USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶3.9 — Lender Recertification And Revoking Lender Eligibility

USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶3.9 — Lender Recertification And Revoking Lender Eligibility

3.9 LENDER RECERTIFICATION AND REVOKING LENDER ELIGIBILITY The lender remains eligible as long as the lender meets the criteria in Paragraph 3.2 of this chapter unless the lender’s status is revoked by Rural Development or another Federal Agency. The Agency is required to review each approved lender’s eligibility at least every two years, which includes verifying the lender has registered in SAM and completed the mandatory recertification training. All approved lenders are required to recertify their status by responding to the renewal notification email, sent to the lender, within the timeframe provided. Rural Development may terminate the lender’s approval due to noncompliance with any of the eligibility requirements described in 7 CFR 3555.51. Status may also be HB-1-3555 (03-09-16) SPECIAL PN 3-12 Revised (07-21-23) PN 588 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. revoked if the lender violates the terms of Form RD 3555-16, fails to properly service any guaranteed loan, or fails to adequately protect the interests of the lender and the Government. In addition to revocation of eligible lender status, the lender may be debarred by Rural Development, or may be required to indemnify Rural Development for any losses paid. If Rural Development terminates a lender’s approval, the lender will have 30 days from the date of receipt of the Agency’s notification to appeal the decision. Refer to Appendix 3 of this Handbook for additional information regarding appeal procedures. Notifications will be sent electronically to the email point of contact on file, marked with a read receipt. If the email is returned as “undeliverable,” the Agency will contact the lender by phone to obtain a current point of contact. The email notice will then be sent to this individual with a read receipt. Read receipt notifications will be saved in the Agency’s records as evidence that the lender was sent notice that they no longer met approved lender status. Agency staff will update GLS by removing the lender designation and any authorizations. Closed lender eligibility files will be retained in accordance with RD Instruction 2033-A.

Source: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶3.9 — Lender Recertification And Revoking Lender Eligibility · source URL · snapshot 0466acd1ea2d17a4