source:
  type: regulation
  id: usda-hb-3555-ch18
  authority: USDA HB-1-3555 ch18 bootstrap
  description: Bootstrap for USDA HB-1-3555 ch18 register.
obligations:
- id: usda-hb-3555-ch18-20-day-initial-contact
  canonical_id: usda-hb-3555-ch18-20-day-initial-contact
  section: "USDA HB-1-3555 Ch. 18.3.A — Initial Contact [7 CFR 3555.301]"
  description: '[SVCR] must attempt to make verbal or written contact with the

    borrower on or before the day an account becomes 20 days past

    due. [SVCR] must send a letter to the borrower if unable to

    reach the borrower by telephone. This contact must solicit

    enough information to evaluate the borrower''s ability to cure

    the default and determine additional servicing actions.

    '
  type: do
  audit_question: For every USDA SFHGLP loan account that became past due, can [SVCR] evidence that, on or before the 20th day past due, it attempted verbal or written contact with the borrower (and, if unable to reach by telephone, sent a letter) to evaluate ability to cure the default?
  workflow_phase: servicing
  owner_role: loss_mitigation_specialist
  secondary_owner_role: default_servicing_analyst
  cadence: per_event
  consequence: Failure to attempt contact before the loan is 65 days past due may result in claim denial.
  tags:
  - round-b
  - regulator-direct
  - usda
  - hb-1-3555
  - ch18
  - initial-contact
  - 20-day
  - promoted
  primary_source:
    tier: 1
    authority: "USDA HB-1-3555 Chapter 18.3.A — Initial Contact"
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/sites/default/files/3555-1chapter18.pdf
    snapshot_id: 40fcd1ad9e90721f
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:bfa1bfa32aa1809377c166d412df85537f0efc0112b6b93ec32308ea0258635f
    paragraph_quote: The servicer must attempt to make verbal or written contact with the borrower on or
    drafter_attestation: Copied verbatim from USDA HB-1-3555 snapshot 40fcd1ad9e90721f (Ch 18) at 2026-05-23. Source PDF retrieved via Wayback Machine.
  promoted_at: '2026-05-23T16:19:26+00:00'
  promoted_from: usda-hb-3555-ch18-roundb-v1.yaml
  program_review: Does the servicing program ensure verbal-or-written borrower contact on or before the 20th day past due (with a letter if telephone fails), soliciting enough information to evaluate the borrower's ability to cure?
  file_review: Pull past-due accounts; review the contact log/notes for the on-or-before-day-20 attempt and the fallback letter. The officer judges whether the contact effort was a genuine attempt.
  judgment: true
  feeds:
  - usda-hb-3555-ch18-60-day-certified-letter
  - usda-hb-3555-ch18-60-day-property-inspection
- id: usda-hb-3555-ch18-60-day-certified-letter
  canonical_id: usda-hb-3555-ch18-60-day-certified-letter
  section: "USDA HB-1-3555 Ch. 18.3.C — Send Certified Letter to the Borrower"
  description: 'Before an account becomes 60 days past due and if there is no

    payment arrangement in place, [LENDER] must send a certified

    letter to the borrower requesting an interview for the purpose

    of resolving the past due account. The letter should emphasize

    the importance of meeting the debt obligation and explain the

    negative impact of non-repayment on the borrower''s credit

    history.

    '
  type: do
  audit_question: For every USDA SFHGLP loan account without a payment arrangement, can [SVCR] evidence that a certified letter was sent to the borrower before the account became 60 days past due, requesting an interview to resolve the past due account?
  workflow_phase: servicing
  owner_role: loss_mitigation_specialist
  secondary_owner_role: default_servicing_analyst
  cadence: per_event
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - usda
  - hb-1-3555
  - ch18
  - certified-letter
  - 60-day
  - promoted
  primary_source:
    tier: 1
    authority: "USDA HB-1-3555 Chapter 18.3.C — Send Certified Letter to the Borrower"
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/sites/default/files/3555-1chapter18.pdf
    snapshot_id: 40fcd1ad9e90721f
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:bfa1bfa32aa1809377c166d412df85537f0efc0112b6b93ec32308ea0258635f
    paragraph_quote: in place, the lender must send a certified letter to the borrower requesting an interview for
    drafter_attestation: Copied verbatim from USDA HB-1-3555 snapshot 40fcd1ad9e90721f (Ch 18) at 2026-05-23. Source PDF retrieved via Wayback Machine.
  promoted_at: '2026-05-23T16:19:26+00:00'
  promoted_from: usda-hb-3555-ch18-roundb-v1.yaml
  program_review: Does the program ensure a certified letter requesting a resolution interview goes out before the account reaches 60 days past due where no payment arrangement is in place?
  file_review: Pull 60-day-delinquent accounts without a payment arrangement; confirm the certified resolution-interview letter was sent before day 60.
  judgment: false
- id: usda-hb-3555-ch18-60-day-property-inspection
  canonical_id: usda-hb-3555-ch18-60-day-property-inspection
  section: "USDA HB-1-3555 Ch. 18.3.D — Inspect the Property"
  description: 'On or before the day an account becomes 60 days past due and

    before initiating a liquidation action, [SVCR] must assess

    the physical condition of the property, determine occupancy,

    and take the necessary steps to preserve and protect the

    property.

    '
  type: do
  audit_question: For every USDA SFHGLP loan account that became 60 days past due, can [SVCR] evidence that, on or before the 60th day past due (and before initiating any liquidation action), it assessed the physical condition of the property, determined occupancy, and took necessary steps to preserve and protect the property?
  workflow_phase: servicing
  owner_role: loss_mitigation_specialist
  secondary_owner_role: default_servicing_analyst
  cadence: per_event
  consequence: Failure to order an inspection within 65 days past due reduces accrued interest in the claim by 10%; failure to inspect / secure abandoned property reduces the loss claim by the dollar value of attributable loss.
  tags:
  - round-b
  - regulator-direct
  - usda
  - hb-1-3555
  - ch18
  - property-inspection
  - 60-day
  - promoted
  primary_source:
    tier: 1
    authority: "USDA HB-1-3555 Chapter 18.3.D — Inspect the Property"
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/sites/default/files/3555-1chapter18.pdf
    snapshot_id: 40fcd1ad9e90721f
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:bfa1bfa32aa1809377c166d412df85537f0efc0112b6b93ec32308ea0258635f
    paragraph_quote: On or before the day an account becomes 60 days past due and before initiating a
    drafter_attestation: Copied verbatim from USDA HB-1-3555 snapshot 40fcd1ad9e90721f (Ch 18) at 2026-05-23. Source PDF retrieved via Wayback Machine.
  promoted_at: '2026-05-23T16:19:26+00:00'
  promoted_from: usda-hb-3555-ch18-roundb-v1.yaml
  program_review: Does the program ensure a property inspection — physical-condition assessment, occupancy determination, and preserve/protect steps — on or before the 60th day past due and before any liquidation action?
  file_review: Pull 60-day-delinquent accounts; confirm the inspection (condition, occupancy, preservation steps) occurred on or before day 60 and before liquidation.
  judgment: false
_promotion_history:
- promoted_at: '2026-05-23T16:19:26+00:00'
  candidate_path: obligations\_remediation\_round_b_drafts\usda-hb-3555-ch18-roundb-v1.yaml
  candidates_promoted: 3
  candidates_skipped_existing: 0
