Document Updates: Lender Certification For SFH Guaranteed Loan (Cx3818) and Conditional Commitment for SFH Loan Guarantee – RD 3555-18 (Cx18892)

Cx18892 is a duplicate of the U.S. Department of Agriculture’s form RD 3555-18 (available at: https://forms.sc.egov.usda.gov/eForms/searchAction.do?pageAction=BrowseForms&_MenuAction=Yes) and Cx3818 is a duplicate of the last two pages of said form (primarily comprised of the “Lender Certificate” section).

RD 3555-18 was recently revised and we will be updating Cx3818 and Cx18892 to match the latest version. The form has been heavily modified and key changes include the following:

• Changing the revision date from February 2016 to January 2020;
• Complete revisions to four of the first five paragraphs. In addition to formatting changes to the third paragraph (e.g., inclusion of bullet points, removing the articles “The” at the beginning of each listed item, etc.), a new bulleted item (“Guarantee Systems Technology Fee payable by the lender is $[blank line])” will be added as the last item and will disclose the amount when New Field 137650 (“USDA Technology Fee Amount”) is sent;
• The first sentence in the sixth paragraph has been changed and will form its own separate paragraph and the first of the three check-boxed items in the sixth paragraph will be deleted;
• The last paragraph on the first page will be changed to state the following:

“This conditional commitment will expire on [specify]² unless extended by the Agency upon request of the lender, or the Lender notifies the Agency that it does not desire to obtain a Loan Note Guarantee.”

• The first footnote on the first page will be removed and subsequent footnotes re-numbered accordingly. The third and fourth sentences in the current third footnote will be replaced with the following:

“The Agency may grant a reasonable extension based on the approved Lender’s request.”

• The title “Lender Certification for SFH Guaranteed Loan” and title line on page 2 will be removed. Except for the subtitle “Lender Certification:”, all text following the title line and prior to the first sentence following Clause 21 will be replaced with the following:

“In requesting a Loan Note Guarantee from United States Department of Agriculture, Rural Development-Rural Housing Service (Agency), I certify on behalf of the Lender (identified below), that this loan has been underwritten and closed in accordance with applicable law and guidance, and meets all conditions set forth in the Conditional Commitment except for changes previously approved in writing by the Agency. All documentation and fees have been submitted to the Agency.”

• The word “concurrently” will be deleted in the “retained/sold” checkboxes on page 2;
• The check-boxed items on page 3 will be changed as follows:
  • Bracketed text will be deleted;
  • Reference to the “Final HUD-1 Settlement Statement” will be changed to “Final Closing Disclosure”;
  • Reference to the “Guarantee Fee” will be changed to “Guarantee Systems Technology Fee” and will be marked when Field 137650 (“USDA Technology Fee Amount”) has a value; and
  • A new item (“Up Front Loan Note Guarantee Fee”) will be added as the third item;
• The italicized paragraph following the check-box list on page 3 (“The lender certifies statements [etc.]”) will be replaced by a new, third footnote which states the following:

“Lenders using the Agency’s Lender Loan Closing (LLC) system are required to submit fees and documentation electronically as outlined in the LLC system documentation.”

These changes will take effect on February 4, 2020. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.

DR 308149