source:
  type: guide
  id: usda-hb-3555-3.3
  authority: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶3.3 —
    Application
  description: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶3.3
    — Application.
  coverage_tier: operative
obligations:
- id: usda-hb-3555-3.3-full
  canonical_id: usda-hb-3555-3.3-full
  section: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶3.3 — Application
  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 ¶3.3
      — Application
    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: '3.3 APPLICATION Lenders will submit Form RD 3555-16, Agreement
      for Participation in Single-Family Housing Guaranteed/Insured Loan Programs
      of the United States Government, and the necessary supporting documentation
      as outlined in Attachment 3-A, Lender Approval Checklist, to the Loan Servicing
      Branch at sfhglpservicing@usda.gov. HB-1-3555 (03-09-16) SPECIAL PN 3-6 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. A. Quality Control Plan Reliable
      and effective quality control (QC) programs are essential to a lender’s success
      in the mortgage industry. Quality control begins prior to application intake
      and continues through the mortgage process. The purpose of quality control is
      to monitor and evaluate the integrity of the origination and servicing processes
      and is customized to the lender’s organization, circumstances, and needs. The
      quality control plan must contain the necessary controls as required by other
      recognized sources noted in Section 3.2A of this chapter. At a minimum, the
      lender’s plan should include all of the following: x Mission Statement or stated
      objective. x Describe the lender’s participation with other Federal agencies,
      such as the Department of Treasury and any other investors or partners. Include
      a statement that the lender plans to operate within USDA Rural Housing Service
      guidelines. x Written procedures for documenting a re-verification process.
      This includes implementing a sampling methodology that consists of a representative
      sample of Rural Development loans, has a consistent and timely review process,
      and addresses document retention. x A post-closing review process describing
      how a sampling of loans are independently reviewed for adherence to lending
      guidelines. x A quality control team that operates independently from loan origination,
      underwriting, and servicing functions; or contracts out this function. If contracted
      out, the lender must adequately monitor the performance of the contractor. x
      Describe the separation of duties between the loan production staff and quality
      control staff. Under no circumstances should the quality control review staff
      be involved in the day-to day loan production. x Describe the standard operating
      procedures for all employees who will be involved with, or affected by, the
      quality control process. x Describe the timelines of internal quality control
      reviews, including the percentage of loans reviewed and the frequency of the
      quality control reviews. For example, 10% of closed loans are independently
      reviewed each quarter by a quality assurance specialist who was not involved
      in underwriting and closing those loans. x Quality control reviews should include
      a description of how appraisals or property evaluation reports are reviewed.
      HB-1-3555 (03-09-16) SPECIAL PN 3-7 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 Written procedures to report violations of laws or regulations, false
      statements, and program abuses directly to appropriate authorities in a timely
      manner. Information regarding violations must be reported to the Loan Servicing
      Branch at sfhglpservicing@usda.gov. x Ensure adequate quality control and data
      integrity checks are included for loans processed through automated underwriting
      systems on a regular and timely basis. x Ensure adequate monitoring of all vendors,
      contractors, and third-party providers involved in the origination process (e.g.
      mortgage brokers, correspondents, appraisers, and credit agencies). x Identify
      training opportunities for lender staff. B. Additional Requirements for Quality
      Control Plans for Servicing Lenders Quality control plans for servicing lenders
      must contain the required information identified in Section 3.3A, as well as
      address the following: x How escrows are handled for taxes, hazard, and flood
      insurance (if applicable). x How funds are applied when payments are received
      for principal and interest, hazard and flood insurance, and taxes. x What happens
      if excess funds are collected in escrow.'
  judgment: false
