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Table of Contents

Page 1

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Revised (01-05-24) PN 602

TABLE OF CONTENTS

Page

CHAPTER 1: GENERAL PROGRAM REQUIREMENTS 1-1

1.1 WELCOME TO THE HANDBOOK 1-1

SECTION 1: INTRODUCTION TO THE HANDBOOK 1-1

1.2 USING THIS HANDBOOK 1-1

A. Citations 1-1

B. Attachments and Appendices 1-2

C. Terminology 1-2

1.3 GETTING ADDITIONAL HELP 1-3

SECTION 2: OVERVIEW OF THE SFHGLP 1-3

1.4 SFHGLP GOALS 1-3

1.5 SFHGLP SUMMARY 1-4

SECTION 3: GENERAL PROGRAM REQUIREMENTS 1-4

1.6 CIVIL RIGHTS 1-4

A. Major Civil Rights Laws Affecting the SFHGLP 1-5

B. Nondiscrimination Practices 1-5

C. Reasonable Accommodations for Persons with Disabilities 1-6

1.7 REVIEW AND APPEALS 1-6

1.8 STATE AND LOCAL LAW 1-7

1.9 EXCEPTION AUTHORITY 1-7

A. Who Can File a Request 1-7

B. What Must be Included in the Request 1-7

C. Where Requests are Submitted 1-7

1.10 CONFLICT OF INTEREST 1-8

A. Prohibited Relationships 1-8

B. Disclosure Requirements 1-8

1.11 UNAUTHORIZED ASSISTANCE 1-9

1.12 AGENCY LOAN APPROVAL AUTHORITY GUIDELINES FOR SINGLE 

FAMILY HOUSING GUARANTEED PROGRAM

A. Training

B. Proficiency Testing

C. Mentoring

D. File Review

E. Supervisor Recommendation for Approval

F. Continued Training Process

G. Reinstatement of Approval Authority

1-9

1-10

1-10

1-10

1-11

1-11

1-12

1-12

ATTACHMENT 1-A: NOTICE OF RELATIONSHIP/ASSOCIATION BETWEEN SFHGLP

APPLICANT AND RURAL DEVELOPMENT EMPLOYEE

ATTACHMENT 1-B: REQUIREMENTS FOR HANDLING SFHGLP APPLICATION OF 

EMPLOYEE, RELATIVE OR ASSOCIATE

ATTACHMENT 1-C: DELEGATION OF LOAN APPROVAL AUTHORITY

CHAPTER 2: RECORD RETENTION 2-1

2.1 INTRODUCTION 2-1

2.2 LENDER RECORD MAINTENANCE 2-1

A. Loan Origination Records 2-1

B. Payment and Disbursement Records 2-2
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2.3 AGENCY RECORD MAINTENANCE 2-2

