Lender Alerts

USDA Annual Guaranty Fee Increase

Dear Licensed Partner,

Effective October 1, 2014, the annual guaranty fee under USDA’s Single Family Housing Loan Program will increase from 0.4% to 0.5%.

USDA loans where conditional commitment is issued by Rural Development (RD) on or before September 30, 2014 will not be affected by the annual fee change. If the conditional commitment is NOT issued by RD on or before September 30, 2014, such loans must be re-underwritten using an annual fee of 0.5% and the applications must be resubmitted in GUS.

Additionally, all new USDA loans submitted to Sun West on or after September 29, 2014 must be disclosed with the 0.5% annual fee. All existing USDA loans where conditional commitment is not issued by September 30, 2014 will be re-processed and re-disclosed by Sun West with 0.5 annual guaranty fee.

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