USDA Technical Handbook HB-1-3555 §19.5 — Agency Review
USDA HB-1-3555 §19.5 (Agency Review). Gap-fill (verbatim).
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USDA HB-1-3555, Chapter 19, § 19.5 — Agency Review
APPENDIX 1: 7 CFR PART 3555 – GUARANTEED RURAL HOUSING PROGRAM APPENDIX 2: FORMS AND INSTRUCTIONS APPENDIX 3: REVIEW AND APPEALS APPENDIX 4: AGENCY CONTACT INFORMATION APPENDIX 5: INCOME LIMITS APPENDIX 6: INTEREST ASSISTANCE APPENDIX 7: CREDIT ALERT INTERACTIVE VOICE RESPONSE SYSTEM (CAIVRS) APPENDIX 8: APPENDIX 9: PENALTIES UNNUMBERED LETTER AND STATE SUPPLEMENTS ACRONYMS USED IN THIS HANDBOOK GLOSSARY Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts.
USDA HB-1-3555, Chapter 19, § 19.5 — Agency Review
The Agency will review the loss claim package from the servicer. Loss claim checks or electronic funds transfer (EFT) payments will be issued to the servicer by the Agency within 60 days of the servicer’s properly filed loss claim. Agency staff will notify the servicer of any additional documentation required and will note it in the loss claim file. Once all required information is submitted, the Agency must take the following actions: x Determine whether the servicer has fulfilled all SFHGLP obligations and if not, whether reduction or denial of the loss claim is warranted. x Review and approve the loss claim with an Agency designee with appropriate approval authority. x Advise the servicer of the PSVC (if applicable) used to calculate the loss claim. Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. x Provide appropriate appeal rights for any adjustments, reductions, or denials with specific reasons and clear explanation for the decision in accordance with Appendix 3 of this Handbook. x Issue payment. Payment of the loss claim simultaneously fulfills and terminates the loan note guarantee. A termination notice will be mailed to the designated payee at the time of payment. A. Reduction or Denial of a Loss Claim The Agency will review each loss claim for adherence to program regulation and make any reductions and/or denial of loss claim as noted below. The Agency staff will use information provided by the servicer to determine if the loss claim should be adjusted or denied. The Agency must show that any reduction to the servicer’s loss claim corresponds with the servicer’s action or failure to act. This section provides guidance regarding reduction or denial of a loss claim, and when applicable, the specific penalties attached to those factors. Additional information regarding penalties may be found in Appendix 8 of this Handbook. B. Calculation and Approval of Loss Payment Agency staff will review the loss claim and supporting documentation submitted by the servicer. Agency staff will document and create a loss claim payment to the servicer. The Agency’s reviewer should contact the servicer if there are questions about the information submitted by the servicer. C. Loss Claim Payment Process The Agency will use the following procedures for loss claim processing and disbursement of any loss claim payment. 1. Notification of Loss Payment Amount The Agency should notify the servicer in writing of the amount to be paid within 60 days of receipt of a properly completed loss claim package. If the loss claim has been reduced or denied, the Agency will provide a clear explanation of its decision, including an analysis of how the amount of any reduction was determined and Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. provide notification of appeal rights in accordance with Appendix 3 of this Handbook. 2. Payment and Post Payment Activities Payments for approved loss claims should be distributed within 60 days of receipt of a properly completed loss claim package. Servicers who participate in electronic funds transfer (EFT) should receive payment within 3 working days of loss claim processing. For all other servicers, a check should be generated and distributed within 3 working days of receipt of a properly completed and submitted loss claim. 3. Review and Appeal Rights. If a loss claim is reduced or denied, the Agency will notify the servicer of review and appeal rights as described in Appendix 3 of this Handbook. If the servicer seeks to request a review or appeal a loss claim decision, the Agency will pay the approved portion of the loss claim within the time frames described above. Interest will not accrue on any disputed loss amount during the review or appeals process regardless of the outcome of the review or appeal. 4. Supplemental Loss Claims The agency may allow the servicer to submit one supplemental loss claim in addition to the original loss claim submitted. The supplemental loss claim must be received by the agency within six months from payment date of the initial loss claim. The agency reserves the right to limit the payment of additional interest and expenses. The six-month expiration period may be exceeded if unusual circumstances exist such as a domestic incident as defined by the department of homeland security or when a geographic location in which the property is located has a presidential disaster declaration. Appendix 1 1 of 1 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. APPENDIX 1 For the complete 7 CFR Part 3555, refer to the National Archives and Records Administration Electronic Code of Federal Regulations (eCFR) found at https://www.ecfr.gov/current/title7/subtitle-B/chapterXXXV/part-3555 The eCFR is a web version of the Code of Federal Regulations (CFR) that is updated simultaneously with any published revisions. Please use the link above for the most up to date version of the 7 CFR 3555. Appendix 2 HB 1 of 3 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. APPENDIX 2 FORMS AND INSTRUCTIONS List of Forms and Instructions The following are forms noted within the handbook. Forms are separated by action. Some forms are Agency only specific and require only Agency action (as noted in the “Agency Use Only” column). Some forms are optional and should be used at the discretion of the lender (as noted in the “Optional Use by Lender” column). All forms are in-fillable format and can be accessed from the Rural Development Instructions website at: https://forms.sc.egov.usda.gov/eForms/, unless otherwise noted with a link to the form. Select “Browse Forms” from the home page and then enter the form number