SFH Guaranteed Servicing
June 26, 2020
GovDelivery - Electronic Status Reporting for Borrowers Impacted by COVID-19BJECT
The purpose of this announcement is to inform loan servicers of updated guidance concerning Electronic Status Reporting (ESR) for borrowers impacted by the COVID-19 national emergency.
To align with our federal partners, we have created a new Reason Code to be reported for borrowers impacted by COVID-19. For the July and August reporting windows, continue to use Reason Code 010 - Neighborhood Problem. Effective September 1, when reporting loan statuses for August, please use the new Reason Code 055 – National Emergency for any COVID-19 impacted loan.
For COVID-19 forbearances, the Status Code 06 - Formal Forbearance should continue to be used. If any other Status or Reason Code was previously used to report the forbearance status of borrowers affected by the COVID-19 national emergency, please discontinue using 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 – Delinquent must be reported first to open the default event and then Status Code 06 – Formal Forbearance should be reported in the following months.
These instructions apply only to ESR and does not treat of how servicers should report loan statuses to the credit reporting agencies. For reporting to the credit bureaus, servicers should confer with their legal team.
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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