Last month, USDA-RHS published RD Unnumbered Letter (UL) “Prepayment Clarifications and Related Issues” (May 14, 2012). The letter provides guidance, clarification, and corrections on the following USDA-RD loan prepayment issues:
1) Prepayment versus final payment;
2) Extra payments and prepayment;
3) Prepayment incentives and transfers;
4) Completing the Preservation Incentive Calculation Worksheet; and
5) Entering Comprehensive Needs Analysis (CNA) items into the Preservation Tracking and Concurrence System (PRE-TRAC).
A copy of the UL may be found here: http://www.rurdev.usda.gov/SupportDocuments/ulmay12.pdf