Lender fees in guaranteed loan programs; rural water refinancing improvements

(a) In general Section 333 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1983) is amended— (1) in the matter preceding paragraph (1), by striking In connection and inserting the following: (a) In general In connection; (2) in subsection (a) (as so designated)— (A) in paragraph (5), by adding and at the end; (B) in paragraph (6)(E), by striking a new direct loan; and and inserting a new direct loan, except direct loans made under this title to communities with a population of 3,300 or fewer shall be exempt from any additional refinancing review, credit elsewhere determination, or private lender comparison requirements.; and (C) by striking paragraph (7); and (3) by adding at the end the following: (b) Fees (1) Initial guarantee fee The Secretary may assess an initial guarantee fee for any insured or guaranteed loan issued or modified under section 306(a) in an amount that does not exceed 3 percent of the guaranteed principal portion of the loan. (2) Periodic retention fee The Secretary may assess a periodic retention fee for any insured or guaranteed loan or modified under section 306(a) in an amount that does not exceed 0.75 percent of the outstanding principal of the guaranteed loan. (3) Disclosure In altering any fee charged for any insured or guaranteed loan issued or modified under section 306(a), the Secretary, not less than 30 days in advance of any fee change, shall provide a public disclosure of the financial data, economic and behavioral assumptions, calculations, and other factors used to determine the new fee rates.. (b) Conforming amendment Section 310B(g) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(g)) is amended by striking paragraph (5) and inserting the following: (5) Fees (A) Initial guarantee fee The Secretary may assess an initial guarantee fee for any guaranteed business and industry loan in an amount that does not exceed 3 percent of the guaranteed principal portion of the loan. (B) Periodic retention fee The Secretary may assess a periodic retention fee for any guaranteed business and industry loan in an amount that does not exceed 0.75 percent of the outstanding principal of the guaranteed loan. (C) Disclosure In altering any fee charged for any guaranteed business and industry loan, the Secretary, not less than 30 days in advance of any fee change, shall provide a public disclosure of the financial data, economic and behavioral assumptions, calculations, and other factors used to determine the new fee rates..