source:
  type: guide
  id: usda-hb-3555-3.4
  authority: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶3.4 —
    Agency Review
  description: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶3.4
    — Agency Review.
  coverage_tier: operative
obligations:
- id: usda-hb-3555-3.4-full
  canonical_id: usda-hb-3555-3.4-full
  section: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶3.4 — Agency
    Review
  type: do
  tags:
  - regulator-direct
  - usda
  - usda-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶3.4
      — Agency Review
    source_class: usda-handbook
    source_url: https://www.rd.usda.gov/sites/default/files/hb-1-3555_consolidated.pdf
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-05-25T14:10:13Z'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: '3.4 AGENCY REVIEW The Agency review of the lender’s application
      includes the following: x Ensuring that all required documents have been submitted
      and are completed correctly. Incomplete applications cannot be approved, and
      the lender will be advised of the omission(s) in writing. x Form RD 3555-16
      has been properly executed by a person authorized to bind the lender to the
      terms stated on the form. x Evidence that the lender’s demonstrated ability
      is consistent with the requirements of this chapter. x Evidence that neither
      the lender nor any of the lender’s principal officers have been suspended or
      debarred from participation in Federal programs. HB-1-3555 (03-09-16) SPECIAL
      PN 3-8 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. x Evidence that
      the lender’s approval status with Fannie Mae, Freddie Mac, HUD, VA, or another
      acceptable Government Agency is active at the time of the application to the
      Agency. x Verification the lender is registered in SAM. A. Approval of Application
      [7 CFR 3555.52] 1. Pre-Approval If the lender meets the criteria for an approved
      lender and provides the supporting documentation as outlined in Attachment 3-A,
      the Agency will issue an approval notice to the lender. Final approval is dependent
      upon the lender and all origination, and underwriting staff involved with the
      SFHGLP completing mandatory training. The Agency will provide additional information
      on access to mandatory trainings as part of the lender approval process. The
      purpose of the training is to provide an overview of the SFHGLP objectives,
      lender responsibilities, required loan documentation, and the process to obtain
      a Loan Note Guarantee. Any additional staff hired after the initial lender approval
      should also complete all mandatory trainings. 2. Final Approval Upon completion
      of all mandatory trainings by the lender, the Agency will update the lender
      pages of GLS and forward the lender a copy of the executed Form RD 3555-16,
      notifying the lender of their approval to participate in the SFHGLP. The lender
      may begin participating in the program once final approval is obtained. New
      lenders will be subject to an oversight review, as outlined in Paragraph 3.8
      of this chapter. B. Denial of Application If the lender does not qualify for
      participation in the program, the Agency will provide written justification
      along with appeal rights in accordance with Appendix 3 of this Handbook. A lender
      who does not meet the criteria to participate in the program as an approved
      lender may act as an agent for an approved lender, as described in Paragraph
      3.2C. C. Record Retention Lender approval files will be maintained and retained
      in accordance with Chapter 2. HB-1-3555 (03-09-16) SPECIAL PN 3-9 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. 3.5 LENDER SALE OF GUARANTEED LOANS [7
      CFR 3555.54] SFHGLP loans can only be sold to lenders meeting the requirements
      of Paragraph 3.2. The purchasing lender must execute Form RD 3555-16 or have
      an approved Form RD 3555-16 on file. The selling lender is responsible for providing
      the original Loan Note Guarantee to the purchasing lender and must report the
      sale of the guarantee on Form RD 3555-11, Guaranteed Rural Housing Lender Record
      Change, within 30 days of the sale in accordance with Chapter 4, Paragraph 4.6.'
  judgment: false