A. Lender Approval Files 2-2

B. Mortgage Files 2-3

CHAPTER 3: LENDER APPROVAL 3-1

3.1 INTRODUCTION 3-1

3.2 LENDER APPROVAL CRITERIA 3-1

A. Approval form Another Recognized Source 3-1

B. Approval by Demonstrated Ability 3-2

C. Participation as an Agent of an Approved Lender 3-4

3.3 APPLICATION 3-5

3.4 AGENCY REVIEW 3-6

A. Approval of Application 3-6

B. Denial of Application 3-7

C. Record Retention 3-7

3.5 LENDER SALE OF GUARANTEED LOANS 3-8

3.6 LENDER RESPONSIBILITY 3-8

3.7 EDUCATION AND OUTREACH 3-8

A. Lenders 3-8

B. Agency 3-9

3.8 MONITORING A LENDER’S ORIGINATION AND SERVICING OF

LOANS

3-9

A. Review Circumstances and Factors 3-9

B. Conducting Compliance Reviews 3-10

3.9 LENDER RECERTIFICATION AND REVOKING LENDER ELIGIBILITY 3-11

3.10 VOLUNTARY WITHDRAWAL 3-11

ATTACHMENT 3-A: LENDER APPROVAL CHECKLIST

ATTACHMENT 3-B: LENDER ELIGIBILITY GUIDE – New Lender/Renewing Lender

ATTACHMENT 3-C: NEW LENDER TRAINING AND CERTIFICATION

CHAPTER 4: LENDER RESPONSIBILITIES 4-1

4.1 INTRODUCTION 4-1

4.2 OPERATE RESPONSIBLY 4-1

4.3 MAINTAIN A WELL-TRAINED STAFF 4-1

4.4 COLLECT PAYMENTS AND ENSURE PAYMENT OF TAXES AND

INSURANCE

4-2

4.5 MAINTAIN FIDELITY BONDING 4-2

4.6 SELL LOANS ONLY TO APPROVED LENDERS 4-2

A. Procedure 4-2

B. Purchaser Risks and Responsibilities 4-3

4.7 REPORT SIGNIFICANT CHANGES 4-3

4.8 ADHERE TO SFHGLP GUIDELINES 4-4

4.9 INDEMNIFICATION 4-4

4.10 PREVENT MORTGAGE FRAUD 4-5

4.11 WITHDRAWAL OF APPROVAL 4-6

A. Criteria to Withdraw Approval 4-6

B. Sale of Loans Upon Termination 4-6

4.12 ADDITIONAL LENDER RESPONSIBILITIES UPON APPROVAL 4-7

ATTACHMENT 4-A: CONDITIONS FOR LENDERS NOT HOLDING FUNDS IN ESCROW

ATTACHMENT 4-B: SAMPLE FOR ACKNOWLEDGMENT OF REAL ESTATE TAX AND 

HAZARD INSURANCE REQUIREMENTS
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CHAPTER 5: ORIGINATION AND UNDERWRITING OVERVIEW 5-1

5.1 INTRODUCTION 5-1

5.2 REQUESTING A GUARANTEE 5-1

A. Preliminary Determination of Applicant Eligibility 5-1

B. Informing the Applicant 5-2

5.3 UTILIZING THE GUARANTEED UNDERWRITING SYSTEM 5-3

A. Functionality of GUS 5-3

B. Gaining Access to GUS 5-5

C. Underwriting Guidance For Lenders 5-5

D. Compatible Loan Origination System (LOS) and Point of Sale (POS)

Venders

5-5

E. Cash Reserves 5-6

F. Omitting Liabilities 5-6

G. Established Data Tolerances 5-6

H. GUS Findings and Underwriting Report 5-7

I. Lender Steps When Requesting a Commitment 5-8

J. GUS Underwriting Recommendations 5-9

K. Lender’s Reliance on the GUS System 5-11

L. Lender’s Permanent Loan File – Documentation Requirements 5-11

M. Resubmission Policy 5-12

N. Lender’s Representations to the Agency Upon Final Submission 5-13

O. Termination 5-13

CHAPTER 6: LOAN PURPOSES 6-1

6.1 INTRODUCTION 6-1

6.2 ELIGIBLE LOAN PURPOSES 6-1

A. Acquiring a Site and Dwelling 6-1

B. Repairs and Rehabilitation 6-1

C. Reasonable and Customary Expenses Associated with the Purchase of 

an Existing Dwelling or New Construction

6-2

D. Refinance 6-4

E. Supplemental Loans 6-9

6.3 PROHIBITED LOAN PURPOSES 6-9

6.4

ATTACHMENT 6-A

AGENCY REVIEW OF LOAN PURPOSES

REFINANCE OPTIONS FOR SECTION 502 DIRECT AND 

GUARANTEED LOANS

6-10

CHAPTER 7: LOAN TERMS AND CONDITIONS 7-1

7.1 INTRODUCTION 7-1

7.2 MAXIMUM LOAN AMOUNT 7-1

7.3 LOAN TERMS 7-2

A. Repayment Period 7-2

B. Interest Rate 7-2

C. Terms Unacceptable for a Guarantee 7-3

CHAPTER 8: APPLICANT CHARACTERISTICS 8-1

8.1 INTRODUCTION 8-1

8.2 APPLICANT ELIGIBILITY REQUIREMENTS 8-1

A. Owning a Dwelling 8-1

B. Obtaining Credit 8-3

C. Occupying the Property 8-4

D. Having Legal Capacity 8-4

E. Not Having a Suspension or Debarment 8-4
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F. Having Acceptable Citizenship or Immigration Status 8-5

