USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶3.4 — Agency Review

USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶3.4 — Agency Review

3.4 AGENCY REVIEW The Agency review of the lender’s application includes the following: x Ensuring that all required documents have been submitted and are completed correctly. Incomplete applications cannot be approved, and the lender will be advised of the omission(s) in writing. x Form RD 3555-16 has been properly executed by a person authorized to bind the lender to the terms stated on the form. x Evidence that the lender’s demonstrated ability is consistent with the requirements of this chapter. x Evidence that neither the lender nor any of the lender’s principal officers have been suspended or debarred from participation in Federal programs. HB-1-3555 (03-09-16) SPECIAL PN 3-8 Revised (07-21-23) PN 588 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 Evidence that the lender’s approval status with Fannie Mae, Freddie Mac, HUD, VA, or another acceptable Government Agency is active at the time of the application to the Agency. x Verification the lender is registered in SAM. A. Approval of Application [7 CFR 3555.52] 1. Pre-Approval If the lender meets the criteria for an approved lender and provides the supporting documentation as outlined in Attachment 3-A, the Agency will issue an approval notice to the lender. Final approval is dependent upon the lender and all origination, and underwriting staff involved with the SFHGLP completing mandatory training. The Agency will provide additional information on access to mandatory trainings as part of the lender approval process. The purpose of the training is to provide an overview of the SFHGLP objectives, lender responsibilities, required loan documentation, and the process to obtain a Loan Note Guarantee. Any additional staff hired after the initial lender approval should also complete all mandatory trainings. 2. Final Approval Upon completion of all mandatory trainings by the lender, the Agency will update the lender pages of GLS and forward the lender a copy of the executed Form RD 3555-16, notifying the lender of their approval to participate in the SFHGLP. The lender may begin participating in the program once final approval is obtained. New lenders will be subject to an oversight review, as outlined in Paragraph 3.8 of this chapter. B. Denial of Application If the lender does not qualify for participation in the program, the Agency will provide written justification along with appeal rights in accordance with Appendix 3 of this Handbook. A lender who does not meet the criteria to participate in the program as an approved lender may act as an agent for an approved lender, as described in Paragraph 3.2C. C. Record Retention Lender approval files will be maintained and retained in accordance with Chapter 2. HB-1-3555 (03-09-16) SPECIAL PN 3-9 Revised (07-21-23) PN 588 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. 3.5 LENDER SALE OF GUARANTEED LOANS [7 CFR 3555.54] SFHGLP loans can only be sold to lenders meeting the requirements of Paragraph 3.2. The purchasing lender must execute Form RD 3555-16 or have an approved Form RD 3555-16 on file. The selling lender is responsible for providing the original Loan Note Guarantee to the purchasing lender and must report the sale of the guarantee on Form RD 3555-11, Guaranteed Rural Housing Lender Record Change, within 30 days of the sale in accordance with Chapter 4, Paragraph 4.6.

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