The following data integrity error message triggers for USDA/RD loans in ConformX if the loan term is more than 360 months, the loan is interest only or biweekly, there is a balloon payment, or the amortization type is set to ARM:
“Per 7 CFR § 3555.104(b), RD/USDA loans must have fully amortizing fixed monthly payments and the loan term cannot be longer than 30 years.”
A new set of conditions has been added to also trigger this error for RD loans if the loan purpose is construction to permanent and the “Construction Interest Rate Type” (Field 1181) is set to “Prime Rate Plus”, since HB-1-3555 ch. 12.26 prohibits the construction interest rate from being adjustable:
“The interest rate during the construction period must be a fixed rate. Adjustable interest rates during construction are not allowed.”
These changes will be in effect on December 21, 2018. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.