RD 3555-18 Conditional Commitment for SFH Guarantee

USDA-RD FORM APPROVED

Form RD 3555-18 OMB NO. 0575-0179 (Rev 00-00)

CONDITIONAL COMMITMENT FOR
SINGLE FAMILY HOUSING LOAN GUARANTEE

TO: Lender’s Name and Address	Borrower ID: (USDA 9 digit ID, not SSN)
	State:	County:
	State Code:	County Code:
Borrower:	Principal Amount of Loan:
	$
Borrower SSN:

From an examination of information supplied by the Lender on the above proposed loan, and other relevant information deemed necessary, it appears that the transaction can be properly completed.

Therefore, the United States of America acting through the Rural Housing Service (RHS), or its successor (herein referred to as Agency) hereby agrees that, in accordance with applicable provisions of the Agency regulations published in the Federal Register at 7 CFR part 3555, Agency handbook procedures, and related forms, it will execute Form RD 3555-17, ''Loan Note Guarantee,'' subject to the conditions and requirements specified in said regulations and below.

The up-front Loan Note Guarantee fee payable by the Lender to Agency is $______________.

The interest rate for the loan is %.¹

The annual fee for the first year of the loan, based upon the above stated principal amount of loan and stated interest rate of this commitment is $ ____________. The calculated monthly amount is: $________________²

A Loan Note Guarantee will not be issued until the Lender meets all regulatory requirements and completes and executes the attached “Lender Certification for SFH Guaranteed Loan, certifying that there has been no adverse change(s) in the Borrower's financial condition, nor any other adverse change in the Borrower's condition during the period of time from Agency's issuance of this conditional commitment to issuance of the Loan Note Guarantee. The Lender's certification must address all adverse changes and be supported by financial statements of the Borrower and its guarantors not more than 60 days old at the time of certification.

This conditional commitment becomes null and void unless the Lender submits their request for Loan Note Guarantee in accordance with 7 CFR § 3555.107() of within 30 days from date of loan closing. Except as set out below, the purposes for which the loan funds will be used and the amounts to be used for such purposes are set out on Form RD 3555-21, ''Request for Single Family Housing Loan Guarantee.'' Once this instrument is executed and returned to the Agency, no major change of conditions or approved loan purpose as listed on these forms will be considered.

Additional Conditions and Requirements including source and use of funds: ³

 See Attachment to this form for conditions and requirements.

 No additional conditions.

 Other:

This conditional commitment will expire on _____________⁴ unless the time is extended in writing by the Agency, or upon the

Lender's earlier notification to the Agency that it does not desire to obtain an Agency guarantee.

	UNITED STATES OF AMERICA
	By: _______________________________________________
Date: ___________________________	_______________________________________________(Title)

1 Insert fixed interest rate.

2 The annual fee will be calculated when the loan is made and every 12 months thereafter, based upon the loan amount and the average annual scheduled unpaid principal balance. The annual fee will be due each month the loan is outstanding. Billing for the annual fee will begin 12 months from the date of loan. The amount on this Commitment is based upon the stated principal loan amount and interest stated. Changes to either element will change the annual fee amount.

3 Insert any additional conditions or requirements in this space or on an attachment referred to in this space; otherwise select “No additional conditions.”

4 The Agency will determine the expiration date of this contract. This data will not exceed 90 days from the date of issuance. The Agency may grant one (1) 90 day- extension. Consideration will be given to the date indicated by the Lender in the acceptance of conditions. If construction is involved the expiration date will correspond with the projected completion of the project.

According to the Paperwork Reduction Act of 1995, no persons are required to respond to a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection is O575-0179. The time required to complete this information collection is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

LENDER CERTIFICATION
FOR SFH GUARANTEED LOAN

L ENDER CERTIFICATION:

Instruction to Lenders: For use by lenders closing loans under 7 CFR part 3555. Submit an original (or true and accurately represented imaged document) to the Rural Development office who issued Form RD 3555-18, “Conditional Commitment for Single Family Housing Loan Guarantee”. Retain a duplicate of the executed certification in the Lender’s permanent case file.

In connection with the request for Loan Note Guarantee for:

­­­­­­­­­­­­­­­­­­­­­­­­­­­­­________________________________________________________________­­­­­­­­­­­­­­­­­­­_(Borrower) , Borrower ID__________________ the following certifications are made by___________________________________________ (Lender). I, the undersigned Lender certify that:

1. No major changes have occurred since the issuance of the Conditional Commitment for Single Family Housing Loan Guarantee that affect the subject loan request, except any that have been approved by the Agency in writing.

   1. The closed loan matches the proposed loan upon which the Conditional Commitment for Single Family Housing Loan Guarantee was issued or revised.

   2. If the interest rate was not fixed at the time the Conditional Commitment for Single Family Housing Loan Guarantee is issued, and the interest rate increased between issuance of the Conditional Commitment for Single Family Housing Loan Guarantee and loan closing, the change is noted and documentation of the fixed rate at lock is submitted.

      1. If either or both of the underwriting ratios are exceeded as a result of an interest rate increase, compensating factors that demonstrate sufficient repayment continues to exist is required. Documentation supporting the increase must be included in the Loan Note Guarantee request.

