7 CFR §3555.51 — Lender eligibility
7 CFR §3555.51 sets the USDA SFHGLP lender-eligibility and participation requirements.
Verbatim regulatory text
Verbatim provisions from 7 CFR §3555.51 — Lender eligibility — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
7 CFR §3555.51(a) — Demonstrated ability to underwrite and service single-family loans
(a) Ability to underwrite and service loans. The lender must have a demonstrated ability to underwrite and service single-family home loans. A lender will be considered to have such a demonstrated ability if it qualifies as one of the following:
7 CFR §3555.51(b) — SFHGLP participation requirements (24 items)
(b) SFHGLP participation requirements. Lenders and their agents must comply with the following requirements:
7 CFR §3555.51(b)(1) — Keep current with Agency regulations and all applicable laws
(1) Keep up to date, and comply with, all Agency regulations and handbooks, including all amendments and revisions of program requirements and policies. Lenders must also comply with all other applicable federal, state , and local laws, rules, and requirements, including those under the purview of the Consumer Financial Protection Bureau, such as the Real Estate Settlement Procedures Act and the Truth in Lending Act . Lenders who originate a minimal number loans, as determined by the Agency , in a 24 month time frame may be required to take updated training to ensure a lender 's continued knowledge of the program;
7 CFR §3555.51(b)(22) — Execute a Rural Development lender's agreement
(22) Execute a lender 's agreement provided by Rural Development .
7 CFR §3555.51(a) — Demonstrated ability to underwrite and service single-family loans — enumerated items (chapeau recall fix)
(1) A State Housing Agency ; (2) A lender approved as a supervised or nonsupervised mortgagee by HUD with direct endorsement authority for submission of applications for Federal Housing Mortgage Insurance; (3) A supervised or nonsupervised mortgagee with authority to close VA -guaranteed loans on the automatic basis; (4) A lender approved by Fannie Mae for single-family loans; (5) A lender approved by Freddie Mac for single-family loans; (6) A Farm Credit System institution that provides documentation of its ability to underwrite and service single-family loans. Lenders who are a Farm Credit System lender with direct lending authority meet demonstrated ability; (7) A lender participating in other Rural Development or Farm Service Agency guaranteed loan programs that provide documentation of its ability to underwrite and service single family loans. Documentation criteria for other Rural Development or Farm Service Agency guarantee loan programs require an active lender agreement ; or (8) A Federally supervised lender that provides documentation of its ability to originate, underwrite, and service single-family loans. Acceptable sources of supervision include:
7 CFR §3555.51(a) — Demonstrated ability to underwrite and service single-family loans — enumerated items (chapeau recall fix) — enumerated items (chapeau recall fix)
(i) Being a member of the Federal Reserve System . (ii) The Federal Deposit Insurance Corporation (FDIC). (iii) The National Credit Union Administration (NCUA). (iv) The Office of the Comptroller of the Currency (OCC). (v) The Federal Housing Finance Board regulating lenders within the Federal Home-Loan Bank (FHLB) system.