HB-3-3560

CHAPTER 3: AUTOMATED SYSTEMS 

3.1 INTRODUCTION 

Many of the Agency’s account servicing activities are dependent on data submitted to the 

Agency by tenants and borrowers. These data are tracked by Loan Servicers using the Agency’s 

automated systems. This section describes the Agency’s four primary automated information 

management systems—the Management Agent Interactive Network Connection (MINC), the 

Automated Multi-Family Housing Accounting System (AMAS), the Multi-Family Information 

System (MFIS), and the Prepayment Tracking and Concurrence (Pre-Trac)—including their 

purpose and capabilities, staff responsibilities, and training and certification requirements. 

It is important to understand that while this section identifies the specific activities that 

may be accomplished using the various automated systems, many of the activities listed for a 

particular system cannot be accomplished without inputs from one or more of the others. For 

instance, monthly loan payment amounts are tracked using AMAS, but those amounts cannot be 

determined without inputs from MFIS. Similarly, while MFIS is used to identify and track the 

status of borrower noncompliance, the standards by which compliance is measured come from

AMAS. 

Every Rural Housing Service (RHS) employee is required to be familiar with each of the 

Agency’s automated systems. This includes gaining familiarity with not only the basic

information in this chapter, but the more detailed user manuals for each system and periodic 

training offered to staff. 

3.2 MANAGEMENT INTERACTIVE NETWORK CONNECTION 

MINC is a database used by the Agency to reduce the cost of compliance and increase the 

effectiveness of supervisory actions in the Multi-Family Housing program. 

A. Background 

Before a borrower can submit a payment to the Agency for review and processing, 

the Agency needs to determine and inform the borrower of the correct payment amount. 

Before the payment amount can be determined, the borrower needs to collect and submit 

to the Agency the tenant data that is used in the calculation of rental assistance, interest

credit, and ultimately, the “net” payment amount that must be submitted by the borrower. 

To make the required calculations, tenant data are entered into MFIS, and the outputs 

from MFIS are ultimately entered into AMAS for tracking. It is crucial that tenant data 

be correct, because about $1 billion in tenant subsidy is awarded annually based on each 

tenant’s status. 

Traditionally, borrowers have submitted tenant data to the Agency by mailing paper 

copies to the Servicing Office each month to reflect current occupancy status. In recent

years, the Agency has been moving away from paper submissions toward electronic 

submissions through an automated interface with borrowers—MINC. 

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B. Purpose and Capabilities 

MINC enables management agents to transmit tenant data electronically, via the 

Internet. In addition to tenant data, management agents can transmit Form RD 3560-7, 

Multiple Family Housing Project Budget/Utility Allowance, and Form RD 3560-10, 

Borrower Balance Sheet. Data that are transmitted correctly, and contain changes that 

are within the allowable parameters, are automatically uploaded into MFIS. Data that are 

transmitted incorrectly, or that does not comply with Agency regulations, are “rejected”

by MINC. Questionable data transactions, containing changes requiring review by the 

Loan Services, are held in a “pending” status in the MFIS electronic transmission web 

page. Borrower mail is sent to the management agent, detailing the result of each 

transaction transmitted such as accepted, rejected, pending, etc. The Loan Servicer 

reviews all transmitted transactions, through the use of a “Daily Report,” to determine if 

there is any action necessary on the Agency’s part. MINC provides the capability or

Borrowers to view, approve and submit their Form RD 3560-29 to the Agency. If the 

borrower discovers any discrepancies in the report, a correcting transaction is transmitted 

or the Servicing Office is contacted for guidance. Once the report is determined to be 

correct, the borrower approves and submits the payment. 

