What is the benefit for lenders to underwrite the loan?
A. Underwriting lenders make the loan decisions which may speed up processing. They deliver the loan packages directly to RD. They have access to the Guaranteed Underwriting System (GUS), the free web based processing/underwriting system. The lender obtains a Guarantee directly from RD. They can either hold and service the loans or sell them on the secondary market. Typically they earn a servicing release premium on sold loans.