This is a very CRITICAL UPDATE and anyone using the USDA loan, or if you KNOW of someone using USDA loans, please pass this blog link along, or RE-BLOG it to your sphere!!

I have included at the bottom of the BLOG, the entire list of loan coordinators within the United States of America!  Email first if you can! 

 

   Also, check out the music video at the end as well!

 

The reason for this update is because the USDA is experiencing it's highest volume since the inception of the program! 

************************** 

 

BEFORE I SUMMARIZE the changes, we need to first cover LENDER OVERLAYS!

What is a Lender overlay you ask?  Well, Im glad you asked!  Thanks!

A Lender overlay is a requirement that a specific LENDER has, that maybe another Lender does not have!  For example, if you speak directly with a USDA office about a specific requirement on a loan application, offer to purchase, or confront them about a situation, and you get a FAVORABLE RESPONSE, it may not mean anything at all!  WHY?  Because the LENDER that is UNDERWRITING and approving the loan PRIOR to the loan going to the USDA, may have a sticter rule, or may not approve a loan under those circumstances!  Hence, enter the LENDER OVERLAY! 

Another example, JP Morgan Chase & Taylor Bean & Whittaker, are the only two companies I AM AWARE of that allow a USDA loan product to be processed as a "Subject to" appraisal, or as a "fixer upper" loan!

Wells Fargo, and other companies do not!  Why?  Because they have LENDER OVERLAYS! What this is REALLY telling you is that they dont understand them, dont want to have anything to do with them, and aren't we all afraid of the unknown?  They do not want to take the risk!  Who does today?

NOW TWO VERY QUICK THINGS TO WATCH FOR IN THE COMING DAYS! 

 Realtors-  If you are not getting them already, start watching for a CHANGE in loan committments!  Loan committments are going to start coming through with stipulations on them!  This isn't a bad thing necessarily, but you will start seeing approvals come through that say..."this loan approval is SUBJECT TO an acceptable appraisal, and any other further sitpulations put forth by the Rural Development office!

Lenders-  Start looking over your appraisals WAY more closely!  DO NOT RELY on your internal underwriter,manager, or processor!  LOOK AT THE DARN THING YOURSELF!  A friend of mine recently had her USDA loan suspended, due to the site value being 30.10% of the appraised value!  Limit in USDA loans is 30%.  Yes, it is only 1/10th of 1 percent, but look at the grief we are getting!

 

Okay, now on to the summary!

  

 Let's first talk about rate locks!

 Rural Development has experienced a HUGE increase in volume.  Directly from the USDA, they are asking both Lenders & Realtors alike to allow ample time for a review of the file and a response.  "Plan accordingly with your rate locks and loan closings. Contacting Rural Development multiple times as a Lender,Broker,Realtor, or borrower, will only delay your important request. "  In other words folks, be patient!  Lenders, make sure your Realtors understand time frames and turn times!  Realtors, take your heart medication and drink lots of fluids!   In other words, plan for an extended delay in high volume processing areas!

 

This is a quote from the USDA alert regarding CONTACTING the RD office!

"While many parties are anxious for their request to be acted upon, commication concerning guaranteed loan applications will occure between the Rural Devlopment and the approved Lender.  Brokers, correspondent lenders,Realtors,or potential borrowers,etc..should communicate with the approved lender, NOT Rural Development."

 

 Lenders

The Guaranteed Underwriting System (GUS), will reduce proceesing times and allow approved lenders to verity loan data for accuracy in a timely manner!  Here's the rub tho:  There are MANY new GUS rules that may REQUIRE ADDITIONAL DOCUMENTATION to be submitted on "ACCEPT" loan files when a "final" underwriting submission is executed. 

Read all  your findings!  What does this mean to Realtors?  Well, sadly, they can add things at the end!  I know we don't like hearing that...but they can!  Tough!  However, communication is VERY important on this!

   

 

 Okay, now here are Bucky's Tips & Best Practices straight from the USDA!

Any of these changes may adversely affect your Conditional Loan Committment!

 

1.  if the loan amount increases

2.  if the loan interest rate increases

3.  if there is an increase in mortgage or personal liabilities

4.  if there is a decrease of assets, and/or the income decreases 

 

 

 How about an example?  Let's say, your customer is buying a home.  They get their Conditional Loan Committment and everybody is happy!  House is inspected and/or appraised, and it is determined that the house needs a new roof.  Seller refuses to pay for it!  Well, the USDA plan allows for a new roof to be financed!  Hurrah!  However, that spells DELAY!  Hence, the loan amount increases,the mortgage liability increases, and more than likely the debt ratio goes up!  This means that it will need to go BACK to underwriting!  Sometimes this is 1 day, or 1 week!  Depends on volume!  PLAN AHEAD!

 

LASTLY

USDA LOANS DO NOT REQUIRE HOME INSPECTIONS!  Hello??  Bueller??

