| USDA RD AN No. 4258 SFHGLP Acceptable Liquidation Fees and Costs |
| Wednesday, 18 April 2007 | |
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The USDA Rural Development has released Administrative Notice (AN) No. 4258 titled, "Single Family Housing Guaranteed Loan Program Acceptable Liquidation Fees and Costs". This AN is reissueance of the guidelines regarding reimbursement of attorney and trustee fees incurred for liquidated single family housing loans guaranteed by Single Family Housing Guaranteed Loan Program (SFHGLP).
SFHGLP regulations authorize the reimbursement of liquidation fees and costs that are actually paid by the lender for liquidated loans that result in a loss to the lender within the limits of the guarantee. RD Instruction 1980-D, section 1980.374(c) states that the Agency will allow “reasonable” liquidation costs similar to those charged for like services in the area. In 1994, FHA began utilizing Fannie Mae’s Schedule of Standard Attorney/Trustee’s Fees until FHA established its own fee schedule in September 1998. The SFHGLP will adhere to the Schedule of Standard Attorney/Trustee’s Fees published by Fannie Mae for foreclosure, deed-in lieu of foreclosure and to the Schedule of Standard Attorney Fees published by HUD for bankruptcy. To view the Administrative Notice in its entirety, including the implementation responsibilities and the respective State fees, please click here. |
