On January 21, 2021, the USDA announced several changes the lender’s handbook (HB-1-3555), and to Form RD 3555-21, the “Request for Single Family Housing Loan Guarantee” to be required in May. The revised version of the form was recently implemented in the Guaranteed Underwriting System (GUS). The USDA changes simplified and condensed the form by removing information that is provided elsewhere.
The income calculation worksheet was removed from the disclosure, but lenders are still required to document the annual and repayment income calculations for every loan. A GUS underwriting recommendation of “Accept with Full Documentation”, “Refer”, “Refer with Caution” and manually underwritten files requires a copy of the annual and repayment calculation to be provided with a loan application. Lenders may use the FNMA 1008/FHLCM 1077 form or an equivalent to satisfy this requirement. A GUS underwriting of “Accept” does not require the calculations to be submitted to the USDA, but lenders still must document loan files.
The revised form was released as optional in March and implemented in the Guaranteed Underwriting System (GUS) on April 28, 2021. The revised form is required for all USDA loans with an application date of May 1, 2021 or later. DocMagic Form ID: RD355521.RH has been revised to the March 2021 version. The FNMA 1008/FHLCM 1077 form is also available to be added upon request.
