source:
  type: regulation
  id: usda-hb-3555-19.5
  authority: USDA Technical Handbook HB-1-3555 §19.5 — Agency Review
  description: "USDA HB-1-3555 §19.5 (Agency Review). Gap-fill (verbatim). \n"
obligations:
- id: usda-hb-3555-19.5-0
  canonical_id: usda-hb-3555-19.5-0
  section: USDA HB-1-3555 19.5 — Agency Review
  description: '19.5 Agency Review: ENCY REVIEW The Agency will review the loss claim package from the servicer.
    Loss claim checks or electronic funds transfer (EFT) payments will be issued to the servicer by the Agency within
    60 days of the servicer’s properly filed loss claim. Agency staff will notify the service…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §19.5 — Agency Review
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: 'ENCY REVIEW The Agency will review the loss claim package from the servicer. Loss claim checks
      or electronic funds transfer (EFT) payments will be issued to the servicer by the Agency within 60 days of
      the servicer’s properly filed loss claim. Agency staff will notify the servicer of any additional documentation
      required and will note it in the loss claim file. Once all required information is submitted, the Agency must
      take the following actions: x Determine whether the servicer has fulfilled all SFHGLP obligations and if not,
      whether reduction or denial of the loss claim is warranted. x Review and approve the loss claim with an Agency
      designee with appropriate approval authority. x Advise the servicer of the PSVC (if applicable) used to calculate
      the loss claim.'
    drafter_attestation: Verbatim from HB-1-3555 §19.5 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-19.5-1
  canonical_id: usda-hb-3555-19.5-1
  section: USDA HB-1-3555 19.5 — Agency Review
  description: '19.5 Agency Review: 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.…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §19.5 — Agency Review
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: 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 Provide appropriate appeal rights for
      any adjustments, reductions, or denials with specific reasons and clear explanation for the decision in accordance
      with Appendix 3 of this Handbook. x Issue payment. Payment of the loss claim simultaneously fulfills and terminates
      the loan note guarantee. A termination notice will be mailed to the designated payee at the time of payment.
      A. Reduction or Denial of a Loss Claim The Agency will review each loss claim for adherence to program regulation
      and make any reductions and/or denial of loss claim as noted below. The Agency staff will use information
      provided by the servicer to determine if the loss claim should be adjusted or denied. The Agency must show
      that any reduction to the servicer’s loss claim corresponds with the servicer’s action or failure to act.
      This section provides guidance regarding reduction or denial of a loss claim, and when applicable, the specific
      penalties attached to those factors. Additional information regarding penalties may be found in Appendix 8
      of this Handbook. B. Calculation and Approval of Loss Payment Agency staff will review the loss claim and
      supporting documentation submitted by the servicer. Agency staff will document and create a loss claim payment
      to the servicer. The Agency’s reviewer should contact the servicer if there are questions about the information
      submitted by the servicer. C. Loss Claim Payment Process The Agency will use the following procedures for
      loss claim processing and disbursement of any loss claim payment. 1. Notification of Loss Payment Amount The
      Agency should notify the servicer in writing of the amount to be paid within 60 days of receipt of a properly
      completed loss claim package. If the loss claim has been reduced or denied, the Agency will provide a clear
      explanation of its decision, including an analysis of how the amount of any reduction was determined and
    drafter_attestation: Verbatim from HB-1-3555 §19.5 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-19.5-2
  canonical_id: usda-hb-3555-19.5-2
  section: USDA HB-1-3555 19.5 — Agency Review
  description: '19.5 Agency Review: 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.…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §19.5 — Agency Review
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: 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. provide notification of appeal rights
      in accordance with Appendix 3 of this Handbook. 2. Payment and Post Payment Activities Payments for approved
      loss claims should be distributed within 60 days of receipt of a properly completed loss claim package. Servicers
      who participate in electronic funds transfer (EFT) should receive payment within 3 working days of loss claim
      processing. For all other servicers, a check should be generated and distributed within 3 working days of
      receipt of a properly completed and submitted loss claim. 3. Review and Appeal Rights. If a loss claim is
      reduced or denied, the Agency will notify the servicer of review and appeal rights as described in Appendix
      3 of this Handbook. If the servicer seeks to request a review or appeal a loss claim decision, the Agency
      will pay the approved portion of the loss claim within the time frames described above. Interest will not
      accrue on any disputed loss amount during the review or appeals process regardless of the outcome of the review
      or appeal. 4. Supplemental Loss Claims The agency may allow the servicer to submit one supplemental loss claim
      in addition to the original loss claim submitted. The supplemental loss claim must be received by the agency
      within six months from payment date of the initial loss claim. The agency reserves the right to limit the
      payment of additional interest and expenses. The six-month expiration period may be exceeded if unusual circumstances
      exist such as a domestic incident as defined by the department of homeland security or when a geographic location
      in which the property is located has a presidential disaster declaration.
