SFH Guaranteed Servicing
May 20,2020
Enhanced Servicer Reporting (ESR) for Borrowers Impacted by COVID-19
The purpose of this announcement is to inform lenders of updated loan status reporting requirements for borrowers impacted by the Presidentially declared COVID-19 National Emergency. These instructions are specific to how lenders report loan statuses to the Agency via Electronic Status Reporting (ESR), and does not address reporting to credit repositories.
To better align with industry practices, we are revising our guidance on how lenders submit ESR for borrowers impacted by COVID-19. Until now, we required lenders to report a default reason code of 001, 002, 003, 004 or 006 and a default status code of 42 followed by a 09- Special Forbearance.
Effective immediately lenders should start reporting the status reason code of 010- Neighborhood Problem and a status code of 06- Formal Forbearance. If any other forbearance code was previously reported for Borrowers Affected by the COVID-19 National Emergency, please stop reporting that status code and begin reporting with status code 06 – Formal Forbearance. The same default status date should be used as the date the borrower was approved for the forbearance if changing the status code.
If the loan was not previously in default, the status code 42 must be reported first to open the default event and then Status Code 06 – Formal Forbearance can be reported in the following months.
Questions regarding program policy and this announcement may be directed to the National Office Division at sfhglpServicing@usda.gov or (202) 720-1452.
Thank you for your support of the Single-Family Housing Guaranteed Loan Program!
Links to websites:
SFHGLP Lending Partner Webpage: https://www.rd.usda.gov/page/sfh-guaranteed-lender
SFHGLP webpage: https://www.rd.usda.gov/programs-services/single-family-housing-guaranteed-loan-program
USDA LINC Training and Resource Library:
https://www.rd.usda.gov/programs-services/lenders/usda-linc-training-resource-library
Procedure Notices: https://www.rd.usda.gov/resources/directives/procedures-notices
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