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Final7CFRPart3555andHB13555Revisions
ORIGINATION
SingleFamilyHousingGuaranteedLoanProgramMarch2016
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GuaranteedLoanProgramRegulation7CFRPart3555 InterimfinalruleeffectiveDecember1,2014 FinalRulePublished:FederalRegisterFebruary8,2016 FinalRuleEffective:March9,2016
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7CFRPart3555SubpartA:General.1:Applicability.2:Purpose.3:CivilRights.4:Mediationandappeals.5:EnvironmentalRequirements.6:Stateandlocallaw.7:Exceptionauthority.8:Conflictofinterest.9:Enforcement.10:Definitionsandabbreviations
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7CFRPart3555SubpartB:LenderParticipation.51:Lendereligibility.52:Lenderapproval.53:Contractingforloanorigination.54:Saleofloanstoapprovedlenders
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7CFRPart3555SubpartC:LoanRequirements.101:LoanPurposes.102:Loanrestrictions.103:Maximumloanamount.104:Loanterms.105:Combinationconstructionandpermanentloans.107:Applicationforandissuanceofloanguarantee.108:Fullfaithandcredit
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7CFRPart3555SubpartD:UnderwritingtheApplicant.151:Eligibilityrequirements.152:Calculationofincomeandassets
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7CFRPart3555SubpartE:UnderwritingtheProperty.201:Siterequirements.202:Dwellingrequirements.203:Ownershiprequirements.204:Securityrequirements.205:Specialrequirementsforcondominiums.206:Specialrequirementsforcommunitylandtrusts.207:SpecialrequirementsforPlannedUnit
Developments(PUDs).208:Specialrequirementsformanufacturedhomes.209:RuralEnergyPlusloans 7
7CFRPart3555SubpartF:ServicingPerformingLoans.251:Servicingresponsibility.252:Requiredservicingactions.253:Latepaymentcharges.254:Finalpayments.255:Borroweractionsrequiringlenderapproval.256:Transferandassumptions.257:Unauthorizedassistance
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7CFRPart3555SubpartG:ServicingNonPerformingLoans.301:Generalservicingtechniques.302:Protectiveadvances.303:Traditionalservicingoptions.304:Specialservicingoptions.305:Voluntaryliquidation.306:Liquidation.307:Assistanceinnaturaldisasters
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7CFRPart3555SubpartH:CollectingontheGuarantee.351:Loanguaranteelimits.352:Losscoveredbytheguarantee.353:Netrecoveryvalue.354:Lossclaimprocedures.355:Reducingordenyingtheclaim.356:Futurerecovery
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GuaranteedLoanProgramTechnicalHandbookHB13555 RevisionDocument:DistributedthroughGovDeliveryFebruary22,2016
RevisedHB13555PublishedandEffective:March9,2016
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HB135551.Overview2:RecordRetention3:LenderApproval4:LenderResponsibilities5:OriginationandUnderwritingOverview6:LoanPurposes7:LoanTermsandConditions8:ApplicantCharacteristics9:IncomeAnalysis10:CreditAnalysis 12
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HB1355511:RatioAnalysis12:PropertyandAppraisalRequirements13:SpecialPropertyTypes14:FundingPriorities15:SubmittingtheApplicationPackage16:ClosingtheLoanandRequestingtheGuarantee17:RegularServicing PerformingLoans18:ServicingNonPerformingLoans19:CustodialandRealEstateOwnedProperty20:LossClaims CollectingontheGuarantee 13
ORIGINATIONREVISIONS Chapter5:OriginationandUnderwritingReviewthru
Chapter16:ClosingtheLoanandRequestingtheGuarantee
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TIPS Underwriter= USDAApprovedLender USDA=notanunderwriter ResearchRule&HBquestions:Control+F ResearchHBquestions:TableofContents
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7CFRPART3555FINALRULEREVISIONS
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7CFRPart3555:3555.5
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Additionalinsuranceoptionsincluded.
Clarificationforexistingdwellings:noneedtoconsideralternatives
7CFRPart3555:3555.5
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Clarificationforprivatefloodinsuranceadded
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7CFRPart3555:3555.5
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FinaladdedforLOMA/LOMR
Newdwellingsinfloodzones,ifalternativesanalysisperformed:compliantwithAgenciesNationalEnvironmentalPolicyActregulation
7CFRPart3555:3555.101
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Discountpointsmaybefinancedforallapplicants(lowincomeonly,removed)
Regulationcitationscorrected
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7CFRPart3555:3555.101
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Clarificationaddedforprincipalbalanceofloanandexclusionofaccruedinterest
ClarificationaddedtorefertoHB13555foradditionalguidanceasapplicable
7CFRPart3555:3555.103
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Regulationcitationcorrected
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7CFRPart3555:3555.104
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FreddieMacinterestrateoptionremoved
7CFRPart3555:3555.105
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Manufacturedhomesisremovedasineligibleforthesinglecloseconstructionloan.Eligiblesitecondosareeligible
guaranteewasremovedafterAnnual
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7CFRPart3555:3555.107
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LatechargesattributedtopaymentoftheannualfeeduemayNOTbepassedtotheborrower
7CFRPart3555:3555.108
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Clarificationtorevokeoriginatinglenderseligibilityaddedwhentheregulationisnotmet
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7CFRPart3555:3555.151
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loanadded
Chapter13bankruptcyguidanceadded
7CFRPart3555:3555.256
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Regulationcitationcorrected
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7CFRPART3555/HB13555REVISIONSAND
LEARNINGCHECKS
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Chapter5:OriginationandUnderwritingOverview NEW:OmittedaccountsrequiretheNotesinGUStobecompleted(5.3F)
NEW: Lendersshoulduseelectronicdocumentdelivery(5.3J)
NEW:GUSCreditReports:IfthereportinGUSwillexceed120daysatloanclosing,butanewreportrevealsnochangestocredit,noresubmission/revisionisrequired(5.3M)
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Chapter5:OriginationandUnderwritingOverview PurchasePrice:$175,000 Whatamountofeligibleassetswillindicatethehouseholdmayqualifyforconventionalcredit?