    drafter_attestation: Verbatim from HB-1-3555 §19.5 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-19.5-3
  canonical_id: usda-hb-3555-19.5-3
  section: USDA HB-1-3555 19.5 — Agency Review
  description: '19.5 Agency Review: 05-05-25) PN 640 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.…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §19.5 — Agency Review
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: 05-05-25) PN 640 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. APPENDIX 1 For the complete 7 CFR Part
      3555, refer to the National Archives and Records Administration Electronic Code of Federal Regulations (eCFR)
      found at https://www.ecfr.gov/current/title7/subtitle-B/chapter- XXXV/part-3555 The eCFR is a web version
      of the Code of Federal Regulations (CFR) that is updated simultaneously with any published revisions. Please
      use the link above for the most up to date version of the 7 CFR 3555.
    drafter_attestation: Verbatim from HB-1-3555 §19.5 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-19.5-4
  canonical_id: usda-hb-3555-19.5-4
  section: USDA HB-1-3555 19.5 — Agency Review
  description: '19.5 Agency Review: 05-05-25) PN 640 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.…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §19.5 — Agency Review
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: '05-05-25) PN 640 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. APPENDIX 2 FORMS AND INSTRUCTIONS List
      of Forms and Instructions The following are forms noted within the handbook. Forms are separated by action.
      Some forms are Agency only specific and require only Agency action (as noted in the “Agency Use Only” column).
      Some forms are optional and should be used at the discretion of the lender (as noted in the “Optional Use
      by Lender” column). All forms are in-fillable format and can be accessed from the Rural Development Instructions
      website at: https://forms.sc.egov.usda.gov/eForms/, unless otherwise noted with a link to the form. Select
      “Browse Forms” from the home page and then enter the form number in the applicable field. Lender Participation
      Form Number Form Name Optional Use by Lender Agency Use Only See HB Chapter Form RD 3555-16 Agreement for
      Participation in Single Family Housing Guaranteed/Insured Loan Programs of the United States Government 3,
      4, App. 7 Origination and Processing Form Number Form Name Optional Use by Lender Agency Use Only See HB Chapter
      Form RD 3555-21 Request for Single Family Housing Loan Guarantee 2, 5, 8, 9, 10, 15 Form RD 1910-5 Request
      for Verification of Employment √ 9, 11, 15 Form RD 1944-62 Request for Verification of Deposit √ 9, 11, 15
      FEMA Flood Certification Standard Flood Hazard Determination Form https://www.fema.gov/flood- insurance/find-form/underwriting
      12, 15, 16 Form RD 1922-15 Administrative Appraisal Review for Single Family Housing √ 2, 12'
    drafter_attestation: Verbatim from HB-1-3555 §19.5 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-19.5-5
  canonical_id: usda-hb-3555-19.5-5
  section: USDA HB-1-3555 19.5 — Agency Review
  description: '19.5 Agency Review: 05-05-25) PN 640 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.…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §19.5 — Agency Review
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: 05-05-25) PN 640 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. Form Number Form Name Optional Use by
      Lender Agency Use Only See HB Chapter RD Instruction 1970 F, Exhibit B, Attachment B 2, (Form) Template Private
      Party Notice to Applicant/Lender for Floodplain √ N/A RD Instruction 1970-B, Exhibit D (Form) Environmental
      Checklist for Categorical Exclusions √ 2 RD Instruction 1970 B, Exhibit C (Form) Guide to Applicants for Preparing
      Environmental Reports for Categorical Exclusions √ N/A Commitment Form Number Form Name Optional Use by Lender
      Agency Use Only See HB Chapter Form RD 3555-18 Conditional Commitment for Single Family Housing Loan Guarantee
      √ 2, 7, 9,12, 14,15,16 Form RD 3555-18E Conditional Commitment for Single Family Housing Loan Guarantee (Electronic)
      √ 2, 12,15, 16 Loan Closing Form Number Form Name Optional Use by Lender Agency Use Only See HB Chapter Form
      RD 451-2 Schedule of Remittances √ App. 6 Form RD 3555-11 Lender Record Change 3, 4,17, App. 4 Form RD 3555-17
      Loan Note Guarantee √ 2, 10,16 Form RD 3555-17E Loan Note Guarantee (Electronic) √ 2, 10,16
    drafter_attestation: Verbatim from HB-1-3555 §19.5 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-19.5-6