8.3 TRUTHFUL APPLICATION 8-7

CHAPTER 9: INCOME ANALYSIS 9-1

9.1 INTRODUCTION 9-1

SECTION 1: ELIGIBILITY INCOME 9-1

9.2 OVERVIEW 9-1

9.3 ANNUAL INCOME 9-1

A. Income That is Never Counted 9-2

B. Calculation of Annual Income 9-2

C. Income of Temporarily Absent Family Members 9-3

D. Applicant Assets 9-3

E. Verification Requirements 9-4

9.4 CALCULATING INCOME FROM ASSETS 9-8

9.5 ADJUSTED ANNUAL INCOME 9-8

9.6 AGENCY REVIEW OF HOUSEHOLD INCOME 9-9

SECTION 2: REPAYMENT INCOME 9-9

9.7 OVERVIEW 9-9

9.8 STABLE AND DEPENDABLE INCOME 9-9

9.9 AGENCY REVIEW OF REPAYMENT INCOME 9-10

9.10

9.11

OPTIONAL DOCUMENTATION OF INCOME FORMS

EDUCATION

9-11

9-11

ATTACHMENT 9-A: INCOME AND DOCUMENTATION MATRIX

ATTACHMENT 9-B: WORKSHEET FOR DOCUMENTING ELIGIBLE HOUSEHOLD 

AND REPAYMENT INCOME

ATTACHMENT 9-C EXAMPLE CASE STUDY: INCOME CALCULATION 

WORKSHEET

ATTACHMENT 9-D: ANNUAL INCOME: EXCLUDED SOURCES

ATTACHMENT 9-E: INFORMATION FOR ANALYZING TAX RETURNS FOR SELFEMPLOYED APPLICANTS

ATTACHMENT 9-F: WORKSHEET FOR DOCUMENTING ELIGIBLE HOUSEHOLD AND REPAYMENT 

 INCOME (AGENCY USE ONLY)

ATTACHMENT 9-G: OPTIONAL VERIFICATION OF INCOME FORMS

CHAPTER 10: CREDIT ANALYSIS 10-1

10.1 INTRODUCTION 10-1

10.2 CREDIT ELIGIBILITY REQUIREMENTS 10-1

10.3 CREDIT REPORT REQUIREMENTS 10-1

10.4 CREDIT REPORT VERSIONS 10-2

ATTACHMENT 10-A: CREDIT MATRIX

CHAPTER 11: RATIO ANALYSIS 11-1

11.1 INTRODUCTION 11-1

11.2 THE RATIOS 11-1

A. The PITI Ratio 11-1

B. The Total Debt Ratio 11-1

11.3 DEBT RATIO WAIVERS AND COMPENSATING FACTORS 11-8

A. Purchase Transactions: Debt Ratio waivers 11-8
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B. Refinance Transactions: Debt Ratio waivers 11-9

