FSA NACS/NASE Presentation June 29, 2015

Recent Enhancements EFT Validations – The automated Pre-Note process was reduced from 14 days to 3 days. Implemented April 8 th. LexisNexis – New Link on the USDA LINC page which allows lenders to use the LexisNexis webpage for eAuthentication Identity Proofing instead of having to travel to a local office.

Upcoming Enhancements Multiple Co-Borrower/Applicant Project – Currently in development but we should soon begin User Acceptance testing – Target Date for Implementation is July 31, Micro-loan Project – Task order will be issued after the current IT contract ends on July 31 st. – Target Date for Implementation is December 31, 2015.

Multiple Co-Borrower/Applicant Project Provides the ability to add multiple Co- Applicants at the time of Application. Up to 36 Co-Applicants can be added Maximum Indebtedness Limits will be checked on all Co-Applicants (within GLS only) Interest Assistance Term Limits will also be validated for all Co-Applicants At Loan Closing the Co-Applicants will carry over to the Loan record as Co-Borrowers. Implementation targeted for July 31, 2015

Guaranteed Micro-Loan Project GLS will provide the ability to track OL & FO Loans of $50,000 or less as Micro-Loans. Funding will come from the Regular OL & FO funds so no new Types of Assistance are needed. There will be an Indicator on GLS for Micro-Loans There will be a new Lender Designation of “Micro- Lender”. PLP, CLP and SEL Lenders may make Micro-Loans but Micro-Lenders can only make Micro-Loans. (Ex. CDFIs may be added as Micro-Lenders) GLS Reports will be updated to track Micro-Loans separately. Target Date for implementation is December 31, 2015.

Lender Notices RC4025, Notice of Loan Maturing (GLSNT05) – generated 30 days prior to the loan maturity date. Lender is advised to notify the servicing office of the servicing actions in progress. RC4074, Notice of Final Maturity Date of Guaranteed Loan (GLSNT06) – generated 45 days after the loan maturity date. Lender is advised to notify the servicing office of the status of the loan. Generated if no action was taken by the lender and/or field office to extend the term of the loan when the RC4025 was sent. (NOTE: On 04/09/15, per a NASE suggestion, an RFA was submitted to add the FSA servicing office address to RC4025 and RC4074. ) RC4068, Notice of Termination of Guaranteed Loan (GLSNT03) – notifies the lender a loan has been terminated as requested by the lender and if the termination was in error the lender should contact the servicing office. Most RC4068 are the result of the semiannual status report terminating the loan. It is also generated by a change loan transaction that terminates a loan.

Lender Notices RC4062, Guaranteed Loan Holder Purchase Report (GLSNT01) – notifies the lender that the agency has repurchased a guaranteed loan from the holder. It also instructs the lender to send all future collections to the local servicing office along with Form FSA RC4063, Notice of Loss Settlement (GLSNT04) – generated by type 01 (estimated liquidation loss), 02 (final liquidation loss), 05 (bankruptcy reorganization loss), 06 (debt restructure loss – no shared appreciation) or 07 (debt restructure loss – with shared appreciation). No other loss types generate the report. RC4063 is a confirmation to the lender that the loss claim was processed/paid. These notices are generated the day that the transaction is processed and All notices are available in GLS for state and field office users in FSA Reports under the heading “Lender Notices”.

Other Issues Guarantee Fees – GLS can accept guarantee fees +/- $10 from the actual amount calculated. However, in order for the fee to automatically match to the loan in GLS the cash received on ADPS has to match the amount on GLS exactly. If you accept an amount different than the amount calculated by GLS please input the amount received when inputting the Loan Closing transaction in GLS. For example, GLS calculated the fee to be $154.75, but the lender submitted $155. When the Loan Closing is processed in GLS it will initially show $ but this should be changed to $155.

Reminders Restructures – Form 2249, Request For Restructuring Guaranteed Loans, should be used when loan terms are modified. All fields should be completed on this form even if only one is changing. (Form 2247, Guaranteed Loan Borrower Adjustments, should only be used when an input error occurs on the loan closing) Assumptions – An Application and Loan Guarantee Request are required for the Transferee before processing an Assumption. The Loan Amount should be the Principal Amount being assumed. (Interest may also be assumed but it will should in the Unpaid Interest Amount on the New Loan.) If Interest is being capitalized, FSA Form 2249, Request for Restructuring, should be submitted to the NFAOC for processing

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