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Article Posted: 05/26/2007 10:57:07 AM
USDA Announces New Mortgage Underwriting System
USDA Rural Development has announced the availability of an automated underwriting system, known as the Guaranteed Underwriting System (GUS), for approved lenders in Nebraska to process mortgage loans under its Guaranteed Rural Housing (GRH) Loan program.
The GRH program is a federal loan program that assists low and moderate-income families in obtaining financing for the purchase of an existing home or construction of a new home in rural areas. No down payment is required and loans are made by local approved lenders, with USDA Rural Development issuing the guarantee on the loan.
USDA Rural Development began market testing GUS for the GRH Loan program in August 2006 with eight lenders from seven states. Nebraska was among this pilot group with First National Bank of Columbus and their Norfolk branch being pilot lenders. GUS is now being made available to all approved lenders. Nebraska is one of the leading states for approved lenders signing up to utilize GUS.
GUS will result in great benefits to approved mortgage lenders through reduced paperwork, faster turnaround time on loan decisions and improved consistency in underwriting decisions. There is no cost to lenders to use the system.
Since the GRH loan program began in 1992, Nebraska approved lenders have provided over $360 million to nearly 6,200 households in rural areas of the state making their dream of homeownership a reality.
Lenders interested in becoming approved to participate in the GRH program or approved lenders interested in utilizing the GUS system should contact Mike Buethe at mike.buethe@ne.usda.gov or (402) 437-5574. Visit www.rurdev.usda.gov/ne.
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