SFH Guaranteed Servicing
August 21, 2024
Advance Notice: Revisions to HB-1-3555, Chapters 17, 18, and 19
The Single Family Housing Guaranteed Loan Program (SFHGLP) is pleased to announce upcoming revisions to technical Handbook 1-3555, Chapter 17, Regular Servicing – Performing Loans; Chapter 18, Servicing Non-Performing Loans – Accounts with Repayment Problems; and Chapter 19, Loss Claims – Collecting on the Guarantee. These changes are expected to be implemented on February 11, 2025 in conjunction with the effective date of the Special Servicing Options Final Rule. Below are the highlighted revisions:
Chapter 17 – Regular Servicing – Performing Loans
- Added guidance for Mortgage Recovery Advances.
- Clarified the timeframe that servicers are required to review and correct status and default reject errors.
- Clarified the requirements for an assumption under Garn-St. Germain.
- Added guidance for closing a transfer with an assumption of the outstanding debt.
Chapter 18 – Servicing Non-Performing Loans – Accounts with Repayment Problems
- Clarified that servicing related cost and fee schedules can be located on the LINC Training and Resource Library website and updated all references to these schedules throughout the Chapter.
- Clarified that on or before the day an account becomes 60 dates past due and before initiating a liquidation action, the servicer must assess the condition of the property, determine occupancy, and take steps to preserve and protect the property.
- Added guidance for Mortgage Recovery Advances.
- Added additional guidance to the “Acceleration” portion of Section 18.9 to include the requirements for a “Streamline Option.”
- Removed guidance specific to the COVID-19 public health emergency.
- Clarified guidance in Attachment 18-A, The Loss Mitigation Guide.
- Removed Attachments 18-B, 18-C, 18-D, and 18-E which will be placed on the LINC Training and Resource Library website.
Chapter 19 – Loss Claims – Collecting on the Guarantee
- Updated the process completed by Agency staff to calculate and approve a loss payment to reflect current practice.
Copies of the upcoming revisions are available for review on the Loan Servicing page of the USDA LINC Training and Resource Library, under the “New Guidance” sub-heading of the “Loss Mitigation” section.
Questions regarding program policy and this announcement may be directed to sfhglpservicing@usda.gov.
Thank you for supporting the Single-Family Housing Guaranteed Loan Program!
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