7 CFR §3555.354 — Loss claim procedures (USDA Guaranteed Rural Housing)

usda-7cfr-3555-354

7 CFR §3555.354 sets the USDA Section 502 Guaranteed Rural Housing Program loss-claim filing framework: mandatory use of the Agency- designated web-based automated system; 45-day claim-filing deadline for sold property; 60-day claim-filing deadline for REO property (with eviction extension); deficiency-judgment enforcement before submitting a loss claim; and Agency processing where there are no current collection prospects.

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source:
  type: regulation
  id: usda-7cfr-3555.354
  authority: 7 CFR §3555.354 — Loss claim procedures (USDA Guaranteed Rural Housing)
  description: |
    7 CFR §3555.354 sets the USDA Section 502 Guaranteed Rural Housing
    Program loss-claim filing framework: mandatory use of the Agency-
    designated web-based automated system; 45-day claim-filing deadline
    for sold property; 60-day claim-filing deadline for REO property
    (with eviction extension); deficiency-judgment enforcement before
    submitting a loss claim; and Agency processing where there are no
    current collection prospects.
obligations:
  - id: usda-7cfr-3555.354-web-based-automated-system-required
    canonical_id: usda-7cfr-3555.354-web-based-automated-system-required
    section: 7 CFR §3555.354 — All loss claims via Agency-designated web-based automated system
    description: |
      [LENDER] (as the guaranteed-loan servicer) must use a web-based
      automated system designated by the Agency to submit all loss claim
      requests on USDA Section 502 Guaranteed Rural Housing loans.
    type: do
    audit_question: For every USDA Section 502 Guaranteed Rural Housing loss-claim [LENDER] submits, can [LENDER] evidence that the claim was filed through the Agency-designated web-based automated system?
    program_review: Does the program route every Section 502 Guaranteed loss-claim request through the Agency-designated web-based automated system (no off-system submissions)?
    file_review: Pull filed loss claims; confirm each went through the Agency-designated web-based system.
    judgment: false
    feeds: []
    workflow_phase: servicing
    owner_role: default_servicing_analyst
    secondary_owner_role: compliance_officer
    cadence: per-loss-claim
    consequence: ''
    tags:
      - round-c
      - regulator-direct
      - usda
      - rhs-guaranteed
      - loss-claim
      - servicing
      - promoted
    primary_source:
      tier: 1
      authority: 7 CFR §3555.354
      source_class: usda-regulation
      source_url: https://www.law.cornell.edu/cfr/text/7/3555.354
      snapshot_id: 97d140aff1718a93
      fetched_at: '2026-05-24T19:34:39Z'
      content_hash: sha256:c1d05beaf4af76469ec0e734004d2749ab57d73b8b5fe7b9c3a5b6bcc428c0a8
      paragraph_quote: All lenders must use a web-based automated system designated by the Agency to submit all loss claim requests.
      drafter_attestation: |
        Copied verbatim from snapshot 97d140aff1718a93 (content.txt) at
        2026-05-24T20:15Z. Substring is the full §3555.354 lead-in
        operative requirement.
    promoted_at: '2026-05-24T20:12:26+00:00'
    promoted_from: usda-7cfr-3555.354-roundc-v1.yaml
  - id: usda-7cfr-3555.354-a-sold-property-45-day-claim-deadline
    canonical_id: usda-7cfr-3555.354-a-sold-property-45-day-claim-deadline
    section: '7 CFR §3555.354(a) — Sold property: 45-day loss-claim filing deadline'
    description: |
      For USDA Section 502 Guaranteed Rural Housing property that has been
      sold, [LENDER] must submit a loss claim within 45 calendar days of
      the sale. Late claims made beyond this period of time may be
      rejected or reduced by Rural Development.
    type: do
    audit_question: For every USDA Section 502 Guaranteed Rural Housing loss claim [LENDER] files for sold property, can [LENDER] evidence that the loss claim was submitted within 45 calendar days of the sale?
    program_review: Does the program track the §3555.354(a) clock so a loss claim on sold property is submitted within 45 calendar days of the sale (late claims may be rejected/reduced)?
    file_review: Pull sold-property loss claims; confirm each was submitted within 45 calendar days of the sale.
    judgment: false
    feeds: []
    workflow_phase: servicing
    owner_role: default_servicing_analyst
    secondary_owner_role: compliance_officer
    cadence: per-sold-property-loss-claim
    consequence: late claims may be rejected or reduced by Rural Development
    tags:
      - round-c
      - regulator-direct
      - usda
      - rhs-guaranteed
      - loss-claim
      - 45-day-deadline
      - servicing
      - promoted
    primary_source:
      tier: 1
      authority: 7 CFR §3555.354(a)
      source_class: usda-regulation
      source_url: https://www.law.cornell.edu/cfr/text/7/3555.354
      snapshot_id: 97d140aff1718a93
      fetched_at: '2026-05-24T19:34:39Z'
      content_hash: sha256:c1d05beaf4af76469ec0e734004d2749ab57d73b8b5fe7b9c3a5b6bcc428c0a8
      paragraph_quote: (a) Sold property. For property that has been sold, the lender must submit a loss claim within 45 calendar days of the sale. Late claims made beyond this period of time may be rejected or reduced by Rural Development .
      drafter_attestation: |
        Copied verbatim from snapshot 97d140aff1718a93 (content.txt) at
        2026-05-24T20:15Z. Substring is the full §3555.354(a) operative
        paragraph.
    promoted_at: '2026-05-24T20:12:26+00:00'
    promoted_from: usda-7cfr-3555.354-roundc-v1.yaml
  - id: usda-7cfr-3555.354-b-reo-60-day-claim-deadline
    canonical_id: usda-7cfr-3555.354-b-reo-60-day-claim-deadline
    section: '7 CFR §3555.354(b) — REO: 60-day loss-claim filing deadline + market-value appraisal'
    description: |
      If at liquidation, title to the USDA Section 502 Guaranteed Rural