  canonical_id: usda-hb-3555-19.5-6
  section: USDA HB-1-3555 19.5 — Agency Review
  description: '19.5 Agency Review: 05-05-25) PN 640 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.…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §19.5 — Agency Review
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: 05-05-25) PN 640 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. Interest Assistance Form Number Form
      Name Optional Use by Lender Agency Use Only See HB Chapter Form RD 3555-87 Shared Equity Payment √ App. 6
      Form RD 3555-12 Master Interest Assistance and Shared Equity Agreement with Promissory Note App. 6 Form RD
      3555-13 Annual Interest Assistance Agreement App. 6 Form RD 3555-14 Interest Assistance Shared Equity Determination
      √ App. 6 Instructions Referenced RD Instruction 1901-E Civil Rights Compliance Requirements RD Instruction
      1970 Environmental
    drafter_attestation: Verbatim from HB-1-3555 §19.5 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-19.5-7
  canonical_id: usda-hb-3555-19.5-7
  section: USDA HB-1-3555 19.5 — Agency Review
  description: '19.5 Agency Review: 05-05-25) PN 640 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.…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §19.5 — Agency Review
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: '05-05-25) PN 640 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. APPENDIX 3 REVIEW AND APPEALS A. Review
      and Appeal Options Adverse Agency decisions against a program participant (lender, applicant, or borrower)
      may be reviewed or appealed by the National Appeals Division (NAD). Adverse decisions include administrative
      actions taken by Agency staff and the Agency’s failure to take required actions within time frames specified
      in statutes or regulations, or within a reasonable time if no deadline is specified. 7 CFR Part 11 provides
      procedures that both Agency officials and program participants must follow during the review or appeal process.
      Applicable portions of 7 CFR Part 11 to the Single-Family Housing Guaranteed Loan Program (SFHGLP) can be
      found later in this appendix. Handbook Letters 1 through 7 are provided to inform program participants of
      their rights. Adverse decisions are subject to the following review and appeal procedures: x Informal Administrative
      Review by Agency Decision-Maker. Program participants (participants) have the right to request that any adverse
      decision be reviewed by the Agency staff member who made the adverse decision. x Appeal Request to NAD. Qualifying
      adverse decisions may be appealed to NAD. x Mediation as a Form of Alternative Dispute Resolution (ADR). Adverse
      decisions which are appealable to NAD require the participant be given the opportunity to seek ADR prior to
      a hearing with NAD. B. Informing Program Participants of Their Rights Agency decisions that adversely affect
      a participant require written notification that an informal administrative review with the person who made
      the decision may be requested. Letters notifying participants of adverse decisions must contain the information
      needed for the participant to make decisions regarding involvement in the review and appeals process. Specific
      civil rights language also must be included in these letters. Handbook Letters 1 through 7 following this
      appendix are available for guidance and are titled to assist in selecting the correct language for the decision
      made. Notification of adverse decisions by the Agency will include notification to the lender and the applicant/borrower
      when declining a request for loan commitment. Adverse decisions regarding loss payments will be directed to
      the servicer. (03-09-16)'
    drafter_attestation: Verbatim from HB-1-3555 §19.5 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-19.5-8
  canonical_id: usda-hb-3555-19.5-8
  section: USDA HB-1-3555 19.5 — Agency Review
  description: '19.5 Agency Review: 05-05-25) PN 640 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.…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §19.5 — Agency Review
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: '05-05-25) PN 640 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. If the decision is appealable, the participant
      will be informed of their opportunity to seek mediation and/or to request a hearing with NAD using Handbook
      Letter 1. If the decision is not appealable, the participant will be informed of their rights to have NAD
      review the accuracy of the Agency’s finding that the decision cannot be appealed using Handbook Letter 2.
