Kentucky USDA Refinance Funds Have Been Exhausted for Fiscal Year 2012!
August 21, 2012
USDA Mortgage Purchase and Refinance Funding Update for Kentucky Homeowners and Buyers
This announcement is to inform you of the current commitment
authorities available for the Single Family Housing Guaranteed Loan Program
(SFHGLP) loans.
Due to a change in Fiscal Year (FY) 2013 fee structure which
goes into effect October 1, 2012, Lenders are urged to check with States to
determine application processing time frames before underwriting applications.
USDA Mortgage Refinance Funds:
FY (fiscal year) 2012 USDA Mortgage refinance funds have been
exhausted.
We expect to run out of refinance commitment authority no later
than Monday, August 20, 2012. When USDA Mortgage refinance commitment
authority is exhausted, refinance loan requests for which a conditional
commitment (Form RD 1980-18) has not been issued will be returned to the lender
and require underwriting under the fiscal year 2013 fee structure. The FY
2013 fee structure will require a one-time upfront guarantee fee of 2 percent
and an annual fee of 0.40 percent. At this time, the Agency will not
issue conditional commitments “subject to” receipt of FY 2013 funding or
commitment authority.
USDA Mortgage Purchase Funds:
Lenders are urged to be cognizant of the differing backlogs and
processing time frames from state to state. If it is determined
unrealistic that the State will be able to review the USDA loan guarantee
application and issue a conditional commitment before September 30, 2012,
lenders are urged to underwrite the USDA Mortgage application at the FY 2013
fee structure. The FY 2013 guarantee fee structure will require purchase
and refinance loans to carry a one-time upfront guarantee fee of 2 percent and
an annual fee of 0.40 percent.
In addition, if the state where the property is located is
experiencing longer processing time frames, lenders should advise the applicant
accordingly when discussing interest rate locks and potential loan closing
dates.
Joel
Lobb (NMLS#57916)
Senior
Loan Officer
502-905-3708
cell
502-813-2795
fax
Key Financial Mortgage Co. (NMLS #1800)
107 South Hurstbourne Parkway
Louisville, KY 40222
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