in the applicable field. Lender Participation Form Number Form Name Optional Use by Lender Agency Use Only See HB Chapter Form RD 3555-16 Agreement for Participation in Single Family Housing Guaranteed/Insured Loan Programs of the United States Government 3, 4, App. 7 Origination and Processing Form Number Form Name Optional Use by Lender Agency Use Only See HB Chapter Form RD 3555-21 Request for Single Family Housing Loan Guarantee 2, 5, 8, 9, 10, 15 Form RD 1910-5 Request for Verification of Employment √ 9, 11, 15 Form RD 1944-62 Request for Verification of Deposit √ 9, 11, 15 FEMA Flood Certification Standard Flood Hazard Determination Form https://www.fema.gov/floodinsurance/find-form/underwriting 12, 15, 16 Form RD 1922-15 Administrative Appraisal Review for Single Family Housing √ 2, 12 Appendix 2 HB 2 of 3 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. Form Number Form Name Optional Use by Lender Agency Use Only See HB Chapter RD Instruction 1970 F, Exhibit B, Attachment B 2, (Form) Template Private Party Notice to Applicant/Lender for Floodplain √ N/A RD Instruction 1970-B, Exhibit D (Form) Environmental Checklist for Categorical Exclusions √ 2 RD Instruction 1970 B, Exhibit C (Form) Guide to Applicants for Preparing Environmental Reports for Categorical Exclusions √ N/A Commitment Form Number Form Name Optional Use by Lender Agency Use Only See HB Chapter Form RD 3555-18 Conditional Commitment for Single Family Housing Loan Guarantee √ 2, 7, 9,12, 14,15,16 Form RD 3555-18E Conditional Commitment for Single Family Housing Loan Guarantee (Electronic) √ 2, 12,15, 16 Loan Closing Form Number Form Name Optional Use by Lender Agency Use Only See HB Chapter Form RD 451-2 Schedule of Remittances √ App. 6 Form RD 3555-11 Lender Record Change 3, 4,17, App. 4 Form RD 3555-17 Loan Note Guarantee √ 2, 10,16 Form RD 3555-17E Loan Note Guarantee (Electronic) √ 2, 10,16 Appendix 2 3 of 3 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. Interest Assistance Form Number Form Name Optional Use by Lender Agency Use Only See HB Chapter Form RD 3555-87 Shared Equity Payment √ App. 6 Form RD 3555-12 Master Interest Assistance and Shared Equity Agreement with Promissory Note App. 6 Form RD 3555-13 Annual Interest Assistance Agreement App. 6 Form RD 3555-14 Interest Assistance Shared Equity Determination √ App. 6 Instructions Referenced RD Instruction 1901-E Civil Rights Compliance Requirements RD Instruction 1970 Environmental Appendix 3 1 of 42 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. APPENDIX 3 REVIEW AND APPEALS A. Review and Appeal Options Adverse Agency decisions against a program participant (lender, applicant, or borrower) may be reviewed or appealed by the National Appeals Division (NAD). Adverse decisions include administrative actions taken by Agency staff and the Agency’s failure to take required actions within time frames specified in statutes or regulations, or within a reasonable time if no deadline is specified. 7 CFR Part 11 provides procedures that both Agency officials and program participants must follow during the review or appeal process. Applicable portions of 7 CFR Part 11 to the Single-Family Housing Guaranteed Loan Program (SFHGLP) can be found later in this appendix. Handbook Letters 1 through 7 are provided to inform program participants of their rights. Adverse decisions are subject to the following review and appeal procedures: x Informal Administrative Review by Agency Decision-Maker. Program participants (participants) have the right to request that any adverse decision be reviewed by the Agency staff member who made the adverse decision. x Appeal Request to NAD. Qualifying adverse decisions may be appealed to NAD. x Mediation as a Form of Alternative Dispute Resolution (ADR). Adverse decisions which are appealable to NAD require the participant be given the opportunity to seek ADR prior to a hearing with NAD. B. Informing Program Participants of Their Rights Agency decisions that adversely affect a participant require written notification that an informal administrative review with the person who made the decision may be requested. Letters notifying participants of adverse decisions must contain the information needed for the participant to make decisions regarding involvement in the review and appeals process. Specific civil rights language also must be included in these letters. Handbook Letters 1 through 7 following this appendix are available for guidance and are titled to assist in selecting the correct language for the decision made. Notification of adverse decisions by the Agency will include notification to the lender and the applicant/borrower when declining a request for loan commitment. Adverse decisions regarding loss payments will be directed to the servicer. 2 of 42 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. If the decision is appealable, the participant will be informed of their opportunity to seek mediation and/or to request a hearing with NAD using Handbook Letter 1. If the decision is not appealable, the participant will be informed of their rights to have NAD review the accuracy of the Agency’s finding that the decision cannot be appealed using Handbook Letter 2. When a participant is denied assistance for both appealable and nonappealable decisions, the Agency will send both Handbook Letters 1 and 2. The lender will be responsible for notifying the applicant or borrower if the lender declines an applicant or borrower’s request. Denial of loan requests or servicing actions by the lender are not subject to review or appeal rights. C. Adverse Decisions That Cannot Be Appealed Certain decisions made by the Agency are not appealable and participants can request an informal administrative review. The participant will be informed through Handbook Letter 2 that they may request an informal administrative review for a review of the accuracy of the Agency’s determination that the case cannot be appealed. Decisions that cannot be appealed can include: x Decisions made by parties not employed by the Agency; x Refusal to request an administrative waiver; x Decisions made in accordance with statute (such as rural area designations); and x Denial of loan commitment due to lack of program funds. D. Informal Administrative Review The purpose of the informal administrative review is to reiterate the