The USDA's 'Guaranteed Rural Housing Program,' which has soared in popularity the past two years, could run out of allocated funds shortly, affecting hundreds of lenders and secondary market buyers, including JPMorgan Chase.

A memo written by Chase executive Jack Jones notes that the U.S. Department of Agriculture has been allocated $13.5 billion to cover residential guarantees but six months into the fiscal year, $9.6 billion has already been used. A Chase spokesman confirmed the memo to National Mortgage News as well as the fact that the bank is a large investor of USDA-backed residential loans.

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