Wednesday, November 12, 2014

Kentucky Rural Housing USDA Updated Guidelines for 2014

Kentucky RHS USDA is going to be transitioning to an updated version of their guidelines as of 12/1/14 (old: 1980-D, new: 3555...don't worry, there won't be a test later).



Since they cannot underwrite files submitted under the 1980-D regulations once the new 3555 regulations come into effect on December 1st, USDA will be suspending new files for Conditional Commitments after the end of business on Friday, November 21st and will begin accepting files again on December 1st.  


The goals they hope to achieve by doing this are twofold:
  1. RH needs to work through the backlog of files they have by utilizing USDA RH departments from other states that currently have better turn times.  They are hopeful that by doing this, all the loans submitted under the old guidelines (1980-D) will be completed prior to the transition date of 12/1/14when the new guidelines (3555) take effect.  Any files they are unable to complete by 12/1/14 will be returned to the underwriter and reunderwritten under the new 3555 guidelines.
  2. Since multiple state will be helping severely backlogged states achieve this, one benefit this action will provide is greatly reduced turn times. Once the moratorium for submitting new files to RH is lifted, the amount of time "lost" during the suspended period will be made up once the new guidelines are up and running. 


-- 

Joel Lobb
Senior  Loan Officer
(NMLS#57916)

American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223

 phone: (502) 905-3708
 Fax:     (502) 327-9119

 Company ID #1364 | MB73346
 CONFIDENTIA