      When a participant is denied assistance for both appealable and non- appealable decisions, the Agency will
      send both Handbook Letters 1 and 2. The lender will be responsible for notifying the applicant or borrower
      if the lender declines an applicant or borrower’s request. Denial of loan requests or servicing actions by
      the lender are not subject to review or appeal rights. C. Adverse Decisions That Cannot Be Appealed Certain
      decisions made by the Agency are not appealable and participants can request an informal administrative review.
      The participant will be informed through Handbook Letter 2 that they may request an informal administrative
      review for a review of the accuracy of the Agency’s determination that the case cannot be appealed. Decisions
      that cannot be appealed can include: x Decisions made by parties not employed by the Agency; x Refusal to
      request an administrative waiver; x Decisions made in accordance with statute (such as rural area designations);
      and x Denial of loan commitment due to lack of program funds. D. Informal Administrative Review The purpose
      of the informal administrative review is to reiterate the Agency’s reasons for the adverse decision, provide
      a forum for the participant response, and obtain any additional information to support the participant request.
      x The written request for an informal administrative review must be provided to NAD within 15 days of the
      date of the Agency’s letter notifying the participant of the adverse decision. x The informal administrative
      review can be conducted by telephone, webinar, or a face-to-face meeting with the decision maker or their
      representative. The Agency will determine the meeting format. x The review of the decision must be completed
      within 45 days of the request. The Director of Origination and Processing Division (OPD) may require that'
    drafter_attestation: Verbatim from HB-1-3555 §19.5 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-19.5-9
  canonical_id: usda-hb-3555-19.5-9
  section: USDA HB-1-3555 19.5 — Agency Review
  description: '19.5 Agency Review: 05-05-25) PN 640 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.…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §19.5 — Agency Review
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: 05-05-25) PN 640 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. the decision be reviewed by the next-level
      supervisor or other designated Rural Development staff before the participant is notified of the decision.
      x Handbook Letter 3 of this appendix is used if the adverse decision is not reversed as a result of the informal
      administrative review. If the decision is reversed, a letter will be sent to the participant notifying them
      of the decision and next steps. x All documentation will be retained in the electronic customer file (ECF).
      The participant may skip an informal administrative review and, if applicable, request mediation and/or an
      appeal. In doing so, the participant automatically waives their rights to an informal administrative review.
      E. Mediation Adverse decisions which are appealable to NAD also require that the participant have the opportunity
      to seek mediation prior to having a hearing with NAD. The purpose of mediation is to resolve disputes using
      a neutral mediator. A mediator’s role is to summarize each party’s perception of the issues and offer procedural
      suggestions on a resolution which may lead to a mutual resolution of the adverse decision. The Agency will
      not use the services of an arbitrator. An arbitrator resolves disputes through hearing both parties and renders
      a binding decision. Participants may skip mediation and request an appeal to NAD. Requests for Mediation After
      receiving Handbook Letters 1 or 3 of this appendix, a participant may request mediation services. Upon receipt
      of the participant’s request for mediation, Handbook Letter 4 of this appendix is sent to the participant
      to begin the process. Cost of Mediation Costs associated with mediation should be shared equally between the
      Agency and the participant. The selection of a mediator will be based on the most economically viable alternative
      to both the Agency and participant. If Agency administrative funds are exhausted, the Agency will notify the
      participant that mediation can proceed but the cost of mediation will be absorbed fully by the participant.
      The Agency should ensure that all participants requesting mediation are treated consistently and pay the same
      percentage of the cost toward this service. The Agency may also consent to pay a larger percentage (up to
      100 percent) of the cost of mediation for participants with incomes below the poverty level. The Agency will
      notify the mediation source of how the cost of such service will
    drafter_attestation: Verbatim from HB-1-3555 §19.5 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
