USDA Rural Development announced that the Annual Fee for all loans will increase from 0.30 percent to 0.40 percent effective October 1, 2012. In addition, the Upfront Guarantee Fee for all refinance transactions will increase from 1.50 percent to 2.00 percent effective October 1, 2012. The Upfront Fee for purchases will stay at 2.00 percent.
Conditional Commitments that are issued through September 30, 2012 will continue to use 0.30 percent for the Annual Fee, 1.50 percent for the Upfront Guarantee Fee for refinances, and 2.00 percent for the Upfront Guarantee Fee for purchase loans.
The new fee structure for Fiscal Year (FY) 2013 is as follows:
• 2.00 percent Upfront Guarantee Fee for both purchase and refinance transactions; and
• 0.40 percent Annual Fee for both purchase and refinance transactions.
The FY 2013 fee structure is applicable to all Conditional Commitments (Form RD 1980-18, “Conditional Commitment for Single Family Housing Loan Guarantee”) issued by Rural Development on or after October 1, 2012. Loan guarantee requests submitted to Rural Development by September 30, 2012, in which a Conditional Commitment has not been issued, will be subject to the FY 2013 fee structure.
ConformX has been updated to use an Upfront Guarantee Fee rate of 2.00 percent in the data integrity check for RD refinances and an Annual Fee rate of 0.40 for all RD loans with Obligation Dates on or after October 1, 2012.
ConformX will continue to allow any Upfront Guarantee Fee rate to be used on RD loans if the “RD Guarantee Fee Data Integrity Checks” are not enabled in the user’s ConformX System Default Settings.
If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
August 13, 2012