11.4 MORTGAGE CREDIT CERTIFICATES 11-10

11.5 FUNDED BUYDOWN ACCOUNTS 11-10

11.6 SECTION 8 HOMEOWNERSHIP VOUCHERS 11-11

11.7 OBLIGATIONS NOT INCLUDED IN DEBT-TO-INCOME RATIOS 11-11

CHAPTER 12: PROPERTY AND APPRAISAL REQUIREMENTS 12-1

12.1 INTRODUCTION 12-1

SECTION 1: UNDERWRITING THE PROPERTY 12-1

12.2 OVERVIEW 12-1

12.3 RURAL AREA DESIGNATION 12-1

A. Rural Area Definition 12-1

B. Notification of Rural Area Designation 12-2

C. Making Loans in Areas Changed to Non-rural 12-3

12.4 SITE REQUIREMENTS 12-3

SECTION 2: APPRAISALS 12-6

12.5 RESIDENTIAL APPRAISAL REPORTS 12-6

A. Qualified Appraiser 12-6

B. Appraisal Report 12-6

C. Agency Review 12-10

D. Director of the Origination and Processing Division Responsibilities 12-10

E. Types of Agency Reviews 12-10

F. Appraisals in Remote Rural Areas, on Tribal Lands or in Areas

Lacking Market Activity

12-12

12.6 WATER AND WASTEWATER DISPOSAL SYSTEMS 12-13

A. Water 12-13

B. Wastewater 12-16

12.7 STREET ACCESS AND ROAD MAINTENANCE 12-18

A. Access 12-18

B. Maintenance 12-18

SECTION 3: DWELLING REQUIREMENTS 12-18

12.8 MODEST HOUSING 12-18

12.9 EXISTING AND NEW DWELLINGS 12-18

A. Existing Dwellings 12-18

B. New Dwellings 12-20

C. Repair Escrows for Existing and New Dwellings, Post Issuance of the

Loan Note Guarantee

12-23

SECTION 4: ENVIRONMENTAL REQUIREMENTS 12-25

12.10 HAZARD IDENTIFICATION 12-25

 A. Due Diligence 12-25

B. Flood Hazards 12-26

SECTION 5: CONDOMINIUMS 12-28

12.11 CONDOMINIUMS AND PLANNED UNIT DEVELOPMENTS 12-28

A. Condominiums 12-28

B. Planned Unit Developments 12-31

SECTION 6: COMBINATION CONSTRUCTION TO PERMANENT LOANS 12-31

12.12 SINGLE-CLOSE FEATURES 12-31

12.13 LENDER REQUIREMENTS 12-32
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12.14 CONSTRUCTION CONTRACTOR-BUILDER REQUIREMENTS

 

12-33

12.15 ELIGIBLE LOAN COSTS 12-34

12.16 PLAN AND THERMAL CERTIFICATION 12-36

12.17 APPRAISALS 12-36

12.18 BUILDER WARRANTY 12-36

12.19 LOAN APPROVAL PROCESS 12-36

12.20 LOAN CLOSING 12-36

12.21 AGE OF DOCUMENTS 12-38

12.22 ISSUANCE OF THE LOAN NOTE GUARANTEE 12-38

12.23 CONSTRUCTION DRAWS 12-39

12.24 CHANGE ORDERS 12-39

12.25 CASH BACK TO BORROWER 12-39

12.26 MORTGAGE FILE DOCUMENTATION 12-39

12.27 UNPLANNED CHANGES DURING CONSTRUCTION 12-40

12.28 REHABILITATION AND REPAIR WITH PURCHASE OF EXISTING

DWELLINGS

12-40

A. Type of Loans 12-41

B. Property Eligibility 12-41

C. Managing Construction 12-43

ATTACHMENT 12-A: DETERMINING ELIGIBLE AREAS USING THE PUBLIC WEBSITE

ATTACHMENT 12-B: RURAL DEVELOPMENT CONDOMINIUM CERTIFICATION

ATTACHMENT 12-C: PROJECT REVIEW

ATTACHMENT 12-D: APPROVED LENDER CERTIFICATION – Completion of New

Construction

CHAPTER 13: SPECIAL PROPERTY TYPES 13-1

13.1 INTRODUCTION 13-1

SECTION 1: SPECIAL FORMS OF OWNERSHIP 13-1

13.2 OVERVIEW 13-1

13.3 LOANS FOR UNITS IN A COMMUNITY LAND TRUST 13-1

A. Definition 13-1

B. Protection of Lender Rights and Lien Position 13-2

C. Appraisals 13-3

13.4 RESTRICTIONS ON RESALE PRICE 13-3

A. Right of First Refusal 13-3

13.5

13.6

13.7

LOANS ON LEASEHOLD ESTATES [7 CFR 3555.203(b)]

