Section 502 Direct Certified Loan Application Packaging Process Updates

October 6, 2017

As part of the certified packaging process, Rural Development (RD) partners with the Housing Assistance Council (HAC), NeighborWorks America, and the Rural Community Assistance Corporation (RCAC) to provide Section 502 direct loan application packaging training.  The training is open to individuals working for housing nonprofits and public agencies who have at least one year of affordable housing loan origination and/or affordable housing counseling experience and are interested in packaging Rural Housing Service direct loan applications.

The following certified loan application packaging courses will be offered this calendar year:

These courses and other upcoming trainings are listed under the “Forms and Resources” for Single Family Housing Direct Home Loans.

Completion of a three-day course is required for a loan application packaging certification and provides:

  • A review of the Section 502 direct loan program and the regulations/laws that govern the program.
  • A detailed discussion of the program’s application process and borrower/property eligibility requirements.
  • An examination of the Agency’s loan underwriting process, which includes the use of payment subsidies, and the roles and responsibilities of a certified loan application packager, their qualified employer, an intermediary (as determined necessary by a RD State Director), and the Agency staff.  Course participants should take the corresponding test within 30 days of completing the course.  Additional information regarding the certified packaging process and course requirements, can be found in Handbook-1-3550, Chapter 3 “Application Processing”, Attachment 3-A.