To ensure regulations clearly document current agency practice, the Rural Housing Service (RHS) Multi-Family Housing (MFH) Direct Loan and Grant Program has identified the need for updating its regulations, so they provide all affected parties with the requirements to qualify and participate in agency programs. The agency is considering amending 7 CFR part 3560 to clarify requirements for how the agency obtains credit reports. 

The agency is proposing to change the process by which it obtains credit reports from applications and borrowers for all MFH actions. Currently 7 CFR 3560.56(d)(5) provides that for initial loan applications, eligibility and feasibility will be determined based on an analysis of current credit reports. Currently, the agency collects a credit report fee from applicants during the application process and agency staff obtains the required credit report(s) through a contract with a credit bureau. The agency relies on various internal communications to staff to provide information on the requirements. To expedite the application process for applicants and approval of certain servicing actions, the agency is considering accepting credit reports obtained from applicants and borrowers and ceasing collection of the fee during the application process or prior to approving certain servicing actions.

The change is intended to improve the customer experience.