single family housing guaranteed loan program › files › rd-sfh-loanterms1.pdf · loan terms...
TRANSCRIPT
![Page 1: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/1.jpg)
Loan Terms
Single Family Housing Guaranteed Loan Program
1
![Page 2: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/2.jpg)
Training Objectives • Where is the topic located?
* 7 CFR Part 3555 and HB‐1‐3555 • Learning Checks • Resources
2
![Page 3: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/3.jpg)
Things change! • Every effort has been made to ensure training references are accurate at the time of publication.
• Always reference the most recent USDA publications available online.
3
![Page 4: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/4.jpg)
Guaranteed Loan Program Regulation7 CFR Part 3555 • The regulation is the rule! • 8 Subparts: A – H• Appendix 1
4
![Page 5: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/5.jpg)
7 CFR Part 3555http://www.rd.usda.gov/publications/regulations‐guidelines
5
![Page 6: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/6.jpg)
7 CFR Part 3555
6
![Page 7: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/7.jpg)
7 CFR Part 3555
7
![Page 8: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/8.jpg)
7 CFR Part 3555: 3555.104
8
![Page 9: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/9.jpg)
7 CFR Part 3555: 3555.104
9
![Page 10: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/10.jpg)
Guaranteed Loan Program Technical HandbookHB‐1‐3555 • Provides guidance to support the regulation• HB is not the rule • 20 Chapters
10
![Page 11: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/11.jpg)
HB‐1‐3555
11
![Page 12: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/12.jpg)
HB‐1‐3555
12
![Page 13: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/13.jpg)
TIPS• Underwriter = USDA Approved Lender • USDA = not an underwriter • Research Rule & HB questions: Table of Contents• Research Rule & HB questions: Control + F
13
![Page 14: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/14.jpg)
7 CFR PART 3555 / HB‐1‐3555 LEARNING CHECKS
14
![Page 15: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/15.jpg)
Question Slide“Topic”
• Question will be bulleted with scenario, or • Include a statement/question
TRUE/FALSE or other answer options will be displayed
15
![Page 16: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/16.jpg)
ANSWER SLIDE“Topic” ANSWER: 7 CFR Part 3555 and HB‐1‐3555 references provided
X. Correct Response
• Additional guidance for clarification may be provided
16
![Page 17: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/17.jpg)
17
![Page 18: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/18.jpg)
Loan terms A 15 year term is eligible for a USDA guaranteed loan.
A. TRUE B. FALSE
18
![Page 19: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/19.jpg)
Loan terms ANSWER: 3555.104(a)(1) and HB 7.3 A
B. FALSE
• The loan term must be 30 years• Loan terms less than 30 years are unauthorized • No prepayment penalties apply
19
![Page 20: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/20.jpg)
Loan terms
USDA publishes a daily interest rate for guaranteed loans.
A. TRUE B. FALSE
20
![Page 21: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/21.jpg)
Loan terms ANSWER: 3555.104(a)(2) and HB 7.3 B
B. FALSE
• Rate is negotiated between lender and applicant Interest rates may not exceed:• Fannie Mae 90 day delivery for fixed rate mortgage • Plus 100 basis points • Rounded up to the nearest quarter of one percent
21
![Page 22: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/22.jpg)
Loan terms: Interest Rate Resourcehttps://www.fanniemae.com/singlefamily/historical‐daily‐required‐net‐yields
22
![Page 23: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/23.jpg)
Loan terms: Interest Rate Resource Example
23
![Page 24: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/24.jpg)
Loan terms Maximum Interest Rate Calculation Example• Interest Rate Locked: April 26th
• 90 day Fannie Mae rate on April 26th: 3.29• 3.29 + 100 basis points = 4.29 • Round up to nearest ¼ of 1% = 4.50%
An interest rate locked on April 26th can not exceed 4.50%
24
![Page 25: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/25.jpg)
Loan terms • Form RD 3555‐21 states interest rate is floating• 5% is entered for the interest rate • The maximum interest rate for the date USDA reviews the loan is 4.25%
• The loan is ineligible until the lender corrects the interest rate
A. TRUE B. FALSE
25
![Page 26: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/26.jpg)
Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B
B. FALSE
• It is the lender’s responsibility to ensure the interest rate is eligible at the time of lock/loan closing
• Loans closed at unauthorized interest rates will be ineligible for a loan note guarantee without correction
26
![Page 27: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/27.jpg)
Loan terms • Interest rate locked on April 5th
• Fannie Mae 90 day rate: 3.15179%• What is the maximum interest rate the lender may offer the applicant
A. 4.25% B. 4.00%
27
![Page 28: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/28.jpg)
Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B
A. 4.25%
• 3.15 + 100 basis points = 4.15% • Round up to nearest quarter of one percent = 4.25%
28
![Page 29: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/29.jpg)
Loan terms
Lenders must charge the maximum allowable interest rate.
A. TRUE B. FALSE
29
![Page 30: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/30.jpg)
Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B
B. FALSE
• Lenders negotiate the interest rate with applicants• The maximum rate must not be exceeded at the time of rate lock
30
![Page 31: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/31.jpg)
Loan terms
Which loan term(s) is eligible:
A. Fixed interest rate B. Adjustable interest rate C. Negative amortizationD. Balloon mortgageE. Prepayment penalties
31
![Page 32: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/32.jpg)
Loan terms ANSWER: 3555.104(b),(c),(d) and HB 7.3 C
A. Fixed interest rate
• Adjustable interest rate, negative amortization, balloon mortgages and prepayment penalties are ineligible loan terms
32
![Page 33: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/33.jpg)
33
WAY TO GO!
![Page 34: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/34.jpg)
Regulationshttp://www.rd.usda.gov/publications/regulations‐guidelines
34
![Page 35: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/35.jpg)
GovDelivery Sign uphttps://public.govdelivery.com/accounts/USDARD/subscriber/new?qsp=USDARD_25
35
![Page 36: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/36.jpg)
Thank you for supporting the USDA Single Family
Housing Guaranteed Loan Program!
36
![Page 37: Single Family Housing Guaranteed Loan Program › files › RD-SFH-LoanTerms1.pdf · Loan terms ANSWER: 3555.104(a)(3) and HB 7.3 B B. FALSE • It is the lender’s responsibility](https://reader033.vdocuments.mx/reader033/viewer/2022060404/5f0ed0777e708231d44111e6/html5/thumbnails/37.jpg)
37