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USDA/RHS RIN: 0575-AD21 Publication ID: Fall 2020 
Title: Section 502--Guaranteed Lender Loan Closing Systems and Guaranteed Underwriting Systems Mandatory Use 

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.

Agency: Department of Agriculture(USDA)  Priority: Substantive, Nonsignificant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage 
Major: No  Unfunded Mandates: No 
EO 13771 Designation: Not subject to, not significant 
CFR Citation: 7 CFR 3555   
Legal Authority: 5 U.S.C. 301    42 U.S.C. 1471 et seq.   
Legal Deadline:  None
Action Date FR Cite
NPRM  11/17/2020  85 FR 73241   
NPRM Comment Period End  01/19/2021 
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
Ana Placencia
Acting Deputy Director
Department of Agriculture
Rural Housing Service
1400 Independence Avenue SW,
Washington, DC 20250
Phone:254 721-0770