USDA Technical Handbook HB-1-3555 §18.12 — Reporting Requirements
USDA HB-1-3555 §18.12 (Reporting Requirements). Gap-fill (verbatim).
Verbatim regulatory text
Verbatim provisions from USDA Technical Handbook HB-1-3555 §18.12 — Reporting Requirements — 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.
USDA HB-1-3555 18.12 — Reporting Requirements
PORTING REQUIREMENTS In accordance with Chapter 17 of this Handbook, servicers are required to report to the Agency all accounts monthly through ESR. Additional guidance regarding EDI reporting may be found online at https://www.rd.usda.gov/resources/usda-linc-training-resource-library/loan-servicing SECTION 5: ASSISTANCE IN NATURAL DISASTERS [7 CFR 3555.307] The following provides guidance for servicing accounts when a county, parish or municipality has been identified as a Presidentially Declared Disaster (PDD) area where federal aid in the form of individual assistance is being made available.
USDA HB-1-3555 18.12 — Reporting Requirements
OPERTY PROTECTION [7 CFR 3555.307(B)] When a servicer becomes aware that they have properties secured by an Agency guarantee in a PDD they immediately take the following actions:
USDA HB-1-3555 18.12 — Reporting Requirements
04-14-25) PN 637 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. x Ascertain the number of affected properties. x Secure abandoned properties. x Determine the extent and nature of the damage and the effect on the borrower’s ability to continue making mortgage payments. x Determine if the property is adequately insured against the damage. x Aid the borrower regarding the availability of appropriate relief provisions from local, state, or federal disaster assistance. x Consider waiving any late payment charges if the borrower’s payments are late because of added expenses or loss of income due to the disaster. x Monitor and coordinate hazard insurance claims. x Monitor and coordinate the progression of repairs when a deposit of insurance proceeds occurs in lieu of borrowers receiving insurance proceeds for properties.
USDA HB-1-3555 18.12 — Reporting Requirements
ECIAL RELIEF MEASURES [7 CFR 3555.307(c)] The servicer must suspend all foreclosure actions for affected borrowers in PDD areas effective for 90 days from the date of declaration unless extended by the Agency. This applies to both the initiation of new foreclosures as well as foreclosures already in process. To be eligible for a suspension of foreclosure activities the property or the borrower’s place of employment must be directly affected by the PDD. During the suspension servicers should consider the following factors to determine the appropriate course of action: x Evaluate the effects of the disaster. x Instruct the borrower to file insurance claims and apply for disaster assistance that may be available through FEMA, state, and local governments. x Offer appropriate repayment plans as outlined in Section 2 of this Chapter. x Determine if foreclosure is the only option. The borrower’s income or ability to pay the mortgage, any increase in living expenses, the extent of damage, the delinquency status of the mortgage, and the
USDA HB-1-3555 18.12 — Reporting Requirements
04-14-25) PN 637 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. availability of alternative housing are additional factors to consider. The goal should be a formal relief provision that will cure the delinquency as soon as possible without imposing an undue hardship on the borrower. Forbearance is highly encouraged in disasters. Under forbearance, the servicer can agree to reduce or suspend the borrower’s monthly payments for up to 12 months. At the conclusion of the forbearance the borrower must agree to resume his or her regular monthly payments and to pay additional money at scheduled intervals toward repayment of the amount reduced or suspended. Regular follow-up during a suspension and reassessment of the individual borrower’s circumstances, based upon property inspections, and borrower financial information at the end of the suspension period should be conducted. If the servicer is not actively engaged in workout options with the borrower(s) and believes suspension beyond the 90- day period is warranted, the servicer must document the reason to extend a hold on all foreclosure actions and retain the documentation in their collection systems. Failure to do so may impact any future loss claim payment. Servicers may use existing loss mitigation workout options to reinstate a borrower ready to resume mortgage responsibilities. Late charges while the borrower is on a forbearance plan, or paying as agreed on a repayment plan, should not be assessed. The servicer should take appropriate steps to mitigate the credit impact for a borrower for whom a forbearance or repayment plan is extended due to disaster-related circumstances.