Click HERE for the income limits link

 Click HERE for the income income eligibility link

Click HERE for the property eligibility link

 

 THE FOLLOWING STATEMENT BELOW IS DIRECTLY FROM THE USDA!

         Sign up for our email distribution list to receive timely updated information regarding program origination, GUS underwriting or servicing.  Sign up at:  http://www.rdlist.sc.egov.usda.gov/listserv/mainservlet.

  

STATE	CONTACT	PHONE #	EXT.	FAX #	E-MAIL ADDRESS
AK	Karen LaMouria	(907)761-7732		(907)761-7794	klamouri@ak.usda.gov
AL	Al Butler	(256)532-1677		(256)532-1931	al.butler@al.usda.gov
AL	Lou Rambo	(334)279-3442		(334)279-3448	lou.rambo@al.usda.gov
AR	Linda McCaslin	(501)301-3235		(501)301-3290	linda.mccaslin@ar.usda.gov
AS	Stephanie Taketa	(808)933-8308		(808)933-8327	stephanie.taketa@hi.usda.gov
AZ	Earl Tatlow	(602)280-8709		(602)280-8879	earl.tatlow@az.usda.gov
CA	Annete Joyer	(916)714-1104	107	(916)714-1118	annette.joyer@ca.usda.gov
CA	Ed Amen	(530)226-2589		(530)226-2567	ed.amen@ca.usda.gov
CA	Nellie Nunez	(559)734-8732	110	(559)732-3481	nellie.nunez@ca.usda.gov
CA	Viloet Gomes	(831)757-5294	106	(831)424-7289	violet.gomes@ca.usda.gov
CO	Jamie A Spakow	(720)544-2918		(720)544-2970	jamie.spakow@co.usda.gov
CT	Arlene Nunes	(413)253-4300	4333	(413)253-4347	arlene.nunes@ma.usda.gov
DE	Stacey Slacum	(302)857-3603		(302)857-3611	stacey.slacum@de.usda.gov
FL	Bob Coordsen	(352)338-3435		(352)338-3437	bob.coordsen@fl.usda.gov
FL	Roger Taylor	(352)338-3435		(352)338-3437	roger.taylor@fl.usda.gov
FM	Stephanie Taketa	(808)933-8308		(808)933-8327	stephanie.taketa@hi.usda.gov
GA	Ashley Carlan	(706)546-2169		(706)613-3046	ashley.carlan@ga.usda.gov
GU	Stephanie Taketa	(808)933-8308		(808)933-8327	stephanie.taketa@hi.usda.gov
HI	Stephanie Taketa	(808)933-8308		(808)933-8327	stephanie.taketa@hi.usda.gov
IA	LindaKay Rhoades	(515)284-4723		(515)284-6668	linda.rhoades@ia.usda.gov
ID	Pamela S. Cook	(208)378-5628	1	(208)378-5643	pamela.cook@id.usda.gov
IL	Lindsey Rademacher	(217)403-6216		(217)403-6231	lindsey.rademacher@il.usda.gov
IN	Vince Maloney	(317)290-3100	414	(317)290-3096	Vincent.Maloney@in.usda.gov
KS	Kevin Culley	(785)271-2722		(785)271-2784	kevin.culley@ks.usda.gov
KS	Tim Rogers	(785)271-2718		(785)271-2784	tim.rogers@ks.usda.gov
KY	Don Johnson	(859)224-7361		(859)224-7450	don.johnson@ky.usda.gov
LA	Scott Pousson	(318)473-7630		(318)473-7829	scott.pousson@la.usda.gov
MA	Arlene Nunes	(413)253-4300	4333	(413)253-4347	arlene.nunes@ma.usda.gov
MD	Stacey Slacum	(302)857-3603		(302)857-3611	stacey.slacum@de.usda.gov
ME	Dale D. Holmes	(207)990-9110		(207)990-9119	dale.holmes@me.usda.gov
ME	Lorrie Hamlin	(207)990-9110	113	(207)990-9119	lorrie.hamlin@me.usda.gov
MH	Stephanie Taketa	(808)933-8308		(808)933-8327	stephanie.taketa@hi.usda.gov
MI	Kevin Smith	(888)771-6993	113	(517)676-1909	kevin.smith@mi.usda.gov
MN	Linda Behrendt	(651)602-7797		(651)602-7825	linda.behrendt@mn.usda.gov
MO	Nathan Tutt	(573)876-0990		(573)876-9348	nathan.tutt@mo.usda.gov
MO	Randall L. Griffith	(573)876-0976		(573)876-9348	randy.griffith@mo.usda.gov
MP	Stephanie Taketa	(808)933-8308		(808)933-8327	stephanie.taketa@hi.usda.gov
MS	Ivan Kiani	(601)965-4325	133	(601)965-4561	ivan.kiani@ms.usda.gov
