On December 1, 2014, USDA Rural Development will begin issuing Loan Note Guarantees (LNG) electronically. Interested lenders, however, need to sign up for the automated Lender Loan Closing (LLC) system.
If you are a lender that currently participates in USDA loan programs or are considering doing so in the future – there are some clear advantages in participating in the LLC initiative. Some examples are as follows:
Cost savings – no mail fees or delivery fees since files are being processed electronically
- More efficient processing – files can be more easily tracked and processing times improved
- Cut down on paper usage – closing documentation, the Lender Certification, etc. will be provided electronically
- No more paper checks – the Guarantee Fee is paid via a Pay.Gov interface
- More security – a secure link is provided to the lender for receipt of the LNG
- Time savings – since files are sent electronically – mail delivery times are no longer an issue and it assists the USDA staff in having to handle & distribute paper files for processing
Got your attention? To begin the process – interested lenders must complete a Lender Loan Closing User Agreement to request access to the loan closing transaction system. This can be found on the USDA’s website at the following: https://usdalinc.sc.egov.usda.gov/USDALincTrainingResourceLib.do
Embrace technology – the game has changed so you must play differently.