The new USDA Single Family Housing Guaranteed Loan Program (SFHGLP) 7 CFR 3555 will replace the current USDA RD Instruction 1980-D effective with Conditional Commitments issued on or after December 1, 2014.
USDA has announced that in order to transition from the current guidelines to the new 7 CFR 3555 guides, and to eliminate the backlog of loans currently in their system, they will stop accepting new applications from the close of business Friday, November 21, 2014 through Sunday, November 30, 2014.
During this time, new applications may be entered into GUS but the final submission cannot be made until Monday, December 1, 2014. New submissions will be subject to the new CFR 3555 guidelines. USDA will not accept manually underwritten loans during the transition period.
Any loan that does not have a Conditional Commitment issued by December 1, 2014 must be re-submitted to GUS or manually re-underwritten (as applicable) and will be subject to the new 7 CFR 3555 guidance even if the loan was submitted to USDA prior to Friday, November 21, 2014.
REMN Wholesale will make every effort to complete the underwriting of any USDA loan currently in the pipeline and request a Conditional Commitment from USDA prior to November 21, 2014, however there is no guarantee the Commitment will be received.
The following will require resubmission to GUS or manual underwriting (Streamline Refinance transactions) and will be subject to the new CFR 3555 guidelines:
- Loans without a Conditional Commitment issued prior to December 1, 2014
- Loans that receive a Conditional Commitment prior to December 1, 2014 but do not close by the Commitment expiration or the credit/appraisal documentation expires prior to close (whichever is first).
REMN Wholesale will provide additional information on the specific USDA guidelines changes in the near future.
If you have any questions, please contact your Account Executive.