I just received word through USDA in FL that GUS is expected to be rolled out to brokers early 2009. Below I have reprinted the email circulated by USDA FL today:

"Good evening,   WOW!  FL lenders have utilized  nearly $200,000,000 in USDA, Rural Development residential loan guarantees and  have assisted nearly 1,400 families so far in FY-2008.      Join us at the FAMB Convention and Trade Show next week.  I will be conducting seminars on Wednesday and Friday.  In addition, we will exhibit at the trade show in booth #0708.     All Agency approved lenders should sign up for the new FREE web based Guaranteed Underwriting System (GUS) at this time.  With an "accept"  from GUS , you can reduce the submissions package to only three (forms), saving lots of time and money.  The sign-up process is very simple.  Contact me to start the brief approval process.  Brokers will be allowed access in early 2009.   Attached are:

• Latest newsletter.
• Updated Handbook for use in FL/VI.
• Updated Quick Guide for use in FL/VI.
• Test every package for RD eligibility.  Why use FHA or other products?  See the comparison of payments on the Quick Guide. 
• Directory of FL/VI offices.  

The Handbook has several significant changes in content:

• Made 1980-86, Reservation of Funds, an optional form.  RD should not require the Reservation if it has not been sent or is not included in a loan package.
• Changed out inspection requirements to give more detail.  
• Made separate paragraph on condominiums.
• The optional certification on meeting HUD handbook requirements is included in the forms section.  The certification can be done in the appraisal. 
• Credit criteria and underwriting guidelines have been substantially revised.
• Clarified pool waiver.
• Revised "Loan Purposes" section.
• Changed paragraph titled "A Rural Lending Program" to "Eligible Areas".  We need to move away from using the term "rural" (because some lenders may assume urban fringes of towns are not eligible).
• Added information on GUS.  All approved lenders are encouraged to use GUS.  GUS will significantly reduce your work load.
• The file submission checklist and forms are separated so that they may be copied from the handbook.

    Note that the handbook provides:

• Narrative description for calculating the fee.
• Screen prints of the 'eligibility' web site income calculator.
• Chart of allowable income deductions.
  • The medical deduction is allowed for all families regardless of whether or not the qualify as "elderly family".

Quick Guide:

• Removed reference to minimum credit score. 
• Revised section titled "Do they have reasonable credit?" to remove reference to minimum credit score and replace it with language showing levels of credit scores.

REMINDERS:

• Technically there remains no minimum credit score.  However, a lender cannot waive a score of 580 or less if they have ANY of the standard glitches in credit.  If somehow they have a 580 or less without one of the typical problems (such as a 30-day late), it can be waived but only with exceptional documented compensating factors.  In other words, it will be rare to receive underwriter approval when the FICO is at 580 or less.
• All existing home must meet the requirements of the HUD Handbooks 4150.2 and 4905.1.  The appraisal must clearly state that the home meet the HUD requirements.  Underwriting lenders are responsible for assuring the appraiser knows the requirements.  It is recommended that FHA appraisers be utilized in writing the URAR and inspecting the property.  Appraisals on existing homes will not be accepted without this certification.  We cannot issue the Commitments subject to this documentation. 

Sign up for direct receipt of the products updates issued out of our national headquarters:    http://www.rdlist.sc.egov.usda.gov/listserv/mainservlet   Contact your local Rural Development staff for assistance.  A directory is attached.  You won't find  local contacts  with FHA, VA, Freddie Mac or Fannie Mae!  Use Rural Development.  It's the best product for both the customers and you.   Do you do business in or around the cities?  Forget the "Rural" in our name.  Check out our mapping system.  You'll be amazed to see how many high population areas are still considered eligible.  

BOB COORDSEN

Guaranteed Housing Specialist

Rural Development, USDA

P.O. Box 147010

Gainesville, FL  32614-7010

overnight to:  4440 N.W. 25th Place

Gainesville, FL  32606-6563

352-338-3474; fax 352-338-3437"

It's a nice thing to see attempts being made to increase access to mortgage funds at a time when IndyMac is being seized and dark clouds loom over Fannie/Freddie. All is not lost folks! It's up to us mortgage professionals that are left to do our jobs and help steer the country out of this mess!

If anyone has difficulty aquiring the attachments referenced (they are available through the website), just email me and I'll forward them.

Gerry Suarez, Jr.

Your HUD Loan Pro!