A Definition

B Lease Requirements 

LOANS ON NATIVE AMERICAN RESTRICTED LAND

A Definition

B Requirements

LOANS ON HAWAIIAN HOME LANDS

A Definition

B Requirements

C Recording

13-4

13-4

13-4

13-5

13-5

13-5

13-7

13-7

13-7

13-7

SECTION 2: MANUFACTURED HOMES 13-8

13.8 DEFINITION 13-8

13.9 AUTHORIZED LOAN PURPOSES 13-8

13.10 LOAN RESTRICTIONS 13-9

13.11 CONSTRUCTION AND SITE REQUIREMENTS 13-10

13.12 LOAN CLOSING FOR MANUFACTURED HOUSING 13-10

A. Warranty Requirement s 13-11

B. Certification Requirements 13-11
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C. Lien Release Requirements 13-11

D. Real Estate Tax Requirements 13-11

E. Title and Lien Requirements 13-11

SECTION 3: MODULAR HOMES 13-11

ATTACHMENT 13-A: DEALER CERTIFICATION – NEW MANUFACTURED HOME

ATTACHMENT 13-B: CERTIFICATION OF BUILDER/CONTRACTOR

CHAPTER 14: FUNDING [Official Agency Use] 14-1

14.1 INTRODUCTION 14-1

14.2 PROGRAM FUNDING PROCESS 14-1

14.3 PRIORITIZATION OF FUNDING 14-2

14.4 AGENCY ACTIONS – SHORTAGE OF FUNDS 14-3

A. Agency Actions When Funds are Not Available – Pooling 14-3

B. Agency Actions When Funds are Not Available – Conditional

Commitments Subject to Availability of funds

14-4

14.5 LENDER WITHDRAWAL OF APPLICATION 14-4

14.6 AGENCY ACTION – REQUESTING FUNDS FROM THE NATIONAL

OFFICE RESERVE

14-5

14.7 AGENCY ACTION – REQUEST FOR RESTORATION OF FUNDS 14-5

CHAPTER 15: SUBMITTING THE APPLICATION PACKAGE 15-1

15.1 INTRODUCTION 15-1

15.2 LENDER RESPONSIBILITY 15-1

15.3 LOAN APPLICATION PACKAGE

A. Manually Underwritten Loans

B. Guaranteed Underwriting System – GUS Accept Loans

15-1

15-1

15-2

15.4 ELECTRONIC SIGNATURES 15-2

15.5 AGENCY REVIEW OF APPLICATION PACKAGE 15-3

A. Content of Standard Review 15-3

B. Agency Review of Lender’s Underwriting Decisions 15-4

C. Conditions for the Loan Guarantee 15-5

15.6 LENDER NOTIFICATION ON REQUEST FOR LOAN GUARANTEE 15-4

A. The Request for a Loan Guarantee is Approved 15-5

B. Return of Incomplete Applications 15-5

C. The Request for a Loan Guarantee is Denied 15-5

15.7 LENDERS RESPONSE TO CONDITIONAL COMMITMENT 15-5

A. Accepting the Conditions 15-5

B. Declining the Conditions for Loan Guarantee 15-6

C. Requesting Changes in Conditions 15-6

ATTACHMENT 15-A: LOAN ORIGINATION CHECKLIST

CHAPTER 16: CLOSING THE LOAN AND REQUESTING THE 

GUARANTEE

16-1

16.1 INTRODUCTION 16-1

16.2 CLOSING THE LOAN 16-1