Agency’s reasons for the adverse decision, provide a forum for the participant response, and obtain any additional information to support the participant request. x The written request for an informal administrative review must be provided to NAD within 15 days of the date of the Agency’s letter notifying the participant of the adverse decision. x The informal administrative review can be conducted by telephone, webinar, or a face-to-face meeting with the decision maker or their representative. The Agency will determine the meeting format. x The review of the decision must be completed within 45 days of the request. The Director of Origination and Processing Division (OPD) may require that Appendix 3 3 of 42 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. the decision be reviewed by the next-level supervisor or other designated Rural Development staff before the participant is notified of the decision. x Handbook Letter 3 of this appendix is used if the adverse decision is not reversed as a result of the informal administrative review. If the decision is reversed, a letter will be sent to the participant notifying them of the decision and next steps. x All documentation will be retained in the electronic customer file (ECF). The participant may skip an informal administrative review and, if applicable, request mediation and/or an appeal. In doing so, the participant automatically waives their rights to an informal administrative review. E. Mediation Adverse decisions which are appealable to NAD also require that the participant have the opportunity to seek mediation prior to having a hearing with NAD. The purpose of mediation is to resolve disputes using a neutral mediator. A mediator’s role is to summarize each party’s perception of the issues and offer procedural suggestions on a resolution which may lead to a mutual resolution of the adverse decision. The Agency will not use the services of an arbitrator. An arbitrator resolves disputes through hearing both parties and renders a binding decision. Participants may skip mediation and request an appeal to NAD. Requests for Mediation After receiving Handbook Letters 1 or 3 of this appendix, a participant may request mediation services. Upon receipt of the participant’s request for mediation, Handbook Letter 4 of this appendix is sent to the participant to begin the process. Cost of Mediation Costs associated with mediation should be shared equally between the Agency and the participant. The selection of a mediator will be based on the most economically viable alternative to both the Agency and participant. If Agency administrative funds are exhausted, the Agency will notify the participant that mediation can proceed but the cost of mediation will be absorbed fully by the participant. The Agency should ensure that all participants requesting mediation are treated consistently and pay the same percentage of the cost toward this service. The Agency may also consent to pay a larger percentage (up to 100 percent) of the cost of mediation for participants with incomes below the poverty level. The Agency will notify the mediation source of how the cost of such service will Appendix 3 4 of 42 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. be paid. Handbook Letters 4 and 5 of this appendix include language to meet this requirement. Mediation in States with a USDA funded mediation program Many States have a mediation program that is supported by grants provided by USDA and a list of mediation providers is available at USDA Farm Service Agency Home Page (usda.gov). In States with a USDA funded mediation program, participants who are provided appeal rights can be referred to the USDA funded mediation program. Mediation in States with a Community-Based Mediation Center (CBMC) A CBMC is a nonprofit, public entity operating under the guidance of a governing board. They provide an alternative to the judicial system using trained mediators and are an option when a USDA funded State mediation program is unavailable. The State ADR Coordinator should establish a source list of CBMCs and include the director, contact information, and cost. Mediation in States without a USDA funded mediation program In States without a USDA funded mediation program or access to a CBMC, the State ADR coordinator is responsible for maintaining a list of mediation service providers. The list will contain the approximate cost of each service provider, if known. The Agency may handle the list of mediation sources as follows: x The mediator list will be maintained alphabetically, and sources selected in sequential order to ensure that mediation providers receive an evenly balanced number of referrals. In the case where mediators have a wide range of costs, an emphasis will be placed on the lowest cost provider. x The Agency may provide the list of mediators to the participant and request the participant to select the source or provide the name of another acceptable source of mediation services using Handbook Letter 4. x The participant must provide the name of a mediation provider within 10 days, or the request will be withdrawn. Handbook Letter 7 will be used to notify the participant the withdrawal of the mediation request. x Handbook letter 5 will be used to refer the case to the mediator. x Withdrawal or cancellation of mediation does not extinguish the participant’s right to an appeal with NAD. Appendix 3 5 of 42 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. Timing of mediation x Mediation must be completed within 45 days after the case is referred to the mediation source unless the complexity of the case warrants a longer timeframe and all parties agree to an extended timeline. x The mediator will conduct a teleconference between the parties prior to accepting a case to determine the potential success of mediation. The Agency will not refuse to participate in mediation if requested to do so by the participant. x Mediation occurs prior to having a hearing with NAD and stops the clock on the 30-day period during which a participant may request and appeal to NAD. x Following mediation, any days remaining from the 30-day period are available to the participant to request an appeal to NAD. Handbook Letter 7 of this appendix is used for this purpose. Hearing dates for participants who request mediation after filing an appeal must be