The U.S. Department of Agriculture’s Rural Housing Service has announced forthcoming guaranty fee reductions for its Section 502 Single Family Housing Guaranteed Loan Program. For FY 2017, RHS will lower the upfront guaranty fee to 1.0 percent from 2.75 percent of the loan amount. The annual fee will change from 0.50 percent to 0.35 percent of the unpaid principal balance. The fee changes will apply to both purchase and refinance transactions. The new fees will be effective on Oct. 1, 2016. The Mortgage Bankers Association welcomed the changes, saying they “represent a major step in making rural housing more affordable for borrowers.” The upfront guaranty fee was increased previously from 2.00 percent in October 2015. The annual had remained at 0.50 percent since October 2014, the ...