RURAL DEVELOPMENT PLAN FOR OPERATIONS IN THE ABSENCE OF APPROPRIATIONS


IMPACT OF PROGRAM SHUT-DOWNS
Rural Development’s mission is to serve as a catalyst for economic and community
development activities in rural areas through loans and grants to individuals, businesses,
and communities. The shut-down of RD loan and grant making activities for a prolonged
period of more than two weeks would have an immense adverse impact on the rural
economy. Should RD not be allowed to continue loan and grant making operations for an
extended period, the impact would be substantially more serious.
• No additional loans/grants would be available during the period except for emergency
purposes and to protect the Government’s interest. System generated disbursements
for previously obligated Rental Assistance (RA) funds will continue.
• No new RD rural housing loans or guarantees would be issued, which would result in
a setback in construction start-up, as well as a potentially costly inconvenience to
buyers and sellers depending on a Single Family Housing loan or guaranteed loan 09 18 2013 RD.doc
4
closing. A more permanent interruption in the program would cause a substantial
reduction in housing available in rural areas relative to population.
• New and expanding businesses would be unable to access loan guarantees to create
new jobs and save existing jobs and with them, the potential taxpayers who would
hold those jobs.
• No loans or assistance for essential community facilities would be made, delaying the
financing of health care, emergency response, and other essential services to rural
communities. Projects already financed that are under construction would be delayed
in having any bridge financing replaced with permanent financing from USDA. A
long-term shut-down would place RD seriously behind in our mission of improving
quality of life and economic opportunity in rural areas with limited income. The
current community facility loan program is one of the very few sources of financing
for essential community facilities in rural areas.
• Travel and training for RD operations would be suspended during the period of shutdown.
• After shut-down operations, RD state and area office employees located in
communities throughout the United States would be furloughed.
• No loans or advances would be made or issued for modernizing rural America’s
electric and telecommunications infrastructure. Borrowers would not be able to
improve service, meet Federal Communication Commission deadlines, or pay off
short-term bridge loans. No advances would be issued to pay invoices on
construction contracts, which could result in defaults on contracts and increase
construction costs. Ultimately, this could lead to RD loan security problems

Advertisements

3 thoughts on “RURAL DEVELOPMENT PLAN FOR OPERATIONS IN THE ABSENCE OF APPROPRIATIONS

  1. Louisville Kentucky Mortgage
    Free Credit and Pre Approvals same day ; KHC, FHA, VA, USDA, I have helped over 589 families buy their Ky Home or Refinance. NMLS#57916
    107 south hurstbourne
    Louisville, KY 40222
    Phone: 5029053708 http://mylouisvillekentuckymortgage.com
    Current Interest Rates

    Fixed Rate Programs
    [ Adjustable Rate Programs ]

    Rates as of October 2, 2013 12:55:46 PM Old Date? Lock
    days Qualifying
    Ratios
    Program Rate Points APR
    Conforming 30 year FRM 4.375 0.000 4.874 30 35 / 45
    Kentucky Mortgage Loans Only- Rates Change
    Conforming 20 year FRM 4.250 0.000 4.987 30 35 / 45
    Kentucky Mortgage Loans Only- Rates Change
    Conforming 15 year FRM 3.375 1.000 3.881 30 35 / 45
    Kentucky Mortgage Loans Only- Rates Change
    FHA 30 year FRM 4.000 0.000 5.651 30 35 / 50
    Kentucky Mortgage Loans Only- Rates Change
    FHA 15 year FRM 3.375 1.000 4.214 30 35 / 50
    Kentucky Mortgage Loans Only- Rates Change
    Jumbo 30 year FRM 5.990 1.000 6.875 30 28 / 36
    Kentucky Mortgage Loans Only- Rates Change
    VA 30 Year FRM 4.000 0.000 5.147 30 41 / 41
    Kentucky Mortgage Loans Only- Rates Change

    Adjustable Rate Programs

    Rates as of October 2, 2013 12:55:46 PM Old Date? Lock
    days Qualifying
    Ratios
    Program Rate Points APR Index Margin Caps
    Conforming 30/5/1 ARM 4.990 1.000 5.214 LIBOR 1.930 2/1/5 30 28 / 41
    Kentucky Mortgage Loans Only- Rates Change
    Jumbo 30/5/1 ARM 5.750 1.000 5.789 T-Bill 1.960 5/1/10 30 28 / 41
    Kentucky Mortgage Loans Only- Rates Change
    Jumbo 30/7/1 ARM 5.500 1.000 5.124 CMT 1.930 5/1/10 30 28 / 36
    Kentucky Mortgage Loans Only- Rates Change
    Jumbo 30/10/1 ARM 5.750 1.000 5.411 CMT 1.930 5/1/10 30 28 / 36
    Kentucky Mortgage Loans Only- Rates Change
    Please note:
    This is not an advertisement for credit as defined by paragraph 226.24 of regulation Z.
    APR calculations based on a loan amount of $200,000 for conforming loans, $500,000 for jumbo loans and a maximum loan-to-value ratio of 80%.
    Rates, points and programs are subject to change without notice and cannot be guaranteed.
    Rates Last Updated: 10/2/2013 12:55:44 PM

    This web page is designed and maintained by Mortgage-X.com

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s