selected within 45 days of the conclusion of mediation. Mediation on cases involving the Servicing Office Mediation on decisions made by the Servicing Office will be coordinated through with the OPD and the State Office ADR coordinator. When a participant receives Handbook Letters 1 or 3 of this appendix as a result of an adverse decision made by the Servicing Office, the participant is referred to the Director of OPD to initiate mediation. Upon receipt of a participant’s request, the Agency will send Handbook Letters 4, 5, or 7 of this appendix, as applicable. A copy will be provided to the Single Family Housing Appeals Coordinator in the Servicing Office. When Handbook Letter 5 is sent to the service provider, the Agency contact will be the Servicing Office. While the OPD coordinates this service, the Servicing Office is responsible for participating in the actual mediation. Appeals x Participants who wish to appeal an adverse decision must submit a written request to NAD within 30 days of receiving notice of an adverse decision. The request must be signed by the participant and include a copy of the adverse decision and a brief statement describing why the participant believes the decision is wrong. x The Agency will promptly provide NAD with a copy of the Agency record, specific references in 7 CFR Part 3555 to support the decision, and any other pertinent information. A copy will also be provided to the participant. Appendix 3 6 of 42 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. x The participant may choose a face-to-face hearing in the participant’s state of residence, teleconference, or webinar. The Agency will provide a field office based employee to attend the hearing and represent the Agency. In the case of a loan servicing appeal, the Director of OPD and the Servicing Office Single Family Housing Appeals Coordinator will work cooperatively to support to the field office representative to adequately represent the Agency in the case. x NAD will notify the participant and Agency of the final determination. x If NAD reverses the Agency’s decision, the next processing action that would have occurred had no adverse decision been made must be taken within 30 days after the effective date of the notice from NAD; unless the Agency requests a review of the case by the Director of NAD. x All documentation will be entered into ECF. x See 7 CFR Part 11 of this appendix for more guidance on Director Reviews and other information regarding appeals. Appendix 3 7 of 42 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. Appendix 3 8 of 42 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. EQUAL CREDIT OPPORTUNITY ACT The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning this creditor is the Federal Trade Commission. If a person believes he or she was denied assistance in violation of this law, they should contact the Federal Trade Commission, Washington, D.C. 20580. The Fair Housing Act prohibits discrimination in real estate related transactions, or in the terms or conditions of such a transaction, because of race, color, religion, sex, disability, familial status, or national origin. The federal agency that is responsible for enforcing this law is the U. S. Department of Housing and Urban Development. If a person believes that they have been discriminated against in violation of this law, they should contact the U. S. Department of Housing and Urban Development, Washington, D.C. 20410 or call (800) 669-9777. Appendix 3 9 of 42 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. HANDBOOK LETTER 1 NOTIFYING CUSTOMERS OF AN ADVERSE DECISION THAT IS APPEALABLE The decision described in the attached letter did not grant you the assistance you requested or will terminate or reduce the assistance you are currently receiving. If you believe this decision or the facts used in this case are in error, you may pursue any or all of the following three options. Option 1 – Request an Informal Administrative Review If you have questions concerning this decision or the facts used in making it and desire further explanation, you may write this office to request an informal administrative review. There is no cost for an informal administrative review. This written request must be received no later than 15 calendar days from the date of the attached letter. You must present any new information, evidence, and possible alternatives along with your request. You may also have a representative or legal counsel participate in the process at your cost. The informal administrative review may be conducted by telephone, webinar, or in person, at the discretion of the Agency. Please include a daytime phone number in your request to arrange for the review. You may skip this step in the informal administrative review process and select one of the following two options. If you do, you will automatically waive your right to an informal administrative review. Option 2 – Request Mediation You have the right to request mediation. In most cases, the mediator is not a federal government employee. A mediator will listen to all parties involved in the dispute and work with all parties to achieve a mutually agreeable resolution. Many cases that go to mediation are resolved without further action, extended delays, or the cost of formal litigation. You have 30 days to request mediation, 10 days to select a mediator, and then 45 days to complete mediation. If you need more information on the mediation process to assist you in deciding whether to use this option, contact the Director of Origination and Processing Division (OPD) listed below. [Director of Origination and Processing Division] There may be a cost for mediation, if so, Rural Development will pay 50 percent of the reasonable cost for mediation. When there is a cost, it is your responsibility to pay the other 50 percent. Every effort, however, is made to keep any cost to a minimum, and in some cases, the mediator may waive the customer’s 50 percent share. Appendix 3 10 of 42 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. If you elect to seek mediation, your written request for this service must be sent to the Director of Origination and Processing Division and must be postmarked no later than 30 days from the date of the attached letter. Once you request mediation, the 30-day period to request an appeal hearing (described in Option 3) is postponed but does not waive your right to an appeal. Once you have requested mediation, the Director of Origination and Processing Division will advise you of the mediation service provider, the estimated cost of mediation, the amount the Agency will contribute, and the process and procedures for this service. There are three alternatives for mediation providers: 1. USDA-funded state mediation program 2. Community Based Mediation Centers, or 3. Other mediation providers you recommend, subject to Agency’s approval. Once a mediation service provider has been identified, you will have 10 days to contact the mediator, and you will be advised directly by the mediation source if they can mediate your case. You will have 45 days to complete mediation. If mediation does not result in resolution of these issues, you have the right to continue with a request for an appeal hearing as set forth in Option 3. Mediation does not take the place of or limit your right to an appeal to the National Appeals Division (NAD); however, a NAD appeal hearing would take place only after mediation. You may skip mediation and request an appeal hearing. However, in doing so, you will automatically waive your right to an informal meeting. Once the appeal hearing begins, you also waive your right to mediation. Option 3 - Request an Appeal You may request an appeal hearing by the NAD rather than an informal administrative review or mediation. There is no cost for an appeal hearing. Your request for an appeal must be made no later than 30 days from the date you receive the attached letter. To request an appeal hearing, you must write the NAD Assistant Director for your region at the following address: [NAD Assistant Director Address] Your request must state the reasons why you believe the decision is wrong, be personally signed by you, and must include a copy of the attached letter. A copy of your request must also be sent to the Director of Origination and Processing Division at: [Director of Origination and Processing Division Address] Appendix 3 11 of 42 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. You may alternatively select to file your appeal electronically through the NAD website. You can set up a NAD efile account and then follow the prompts to request an appeal electronically. Your request for an appeal must be made no later than 30 days from the date you received the attached letter. To file an appeal online go to the following internet address: https://www.usda.gov/oha/nad/appeals You, or your representative or counsel, may contact the OPD anytime during regular office hours to request copies of the Agency’s record relevant to this adverse decision. Electronic images or photocopies will be provided to you. Your representative or counsel must have your written authorization to represent you and review your file. The NAD Hearing Officer will contact you regarding a time and place for the hearing. The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning this creditor is the Federal Trade Commission. If a person believes he or she was denied assistance in violation of this law, they should contact the Federal Trade Commission, Washington, D.C. 20580. The Fair Housing Act prohibits discrimination in real estate related transactions, or in the terms or conditions of such a transaction, because of race, color, religion, sex, disability, familial status, or national origin. The federal agency that is responsible for enforcing this law is the U.S. Department of Housing and Urban Development. If a person believes that they have been discriminated against in violation of this law, they should contact the U. S. Department of Housing and Urban Development, Washington, D.C. 20410 or call (800) 669-9777. Appendix 3 12 of 42 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. HANDBOOK LETTER 2 NOTIFYING CUSTOMERS OF AN ADVERSE DECISION THAT CANNOT BE APPEALED The decision described in the attached letter did not grant you the assistance you requested or will terminate or reduce the assistance you are currently receiving. If you have questions concerning this decision or the facts used in making it and desire further explanation, you may write this office to request an informal administrative review. This written request must be received no later than 15 calendar days from the date of the attached letter. You must present any new information, evidence, and possible alternatives along with your request. You may also have a representative or legal counsel participate in the process, at your cost. The informal administrative review may be conducted by telephone or in person, at the discretion of the Agency. Please include a daytime phone number in your request to arrange for the review. Program participant generally have a right to appeal adverse decisions, but decisions based on certain reasons cannot be appealed. We have determined that reasons for the decision cannot be appealed under our regulations. You may, however, write the Assistant Director, National Appeals Division (NAD) for a review of the accuracy of our finding that the decision cannot be appealed. Your request must be made no later than 30 days from the date you receive the attached letter. [NAD Assistant Director Address] The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning this creditor is the Federal Trade Commission. If a person believes he or she was denied assistance in violation of this law, they should contact the Federal Trade Commission, Washington, D.C. 20580. The Fair Housing Act prohibits discrimination in real estate related transactions, or in the terms or conditions of such a transaction, because of race, color, religion, sex, disability, familial status, or national origin. The federal agency that is responsible for enforcing this law is the U.S. Department of Housing and Urban Development. If a person believes that they have been discriminated against in violation of this law, they should contact the U. S. Department of Housing and Urban Development, Washington, D.C. 20410 or call (800) 669-9777. Appendix 3 13 of 42 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. HANDBOOK LETTER 3 NOTIFYING CUSTOMERS OF UNFAVORABLE DECISION REACHED AS A RESULT OF AN INFORMAL ADMINISTRATIVE REVIEW We appreciated the opportunity to review the facts relative to your request for