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15.6 LENDER NOTIFICATION ON REQUEST FOR LOAN GUARANTEE
The Agency will notify the lender of the results from the application review. The following are possible results of the review:
A. The Request for a Loan Guarantee is Approved
If the loan file meets Agency requirements, the lender will receive an email with a link to view Form RD 3555-18/18E, Conditional Commitment for Single Family Housing Loan Guarantee. The Conditional Commitment establishes conditions for issuing the Loan Note Guarantee. This form will also be available under the Documents section of the GUS system once it has been issued by the Agency. In order to receive the Loan Note Guarantee, the lender must submit any required documents and certify to all conditions noted on Form RD 3555-18/18E (including any attachments to the form). Chapter 16 of this Handbook provides additional guidance to obtain the Loan Note Guarantee.
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B. Return of Incomplete Applications
If the application request is missing information specified in Attachment 15-A and/or the final GUS Underwriting Findings Report, the Agency will suspend the application and request the missing documentation from the approved lender. Once the file is complete, the lender must alert OPD staff that all requested information is ready for a subsequent review, as GUS does not automatically alert the Agency when new documentation is uploaded. The file will then be placed in line again for Agency review. If the lender cannot provide the necessary information, the lender should request to withdraw the loan file from GUS. Agency staff will not withdraw loan files without first contacting the lender to request the missing documentation.
C. The Request for a Loan Guarantee is Denied
The loan guarantee request will be denied if the proposed loan fails to meet program requirements. The Agency will notify the lender in writing of the reason for the denial and will provide review and appeal rights as indicated in Appendix 3 of this Handbook. The Agency must properly process the loan in the Agency’s internal Guaranteed Loan System (GLS) database to record the loan denial.