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| USDA Rural Development                                                |
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| 375 Jackson St., Suite 410                                            |
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| St. Paul, MN 55101-1853                                               |
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| height="1.5097222222222222in"}                                        |
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# December 3, 2007

### MESSAGE FROM THE STATE DIRECTOR STEVE WENZEL

My message in this newsletter focuses on two important topics: The
tremendous success Rural Development enjoyed in the Guaranteed
Single-Family Housing program in fiscal year 2007 and the changes that
have recently been enacted within the program here in Minnesota. First,
let's discuss 2007. About \$164 million was invested through the
guaranteed program in 2007, ranking us sixth in the nation.
Congratulations! We both congratulate and thank our banking, lending and
other partners for their promotion of Rural Development's Guaranteed
Single-Family Housing program in Minnesota. I cannot stress enough how
proud I am of the strong relationship between USDA Rural Development of
Minnesota and the rural Minnesota lending community. Together, we help
many families and individuals achieve the American Dream of
Homeownership that may otherwise not be able to.

Second, as you all know, we recently centralized our guaranteed program
into one office location at the state office in St. Paul. We made this
move to improve program efficiency and program delivery. As with any
program change, there have been a few minor bumps in the road. Effective
communication is the key to making any change, and I ensure you that we
will keep everyone in the lending community up to date on our guaranteed
programs. As always, our guaranteed staff is ready to assist you with
any questions or concerns. As a refresher, below is the full staff
listing for everyone in our Guaranteed Single-Family Housing program.
Once again, thank you for being a valued partner of USDA Rural
Development in Minnesota.

Lance Larson, Program Director -- (651) 602-7792

Patti Berry, Specialist -- (651) 602-7807 Fax: 651-602-7825

Peter Lundquist, Specialist -- (651) 602-7782

Linda Behrendt, Specialist -- (651) 602-7797

Dottie Sutton, Specialist -- (651) 602-7823

Greg Nelson, Specialist -- (651) 602-7798

Marlene Smith, Technician -- (651) 602-7795

Tanya Roberts, Assistant -- (651) 602-7794

### GUARANTEED UNDERWRITING SYSTEM (GUS)

The Guaranteed Underwriting System (GUS) continues to be rolled out
across the nation. GUS improves turnaround time on loan applications and
ensures consistent loan decisions across the board. Several lenders in
MN have signed up to use GUS and there have been 20 loans approved using
GUS. Klein bank was the first lender in MN to sign up and use GUS and
they have had 13 loans approved. North Shore Bank of Commerce, Midwest
MN Community Development Corp (MMCDC) and Peoples State Bank of
Plainview have also utilized GUS for their loan submissions and
approvals.

GUS enhancements continue in the coming months. We at Rural Development
encourage everyone to check out the system that has not already done so.
An e-learning module for GUS can be found at
<https://usdalinc.sc.egov.usda.gov/USDALincTrainingResourceLib.asp>
(scroll down to middle of page).

### FISCAL YEAR 2008 ACTIVITY

Minnesota has seen tremendous activity so far in fiscal year 2008.
Lender inquiries and participation approvals of new guaranteed Lenders
have been impressive. As of 11/29/07, 294 loans have been approved
compared to 179 as of 11/29/06**.**

Funds are currently available for complete credit packages only. Please
continue to fax your reservation requests (1980-86, 1003 and first page
of the purchase agreement) to 651-602-7825. Submission of the
reservation prior to receipt of the credit package will allow for a
quicker turnaround time when your credit package is received. Credit
packages should be complete and fully underwritten. Also, please
indicate the planned closing date on the checklist. This helps us to
prioritize the files.