assistance. We regret that the decision in the attached letter did not grant the assistance you requested or will terminate or reduce the assistance you are currently receiving. If you believe that facts used in this case are in error, you may pursue any or all of the following two options. Option 1 – Request Mediation You have the right to request mediation. In most cases, the mediator is not a federal government employee. A mediator will listen to all parties involved in the dispute and work with all parties to achieve a mutually agreeable resolution. Many cases that go to mediation are resolved without further action, extended delays, or the cost of formal litigation. You have 30 days to request mediation, 10 days to select a mediator, and then 45 days to complete mediation. If you need more information on the mediation process to assist you in deciding whether to use option, contact the Director of Origination and Processing Division (OPD) listed below: [Director of Origination and Processing Division] There may be a cost for mediation. If so, Rural Development will pay for 50 percent of the reasonable cost for mediation. Where there is a cost, it is your responsibility to pay the other 50 percent. Every effort, however, is made to keep any cost to a minimum, and in some cases, the mediator will waive the customer’s 50 percent share. If you elect to seek mediation, your written request for this service must be sent to the Director of Origination and Processing Division (OPD) and must be postmarked no later than 30 days from the date of the attached letter. Once you request mediation, it stops the running of the 30-day period in which you may request an appeal hearing (described in Option 2) but does not waive your right to an appeal. Once you have requested mediation, the Director of Origination and Processing Division will advise Appendix 3 14 of 42 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. you of the mediation service provider, the estimated cost of mediation, the amount the Agency will contribute to the cost, and the process and procedures for this service. There are three alternatives for mediation providers: 1. USDA-funded state mediation program, 2. Community Based Mediation Centers, or 3. Other mediation provider you recommend, subject to the Agency’s approval. Once a mediation service provider has been identified, you will have 10 days to contact the mediator, and you will be directly asked if they can mediate your case. You will have 45 days to complete the mediation. If mediation does not result in resolution of these issues, you have the right to continue with a request for an appeal hearing as set forth in Option 2. Mediation does not take the place of, or limit your rights to, an appeal to the National Appeals Division (NAD); however, a NAD appeal hearing would take place only after mediation. Option 2 - Request an Appeal You may skip mediation and request an appeal hearing. In doing so, you will automatically waive your right to an informal meeting. There is no cost for an appeal hearing. Your request for an appeal must be made no later than 30 days from the date of the original Agency’s adverse decision letter. If you choose Option 1, an NAD appeal hearing would take place only after mediation as long as there are days remaining from the original 30 days to request an appeal. You must immediately contact the NAD. To request an appeal hearing, you must write the NAD Assistant Director for your region as the following address: [NAD Assistant Director Address] Your request must state the reasons why you believe the decision is wrong, be personally signed by you, and must include a copy of original adverse decision letter. A copy of your request must also be sent to the Director of Origination and Processing Division at the following address: Appendix 3 15 of 42 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. [Director of Origination and Processing Division Address] You may alternatively select to file your appeal electronically through the NAD website. You can set up a NAD efile account and then follow the prompts to request an appeal electronically. Your request for an appeal must be made no later than 30 days from the date you received the original adverse decision letter. To file an appeal online go to the following internet address: https://www.usda.gov/oha/nad/appeals You, or your representative or counsel, may contact the OPD anytime during regular office hours to request copies of the Agency’s record relevant to this adverse decision. Electronic images or photocopies will be provided to you. Your representative or counsel must have your written authorization to represent you and review your file. The NAD Hearing Officer will contact you regarding a time and place for the hearing. The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning this creditor is the Federal Trade Commission. If a person believes he or she was denied assistance in violation of this law, they should contact the Federal Trade Commission, Washington, D.C. 20580. The Fair Housing Act prohibits discrimination in real estate related transactions, or in the terms or conditions of such a transaction, because of race, color, religion, sex, disability, familial status, or national origin. The federal agency that is responsible for enforcing this law is the U. S. Department of Housing and Urban Development. If a person believes that they have been discriminated against in violation of this law, they should contact the U. S. Department of Housing and Urban Development, Washington, D.C. 20410 or call (800) 669-9777. Appendix 3 16 of 42 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. HANDBOOK LETTER 4 ATTACHMENT FOR NOTIFYING CUSTOMERS WHO HAVE REQUESTED MEDIATION OF THE ASSIGNMENT OF THEIR CASE TO: A USDA-FUNDED STATE MEDIATION PROGRAM OR: A COMMUNITY-BASED MEDIATION CENTER OR: CERTIFIED MEDIATION PROVIDER FOR MEDIATION TO: [CUSTOMER] FROM: DIRECTOR, ORIGINATION AND PROCESSING DIVISION SUBJECT: Request for Mediation Services This replies to your request for mediation of your adverse decision. Your request has been referred to a [USDA-funded state mediation program] [Community Based Mediation Center] or [you must select from the attached list of certified mediation providers]. As indicated in our adverse decision letter, there may be a cost for the