Lender Alerts

USDA announces Reduced Upfront Guarantee Fee and Annual Guarantee Fee for Single Family Housing Guaranteed Loan Program

Dear Licensed Partner,

The USDA has announced that the upfront guarantee fee and annual guarantee fee for purchase and refinance loans under USDA's Single Family Housing Guaranteed Loan Program will be reduced. The new fee will apply to loans with Conditional Commitments issued from October 1, 2016 through September 30, 2017.

All existing USDA loans in the pipeline where the conditional commitment is not issued by USDA by close of business day September 30, 2016 must be redisclosed with the new 1.0% upfront guarantee fee and 0.35% annual guarantee fee and Sun West will reunderwrite with the new guarantee fees and resubmit the application package to USDA.

If you wish for us to hold your USDA submission and not submit to the RD office until AFTER the new, lower fee is in effect, please ensure that you disclose the new, lower fee structure on the Loan Estimate to the borrower prior to submission. SWMC underwriting will hold submission to USDA any loans disclosed under the new, lower fee structure until such time as the local jurisdictional office indicates that they will begin accepting new submissions to be committed under the new, lower fee structure.

If the loan is disclosed under the existing fee structure, however want SWMC underwriting to hold the submission to USDA until new, lower fees are in effect, you may notify SWMC and provide Loan Estimate with updated Loan Estimate in order to process under new, lower fees.

If you have any questions, please contact your Client Relations Manager at (855) OK-SUNWEST or (855) 657-8693.

Sincerely,

Sun West Mortgage Company, Inc. 18000 Studebaker Road, Suite 200 Cerritos, CA 90703 Phone: (800) 453-7884