Does the local Rural Housing Office sign and approve the credit waiver provided by the underwriter?
No. There is no such thing as a credit waiver by RD. The RD Instruction 1980-D clearly gives the credit decision to the lenders. That is national. However, the lenders are expected to follow the minimum RD Administrative Notices. The lenders can set a higher standard. The underwriter must clearly document any compensating factors when the FICO is less than 620 or a Chap 7 bankruptcy discharge or foreclosure happened within 3 years, Chap 13 restructure plan within past 12 months, or a late mortgage payment within 12 months. CAIVRS must be checked and documented on the 1008.
