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The Agency will revise policy and procedures to strengthen oversight and management of the growing Single Family Housing Guaranteed Loan Programs (SFHGLP) portfolio. The Agency's intent is to be consistent with the Office and Management and Budget (OMB) standards for managing credit programs and better align written policies and best practices with those of similar Federal mortgage loan programs.

In the proposed rule which published in the Federal Register on June 9, 2021 [86 FR 30555), the Agency proposed to impose minimum financial and experience requirements for lenders not supervised by a Federal financial institution regulatory agency (non-supervised lenders). The purpose is to implement management practices that would ensure the goals of the credit program are met while controlling costs as outlined in the OMB Circular A-129. 

The following are the changes the Agency put forth in the proposed rule:

(1) Require principal officials at non-supervised lenders to establish an oversight process in order to continue participation in the SFHGLP, to ensure that prudent underwriting standards are maintained.

(2) Amend 3555.51(a)(9) and (10) to remove additional criteria for supervised lenders as they have been deemed as a class to have demonstrated ability to originate, underwrite, and service SFHGLP loans.

(3) Relax the regulation requiring counseling for first-time homebuyers. Instead, the Agency will recommend that lenders encourage counseling sources to first time homebuyers, when available.

(4) Proposes that applicants with delinquent child support payments subject to collection by administrative offset are deemed ineligible unless the delinquent amount is otherwise satisfied. The proposal would align the regulations with Executive Order 13016, Supporting Families: Collecting Delinquent Child Support Obligations,” 61 FR 51763 (October 3, 1996).

(5) Amend 3555.105(b)(4) to revise criteria for the credit history and criminal background of construction builders. The revised guideline focuses on the ability of the builder to perform duties based on their experience, reputation and financial ability and aligns with those of other Federal agencies.

The Agency received and will consider all public comment viewpoints prior to publishing a final rule.