   3. No default exists.

2. The lender has not imposed any charges or fees against the borrower in excess of those permissible as set forth in 7 CFR part 3555.

3. The information submitted to the Agency is true, accurate and complete.

4. The information obtained in the loan application was obtained directly from the borrower by an employee of the undersigned lender or the lender’s duly authorized agent and is true to the best of the lender’s knowledge and belief.

5. The credit report submitted on the subject borrower (and co-borrowers(s), if any) was obtained by the undersigned lender or the lender’s duly authorized agent directly from the credit bureau which prepared the report and was received directly from said credit bureau.

6. The verification(s) of employment and verification(s) of deposits, if applicable were requested and received by the lender of the lender’s duly authorized agent without passing through the hands of any third persons and are true to the best of the lender’s knowledge and belief.

7. This loan to the named borrower(s) meets the income and credit requirements of 7 CFR part 3555.

8) The loan conforms to the applicable provisions of 7 CFR part 3555.

9) All planned property acquisition (construction, repairs, alterations or improvements) has been completed upon which the market value of the property is predicated unless:

1. An escrow account has been established in accordance with 7 CFR 3555.202(c) and Chapter 12 of the Single Family Housing Guaranteed Loan Program Handbook (HB-1-3555).

10) The required insurance coverage is in effect.

11) All Truth-in-Lending requirements have been met.

12) All equal employment opportunity and nondiscrimination requirements have been met.

13) The loan has been properly closed and the required security instruments have been obtained.

14) The borrower(s) have marketable title to the collateral now owned by the borrower subject to the instrument securing the loan to be guaranteed and any other exceptions approved in writing by the Agency.

15) Lien priorities are consistent with the requirements of the Conditional Commitment for Single Family Housing Loan Guarantee.

16) The loan proceeds have been disbursed for purposes and in amounts consistent with the Conditional Commitment for Single Family Housing Loan Guarantee.

17) There has been no adverse change in the borrower's financial condition or any other adverse change in the borrower's situation since the Conditional Commitment for Single Family Housing Loan Guarantee was issued by the Agency.

18. All inspections in accordance with 7 CFR §§ 3550.201 and 3555.202 and Chapter 12 of HB-1-3555 have been obtained.

19) All other requirements listed in the Conditional Commitment for Single Family Housing Loan Guarantee have been met.

20) If the sale of the note or transfer of servicing occurs subsequent to this certification, the lender agrees to notify Rural Development in accordance with 7 CFR § 3555.54.

At this time, the loan will be:

retained sold concurrently as follows: [Lender must be an approved FNMA, FHLMC, FHA, VA or GNMA lender]

Servicing Lender (The lender that will be servicing the loan(s)):

Lender Tax ID: _____________________________________ Agency Assigned Branch Number: ______________

Lender Name: _________________________________________________________________________________________________________

Address: _____________________________________________________________________________________________________________

City: __________________________________ State: __________ Zip Code: _________________

Holding Lender (The RHS approved Lender who will be holding/owning the mortgage no e- i.e. Fannie Mae, Freddie Mac, etc., not Ginnie Mae):

Lender Tax ID: _____________________________________ Agency Assigned Branch Number: _____________

Lender Name: _________________________________________________________________________________________________________

Address: _____________________________________________________________________________________________________________

City: __________________________________ State: __________ Zip Code: _________________

Borrower Information

Borrower’s Social Security Number: _______________________________ This Loan was securitized into a Ginnie Mae Pool

(Mark an X in the box if loan is securitized into a Ginnie Mae pool)

Borrower’s USDA ID Number: ____________________________________

Borrower’s Name: _____________________________________________________________________________________________________

Address: _____________________________________________________________________________________________________________

City: __________________________________ State: __________ Zip Code: ___________________

As the lender selling or transferring the servicing of the above loan(s), We certify that the information in this submission is true and correct, and that all loans sold were sold to an RHS approved lender.

______________________________________ ________________________________ _________________

LENDER’s AUTHORIZED TITLE DATE

REPRESENTATIVE SIGNATURE LENDER’s REPRESENTATIVE SIGNED

The following documents are to accompany the Lender Certification:

Guaranteed Loan Closing Report, Form RD 1980-19 [Not applicable to lenders who electronically close loans]

Guarantee Fee [Not applicable to lenders who electronically close loans and process the fee through a pre-authorized debit]

 Promissory Note

 Final Statement of Loan Disbursements and Costs or HUD-1 Settlement Statement

Other Necessary Documents, as applicable:

Interest rate: If the rate was not locked at issuance of the commitment, evidence the date the interest rate was locked in accordance with 7 CFR 3555.104(a), if the rate was floating at issuance of the Conditional Commitment for Single Family Housing Loan Guarantee.

Escrow accounts: If development work is finished at Loan Note Guarantee request, confirmation development work has been performed for escrow accounts developed in accordance with 7 CFR 3555.105(f) and Chapter 12 of HB-1-3555. If pending at guarantee request, confirmation development has been completed may be by a confirmation by the lender work is complete via email or presentation of the final inspection.