mediation. The following is an estimate, but you will be advised by the mediation service provider if there will be a cost. Rural Development policy is to pay 50 percent of the reasonable cost for mediation. $ USDA-funded state mediation program [and address] $ Community-Based Mediation Center [and address] Attached is an alphabetical list of certified mediators to select a mediator, or subject to our concurrence you may request the use of another mediator. Within 10 days of the date of this letter, you must provide this office, in writing, with the concurrence/selection of the mediator. If you do not, you will waive your right to mediation. Rural Development will then contact the mediator, who in turn will contact you to determine if Appendix 3 17 of 42 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. they can mediate the issues in your case. You will have 45 days to complete the mediation. When the mediation is concluded, you may file an appeal of the original adverse decision by immediately contacting the National Appeals Division (NAD): [NAD Assistant Director Address] Once you have been contacted by the mediation provider and if you decide not to pursue mediation, you must immediately contact this office (address at the top of this letter). You are responsible for all costs incurred by the mediation provider from the time of selection until your cancellation. Mediation, or the cancellation of mediation, does not affect your rights to seek an appeal with NAD. The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning this creditor is the Federal Trade Commission. If a person believes he or she was denied assistance in violation of this law, they should contact the Federal Trade Commission, Washington, D.C. 20580. The Fair Housing Act prohibits discrimination in real estate related transactions, or in the terms or conditions of such a transaction, because of race, color, religion, sex, disability, familial status, or national origin. The federal agency that is responsible for enforcing this law is the U. S. Department of Housing and Urban Development. If a person believes that they have been discriminated against in violation of this law, they should contact the U. S. Department of Housing and Urban Development, Washington, D.C. 20410 or call (800) 669-9777. Appendix 3 18 of 42 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. HANDBOOK LETTER 5 ATTACHMENT FOR ASSIGNMENT BY RURAL DEVELOPMENT/USDA OF A CUSTOMER MEDIATION REQUEST TO A MEDIATION SERVICES PROVIDER TO: [Mediation Service Provider] FROM: Director, Origination and Processing Division SUBJECT: Request for Mediation CUSTOMER: [Name of the Rural Development customer requesting mediation] [Customer contact information] The above Rural Development customer has received an adverse decision from our Agency and has requested mediation. Attached is a copy of the adverse decision letter and the customer’s request for your mediation. Informal Administrative Review: The Customer was provided with the opportunity for an informal administrative review with the Agency; however, the customer chose not to exercise this option. An informal administrative review was conducted; however, the Agency did not reverse its decision. Jurisdiction of the Case The adverse decision in this case was made by the Origination and Processing Division. You should contact this office for further information on the case. [Agency contact: program, individual, address phone and e-mail] Appendix 3 19 of 42 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. Payment for Service: The Rural Development policy is to pay 50 percent of the reasonable cost of the mediation service, and the customer will pay 50 percent. In addition, we encourage the mediation service to consider the customer’s ability to pay. The customer is solely responsible for their portion of the cost of this service and should be billed directly. The bill for the Agency’s portion should be submitted to Director of Origination and Processing Division: [Director, Origination and Processing Division Name and Address] Mediation must be completed within 45 days from the date of this letter, unless both parties agree to an extension. We also request a teleconference prior to your acceptance of this case to determine whether the adverse decision lends itself to mediation by your service. The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning this creditor is the Federal Trade Commission. If a person believes he or she was denied assistance in violation of this law, they should contact the Federal Trade Commission, Washington, D.C. 20580. The Fair Housing Act prohibits discrimination in real estate related transactions, or in the terms or conditions of such a transaction, because of race, color, religion, sex, disability, familial status, or national origin. The federal agency that is responsible for enforcing this law is the U. S. Department of Housing and Urban Development. If a person believes that they have been discriminated against in violation of this law, they should contact the U. S. Department of Housing and Urban Development, Washington, D.C. 20410 or call (800) 669-9777. Attachments (2): Adverse decision letter Customer’s request for mediation CC: The Servicing Office Single Family Housing Appeals Coordinator Appendix 3 20 of 42 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. HANDBOOK LETTER 6 ATTACHMENT FOR NOTIFYING CUSTOMERS OF UNRESOLVED RESULT OF THE MEDIATION OF THE ADVERSE TO: [CUSTOMER] FROM: [Director, Origination and Processing Division] SUBJECT: Unresolved Result of the Requested Mediation Your request for mediation has been completed. We regret that mediation did not result in resolution of the issues. [We are unable to grant the assistance you requested, or will terminate, or reduce the assistance you requested]. If you believe the decision or facts used in the case are in error, you may continue to pursue your right to an appeal by the National Appeals Division (NAD). There is no cost for an appeal Please follow the guidance in the paragraph indicated with an “X”. You requested an appeal hearing to NAD prior to entering into mediation. You must immediately write to the Assistant Director of NAD at the address below to determine the number of days remaining, if any, to schedule the appeal hearing: [NAD Assistant Director Address] You