View Rule

The Rural Housing Service (RHS) proposes to establish a  formal process to review and initiate administrative actions and civil monetary penalties against approved lenders in noncompliance with USDA, approval, servicing, and/or lending participation requirements called the Lender Review Board (Board) for USDA’s Single Family Housing Guaranteed Loan Program (SFHGLP) SFHGLP defines lender as the entity making, holding, or servicing a loan that is guaranteed under the provisions of 7 CFR 3555. SFH is proposing the Board to be comprised of voting members and non-voting advisors who will work with the Office of General Counsel to ensure cases that are referred are fact-based and meet legal sufficiency.  The Agency anticipates the following results of these changes: (1)  Provide transparency to all parties and creates an effective strategy to ensure lender accountability: (2) Provide procedures that will strengthen the management and oversight of the SFHGLP; (3)  Provide transparency to approved lenders of the enforcement actions that may be taken by USDA: (4)  Strengthen the oversight and management of the SFHGLP, ensuring lender accountability; and (5)  Align the Agency with other Federal housing programs.