A.$35,000B.$35,000plusclosingcosts/etc.
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Chapter5:OriginationandUnderwritingOverviewANSWER:5.2A
B.$35,000plusadditional$$forclosingscosts,etc.
$175,000x20%=$35,000 Verifyadditionalmoneyforrequiredcosts EnsureapplicantdoesnotqualifyforaconventionalloanpercurrentFannieMaeand/orFreddieMacguidelines
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Chapter5:OriginationandUnderwritingOverview Openauthorizeduseraccount CreditsupplementobtainedoutsideofGUSdocumentsthisaccountasclosed
GUSAcceptuw recommendationmayberetained
A.TRUEB.FALSE
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Chapter5:OriginationandUnderwritingOverviewANSWER:5.2A
B.FALSE
CreditreportinGUSmustbeaccurate GUScannotacceptsupplementreports
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Chapter5:OriginationandUnderwritingOverview January:$1,115.79 February:$2,546.46
Correctassetentryforreservecalculation:A.$1,831.25B.$2,546.46
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Chapter5:OriginationandUnderwritingOverviewANSWER:5.3E
A.$1,831.25
Lessorof: Twomonthaveragebalanceor Currentbankstatement/recentVOD Inflatedreserves=unsupporteduw recommendation
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Chapter5:OriginationandUnderwritingOverviewWhichoptionisthecorrectwaytoomitadebtinGUS?A.
B.
C.
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Chapter5:OriginationandUnderwritingOverviewANSWER:5.3FB.
DebtmustbemarkedOmit Notesdatafieldmustbecompleted
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Chapter5:OriginationandUnderwritingOverview
AcompleteFormRD355521includestheincomeworksheet.
A.TRUEB.FALSE
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Chapter5:OriginationandUnderwritingOverviewANSWER:5.3J
A.TRUE
TheincomeworksheetispartofFormRD355521 IncomeWorksheethasbeenremovedasaseparaterequireditem
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Chapter5:OriginationandUnderwritingOverview
Lendersareencouragedtoelectronicallyuploadoriginationandloanclosingdocuments.
A.TRUEB.FALSE
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Chapter5:OriginationandUnderwritingOverviewANSWER:5.3J
A.TRUE
UploadDocumentsinGUS LenderLoanClosingLLCSystem SAVEYOURPAPERFORGROCERYLISTS
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Chapter5:OriginationandUnderwritingOverview
CreditreportinGUShasexceeded120days(expired) CreditpulledoutsideofGUSverifiesnochanges
LendermayretaincurrentconditionalcommitmentwiththeexpiredcreditreportinGUS.
A.TRUEB.FALSE
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Chapter5:OriginationandUnderwritingOverviewANSWER:5.3M
A.TRUE
Nochanges=issuedconditionalcommitmentisvalid Newcredit/adverseimpact=resubmit
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Chapter6:LoanPurposes NEW:Discountpointsmaybefinancedforallapplicants(6.3)
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Chapter6:LoanPurposes
Discountpointsmaybefinancedforallapplicants.
A.TRUEB.FALSE
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Chapter6:LoanPurposesANSWER:6.3
A.TRUE
Nolongerrestrictedtoonlylowincomeapplicants Eligibleloanpurposeuptomaximumloanamountper3555.103
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Chapter6:LoanPurposes
USDAhasinternalthresholdsforlenderpoints,fees,andcharges.
A.TRUEB.FALSE
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Chapter6:LoanPurposesANSWER:6.2C
B.FALSE
USDArequireslenderstofollowFederalandStatelaws CFPBpublishesguidelines
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Chapter8:ApplicantCharacteristics Manufacturedhomeunitsnotonpermanentfoundationsareconsideredfunctionallyinadequate(8.2A)
Overcrowdingroomcount:Donotincludebathroomsorentryhall/foyer(8.2A)
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Chapter8:ApplicantCharacteristics Tradeline andadversecreditrequirementsremovedfromconventionalcreditqualifications(8.2B)
NEW:Educationalsavingsplans/529Plansarenotconsideredforconventionalcreditassetqualification(8.2B)
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Chapter8:ApplicantCharacteristics Militaryapplicantoccupancy:Dischargerequirementwithinoneyearremoved(8.2C)
LenderdatabasesthatutilizeSAMareacceptable(8.2E)
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Chapter8:ApplicantCharacteristicsWhichmanufacturedhomeisfunctionallyinadequate?
A.
B.
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Chapter8:ApplicantCharacteristicsANSWER:8.2A
B.
Notonpermanentfoundation Mayberetaine