did not request an appeal hearing to NAD prior to entering into mediation. If you wish to schedule an appeal hearing, you must immediately write to the Assistant Director of NAD at the address below to determine the number of days remaining, if any, to schedule the appeal hearing. Your appeal request must be received within the remaining days, as determined by NAD, from the date when you requested mediation: [NAD Assistant Director Address] Appendix 3 21 of 42 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. Information Regarding Appeals If NAD determines that you have appeal rights and you want to exercise those appeal rights, you, or your representative or counsel, may contact the OPD anytime during regular office hours to request copies of the Agency’s record relevant to this adverse decision. Electronic images or photocopies will be provided to you. Your representative or counsel must have your written authorization to represent you and review your file. The NAD Hearing Officer will contact you regarding a time and place for the hearing. The NAD Hearing Officer will contact you regarding a time and place for the hearing. You may also request a teleconference hearing in lieu of the face-to-face hearing. At any time before the scheduled hearing, you may also request that the Hearing Officer make a decision without a hearing. The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning this creditor is the Federal Trade Commission. If a person believes he or she was denied assistance in violation of this law, they should contact the Federal Trade Commission, Washington, D.C. 20580. The Fair Housing Act prohibits discrimination in real estate related transactions, or in the terms or conditions of such a transaction, because of race, color, religion, sex, disability, familial status, or national origin. The federal agency that is responsible for enforcing this law is the U.S. Department of Housing and Urban Development. If a person believes that they have been discriminated against in violation of this law, they should contact the U. S. Department of Housing and Urban Development, Washington, D.C. 20410 or call (800) 669-9777. CC: The Servicing Office, Single Family Housing Appeals Coordinator Appendix 3 22 of 42 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. HANDBOOK LETTER 7 ATTACHMENT FOR NOTIFYING CUSTOMERS OF EXPIRATION OF THE 10 DAYS TO SELECT A MEDIATION SERVICES PROVIDER TO: [Customer] FROM: [Director, Origination and Processing Division] SUBJECT: Expiration of Selection of Mediation Service Provider On [date], you requested mediation of the adverse decision as outlined in the attached letter which did not [grant the assistance you requested or will terminate or reduce the assistance you are currently receiving or will give you relief from foreclosure]. You were also informed that you had 10 days from [date] to either concur in the mediation service assigned by Rural Development to your case, or name mediation service for our consideration. The 10 days to acknowledge the selection of the mediation service provider has expired. Your request for mediation therefore has expired, and Rural Development will begin to process the initial adverse decision as outlined in the attached letter. Request an Appeal Hearing Your request for mediation did not take the place of or limit your right to request an appeal to the National Appeals Division (NAD). You may request an appeal hearing by NAD as long as there are days remaining from the original 30 days to request an appeal as outlined in the original adverse decision letter. You must immediately contact the NAD Assistant Director for your region (at the following address) to determine if you can file for an appeal hearing. [NAD Assistant Director Address] Appendix 3 23 of 42 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. There is no cost for an appeal hearing. Your request must state the reasons why you believe the decision is wrong, be personally signed by you, and include a copy of the attached original decision letter. A copy of your request must also be sent to the Director of Origination and Processing Division: [Director of Origination and Processing Division Address] You may alternatively select to file your appeal electronically through the NAD website. You can set up a NAD efile account and then follow the prompts to request an appeal electronically. Your request for an appeal must be made no later than 30 days from the date you received the attached letter. To file an appeal online go to the following internet address: https://www.usda.gov/oha/nad/appeals You, or your representative or counsel, may contact the OPD anytime during regular office hours to request copies of the Agency’s record relevant to this adverse decision. Electronic images or photocopies will be provided to you. Your representative or counsel must have your written authorization to represent you and review your file. The NAD Hearing Officer will contact you regarding a time and place for the hearing. The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning this creditor is the Federal Trade Commission. If a person believes he or she was denied assistance in violation of this law, they should contact the Federal Trade Commission, Washington, D.C. 20580. The Fair Housing Act prohibits discrimination in real estate related transactions, or in the terms or conditions of such a transaction, because of race, color, religion, sex, disability, familial status, or national origin. The federal agency that is responsible for enforcing this law is the U.S. Department of Housing and Urban Development. If a person believes that they have been discriminated against in violation of this law, they should contact the U.S. Department of Housing and Urban Development, Washington, D.C. 20410 or call (800) 669-9777. Attachment: Copy of denial letter CC: The Servicing Office, Single Family Housing Appeals Coordinator Appendix 3 24 of 42 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. HANDBOOK 3 7 CFR PART 11--NATIONAL APPEALS DIVISION RULES OF PROCEDURE TABLE OF CONTENTS Sec.
Operationalizing USDA Technical Handbook HB-1-3555 §19.5 — Agency Review
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Source of record: https://claudeforcompliance.com/regs/usda-hb-3555-19-5/
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