Announcement 2020-052 - NewRez Government – USDA Updates

The following summary of updates to the USDA Product Profile are effective immediately. The updates reflect recent credit changes in the Credit Analysis Chapter of the USDA HB-1-3555 Handbook. Please refer to the Product Profile for details.

USDA Product Profile

  • 1 Loan Limits - Revised to $510,400.
  • 5 Refinances - Inserted Link to USDA Refinance Options Job Aid
  • 1 Credit - Manual downgrade is not required for manually entered installment and revolving debts not reflected on credit report.
  • 1 Credit - Credit score validation not required for GUS Accept loans
  • 4 Credit Derogatory Credit – Updated guidance for evaluating derogatory and adverse credit in alignment with recent credit analysis changes in Chapter 10 of HB-1-3555.
  • 5 CAIVRS - Added requirement that CAIVRS response status must indicate “A” for borrower to be eligible        
  • 1 References - USDA Online Resource Links were updated

 

 

The USDA has also issued a FAQ to assist lenders and their staff to address some of the operational and underwriting questions that have arisen as a result of the COVID-19 National Emergency and quarantine when originating USDA loans. Refer to link below.

 

USDA Originations FAQs Link