New Default Status Reason Codes for Electronic Status Reporting

USDA Rural Development sent this bulletin at 05/25/2022 08:34 AM EDT

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USDA Rural Development - Together, America Prospers

SFH Guaranteed Servicing

May 25, 2022

New Default Status Reason Codes for Electronic Status Reporting

The Single-Family Housing Guaranteed Loan Program (SFHGLP) is updating its guidance to loan servicers concerning new default Status Reason Codes for Electronic Status Reporting (ESR). This will better align the SFHGLP with our stakeholders and the mortgage industry. There are twelve new Status Reason Codes to be utilized when loan servicers complete their Monthly Default Status reporting.

The new default Status Reason Codes are as follows:

016 - Unemployment

017 - Business Failure

019 - Casualty Loss

022 - Energy-Environment Cost

023 - Servicing Problems

026 - Payment Adjustment

027 - Payment Dispute

029 - Transfer of Ownership Pending

030 - Fraud

031 - Unable to Contact Borrower

032 - Eligible Disaster Area

INC – Incarceration

These codes apply only to ESR and are not intended to advise Servicers on how they should report loan statuses to the credit reporting agencies. For reporting to the credit bureaus, Servicers should confer with their compliance 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!

Help Resources

Policy Questions

Customer Service Center

Phone: 866-550-5887

Single Family Housing Guaranteed Loan Division

Phone: 202-720-1452

Rural Development Help Desk

For GUS system, outage or functionality assistance

Email: RD.HD@USDA.GOV

Important Links:

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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