The Agency is proposing changes to the SFHGLP regulation at 7 CFR 3555 by eliminating the requirement for those who will not be a party to the transaction to supply personal income and asset documentation by using only the income of the applicant(s) when calculating both the income used to determine initial program eligibility as well as income used to determine repayment ability. This will better align the Agency with the Privacy Act of 1974 (5 U.S.C. 552a) and standard industry practices, as well as recognize the significantly changing family dynamics which make it difficult to obtain the currently required financial information. It is expected to enhance customer experience for rural low - to- moderate income residents seeking financing through the SFHGLP, lenders and staff.

Discussions have taken place at the SFHGLP’ s monthly joint housing calls with FHA, FHFA, CFPB, VA, and Ginnie Mae and, based on positive feedback received, the proposal appears to align with other entities within the mortgage industry - Freddie Mac, Fannie Mae, FHA , and VA have already adopted similar policies. Additional opportunity to provide input will be provided during the comment period once the proposed rule is published.