16.3 REQUESTING THE LOAN NOTE GUARANTEE 16-3

16.4 UP-FRONT LOAN GUARANTEE FEE 16-4

A. Calculation of Up-Front Loan Guarantee Fee 16-4

16.5 ANNUAL FEE 16-6

A. Amount of Annual Fee 16-6

B. Calculation of Annual Fee 16-6
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C. Due Date of Annual Fee 16-6

D. Payment of Annual Fee 16-6

E. Advance Notice, Billing and Reconciliation of the Annual Fee 16-7

F. Late Charge on Unpaid Annual Fee 16-7

G. Period Covered by Annual Fee 16-7

H. Duration of Annual Fee 16-7

I. Pro rata Payment of the Annual Fee 16-8

J. Method of Payment of the Annual Fee 16-8

K. Nonpayment of the Annual Fee 16-8

16.6 TECHNOLOGY FEE 16-9

A. Amount of Technology Fee 16-9

B. CFPB Forms: Loan Estimate and Closing Disclosure 16-9

16.7 AGENCY REVIEW OF CLOSING DOCUMENTS AND 

ISSUANCE OF THE GUARANTEE

16-9

A. Incomplete Closing Documents 16-9

B. Acceptable Closing Documents 16-10

C. Unacceptable Closing Documents 16-10

16.8 CLOSING DATE 16-11

16.9 DUPLICATE LOAN NOTE GUARANTEE 16-11

16.10 TRANSFERRING LOANS AND/OR SERVICING RIGHTS 16-12

16.11 ACCEPTABLE LIEN POSITION 16-12

16.12 OWNERSHIP REQUIREMENTS 16-12

A. Lender and Agency Responsibilities 16-12

B. Acceptable Forms of Ownership 16-12

C. Insurance Policy Requirements 16-15

ATTACHMENT 16-A: AMENDMENTS TO MORTGAGES WITH LEASEHOLD 

INTEREST

ATTACHMENT 16-B: LOAN CLOSING REFERENCE GUIDE

CHAPTER 17: REGULAR SERVICING – PERFORMING LOANS 17-1

17.1 INTRODUCTION 17-1

A. Sale of Loans to Approved Lenders 17-1

B. Contracting for Servicing of SFHGLP Loans 17-1

C.

D.

Notifying the Agency of Loan Sales or Servicing Transfers

Non-Compliance

17-1

SECTION 1: SERVICING PERFORMING LOANS 17-2

17.2 REQUIRED SERVICING ACTIONS 17-2

A. Ensuring Payment of Loan 17-2

B. Handling Late Payments and Fees 17-2

C. Ensuring Payment of Taxes and Insurance 17-3

D. Maintaining Hazard and Flood Insurance 17-3

E. Obtaining Final Payments and Recapture of Shared Equity 17-4

F. Handling Borrowers in Bankruptcy 17-4

G. Complying with the Servicemembers Civil Relief Act (SCRA) 17-5

H. Approving Borrower Actions 17-5

17.3 REPORTING REQUIREMENTS 17-6

17.4 PROTECTIVE ADVANCES 17-6

A. Advances for Property Repairs 17-7

B. Advances for Taxes and Insurance 17-7

17.5 INSURANCE PROCEEDS 17-7
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SECTION 2: BORROWER ACTIONS REQUIRING SERVICER OR AGENCY 