      Housing property is conveyed to [LENDER], [LENDER] will submit a
      loss claim package, including a market value appraisal, within 60
      days of the foreclosure sale date or the date [LENDER] acquires
      title. If eviction action is required in order to obtain a market
      value appraisal, [LENDER] must submit the loss claim package within
      60 days of the date the occupants clear the premises. [LENDER] must
      order a market value appraisal and include the market value
      appraisal with the loss claim package.
    type: do
    audit_question: For every USDA Section 502 Guaranteed Rural Housing REO loss claim [LENDER] files, can [LENDER] evidence that the loss claim package — including a market-value appraisal — was submitted within 60 days of the foreclosure sale date / title-acquisition date, or within 60 days of the date the occupants cleared the premises if eviction was required?
    program_review: Does the program track the §3555.354(b) REO clock so the loss-claim package — including a market-value appraisal — is submitted within 60 days of the foreclosure-sale/title-acquisition date, or within 60 days of occupants clearing the premises where eviction was required to appraise?
    file_review: Pull REO loss claims; confirm the 60-day timing against the correct trigger and that a market-value appraisal accompanied the package.
    judgment: false
    feeds: []
    workflow_phase: servicing
    owner_role: default_servicing_analyst
    secondary_owner_role: compliance_officer
    cadence: per-reo-loss-claim
    consequence: ''
    tags:
      - round-c
      - regulator-direct
      - usda
      - rhs-guaranteed
      - loss-claim
      - reo
      - 60-day-deadline
      - servicing
      - promoted
    primary_source:
      tier: 1
      authority: 7 CFR §3555.354(b)
      source_class: usda-regulation
      source_url: https://www.law.cornell.edu/cfr/text/7/3555.354
      snapshot_id: 97d140aff1718a93
      fetched_at: '2026-05-24T19:34:39Z'
      content_hash: sha256:c1d05beaf4af76469ec0e734004d2749ab57d73b8b5fe7b9c3a5b6bcc428c0a8
      paragraph_quote: If at liquidation, the title to the property is conveyed to the lender , the lender will submit a loss claim package, including a market value appraisal, within 60 days of the foreclosure sale date or the date the lender acquires title.
      drafter_attestation: |
        Copied verbatim from snapshot 97d140aff1718a93 (content.txt) at
        2026-05-24T20:15Z. Substring is the leading §3555.354(b)
        operative requirement; the eviction-extension and appraisal-
        package requirements are paraphrased in description.
    promoted_at: '2026-05-24T20:12:26+00:00'
    promoted_from: usda-7cfr-3555.354-roundc-v1.yaml
  - id: usda-7cfr-3555.354-c-deficiency-judgment-enforcement-required
    canonical_id: usda-7cfr-3555.354-c-deficiency-judgment-enforcement-required
    section: 7 CFR §3555.354(c) — Deficiency-judgment enforcement required before loss-claim submission
    description: |
      [LENDER] must enforce any judgment for which there are current
      prospects of collection before submitting a loss claim, and amounts
      collected must be applied against the outstanding debt. Rural
      Development will process the loss claim if there are no current
      prospects for collection.
    type: do
    audit_question: For every USDA Section 502 Guaranteed Rural Housing loss claim [LENDER] files following a deficiency judgment, can [LENDER] evidence (a) enforcement of any judgment for which there were current prospects of collection prior to claim submission, (b) application of collected amounts against the outstanding debt, and (c) where applicable, that there were no current prospects for collection at the time the loss claim was submitted?
    program_review: Does the program account for the §3555.354(c) deficiency-judgment rule — enforce any judgment with current prospects of collection before submitting a loss claim, apply collected amounts against the debt, and submit only where there are no current prospects of collection?
    file_review: Spot-check deficiency-judgment loss claims; confirm enforcement effort, application of collected amounts, and the no-current-prospects basis. The officer judges whether 'current prospects of collection' was reasonably assessed.
    judgment: true
    feeds: []
    workflow_phase: servicing
    owner_role: default_servicing_analyst
    secondary_owner_role: compliance_officer
    cadence: per-deficiency-judgment-loss-claim
    consequence: ''
    tags:
      - round-c
      - regulator-direct
      - usda
      - rhs-guaranteed
      - loss-claim
      - deficiency-judgment
      - servicing
      - promoted
    primary_source:
      tier: 1
      authority: 7 CFR §3555.354(c)
      source_class: usda-regulation
      source_url: https://www.law.cornell.edu/cfr/text/7/3555.354
      snapshot_id: 97d140aff1718a93
      fetched_at: '2026-05-24T19:34:39Z'
      content_hash: sha256:c1d05beaf4af76469ec0e734004d2749ab57d73b8b5fe7b9c3a5b6bcc428c0a8
      paragraph_quote: (c) Deficiency judgments. The lender must enforce any judgment for which there are current prospects of collection before submitting a loss claim, and amounts collected must be applied against the outstanding debt. Rural Development will process the loss claim if there are no current prospects for collection.
      drafter_attestation: |
        Copied verbatim from snapshot 97d140aff1718a93 (content.txt) at
        2026-05-24T20:15Z. Substring is the full §3555.354(c) operative
        paragraph.
    promoted_at: '2026-05-24T20:12:26+00:00'
    promoted_from: usda-7cfr-3555.354-roundc-v1.yaml
_promotion_history:
  - promoted_at: '2026-05-24T20:12:26+00:00'
    candidate_path: obligations\_remediation\round-c-type-a\usda-7cfr-3555.354-roundc-v1.yaml
    candidates_promoted: 4
    candidates_skipped_existing: 0