C. Staff Responsibilities 

In accordance with 7 CFR Part 3560, all borrowers are required to electronically 

transmit their tenant and financial data and process their payments, for projects with eight 

units or more. The Servicing Office Staff should contact all borrowers/management 

agents, and provide them with instructions for accessing and using MINC. The steps 

involved in this process are as follows: 

• Contact the borrower/management agent, and verify that the taxpayer identification 

number on file with the Agency is correct for the management agent; 

• Validate that all projects for said management agent are associated to the taxpayer 

identification number; 

• Inform the borrower/management agent to access the MINC Web site at 

https://usdaminc.sc.egov.usda.gov, and print a copy of the training handbook; and 

• Instruct the borrower/management agent to follow the step-by-step instructions 

contained in the training handbook to obtain a MINC access code and password. The 

help manual should be consulted for any problems they encounter while completing 

this process. In the event that questions still exist after having consulted the help 

manual, the borrower/management agent should then contact the Servicing Office for 

assistance. 

The borrower/management agent will be required to electronically accept an 

automated version of the Trading Partner Agreement (TPA) while obtaining their MINC

access code and password. The date of acceptance is stored within the system should this 

information be needed at a later date. 

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 The Servicing Office goals are to: 

• Maintain project information on MFIS, completing primary processing of 

submissions of changes to tenant data between the first and tenth days of each month; 

• Provide MFIS reports in a timely manner, or as requested by the 

borrower/management agent; and 

• Confirm the receipt of data transmission when asked. 

The Servicing Office should refer borrowers/management agents to vendors to 

troubleshoot software as needed. Some borrowers/management agents with small 

projects do not use vendor software; instead, they transmit through MINC using the “Filla-Form” option and may need more assistance from the Servicing Office. Any 

automation or program-related issues that are discovered by the Servicing Office should 

be reported to the State Office. 

D. Benefits of MINC 

MINC benefits all parties involved. Electronic submission of data saves borrowers 

the burden and cost of generating and mailing paper documentation to the Agency. The 

Agency saves the burden and cost of handling mail, sorting and copying paper 

documentation, and reentering tenant data by hand. Freeing staff from clerical tasks 

allows them to focus on analytical responsibilities, such as reviewing occupancy patterns 

to uncover civil rights violations, tenant fraud, unacceptable management practices, and 

warning signs of occupancy problems. 

In addition, MINC allows borrowers more time to meet deadlines. Changes 

submitted through MINC are required to be filed by the tenth of the month, an extension 

of 10 days. For borrowers, this provides more time to ensure that their information is 

assembled properly, and is complete and accurate. More accurate information results in 

fewer mistakes to correct with the borrower. Even if there are mistakes, MINC allows 

for next-day response by the Agency. As a result, corrections can be made while the 

borrower’s memory is still fresh. 

MINC also reduces the chance that borrowers will be charged overage for late 

certifications, which can result in a substantial penalty for borrowers, management 

agents, and site managers. Extended submission deadlines and faster turnaround on 

submission reviews reduce the possibility of overage being charged for late data. 

MINC reduces the chance that borrowers will be charged a late fee due to the receipt 

of their mortgage payment being delayed by delivery issues such as mail routing errors 

and incorrect postage. Borrowers have the ability to review the accuracy of their Form 

RD 3560-29 online, making any corrections and approving it for processing. Borrowers 

who are required to submit a payment with their Form RD 3560-29 can sign up for PreAuthorized Debit (PAD), which electronically transfers the funds owed from the 

borrower’s bank account to Rural Development. Borrowers who receive an RA check 

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must be signed up for Electronic Funds Transfer (EFT), whereby the RA due to the 

borrower is transferred from the Agency to the project’s operating account. 

E. Staff Training and Certification Requirements 

Beyond gaining familiarity with the functions of the system, there are few formal 

training or certification requirements for Loan Servicers using MINC. 

3.3 AUTOMATED MULTI-FAMILY HOUSING ACCOUNTING SYSTEM 

A. Purpose and Capabilities 

AMAS maintains loan account information, tracks loan status, and disburses project 

subsidy. AMAS has been operational since 1985 and is located on the U.S. Department 

of Agriculture (USDA) Kansas City mainframe. The Systems Development Division in 

St. Louis administers AMAS. 

