USDA Guarantee Fee

The USDA Guarantee Fee is populated to line 819 on the 2010 Itemization and the 2010 HUD-1 Page 2 input forms and the 2015 Itemization form (for loans using the RESPA-TILA 2015 LE and CD forms). The fee is calculated when the MIP/Funding/Guarantee Fee percentage is entered on the MIP/PMI/Guarantee Fee Calculation tool. As an entry in the 800 section, line 819 flows through to Block 3 of the GFE, as required by federal regulations.

For non-USDA loans, line 819 can be used for other purposes.

If you are currently using loan templates that populate data to line 819, update your templates so that the data is populated to another line on the 2010 or 2015 Itemization and is not overwritten for USDA loans.

To Populate the Guarantee Fee:

  1. Open a USDA loan file, click the Forms tab on the lower-left, and then click USDA Management.

  2. On Page 1 of the Rural Assistance URLA tab, click the MIP/FF Edit icon.

  3. On the MIP/PMI/Guarantee Fee Calculation tool, enter the Guarantee Fee percentage in the MIP/Funding/Guarantee Fee field.

  4. Complete the remaining fields as required, and then click OK.

How Loan Changes Affect the Guarantee Fee and MIP

Changes made to a loan file can affect the USDA Guarantee Fee, the content in the MIP/PMI/Guarantee Fee Calculation tool, and related fields.

  • For a USDA Loan Type, if data has previously been entered in line 819 and a percentage is entered in the MIP/Funding/Guarantee field on the MIP/Funding/Guarantee Fee Calculation tool, a confirmation message asks the user to confirm that the existing line 819 amount will be overwritten. If the user clicks Cancel, a percentage is not entered in the MIP/Funding/Guarantee field and the content in line 819 is not overwritten.

  • For a USDA Loan Type, if a user makes a change to the 2010 or 2015 Itemization that results in a recalculation of the Payment Schedule, a pop-up message notifies the user that line 819 will be overwritten.

  • For any loan, if a user changes the Loan Type, a confirmation message asks the user to confirm that the fields listed below will be cleared. If the user clicks Cancel, the loan type is not changed and the fields listed below are not overwritten.

  • The MIP/Funding/Guarantee field on the MIP/PMI/Guarantee Fee Calculation tool.

  • All fields in the Monthly Mortgage Insurance/USDA Annual Fee Premium section on the MIP/PMI/Guarantee Fee Calculation tool.

The following fields will also be overwritten when any of the three scenarios described above occur:

  • Mortgage insurance payment (field 1766)

  • Percentage of loan guaranteed (field 1107)

  • PMI periodic factors on the Loan summary (fields 1199, 1201)

  • Monthly MI premium (fields 1198, 1200)

  • Loan to balance cancellation percentage (field 1205)

  • Monthly USDA Annual Fee premium (NEWHUD.x1707)

  • Proposed mortgage insurance (field 232)

  • Months of Annual Fee reserve (field NEWHUD.X1706)

  • Number of PMI months paid at closing (field 1209) - only if Loan Type is changed to FHA

  • Prepaid checkbox (field 2978) - only if Loan Type is changed to FHA