Rural Development announced yesterday afternoon that the upfront guarantee fee for all refinance transactions will increase from 1 percent to 1.5 percent effective Wednesday, December 7, 2011.
New Conditional Commitment requests for refinance transactions will be issued by the Agency utilizing a 1.5 percent upfront guarantee fee and a 0.3 percent annual fee. The upfront fee for purchases is still at 2 percent and the annual rate is still at 0.3 percent.
The new fee structure for fiscal year 2012 is as follows:
- 2 percent upfront guarantee fee for purchase transactions;
- 1.5 percent upfront guarantee fee for refinance transactions; and
- 0.3 percent annual fee for both purchase and refinance transactions.
Conditional Commitments that were issued “subject to the receipt of commitment authority” before December 7, 2011 will be honored at the 1 percent upfront rate for refinances. Rural Development expects the commitment authority for refinances to become available on Wednesday, December 7, 2011. Until such funds are posted, Rural Development will issue Conditional Commitments for refinances “subject to the receipt of commitment authority.”
ConformX will be updated this evening to use an upfront RD guarantee fee rate of 1.5 percent in the data integrity check for RD refinances with Obligation Dates on or after December 7, 2011. ConformX already allows any upfront rate to be used if the “RD Guarantee Fee Data Integrity Checks” are not enabled in the user’s ConformX System Default Settings.
December 6, 2011