AMAS is the Agency’s primary financial accounting system. Any data relating to a 

borrower’s account (e.g., payment amount, payment due date, account status) are tracked 

using AMAS. In addition, payment entry, verification, and reconciliation are 

accomplished using AMAS. 

B. Staff Responsibilities 

Loan Servicers using AMAS are responsible for the following activities: 

• Closing loans, including reamortized loans; 

• Disbursing loan funds; 

• Determining note, rental assistance, and interest credit payment amounts; 

• Determining payment due dates; 

• Verify loan payment processing; 

• Converting accounts from Daily Interest Accrual System (DIAS) to Predetermined 

Amortization Schedule System (PASS); 

• Determining current loan balances for transfer; 

• Obligating loan funds; 

• Adjusting accounts in response to unauthorized assistance; 

• Processing recaptured unauthorized assistance; 

• Adjusting accounts for interest rate changes; 

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• Tracking rental assistance; 

• Tracking inventory property status and acquisitions; 

• Tracking Servicing Office and overall Agency loan and subsidy totals; 

• Tracking and correcting account discrepancies; and 

• Tracking account payment history. 

C. Staff Training and Certification Requirements 

Loan Servicers must be certified by the State Director to process payments in AMAS. 

The AMAS Coordinator in each State is responsible for the payment processing 

certification process and will make recommendations to the State Director, based on 

certification examination. Each Field Office should have at least two certified staff who 

can process payments. Uncertified staff may access the view-only screens within the 

system, but cannot alter any of the data. 

1. Basic Skills Required

The basic areas a Loan Servicer must master to receive certification include the 

following: 

• The employee must successfully review and process payments for three call dates; 

• The employee must understand the process for verifying that payment processed in 

MFIS is updated correctly in AMAS; and 

• For offices on the wholesale lockbox system, the employee must properly prepare the 

Field Office Remittance Reconciliation Report and all related forms for submission to 

the wholesale lockbox. 

2. Procedures for Certification Training 

The procedures for certification training are as follows: 

• The employee will be trained by the AMAS Coordinator, or by a qualified State 

Office or Field Office employee. The training must cover the following areas: 

◊ Release Form RD 3560-29 for borrower’s review; 

◊ Reviewing and processing the borrower’s payment transmittal; 

◊ Establish and maintain PAD accounts; 

◊ Understanding the payment logic; 

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◊ Signing onto the AMAS Cash System (AMAS-CSH); 

◊ Inputting regular payments and special collections into MFIS; 

◊ Handle any pending transactions in AMAS; and 

◊ Submitting checks, cash, and accounting data to the Finance Office. 

• The trainee will make copies of all the records related to preparing the test collections

and will include them in an envelope as if they were being mailed to the Finance 

Office. The envelope will be marked “Payment Certification for (trainee name)” and 

submitted to the AMAS Coordinator.

3. Recommendation of Certification 

The AMAS Coordinator will review the balanced blocks and the accounting data 

envelope prepared for the examination. When the employee has demonstrated an 

understanding of the payment process and proficiency in all steps listed above, the 

AMAS Coordinator will recommend certification to the State Director. The State 

Director will: 

• Instruct the IRM to notify the Security Officer in the Finance Office to add AMAS 

payment process to the employee’s user identification number; and 

• Notify the Loan Servicer and employee, by letter, of the employee’s certification to 

process payments. The letter must list the possible reasons for withdrawal of 

certification.

4. Monitoring Payment Processing

After certification, the AMAS Coordinator will periodically monitor Field Office 

payment processing activities to ensure that payments are being input properly and 

verified. For newly certified employees, monitoring should be daily for a 30-day period. 

For experienced employees, monitoring should be no less than monthly, provided 

monitoring reports do not indicate any of the problems that could lead to withdrawal of 

certification.

A log of each monitoring activity should be kept by the AMAS Coordinator for 

documentation using Form RD 3560-64, Online Payment Certification Monitoring Log. 

