As you are all aware, USDA has run out of funds in almost all areas of the country

As you are all aware, USDA has run out of funds in almost all areas of the country. When the USDA offices in the subject property area have run out of funding, they will issue "approvals" subject to the availability of funds.

When such an approval is received from the local USDA offices, Gateway will not allow the loan to proceed to closing. Gateway has made the decision to not fund USDA loans based on the aforementioned "conditional" commitment from USDA. When additional funding is approved by Congress, Gateway will again resume closing/funding USDA loans.

This is not an unusual circumstance, as Congress only approves a certain amount of funding for USDA at any given time. And, as such, might indicate only a short period of delays in closing/funding these loans. However, again, until additional funding is approved, if the local USDA office provides Gateway with a commitment "subject to the availability of funds", Gateway can not allow the loan to close.

J. Whitney Barth

VP Operations

Gateway Mortgage Group LLC

972.908.3390 x101 p

918.392.8336 f

6/01/2010