USDA Technology Fee
Dear Valued Clients –
On January 1, 2020, USDA Single Family Housing Guaranteed Loan Program will begin assessing a $25.00 technology fee from lenders on each loan that was submitted through the Guaranteed Underwriting System (“GUS”). Specifically, any file submitted via GUS that is issued Form RD.
3555-18E, “Conditional Commitment for Single Family Housing Loan Guarantee,” on or after January 1, 2020, will require lenders to remit a one-time $25.00 technology fee with their loan closing package (i.e. the same time a lender currently remits the upfront guarantee fee).
The technology fee should be entered in Section B of the Loan Estimate, as it is a required fee that cannot be shopped for by the borrower.
The option for brokers to offset the $25.00 USDA technology fee so the borrower is not being charged for this cost is only available on Borrower Paid transactions. The broker would extend a $25.00 broker credit on page 3 of the CD. Arrangements with title should be made on how to cover the cost at time of funding and disbursement.
You may begin to disclose the technology fee now on new loan applications taken where the conditional commitment will likely not be issued by January 1, 2020.
Please note this is a valid change of circumstance. If by January 1, 2020 the USDA Conditional Commitment has not yet been issued, you may request a Change of Circumstance to add the $25 Technology Fee. The 3 day window to redisclose adding the $25 Technology Fee will close after 1/6/2020. Fairway Closers will follow the normal tolerance cure procedure at time of funding and disbursement.
Contact your Regional Account Manager should you have any questions related to this Client Announcement.
Fairway Wholesale Lending appreciates your
continued business and values your relationship!