APPROVAL

 17-8

17.6 OVERVIEW 17-8

17.7 PARTIAL RELEASE OF SECURITY 17-8

A. Conditions for Partial Release 17-8

B. Processing a Partial Release – Agency 17-9

C. Servicer Delegated Approval 17-11

D. Processing a Partial Release – Servicer 17-11

17.8 TRANSFER AND ASSUMPTION 17-12

A. Transfer without Assumption 17-12

B. Transfer under Garn-St. Germain 17-12

C. Unauthorized Sale or Transfer 17-14

D. Modification to Promissory Note and Security Instruments 17-14

17.9 MINERAL LEASES 17-15

17.10 UNAUTHORIZED ASSISTANCE 17-19

CHAPTER 18: SERVICING NON-PERFORMING LOANS – ACCOUNTS WITH

REPAYMENT PROBLEMS

18-1

18.1 INTRODUCTION 18-1

SECTION 1: COLLECTION EFFORTS AND REQUIREMENTS 18-1

18.2 OVERVIEW 18-1

18.3 MINIMUM REQUIREMENTS 18-2

A. Initial Contact 18-2

B. Notify Credit Repository 18-2

C. Send Certified Letter to the Borrower 18-2

D. Inspect the Property 18-3

E. Proceed with Liquidation 18-3

18.4 DOCUMENTATION REQUIREMENTS AND PENALTIES 18-3

A. Collection Records 18-3

B. Grace Period for Completing Collection Action 18-4

C. Penalties for Failure to Fulfill Collection Obligations 18-4

SECTION 2: LOSS MITIGATION 18-5

18.5 LOSS MITIGATION OPTIONS 18-5

SECTION 3: CUSTODIAL PROPERTY 18-6

18.6 INTRODUCTION 18-6

18.7 PROPERTY MANAGEMENT METHODS AND ACTIVITIES 18-6

A. Vacant or Abandoned Properties 18-6

18.8 ENVIRONMENTAL HAZARDS 18-8

SECTION 4 ACCELERATION AND FORECLOSURE 18-8

18.9 ACCELERATION 18-8

18.10 THE FORECLOSURE PROCESS 18-8

A. Initiation of Foreclosure - Referral 18-8

B. The Foreclosure Sale 18-9

C. Reinstatement of Account 18-10

18.11 MANAGING THE FORECLOSURE PROCESS 18-10

A. Acceptable Foreclosure Time Frames 18-10

B. Acceptable Liquidation Fees and Costs 18-11

18.12 REPORTING REQUIREMENTS 18-13

SECTION 5: ASSISTANCE IN NATURAL DISASTERS 18-14

18.13 PROPERTY PROTECTION 18-14
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18.14 SPECIAL RELIEF MEASURES 18-14

18.15 SPECIAL RELIEF ALTERNATIVES

A. Special Relief Measures

B. COVID-19 Public Health Emergency

C. COVID-19 Special Relief Measures

18-15

18-15

18-16

18-17

18.16 PROPERTY DAMAGE AND INSURANCE CLAIMS 18-18

18.17 DEBT SETTLEMENT REPORTING 18-18

ATTACHMENT 18-A: LOSS MITIGATION GUIDE

ATTACHMENT 18-B: ACCEPTABLE STATE FORECLOSURE TIME FRAMES

ATTACHMENT 18-C: ACCEPTABLE STATE LIQUIDATION COSTS AND FEES – Schedule of

Standard Attorney/Trustee Fees

ATTACHMENT 18-D: USDA INDIVIDUAL STATE BASED BIDDING CHART

ATTACHMENT 18-E: MAXIMUM PROPERTY PRESERVATION ALLOWANCES

CHAPTER 19: LOSS CLAIMS – COLLECTING ON THE GUARANTEE 19-1

19.1 OVERVIEW 19-1

19.2 LOSS CLAIM COVERAGE 19-1

A. Loan Guarantee Limits 19-1

B. Losses Covered by the Guarantee 19-2

C.. Reasonable and Customary 19-2

19.3 FILING A LOSS CLAIM 19-3

A. Sold to a Third Party 19-4

B. Acquired by the Servicer at Foreclosure or Deed-in-Lieu 19-4

C. Market Value Appraisal 19-4

D. The Property Sale Value Calculator 19-6

19.4 CALCULATING NET RECOVERY VALUE 19-6

A. Properties Sold at Foreclosure 19-6

B. Acquired Properties 19-6

19.5 AGENCY REVIEW 19-7

A. Reduction or Denial of a Loss Claim 19-7

B. Calculation and Approval of Loss Payment 19-8

C. Loss Claim Payment Process 19-8

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: CAIVRS ACCESS INSTRUCTIONS

APPENDIX 8: PENALTIES

GLOSSARY

ACRONYMS USED IN THIS HANDBOOK