Does your Firm originate USDA loans? If so, you should be aware of the recent enhancement in the past three months in which the USDA’s Lender Loan Closing system was modified to permit the electronic issuance of Loan Note Guarantees.
Now, there’s an even larger technological enhancement. Beginning on March 28, 2015, the USDA’s Government Underwriting System (GUS) will be down for most of the day in order to incorporate changes that will enable lenders to upload all required origination documents into GUS following a final submission. Once submitted, a notification will then be generated alerting USDA staff that a request is ready for processing. This system enhancement will eliminate any future need for lenders to encrypt and email documents to the USDA.
In addition, the USDA’s Conditional Commitment Form (Form RD 3555-18E) will now be electronically generated, signed, and delivered to participating lenders by the USDA. In this regard, lenders will receive an auto-generated email notification when the document has been issued and a link to the document will be provided.
It is rather encouraging to see the Federal Agencies (HUD, VA and USDA) all making substantive technological advances in processing loan applications and endorsements. The end result is a more streamlined, cost-effective and efficient way to run loan origination operations. It is a win-win situation for the Agencies, lenders and home buyers alike.
The game has certainly changed. Even the Federal Agencies are playing differently!