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Currently 7 CFR part 3555 allows lenders to submit loan guarantee requests by using the Agency's automated Guaranteed Underwriting System (GUS) or manually (paper-based submission). GUS is widely accepted among Single Family Housing Guaranteed Loan Programs (SFHGLP) lenders and approximately 98 percent of loan guarantee requests are submitted through the system. The Agency will publish a proposed rule that would mandate the use of GUS to better monitor the performance of the guaranteed loan portfolio, reduce program risk, and decrease time-consuming and expensive review of manual files for loan guarantee requests. At this time, all loan products with the exception of the streamlined assist refinance are supported in GUS; thus the Agency will continue to accept manually underwritten files for the streamline assist refinance. Specifically, RHS proposes to amend 3555.107(b) and (c) of 7 CFR part 3555 to require utilization of GUS and remove the option to submit loans manually except for unsupported loan products.

The Agency also proposes to amend 3555.107(i)(4) and (5) to require lenders to submit loan closing documentation and fees through the Agency's automated Lender Loan Closing (LLC) system. The LLC is widely used among SFHGLP lenders with approximately 98 percent of guaranteed loan closings submitted through this system. The Agency proposes to make the use of the LLC mandatory to enhance monitoring of portfolio performance, lessen program risk, reduce paperwork and time burden on lenders and the Agency, and decrease expensive manual processing of loan closings. Specifically, RHS proposes to amend 3555.107(0(4) and (5) of 7 CFR Part 3555, to remove the option of mailed/overnighted, facsimile, and emailed packages and require the use of the LLC for all lenders.