Section 502 Direct Certified Loan Application Packaging Process Updates
Source: USDA.gov
Loan Packaging Express Newsletter:
The tenth edition of the Loan Packaging Express has been posted to the Direct Loan Application Packagers page. Please take a moment to read recent staffing updates, success stories, and learn about the successful packaging partnerships across the nation. If you have any questions, comments, or have a packaging success story you would like to share, email Tammy.Repine@usda.gov.
Be sure to bookmark the Direct Loan Application Packagers page to quickly access various resources and trainings on packaging Section 502 SFH direct loans.
The American Rescue Plan (ARP) Act of 2021:
The American Rescue Plan (ARP) Act of 2021 appropriated additional funds, to remain available until September 30, 2023, with a focus on refinancing existing Section 502 and Section 504 borrowers who have received a payment moratorium related to COVID-19. There is an estimated $656.6 million of ARP program funding in FY 21, in addition to the normal program funding levels. Information is provided in a May 12, 2021, Unnumbered Letter available under Housing Programs at https://www.rd.usda.gov/resources/directives/unnumbered-letters.
Beginning May 17, 2021, the Agency began accepting applications from existing Section 502 and Section 504 direct loan borrowers to refinance outstanding loans which have been in an approved COVID-19 moratorium.
On May 25, 2021, the Agency provided training for packaging partners to provide information about ARP and how the application process differs for applicants and loan application packagers. The May 25th presentation, as well as other ARP-related resources, are available on the Direct Loan Application Packagers page.