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  **TOP LENDERS FOR FISCAL YEAR 2007**

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Congratulations to the following top 10 lenders:

Wells Fargo Home Mortgage (all branches) 214 loans \$23,970,834

Bremer Bank (all branches) 153 loans \$14,781,450

Midwest MN Community Development 80 loans \$ 6,919,969

Countrywide (all branches 65 loans \$ 7,683,153

Wells Federal Bank (all branches) 58 loans \$ 4,548,240

United Prairie Bank (all branches) 54 loans \$ 4,058,697

Heritage Bank 40 loans \$ 3,893,422

Cornerstone Mortgage Corp 40 loans \$ 5,189,620

Prestige Mortgage 39 loans \$ 5,714.361

PHH Mortgage/Burnet Home Loans 39 loans \$ 5,715,471

### ADMINISTRATION NOTICES (ANs)

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

**[RD AN 4293(1980-D)]{.underline}** issued on July 9, 2007 replaces AN
4199. This AN clarified how Section 8 Homeownership Vouchers may be used
for qualifying applicants. View and print this AN at:
<http://www.rurdev.usda.gov/regs/an/an4293.pdf>

**[RD AN 4300(1980-D)]{.underline}** issued on July 25, 2007 replaces AN
4138. The purpose of this AN is to update the loss claim and recovery
(future recovery and additional recovery) remittance procedures. View
and print this AN at: <http://www.rurdev.usda.gov/regs/an/an4300.pdf>

**[RD AN 4302(1980-D)]{.underline}** issued on July 31, 2007 replaces AN
4200. This AN provides guidance regarding the Systematic Alien
Verification for Entitlements (SAVE) Program. View and print this AN at:
<http://www.rurdev.usda.gov/regs/an/an4302.pdf>

**[RD AN 4303(1980-D)]{.underline}** dated August 13, 2007 replaces AN
4196. This AN clarifies condominium requirements and how to determine if
the condo has been approved or accepted by HUD, VA, Fannie Mae or
Freddie Mac. View and print this AN at:
<http://www.rurdev.usda.gov/regs/an/an4303.pdf>

**[RD AN 4305(1980-D)]{.underline}** dated September 11, 2007 replaces
AN 4202. This AN clarifies the issuance and retention of Form 1980-17,
Loan Note Guarantee, and Agency policy on a lender's request for a
duplicate copy. View and print this AN at:
<http://www.rurdev.usda.gov/regs/an/an4305.pdf>

**[RD AN 4307(1980-D)]{.underline}** dated September 10, 2007 replaces
AN 4217. The purpose of this AN is to clarify Agency requirements
regarding routine charges and fees that lenders may charge borrowers.
View and print this AN at:
<http://www.rurdev.usda.gov/regs/an/an4307.pdf>

**RD AN 4313(1980-D)** dated October 31, 2007 replaces AN 4221. This AN
clarifies lender documentation requirements regarding new construction
and PUD's. View and print this AN at:
<http://www.rurdev.usda.gov/regs/an/an4313.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. Any 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 4220](http://www.rurdev.usda.gov/regs/an/an4220.pdf); [AN
4237](http://www.rurdev.usda.gov/regs/an/an4237.pdf); [AN
4238](http://www.rurdev.usda.gov/regs/an/an4238.pdf); [AN
4239](http://www.rurdev.usda.gov/regs/an/an4239.pdf); [AN
4249](http://www.rurdev.usda.gov/regs/an/an4249.pdf);  [AN
4257](http://www.rurdev.usda.gov/regs/an/an4257.pdf); [AN
4258](http://www.rurdev.usda.gov/regs/an/an4258.pdf); [AN
4259](http://www.rurdev.usda.gov/regs/an/an4259.pdf); [AN
4260](http://www.rurdev.usda.gov/regs/an/an4260.pdf); [AN
4262](http://www.rurdev.usda.gov/regs/an/an4262.pdf); [AN
4263;](http://www.rurdev.usda.gov/regs/an/an4263.pdf) [AN
4266](http://www.rurdev.usda.gov/regs/an/an4266.pdf); [AN
4268](http://www.rurdev.usda.gov/regs/an/an4268.pdf); [AN
4269](http://www.rurdev.usda.gov/regs/an/an4269.pdf); [AN
4273](http://www.rurdev.usda.gov/regs/an/an4273.pdf); [AN
4278](http://www.rurdev.usda.gov/regs/an/an4278.pdf); [AN
4287](http://www.rurdev.usda.gov/regs/an/an4287.pdf); AN 4293; AN 4300;
AN 4302; AN 4303; AN 4305; AN 4307; AN 4313; AN 4314.

### GENERAL INFO

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}**

![](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*