USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶14.5 — Lender Withdrawal Of Application

USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶14.5 — Lender Withdrawal Of Application

14.5 LENDER WITHDRAWAL OF APPLICATION If a lender wishes to withdraw an application in the Guaranteed Underwriting System (GUS), they can do so by clicking the "Withdraw Application" button. However, this option is only available if the application's submission status is "Unknown" or "Preliminary." If the application's submission status is "Final," the withdraw application button will be disabled and the lender cannot withdraw the application at that stage. However, if the application status is set to "Pending," the lender has the option to recall the application from the "Final" submission status. This means that if the HB-1-3555 (03-09-16) SPECIAL PN 14-5 Revised (10-12-23) PN 594 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. application has been finalized but is still in the "Pending" stage under application status, the lender can request to withdraw it. This is a two-step process; first the lender must recall the final submission and second withdraw the application. Once the application status changes to "In Process" or "Approved," the recall option will be disabled, and the lender will be unable to recall or withdraw the application. In cases where the application status is "In Process" or "Approved," the lender should notify the Agency immediately to withdraw the application. By notifying the Agency, the loan guarantee request can be removed from the system, and the funds allocated for that application can be released back to the state's allotment. This is done to ensure that the funds can be utilized for other guarantee requests and maximize the number of loans granted. It is crucial for lenders to inform the Agency promptly when they no longer require the funds to avoid depriving other pending applicants the opportunity to obtain a loan guarantee. By releasing the funds, the Agency can reallocate them to deserving applicants and facilitate the loan guarantee process efficiently. Some common reasons for withdrawing a loan guarantee request are: x Lender’s rejection of the borrower’s application; x Change in property; or x Choice of a loan program other than the SFHGLP. 14.6 AGENCY ACTION – REQUESTING FUNDS FROM THE NATIONAL OFFICE RESERVE Funds may be retained by the National Office during a fiscal year to meet program needs or Agency objective. To request funds from the National Office reserve, Agency employees will: x Request funding on the Agency’s SharePoint site at: https://usdagcc.sharepoint.com/sites/rd_hcfp/SFH1/GRH/OPD. Click on the Need Funds button. x Request actual funding needs by using the dropdown selection for the appropriate type of assistance code. If the type of assistance is refinance, each funding request must summarize the individual request of the cumulative total request for the State. HB-1-3555 (03-09-16) SPECIAL PN 14-6 Revised (10-12-23) PN 594 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. 14.7 AGENCY ACTION – REQUEST FOR RESTORATION OF FUNDS The Guaranteed Loan Division Lender Reporting Section (GLDLRS) of the Servicing Office in St. Louis, Missouri will review and approve/deny all restoration of funds requests. The following is required to submit a request for restoration of funds: 1. A fully completed Request for Restoration of Funds from a Prior Fiscal Year form. x Agency personnel will complete the form electronically via Adobe. x The form will be electronically signed with the employee’s LINC Pass (PIV) card. x The form should be saved (not printed and scanned). x Find the fillable form on the Agency’s SharePoint site at https://usdagcc.sharepoint.com/sites/rd_hcfp/SFH1/GRH/OPD. Click on Policies and Procedures, then Templates to access the Restoration of Funds form. 2. A copy of all Conditional Commitments issued for the loan. 3. If the Agency extended the Conditional Commitment, documentation pertaining to the lender’s request and the Agency’s approval must be included with the restoration request. Dates are required. 4. A detailed explanation must be entered on the form to indicate whether the Agency or lender is at fault. 5. If the restoration request is for a higher obligation amount than the original obligation, then additional document is required. The Agency must demonstrate that the loan request was reviewed for repayment at the higher amount and the loan amount does not exceed the maximum amount based on the property’s appraised value. 6. If the lender did not comply with regulatory requirements and a restoration of funds from the prior fiscal year is being requested, an exception to the regulatory requirement will be required. Submit a request in accordance with Chapter, Section 1.9 of this Handbook. A copy of the approved exception must be submitted with the request for a restoration of funds HB-1-3555 (03-09-16) SPECIAL PN 14-7 Revised (10-12-23) PN 594 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. 7. Completed Request for Restoration of Funds from a Prior Fiscal Year form and all documentation must be submitted electronically to the GLDLRS within the Servicing Office in St. Louis at [email protected]. HB-1-3555 (03-09-16) SPECIAL PN 15-1 Revised (08-05-25) PN 694 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. CHAPTER 15: SUBMITTING THE APPLICATION PACKAGE [7 CFR 3555.107]

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