not be
required. If the FHA appraiser notes the septic system needs further inspection
or does not mention that the septic system meets HUD guidelines a separate
inspection will be required.
• For properties on a private road, shared road or other non public type road, a
road agreement must be on file in the courthouse and provided to the lender for
the underwriting of the file. All parties living on the road must execute the
agreement.
• New homes built within the most recent 12 months require additional USDA
documents to be completed for “New Construction”. Please contact your AE for
these forms that will be required to be completed by the builder/dealer.
What to Expect When Submitting
A USDA Loan to FSB
The USDA submission flow
Prepare your file for submission
• Make sure we get as much information to approve (or deny) the file
from the initial review. Include all USDA forms noted in this training.
• To close loans quickly, a full file should be submitted
• If a prequalification is desired to insure the borrower will qualify,
please email 1003 & Credit to [email protected]
• Do not forget your Submission Cover Sheet – located on our website
at www.fsbtpo.com
• Upload FNMA 3.2 file to Mortgagebot and Register the file.
• Upload submission packet and under Actions click FINAL
File Initial Review
• The Jr Underwriter will review your documents for compliance and split the file for the
Underwriter to complete the credit review
• The Underwriter will review the file within 24 hours and provide conditions as needed
for further explanation, missing information or clarification of information submitted.
• The conditional approval will be sent to you by the Jr Underwriter.
• If you have questions on your conditions, please utilize your Account Executive to assist
you with your questions. Most of the time, the AE’s know the answers or will get the
answers from the Underwriter.
• The Underwriter will contact you during the underwriting of the file if they have
questions that will simplify the conditions.
• The initial review will contain 2 – 3 sections. Section 1 will be the compliance conditions
that the Jr. Underwriter assigns. Section 2 will be the Prior To Closing conditions that the
Underwriter will need to review to provide the CTC and Section 3 will be the PTF or Prior
to Funding conditions that will be applicable at closing.
Resubmitting Conditions
• When you have gather all or good majority of conditions and are ready to
resubmit the file, follow the same steps you did for the initial submission. Don’t
forget to Final the file!
• Within 24 hours, your underwriter will have an updated conditional approval
notice ready for you. If all the conditions were satisfied with this submission, the
file will be sent to the USDA office for Conditional Commitment. Unless you are a
Delegated Correspondent that will handle that on your own. This would already
be determined with your company approval.
• USDA Turn times vary by state with the typical time ranging from 2 – 5 days.
• If your file did not contain all the conditions to allow the file to be sent to USDA,
your updated notice will not what is still outstanding. Provide at your earliest
convenience and the underwriter will notify you when the file is sent to USDA.
CC or Conditional Commitment is Received!
• If you have any outstanding conditions while you are waiting for the
CC to come back from RD, get them in!
• The Underwriter will CTC the loan when the CC comes in…if all other
conditions are satisfied.
• Once loan is CTC’d the Loan Officer may schedule the closing with our
Closing Department by sending in the Closing Request form located
on our website (www.fsbtpo.com)
• FSB will get the loan note guarantee (LNG) after closing unless the
delegated Corr has indicated they will complete this task.
Scenario?
If you have a scenario that you want to run
by us….do not hesitate!
Send us the 1003 and Credit report with a
brief outline of your questions.
We will respond back to you within hours
and advise you on if this file will work on the
USDA program and what will be needed
besides the normal submission package.
[email protected]
Questions?
If you have any questions about this training, please ask! If it is something that
comes up later, you can email us at [email protected] or contact us
by phone at 815-676-0990.
For additional Reference, please
review USDA’s training site at
https://usdalinc.sc.egov.usda.gov
/USDALincTrainingResourceLib.do
This training is property of Flanagan State Bank, Copyright 2015. NMLS 408461. All
Rights Reserved.