5. Withdrawal of Certification and Recertification 

Certification may be withdrawn from an employee if the effective date of the 

payment and the call date differ by more than 3 days and there is not sufficient 

justification (e.g., office was closed on the regularly scheduled work day that the payment 

was received; weekend and holidays caused a 3-day delay before the payment could be 

processed). 

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After the third occurrence of any of the above errors in a 12-month period, the State 

Director will notify the Loan Servicer and employee in writing that certification may be 

withdrawn. The notice will include plans and requirements for remedial training. 

The State Director will withdraw certification after the fourth occurrence in a 12-

month period of any of the above errors. The State Director will notify the Loan Servicer 

and employee in writing, with a copy to the IRM for the State. The IRM will notify the 

Security Office in the Finance Office to remove online payment authority from the 

employee’s identification number. 

6. Retraining 

An employee should be retrained immediately when a payment processing problem

occurs as a result of an employee error. This training should cover the areas causing 

problems and should prevent recurrence of the error. After certification has been 

withdrawn, the State Director must determine whether it is desirable for the employee to 

process payments. If so, the retraining should be performed immediately. The employee 

may be recertified if retraining has been completed, the employee demonstrates the 

necessary skills to process payments, the AMAS Coordinator recommends 

recertification, and the State Director concurs. 

3.4 MULTI-FAMILY INFORMATION SYSTEM 

A. Purpose and Capabilities 

MFIS assists Servicing Offices in monitoring the Multi-Family Housing program, 

maintains data on clients, and provides comprehensive and flexible reporting. MFIS was 

designed to improve management and supervision routines in Servicing Offices. It is the 

monitoring and scheduling systems being used by the Servicing Offices and provides the 

analytical tools to review budgets and financial information. MFIS has a classification 

system that uses information entered during normal supervisory activities to identify 

projects needing additional servicing attention. 

MFIS is used by the Agency to track tenant data, and it is employed mainly to ensure 

that each tenant receives the correct amount of subsidy. MFIS uses the tenant data to 

calculate tenant rents and rental assistance, which drive many subsequent account 

servicing activities. MFIS is also the source for occupancy statistics used to describe 

Multi-Family Housing program beneficiaries. 

MFIS is the primary tool used by the Agency to track the status of borrowers’ 

compliance with loan agreements and all other program requirements. Account status 

data from AMAS are transferred to MFIS, where Loan Servicers use them to monitor the 

status of borrower compliance. For instance, the system holds data on project 

classification based on compliance status (i.e., Classification codes A, B, C, or D). In 

addition, the system tracks the status of project budgets (i.e., when they are due, when 

they are received, and when they are approved). 

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The goal of using MFIS for tracking is to identify borrower compliance violations, as 

well as to track the status of servicing letters, workout agreements, and other Agency 

servicing actions. For instance, MFIS tracks the 15-day period for responses to servicing 

letters or monitoring letters and alerts staff to the need for follow-up when that period has 

expired. 

MFIS also is used to track each state’s performance in meeting Agency goals, and 

evaluate those states that may need additional assistance in determining solutions to 

problem accounts and the effectiveness of actions previously taken. Many states use the 

information from MFIS in monthly staff meetings and to provide information to 

borrowers. MFIS allows for timely assembly of this information with minimal effort 

from the Servicing Offices. 

All regular borrower payments are processed through MFIS. MFIS maintains a 

collection history for each borrower. 

B. Major Components of MFIS 

The MFIS home page displays icons that each represents a Web page of their own 

that link to each other and are capable of interacting by accessing the data contained 

therein. The five main icons a Servicing Office should be concerned with are Projects, 

Project Payments, Customers, Reports, Electronic Transmissions, and Message Board. 

Each web page contains links for data input and analysis of important multi-family 

housing portfolio issues such as borrower compliance with their loan 

agreement/resolution, management efficiency, financial stability, occupancy trends, rent 

structures, and identities-of-interest, as well as program strengths and deficiencies. 

Moreover, MFIS archives a history of the multi-family housing portfolio nationwide, 

providing information necessary for determining the need for program changes and/or 

enhancements as well as funding needs. 