Verbatim regulatory text (4)

Verbatim provisions from 7 CFR §3555.354 — Loss claim procedures (USDA Guaranteed Rural Housing) — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

7 CFR §3555.354 — All loss claims via Agency-designated web-based automated system

All lenders must use a web-based automated system designated by the Agency to submit all loss claim requests.

Source: 7 CFR §3555.354 · source URL · snapshot 97d140aff1718a93

7 CFR §3555.354(a) — Sold property: 45-day loss-claim filing deadline

(a) Sold property. For property that has been sold, the lender must submit a loss claim within 45 calendar days of the sale. Late claims made beyond this period of time may be rejected or reduced by Rural Development .

Source: 7 CFR §3555.354(a) · source URL · snapshot 97d140aff1718a93

7 CFR §3555.354(b) — REO: 60-day loss-claim filing deadline + market-value appraisal

If at liquidation, the title to the property is conveyed to the lender , the lender will submit a loss claim package, including a market value appraisal, within 60 days of the foreclosure sale date or the date the lender acquires title.

Source: 7 CFR §3555.354(b) · source URL · snapshot 97d140aff1718a93

7 CFR §3555.354(c) — Deficiency-judgment enforcement required before loss-claim submission

(c) Deficiency judgments. The lender must enforce any judgment for which there are current prospects of collection before submitting a loss claim, and amounts collected must be applied against the outstanding debt. Rural Development will process the loss claim if there are no current prospects for collection.

Source: 7 CFR §3555.354(c) · source URL · snapshot 97d140aff1718a93