September 17, 2020 | Volume 13, Issue 4

In this issue:

CEO update

When I think of Mutual Self-Help Housing and programmatic impact, I often pause to consider what an amazing financing vehicle the U.S. Department of Agriculture 502 direct mortgage program is for rural America. It has been a staple for mortgage financing in rural communities for more than 60 years, yet we often take for granted what a powerful tool the 502 program is for building and sustaining affordable rural housing. Read more

CHA, CHA, CHA changes … OMB Guidance for Grants and Agreement Changes

On August 13 the Office of Management and Budget revised sections of the OMB Guidance for Grants and Agreements. There are two sections that went into effect immediately on that date … Read more

Dear Sher

My organization has been running and submitting Tri-Merge Credit Reports (TMCR) under the Temporary Authorization through this fiscal year and we’re wondering what happens if a grantee/packager submits a TMCR with a package and it expires before closing? Who pays for the new credit report? I know if RD initially runs it and then has to re-run it, they absorb that cost but how does it work if the grantee ordered it? Read more

5 days of 502 Direct for self-help

RCAC is presenting five webinars over five days on Section 502 Direct Loan Packaging topics for self-help. Grantees, USDA Rural Development staff and anyone interested are welcome. Each webinar will cover a standalone topic; you may attend as many as you want or as few as you want; and everyone is welcome to attend the Grand Finale competition on Friday! Please use the links below to register for the webinar(s) of interest to you.

Day 1: Income Calculations and Assets
Monday, September 21 | 12:00 to 2:00 PM Pacific Time

Day 2: Credit and Other Requirements
Tuesday, September 22 | 12:00 to 2:00 PM Pacific Time

Day 3: Repayment Ability and Application Submission
Wednesday, September 23 | 12:00 to 2:00 PM Pacific Time

Day 4: Property Requirements and Property Submission
Thursday, September 24 | 12:00 to 2:00 PM Pacific Time

Day 5: Underwriting, Loan Closings and Loan Conversion
Friday, September 25 | 12:00 to 1:00 PM Pacific Time

Day 5: Grand Finale! Review Competition, everyone’s welcome
Friday, September 25 | 1:00 – 2:00 PM Pacific Time

What’s new in 502 webinars?

RCAC is offering another two “What’s New in 502!” webinars due to popular demand.
A lot has changed in Section 502 loan processing recently with new procedural notices, special guidance and even that Final Rule. There’s been plenty to keep up on! We’ll cover the changes that have occurred during the past year so you can avoid common packaging errors and future delays. This session will help you improve the quality and completeness of your applications, providing your families with faster loan closings!

Wednesday, September 23 | 9:00 AM – 11:00 AM Pacific Time | Register HERE

OR

Tuesday, September 29 | 1:00 PM – 3:00 PM Pacific Time | Register HERE

News you can use!

USDA continues to implement immediate measures to help rural residents, businesses and communities affected by COVID-19

USDA Rural Development has taken a number of immediate actions to help rural residents, businesses and communities affected by the COVID-19 outbreak, including opportunities for immediate relief and waiving or relaxing certain parts of the Section 502 application process. Download the notice HERE