In the Single Family Housing (SFH) direct loan program, the current loan application packaging process is an informal arrangement and the packagers' level of program knowledge and expertise, as well as their level of service, is inconsistent. To address this, the Rural Housing Service (RHS) is proposing to amend its regulations for the SFH direct loan program to create a certified loan application process. Certified packagers will promote the direct loan program in eligible communities, informally prescreen interested parties to determine their likelihood of qualifying for the program, and fully prepare and document the loan application package on behalf of the applicant for submission to the Agency. The certified loan application process will include the requirements for eligible individuals to obtain the designation of an Agency-certified loan application packager and the requirements for qualified nonprofit organizations and public agencies that employ certified packagers. These requirements will cover experience, training, proficiency, and structure. The process may also include Agency-approved independent nonprofit organizations that serve as intermediaries and perform quality assurance reviews on packaged loan applications prior to submission to the Agency. In addition, RHS is proposing to set limitations on the loan application packaging fee. The fee may not exceed 2 percent of the average area loan limit nationwide; the Administrator will periodically set a maximum dollar amount for the fee within this limit and set different maximum dollar amounts for certified packagers working with and without intermediaries. These amounts will be published on the Agency's website as an attachment to HB-1-3550. Agency financing of the packaging fee will remain dependent on the borrower's repayment ability and the total secured indebtedness limitation outlined in 7 CFR 3550.63.