16.3 REQUESTING THE LOAN NOTE GUARANTEE (01/27/17)

Owned by Kacey Olson (Unlicensed)
Last updated: Nov 17, 2018
2 min read

© RHS HB-1-3555 SFH Guaranteed Loan Program Technical Handbook

Within 30 days after the lender closes the loan, the lender must request issuance of the loan guarantee using Form RD 1980-19 or equivalent automated means, provided by the Agency.

The lender must provide evidence the loan was properly closed and remit the upfront loan guarantee fee. A lender utilizing the automated method of loan closing will submit the upfront loan guarantee fee through pay.gov, the official United States Department of Treasury electronic payment system. Lenders may utilize Attachment 16-A as a checklist to ensure all loan closing documentation is submitted to Rural Development when requesting the Loan Note Guarantee.

A Loan Note Guarantee may not be issued beyond 30 days of the loan closing if the account is in default at the time the lender executes the Lender Certification.

Two methods for requesting the loan guarantee are available to lenders. Lenders are expected to submit loan closings electronically through the automated method provided by the Agency.

A. Electronic Closing – Preferred Method
Rural Development offers approved lenders the ability to submit guaranteed loan closing transactions to the Agency electronically, thus eliminating the need for lenders to manually complete and submit Form RD 1980-19 and the Lender Certification portion of Form RD 3555-18/18E. Lenders submit the guaranteed loan closing fee through pay.gov.Lenders that utilize this system are required to enter into a User Agreement and obtain authorized access through the use of an eAuthentication account and password. An on-line user guide and information for lenders can be found at: https://usdalinc.sc.egov.usda.gov/USDALincTrainingResourceLib.do. Lenders will continue to submit the following by attaching the document(s) to the lender loan closing application to receive a Loan Note Guarantee:
  • Final Closing Disclosure. The closing date listed on the Closing Disclosure must be entered on the Add Loan Closing screen in GLS. The Closing Disclosure is not required to be signed;
  • Promissory Note; and
  • Any other necessary documentation as specified in the conditions.
B. Full Documentation
When requesting a Loan Note Guarantee, the lender must submit the following loan closing documents to the Rural Development office that issued the Conditional Commitment. Attachment 16-A provides a stacking order and document identification checklist for lenders:
  • Signed Form RD 1980-19;
  • Signed Form RD 3555-18/18E. This certification is a confirmation the lender has properly closed the loan in accordance with the Conditional Commitment;
  • Final Closing Disclosure, which is not required to be signed;
  • Promissory note;
  • Guarantee fee check payable to Rural Development for the correct amount of upfront fee;
  • Any other necessary documentation as specified in the conditions; and
  • The specific address (and/or email address) of where the Loan Note Guarantee should be delivered.