SFH Guaranteed Servicing
March 4, 2025
Implementation of the Final Rule for Special Servicing Options for Non-Performing Loans
The Single-Family Housing Guaranteed Loan Program (SFHGLP) published a Final Rule on August 15, 2024, making changes to the use of special servicing options for non-performing loans and adjusting the Mortgage Recovery Advance (MRA) process. This Final Rule is intended to benefit borrowers and servicers by providing servicers more flexibility in their servicing options, offering a less expensive and less cumbersome MRA process and reduce program risk of the guaranteed loan portfolio.
The Final Rule can be located in the Federal Register and initially had an effective date of February 11, 2025. A correction was published in the Federal Register changing the effective date of this Final Rule to April 14, 2025.
Revisions have been made to Chapters 17, 18, and 19 of the HB-1-3555, SFH Guaranteed Loan Program Technical Handbook. These changes are effective April 14, 2025.
This updated guidance will apply for loans that experience an initial delinquency on or after April 14, 2025. If the delinquency occurred prior to the Final Rule effective date of April 14, 2025, and the final documents have not been executed with the borrower, Servicers have the optionality to execute according to the Final Rule providing they are adhering to applicable regulations, document requirements, and timeframes.
Questions regarding program policy and this announcement may be directed to the SFHGLP Servicing Division at sfhglpServicing@usda.gov or (833) 314-0168, option 4.
Thank you for your support of the Single-Family Housing Guaranteed Loan Program.
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