USDA Update – Bill #4899 Passed the Sentate by vote 67 to 28
Just to make your day or shall we say month, Bill #4899 which included funding for USDA PASSED THE SENATE May 27 by vote of 67 to 28. Looks like we’re back in business, folks.
USDA Has 3 Versions of Bill in Senate
Just a quick note to update you on the status of USDA. There are currently 3 versions of the bill in the Senate. All are very close in structure. One of the bills have been attached to a supplemental spending bill that needs to get done to fund the armed services and war effort in Iraq. If all goes well, a vote should happen sometime next week. If not, our legislators will be on Memorial break from 5/31 until 6/7 which would push the process back to the end of June best case
Lenders and borrowers expecting to close USDA loans the first week of June might be too optimistic
Just a couple of things pertaining to USDA. The bill has moved on to the Senate. Bill #3266 has received 5 additional co-sponsors, bipartisan support for the bill. The trouble here is that the Senate moves at their own pace (not that of Super Saver). So far, the bill has yet to be put on the calendar for committee vote. Given the slow turning wheels and then the IT time to set up the changes in their system, this could take time. Lenders and borrowers expecting to close USDA loans the first week of June might be too optimistic.
USDA Funds are BACK!
In a nutshell, the bill as passed the House and has now moved on to the Senate. We expect passage with little opposition by the end of this week. Expectations to close loans under the “new USDA” should be no sooner that the first or second week of June. In the meantime, the run rate on current funding will go dry next Thursday or Friday (May 6th or 7th). Any loan without a USDA cert that does not have additional disaster funds left over are unlikely to be able to close until the “new USDA” is up and running.