• Projects. This page is used when working on information specific to a single project. 

It contains the data on the borrower, management agent, project tenants, type of 

project, and the like. Basically it contains all information that was formerly contained 

on the Management Card System for each project. Any incorrect information on this 

page could lead to improper calculations on Form RD 3560-29, Notice of Payment 

Due Report, that the borrower uses to make their monthly/annual installment from, 

thus causing unnecessary delinquencies.

The Projects page is also where the Loan Servicer maintains information concerning 

borrower/management agent compliance with Agency regulations. One link on this 

page is Supervisory Activities. Supervisory Activities, when properly populated, can 

serve as an excellent tickler system to let the Servicing Official know when action is 

needed on their part. The same is true for the link Servicing Efforts, Findings, 

Financial Instruments, and Rents. When all components are analyzed, a clear and 

concise picture of the needs of the project can easily be determined. 

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• Project Payments. This page is used to perform activities related to payment 

processing. These functions include scheduling the release of Form Rd 3560-29 to 

borrowers, processing payments, and review payments. In addition, users can view 

and make adjustments for a specific pay period, monitor uncollectible returns, review 

and edit RA Obligations tracking for projects receiving RA units due to an obligation 

or transfer of units. The Project Payments page can be a very valuable tool when 

evaluating the feasibility of various servicing actions, providing collection history for 

a specific project at any given time. 

• Customers. This page should be used when working on information across projects 

or specific only to the borrower, key member, or management agent. This is the page 

used to enter the key members of the borrower and management agent. It also allows 

the user to access all of the projects managed by a particular management agent, 

enabling an identical change to multiple projects with ease. 

• Reports. This page contains predesigned reports by category, such as borrower, 

financials, findings, management agent, project, project summary, tenant, and 

tracking. Under each category, several different reports that may be generated are 

listed. The user is allowed to complete various data fields to allow one to zero in on 

the particular information that is desired. The accuracy of these reports is based on 

the information that has been input into the Projects and Customer Web pages.

• Electronic Transmissions. This page allows the MFIS user to view the individual 

transactions that have been electronically transmitted by the borrower/management 

agent. It is an important tool in assisting the borrower/management agent in correctly 

transmitting the data necessary to reflect the correct tenant and/or financial data. 

• Message Board. Below the icons for the individual Web pages is a link to the 

message board. Each user of MFIS is encouraged to view the message board on a 

regular basis. This shows information on changes that have been made to the system. 

Step-by-step instructions for the input of all requested and/or required data are 

provided in the training manuals that are accessible from the message board. 

C. Staff Responsibilities 

Loan Servicers are responsible for populating all data fields contained in the MFIS 

system with accurate and current information. The upgrading of the MFIS system is an 

ongoing process. It is extremely important that the information contained in MFIS III for 

each borrower/management agent/project be input and accurate. 

3.5 PREPAYMENT TRACKING AND CONCURRENCE 

Pre-Trac is a Web-based automated application that allows the Agency to significantly 

reduce the reporting burden required to process and monitor Multi-Family Housing prepayment 

activity. This means that the Agency enters prepayment-tracking information once for use by all 

administrative levels. State and Servicing Offices use Pre-Trac to process all prepayment 

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requests to meet the Agency’s requirements. Pre-Trac is designed to lead the user through the 

statutorily prescribed prepayment process. 

The Office of Rental Housing Preservation (ORHP) uses Pre-Trac to issue all 

concurrence and authorizations of incentives to avert prepayment, and equity loans and 

prepayments. See Chapter 15 for more detailed information on using Pre-Trac. 

3.6 FURTHER INFORMATION 

Because there is a detailed users’ manual for each of the Agency’s automated systems, 

the discussion provided here is intended to be more of a basic introduction to the systems and 

their uses and requirements than an exhaustive step-by-step tutorial. Agency staff requiring 

more detailed information on any of the automated systems should refer to the relevant users’ 

manual. 

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