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| USDA Rural Development                                                |
|                                                                       |
| 410 AgriBank Bldg., 375 Jackson St.                                   |
|                                                                       |
| St. Paul, MN 55101-1853                                               |
|                                                                       |
| St Paul (651) 602-7807 or (651)602-7797                               |
|                                                                       |
| North Branch (651) 674-7051 Willmar (320) 235-5612                    |
|                                                                       |
| ![](media/image1.wmf){width="2.3229166666666665in"                    |
| height="1.5097222222222222in"}                                        |
| ![](media/image2.jpeg){width="1.6590277777777778in"                   |
| height="0.9215277777777777in"}                                        |
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# April 24, 2006

### FUNDING

Minnesota has increased its loan volume by 15.62% from the same time
last year. While increasing volume, delinquencies still remain low.
First year delinquencies are at 2.618% compared to a National average of
3.387%. Total portfolio delinquency is at 5.385% compared to a national
average of 9.965%. State Director Steve Wenzel, Single-Family Housing
Program Director Lance Larson, and the entire guaranteed housing staff
at Rural Development thank you for your efforts. Keep up the great work
in your marketing tactics.

Attached is a recent map showing loan activity per county.

### INCOME LIMITS INCREASING

Single Family Housing Guaranteed Loan Program (SFHGLP) income limits
will be increasing slightly in Minnesota effective April 26, 2006.
Attached is a one page listing of all limits in Minnesota. These limits
can also be found on our web site at:
[www.rurdev.usda.gov/mn/SFH.htm](http://www.rurdev.usda.gov/mn/SFH.htm)
or
[http://www.rurdev.usda.gov/rhs/sfh/sfh%20guaranteed%20loan%20income%20limits.htm](http://www.rurdev.usda.gov/rhs/sfh/sfh guaranteed loan income limits.htm)

### ADMINISTRATION NOTICES (ANs)

**Following is a listing of recently issued ANs:**

**[RD AN 4145(1980-D)]{.underline}** was issued February 25, 2006 to
replace RD AN 4114. The purpose of this AN is to elaborate upon the
forms of dwelling inspections acceptable for loans guaranteed under the
SFHGLP. This AN can be viewed at
<http://www.rurdev.usda.gov/regs/an/an4145.pdf> See also the attached
"Appraisal Requirements MN.doc" for clarification of the requirements
for Minnesota.

**[RD AN 4149(1980-D)]{.underline}** was issued March 10, 2006 to
replace RD AN 4042. The purpose of this AN is to furnish guidance
concerning what documentation US non-citizens must supply in order to be
considered for a loan note guarantee. This AN can be viewed at:
<http://www.rurdev.usda.gov/regs/an/an4149.pdf>

**[RD AN 4162(1080-D)]{.underline}** issued on March 29, 2006 replaces
RD AN 4051. The purpose of this AN is to reiterate Agency methodology
for evaluating "payment shock". View and print this AN at:
<http://www.rurdev.usda.gov/regs/an/an4162.pdf>

**[RD AN 4163(1980-D)]{.underline}** dated March 29, 2006 replaces RD AN
4053. This AN elaborates upon the use of debt ratio waivers when
approving loan guarantees. It provides information on potential
compensating factors, including credit scores, to be used by the Agency
when evaluating a lender's request for a debt ratio waiver. Debt ratio
waivers must be submitted in writing. View and print this AN at:
<http://www.rurdev.usda.gov/regs/an/an4163.pdf>

**[RD AN 4170(1980-D)]{.underline}** issued on April 13, 2006 replaces
RD AN 4068. The AN elaborates upon what forms of credit history and
current debt verifications are acceptable for loans guaranteed. View and
print this AN at: <http://www.rurdev.usda.gov/regs/an/an4170.pdf>

**[RD AN 4171(1980-D)]{.underline}** was issued on April 13, 2006 to
replace RD AN 4067. This AN outlines two uses for FICO credit scores
when underwriting guaranteed loans. The purpose of the AN is to make use
of credit scoring technologies to improve the credit quality of SFHGLP
loans and to streamline credit history documentation requirements. View
and print this AN at: <http://www.rurdev.usda.gov/regs/an/an4171.pdf>

**[The following ANs refer to servicing guaranteed loans:]{.underline}**

**[RD AN 4150(1980-D)]{.underline}** was issued on March 10, 2006 to
replace RD AN 4062. This AN provides guidance on foreclosure sale bids
for security property. This AN can be viewed at:
<http://www.rurdev.usda.gov/regs/an/an4150.pdf>

**[RD AN 4165(1980-D)]{.underline}** issued on April 5, 2006 replaces RD
AN 4025. This AN encourages lenders to exercise loss mitigation
techniques to the fullest extent possible when servicing defaulted
loans. This AN is intended for lenders that service guaranteed loans. To
view this AN go to: <http://www.rurdev.usda.gov/regs/an/an4165.pdf>

