USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶3.10 — Voluntary Withdrawal

USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶3.10 — Voluntary Withdrawal

3.10 VOLUNTARY WITHDRAWAL The lender may voluntarily withdraw from participation in the SFHGLP. Lenders must notify the Agency of their intent to withdraw participation, along with a plan to transfer their Agency book of business where pending, unclosed Conditional Commitments, and loans serviced or held are transferred to another approved lender participating in the SFHGLP. HB-1-3555 (03-09-16) SPECIAL PN 3-13 Revised (07-21-23) PN 588 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. ATTACHMENT 3-A LENDER APPROVAL CHECKLIST Section 3555.51 of 7 CFR Part 3555 and Chapter 3 of this Handbook describe the qualifications required to become an Agency approved lender. Other entities may participate as an approved lender’s agent or correspondent, but only approved lenders are responsible for underwriting and servicing and may hold the Loan Note Guarantee on a Rural Development guaranteed loan. Lenders may utilize the following checklist to ensure a complete application is submitted. Requests must contain all of the following information, in the order listed, and be submitted to Loan Servicing Branch at [email protected]. Lender Approval Checklist USDA Rural Development Lender Information Name: TAX ID: DBA Name(s), if applicable. Use separate sheet for any additional DBAs: Geographic Address: Mailing Address (if different) Phone: Fax: County: Chartered State/Headquarters: Website: Company E-Mail: Contact Person Name: Phone: E-Mail: Title: Fax: Minority/Women-Owned Business (Optional) Minority-Owned Women-Owned Minority- Owned/ Women-Owned Provide the following information for all principal officers, directors, and senior managers. Additional sheets may be attached, if necessary. Legal Full Name, including M.I. Title/Physical Location Lender Functions Lender Type (Select Applicable): Originate Commercial Bank Credit Union CDFI Others Underwrite Mortgage Loan Co Savings Bank Non-traditional Service Insurance Co Banks for Co-Ops USDA Agency Own Farm Credit System State Housing Finance Agency Specialty Servicer HB-1-3555 (03-09-16) SPECIAL PN 3-14 Revised (07-21-23) PN 588 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. Current eligibility designations [Section 3.2 of HB-3555 Chapter 3]: Agency Certifications (Select applicable) Preferred Method of Evidence/Certification (Submit as supplemental information) Applicable Agency Assigned Identification Fannie Mae Fannie Mae Form 582, “Annual Eligibility Certification Report” Freddie Mac Freddie Mac Form 16SF, “Annual Eligibility Certification Report” U.S. Department of Housing and Urban Development – Federal Housing Administration (HUD-FHA) Letter showing lender approved by HUD as a Title II supervised or non- supervised mortgagee for submission of one to four family housing applications for Federal Housing Mortgage Insurance or as an issuer of Ginnie Mae mortgage backed securities “supervised” or “non-supervised.” U.S. Department of Veterans Affairs (VA) Letter showing lender approved as a supervised or non-supervised “automatic” mortgagee with direct lending authority for VA State Housing Finance Agency (SFHA) N/A Farm Credit Service (FCS) Lender must have direct lending authority. Provide Membership letter. Financial statements that demonstrate the lender meets the financial requirements described in Section 3.2B. Lenders participating in USDA guaranteed loan programs. Copy of executed agreement showing approval by Rural Housing Service, Rural Business and Cooperative Service, Rural Utilities Programs and/or the Farm Service Agency. Financial statements that demonstrate the lender meets the financial requirements described in Section 3.2B. Evidence of Federal oversight (if applicable) Evidence and supporting documentation per Section 3.2 of Chapter 3 of Federal oversight by any of the following: The Federal Reserve System; The Office of the Comptroller of the Currency (OCC); The Federal Deposit Insurance Corporation (FDIC); The National Credit Union Administration (NCUA); or The Federal Housing Finance Board regulating lenders within the Federal Home Loan Bank (FHLB) system. Financial statements that demonstrate the lender meets the financial requirements described in Section 3.2B. Evidence of demonstrated ability in underwriting and/or servicing (if applicable). A summary of residential mortgage lending activity. Written criteria that outline the policies and procedures the lender typically follows when originating, underwriting, and closing residential mortgage loans. Evidence that the lender has an experienced loan underwriter on staff. Financial statements that demonstrate the lender meets the financial requirements described in Section 3.2B. List of Supplemental Information to be Submitted with Lender Approval Checklist [Check the box to indicate that each required document has been included with the lender approval request package.] 1. Form RD 3555-16 Agreement for Participation in Single-Family Housing Guaranteed/Insured Loan Programs of the United States Government (Lender Agreement). https://formsadmin.sc.egov.usda.gov/eFormsAdmin/welcomeAction.do?Home 2. Resume Evidence of Underwriter’s qualifications and experience in the industry and evidence that all principal officers have a minimum of two years of experience in originating or servicing guaranteed mortgage loans. 3. Retail Lender – Spreadshee t If your firm is a retail lender, provide complete contact information (addresses, telephone numbers, fax numbers, and e-mail addresses) for your branch locations, loan processing/underwriting departments, loan servicing, and a contact person for loan production. Information assists in populating Rural Development’s lender record database. 4. Wholesal e Lender or Servicing Lender- Spreadsheet If your firm is a wholesale lender or a servicing lender, provide a general description of your services (loan processing, underwriting, table funding, loan servicing, real estate owned (REO) disposition, etc.) and provide complete contact information (address, telephone number, fax number, and e-mail addresses) for your various departments, including regional account executives. 5. Underwriting Outline A brief outline of underwriting criteria from the lender’s internal loan policy manual. Include a statement to use forms approved by the Federal Housing Administration (FHA), Fannie Mae, or Freddie Mac. HB-1-3555 (03-09-16) SPECIAL PN 3-15 Revised (07-21-23) PN 588 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. 6. Quality Control Plan General requirements for quality control plans: x Must be in writing outlining policies and procedures along with any forms and checklists used in the process. x Lender’s Mission Statement or stated objective. x Employees must operate independently of loan origination and servicing departments, or the lender/servicer may contract out this function. If this function is contracted out, the lender must adequately monitor the performance of the contractor. x Identify how escrows are handled for taxes, hazard, and flood insurance (if applicable). x Identify what happens if excess funds are collected in escrow. x Have procedures to report non-compliance to the highest levels of management. May be monthly or, at the least, a quarterly basis. x Have procedures to report non-compliance or suspected misrepresentation to the appropriate regulatory authorities. x Identify training opportunities for lender/servicer staff. x Set timeframes for review and follow-up procedures. x Have procedures in place to monitor any third party originators (TPOs). x Include a consistent process to sample select and review SFHGLP loans. 7. Training Certification New Mandatory Lender Training Certifications/Acknowledgments I certify I am a corporate officer and/or principal/owner of the above-named entity with the authority to legally bind the organization and to execute certifications and acknowledgements on behalf of the entity/organization named. I certify information provided and any accompanying documentation is true and accurate to the best of my knowledge and belief. Name: Title: Signature: Date: Send the executed Lender Agreement, Checklist, and Supplemental Information to [email protected]. HB-1-3555 (03-09-16) SPECIAL PN 4-1 Revised (08-05-25) PN 649 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 4: LENDER RESPONSIBILITIES [7 CFR 3555.51]

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