MS	Robert (Don) Thames	(800)548-0071	146	(601)965-5384	Robert.Thames@ms.usda.gov
MT	Laura Horn	(406)585-2559		(406)585-2565	laura.horn@mt.usda.gov
NC	Dale Darroch	(919)873-2036		(919)873-2075	dale.darroch@nc.usda.gov
NC	Mel Ellis	(919)873-2041		(919)873-2075	mel.ellis@nc.usda.gov
NC	Neal Sherrod	(919)873-2059		(919)873-2075	neal.sherrod@nc.usda.gov
ND	Barry Borstad	(701)530-2046		(701)530-2111	barry.borstad@nd.usda.gov
NE	Krista K. Stevens	(402)437-5518		(402)437-5408	krista.stevens@ne.usda.gov
NE	Michael Buethe	(402)437-5574		(402)437-5408	mike.buethe@ne.usda.gov
NH	Colleen Ladew	(603)223-6035		(603)223-6061	colleen.ladew@nh.usda.gov
NJ	Neal Hayes	(856)787-7732		(856)787-7737	neal.hayes@nj.usda.gov
NM	Art Garcia	(505)761-4973		(505)761-4977	arthur.garcia@nm.usda.gov
NV	William L. Brewer	(775)887-1222	13	(775)885-0738	william.brewer@nv.usda.gov
NY	Janette Smith	(607)753-0851	4	(607)753-3190	janette.smith@ny.usda.gov
OH	Jerry Greenbaum	(614)255-2405		(614)255-2561	Jerry.Greenbaum@oh.usda.gov
OK	Jackie Walther	(405)742-1070		(405)742-1084	jackie.walther@ok.usda.gov
OK	Richard Himbury	(405)742-1079		(405)742-1084	richard.himbury@ok.usda.gov
OR	Rachel Shultz	(503)414-3337		(503)414-3394	rachel.shultz@or.usda.gov
PA	Jeremy Wilson	(717)237-2277		(717)237-2193	jeremy.wilson@pa.usda.gov
PA	Rob Lane	(717)237-2275		(717)237-2193	robin.lane@pa.usda.gov
PR	Arlene Zambrana	(787)766-5095	222	(787)281-4993	arlene.zambrana@pr.usda.gov
PW	Stephanie Taketa	(808)933-8308		(808)933-8327	stephanie.taketa@hi.usda.gov
RI	Arlene Nunes	(413)253-4300	4333	(413)253-4347	arlene.nunes@ma.usda.gov
SC	George Randolph	(803)253-3094		(803)253-3827	george.randolph@sc.usda.gov
SD	Kathy Chase	(605)352-1132		(605)352-1154	kathy.chase@sd.usda.gov
TN	Tom Favreau	(615)783-1364		(615)783-1391	tom.favreau@tn.usda.gov
TX	Joyce McGlothlin	(254)742-9763		(254)742-9735	joyce.mcglothlin@tx.usda.gov
TX	Leon Carey	(254)742-9772		(254)742-9735	leon.carey@tx.usda.gov
UM	Stephanie Taketa	(808)933-8308		(808)933-8327	stephanie.taketa@hi.usda.gov
UT	Kristine Dahlberg	(801)524-4329		(801)524-4406	kristine.dahlberg@ut.usda.gov
VA	Agnes Rollins	(540)433-9126		(540)432-1707	Agnes.rollins@va.usda.gov
VA	Byron Waters	(804)287-1547		(804)287-1784	Byron.Waters@va.usda.gov
VA	Gwen Fender	(804)287-1598		(804)287-1784	Gwen.Fender@va.usda.gov
VI	Bob Coordsen	(352)338-3474		(352)338-3437	bob.coordsen@fl.usda.gov
VI	Roger Taylor	(352)338-3495		(352)338-3437	roger.taylor@fl.usda.gov
VT	Bob McDonald	(802)828-6013		(802)828-6018	bob.mcdonald@vt.usda.gov
VT	Michael Bard	(802)828-6013		(802)828-6090	michael.bard@vt.usda.gov
VT	Rita Weisburgh	(802)828-6003		(802)828-6067	rita.weisburgh@vt.usda.gov
WA	Benjamin (Ed) Reynolds	(360)704-7765		(360)704-7718	WA-grh@wa.usda.gov
WI	Julie Czappa	(715)345-7620	119	(715)345-7699	Julie.Czappa@wi.usda.gov
WV	Scott Mullin	(304)263-6461	110	(304)267-9172	scott.mullin@wv.usda.gov
WY	Shauna Gibbs	(307)233-6722		(307)233-6739	shauna.gibbs@wy.usda.gov

 

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 Thanks for reading & Keep selling!

 

-Darin-

 

As always, I welcome your concerns,comments,issues and suggestions!  Darin@Osmwi.com

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