**[RD AN 4168(1980-D)]{.underline}** was issued on March 29, 2006
replaces RD AN 4060. This AN clarifies and standardizes the acceptable
foreclosure time frames by State. This AN can be viewed at:
<http://www.rurdev.usda.gov/regs/an/an4168.pdf>

**[RD AN 4169(1980-D)]{.underline}** issued on March 29, 2006 replaces
RD AN 4061. The purpose of this AN is to reissue the guidelines
regarding reimbursement of attorney and trustee fees incurred for
liquidated SFH loans guaranteed by SFHGLP. This AN can be viewed at:
<http://www.rurdev.usda.gov/regs/an/an4169.pdf>

**RD Instruction 1980-D and all ANs can be found at:
<http://www.rurdev.usda.gov/regs/regs_toc.html#1980>**

**[Following is a listing of all current ANs and ANs not listed here can
be disposed of]{.underline}**:

**1980-D** Rural Housing Loans; [Exhibit C - Guaranteed Loan Income
Limits](http://www.rurdev.usda.gov/rhs/sfh/sfh guaranteed loan income limits.htm);
see also [AN 4066](http://www.rurdev.usda.gov/regs/an/an4066.pdf); [AN
4067](http://www.rurdev.usda.gov/regs/an/an4067.pdf); [AN
4068](http://www.rurdev.usda.gov/regs/an/an4068.pdf); [AN
4069;](http://www.rurdev.usda.gov/regs/an/an4069.pdf) [AN
4070](http://www.rurdev.usda.gov/regs/an/an4070.pdf); [AN
4078](http://www.rurdev.usda.gov/regs/an/an4078.pdf); [AN
4080](http://www.rurdev.usda.gov/regs/an/an4080.pdf); [AN
4081](http://www.rurdev.usda.gov/regs/an/an4081.pdf); [AN
4103](http://www.rurdev.usda.gov/regs/an/an4103.pdf); [AN
4104](http://www.rurdev.usda.gov/regs/an/an4104.pdf); [AN
4111](http://www.rurdev.usda.gov/regs/an/an4111.pdf); [AN
4115](http://www.rurdev.usda.gov/regs/an/an4115.pdf); [AN
4120](http://www.rurdev.usda.gov/regs/an/an4120.pdf); [AN
4121](http://www.rurdev.usda.gov/regs/an/an4121.pdf); [AN
4122](http://www.rurdev.usda.gov/regs/an/an4122.pdf); [AN
4134](http://www.rurdev.usda.gov/regs/an/an4134.pdf); [AN
4137](http://www.rurdev.usda.gov/regs/an/4137.pdf); [AN
4138](http://www.rurdev.usda.gov/regs/an/an4138.pdf); [AN
4143](http://www.rurdev.usda.gov/regs/an/an4143.pdf); [AN
4145](http://www.rurdev.usda.gov/regs/an/an4145.pdf); [AN
4149](http://www.rurdev.usda.gov/regs/an/an4149.pdf): [AN
4150;](http://www.rurdev.usda.gov/regs/an/an4150.pdf) [AN
4162](http://www.rurdev.usda.gov/regs/an/an4162.pdf); [AN
4163](http://www.rurdev.usda.gov/regs/an/an4163.pdf); [AN
4164](http://www.rurdev.usda.gov/regs/an/an4164.pdf); [AN
4165](http://www.rurdev.usda.gov/regs/an/an4165.pdf); [AN
4168](http://www.rurdev.usda.gov/regs/an/an4168.pdf); [AN
4169](http://www.rurdev.usda.gov/regs/an/an4169.pdf); [AN
4170](http://www.rurdev.usda.gov/regs/an/an4170.pdf); [AN
4171](http://www.rurdev.usda.gov/regs/an/an4171.pdf)

### MISCELLANEOUS ITEMS

1.  Remember we are available for program training if needed. Contact
    one of the Guaranteed Housing Specialists to schedule a meeting in
    your area.

2.  Our web site is:
    [www.rurdev.usda.gov/mn](http://www.rurdev.usda.gov/mn). Forms and
    regulations can be searched by clicking on "regulations, or
    "single-family housing." We are always trying to improve the website
    to better serve our partners and our customers. We encourage you to
    give feedback on how we can improve our website to better serve your
    needs**[.]{.underline}**

3.  Guaranteed Housing Specialist phone numbers: Kim Bailey --
    (320)235-5612 x 129; Dottie Sutton -- (320)235-5612 x 125; Linda
    Behrendt -- (651)674-7051 x 112; Patti Berry -- (651)602-7807;
    Dennis Tabbert -- (651)602-7797 and Adam Czech (Public Information
    Coordinator) 651-602-7799.

4.  Attachments include: activity map, income limits, appraisal
    requirements for MN and ratio waiver request form

![](media/image3.wmf)*USDA, Rural Development is an Equal Opportunity
Lender, Provider and Employer. Complaints of discrimination should be
sent to: USDA, Director, Office of civil Rights, Washington, D.C,
20250-9410*