USDA Rural Development announced in RD AN No. 4757 that the annual fee will increase from 0.4 percent to 0.5 percent for all loans. The upfront guarantee fee will remain at 2.0 percent for all loans.
For Single Family Housing Guaranteed Loan Program loans (SFHGLP) obligated on or after October 1, 2014, both purchase and refinance transactions will be subject to:
• An upfront guarantee fee equal to 2.0 percent of the loan amount.
• An annual fee of 0.5 percent of the unpaid principal balance (increased from 0.4 percent).
The current ConformX data integrity error for the 0.4 percent annual fee will be modified to only trigger for USDA loans with an obligation date (Field 51597 “RD Obligation Date”) prior to October 1, 2014. A new data integrity error will be added to ensure an annual fee of 0.5 percent for USDA loans with obligation dates on or after October 1, 2014.
The USDA data integrity errors not based on obligation date will be expanded to allow the new value of 0.5 percent for the annual fee.
These changes will take effect on July 19, 2014. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
July 10, 2014