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ATTACHMENT 16-B Guaranteed Loan Closing Reference Guide
Question Answer I am trying to access the Loan Note Guarantee from the Single-Family Housing Lender Administration List page in the LLC system, but nothing is coming up when I search for the Borrower/Loan.
Verify you are using the correct Borrower ID number (default choice), Borrower SSN, Name/State, or Lender Loan Number and are selecting “Loans” for the “Request Type.”
Where can I find instructions for submitting the lender loan closing?
The “Lender Loan Closing (LLC) Guide” is available in the LINC Training and Resource Library, in the “Loan Closing” section. The LINC Training and Resources Library is located at https://www.rd.usda.gov/resources/usda-linc- training-resource-library. How do I change the LLC roles of my associates? How do I modify or delete Security Administrators?
The “SFHGLP System Access and Security Guide” is available in the LINC Training and Resource Library, in the “Guaranteed Underwriting System” section, which includes step by step instructions to add, modify, or delete existing users. The LINC Training and Resources Library is located at https://www.rd.usda.gov/resources/usda-linc-training- resource-library.
It has been over 30 days since the loan closed, but we forgot to submit the loan closing package. Is it too late to request a Loan Note Guarantee?
No. Rural Development will continue to accept complete loan closing submissions to assist the lender in obtaining a Loan Note Guarantee. Requests received more than 30 days after loan closing must include a loan payment history verifying the loan is current, as well as certification that all required escrow accounts are current and neither the lender nor another interested party provided funds to bring and/or keep the mortgage current to obtain the Loan Note Guarantee. A Loan Note Guarantee will not be issued beyond 30 days of the loan closing if the account is in default at the time of the Loan Note Guarantee request.
(03-09-16) SPECIAL PN 16-22 Revised (08-05-25) PN 649
Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts.
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Question Answer I did not receive the email with a link to the Loan Note Guarantee. Can you resend it to me?
The Loan Note Guarantee can be accessed by the lender anytime once it is issued by USDA. Lenders can retrieve a copy from GUS by accessing the Application Documents Page. The Loan Note Guarantee is also available via the LLC System by following these steps:
x Enter the correct Borrower ID number (default
choice), Borrower SSN, Name/State, or Lender Loan Number. x Select “Loans” for the “Request Type.” x Select “Display Documents” from the Action drop-
down menu. The status of the loan will be set to “closed.” x Select the Borrower ID hyperlink.
I think I submitted the loan closing, but I am unsure how to confirm. Can you check for me?
The easiest way to check on a submitted loan closing is to log into GLS and check the “Add/Update Loan Closing” screen. Scroll towards the bottom to see if the upfront fee payment information is completed/accepted. For searches completed on the same day the lender submitted the LLC, the payment will reflect “pending” until the next day. The Loan Note Guarantee cannot be issued by USDA until the payment status changes to “settled.”
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Question Answer I submitted the loan closing, but I did not receive the loan closing confirmation screen. Our company requires us to print this for our files. Is there a way to obtain this?
Lenders may obtain a copy of this confirmation by going to the Single Family Housing Lender Administration List page in the LLC system. Enter the Borrower ID and ensure the “Request Type” is set to “Obligations.” When the correct Borrower has been identified, select the “Action” as “Lender Loan Closing Confirmation” and click on the Borrower ID hyperlink.
Unauthorized loan funds were released to the borrower at closing. How can we correct this?
Lenders have two possible solutions:
1. The lender may apply the amount of the unauthorized loan funds to the principal loan balance. Documentation of the amount applied must be submitted to USDA.
2. Loan fees paid by the applicant(s) with credit cards or other short-term loans may not be reimbursed at closing. If the lender is required to reimburse an applicant as the result of erroneous preparation of the Loan Estimate, funds may be provided directly to the applicant since it represents a penalty due from the lender.
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Question Answer The loan has closed for a higher loan amount and/or interest rate than what was authorized on the Conditional Commitment. The Loan Note Guarantee has not been issued, what can I do?
The lender may perform a loan modification to rectify the loan amount and/or interest rate to match the issued Conditional Commitment. If that is not an option, the lender must request USDA to release the GUS loan back for correction. Once the loan amount and/or interest rate has been corrected, a new underwriting submission may be performed, and USDA will issue a new Conditional Commitment. Agency staff will follow the loan closing reversal guidance found on the SFHGLP SharePoint site when processing these requests. I have received the Loan Note Guarantee, but our quality control/investor/etc. will not accept the loan until X is corrected. Can you please release the file back to me for correction of GUS?
No. Once USDA has issued a Loan Note Guarantee, GUS will not be released. Loan Note Guarantees will not be revoked. Once they are issued, they remain valid per §3555.108(a). The lender may submit a “Self-Report” to the Agency for review and response. A self‐report must include:
x Borrower ID/GUS Application ID and last name to
select the correct file; x Description of the issue; x Provide supporting documentation, if applicable; and x Lender/Servicer contact information. Submit this information via email to SFHGLD.QualityAssurance@usda.gov. Response time is dependent on the issue and number of submissions received by USDA. It is the responsibility of the lender to ensure their investor will accept responses from USDA for investor delivery.
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Question Answer I need to have GUS released for correction after an automated loan closing has been submitted but prior to issuance of the Loan Note Guarantee.
Prior to de-obligation of funds, Agency employees must ensure that the fiscal year funds utilized for the loan were not prior year funds. If the funds are from the current year, Agency staff will follow the instructions on how to reverse an LLC transaction prior to the issuance of a Loan Note Guarantee found on the SFHGLP SharePoint site. Loans obligated with prior year funds cannot be released in GUS. Agency staff must follow the guidance in Chapter 14 of this Handbook to process restoration of prior fiscal year funds. The Loan must be submitted manually in order to be re-obligated. The upfront loan guarantee fee was paid when the lender submitted their previous loan closing. When the closing is deleted from GLS, the fee already paid does not get returned to the lender. Instead, it goes into a pending state until USDA recloses the loan in GLS. Agency staff will not ask the lender to resubmit the upfront Guarantee Fee.