source:
  type: regulation
  id: usda-hb-3555-ch11
  authority: USDA HB-1-3555 ch11 bootstrap
  description: Bootstrap for USDA HB-1-3555 ch11 register.
obligations:
- id: usda-hb-3555-ch11-piti-34-percent-standard
  canonical_id: usda-hb-3555-ch11-piti-34-percent-standard
  section: "USDA HB-1-3555 Ch. 11.2.A — The PITI Ratio"
  description: 'Applicants are considered to have repayment ability if their

    proposed monthly housing expense does not exceed 34 percent of

    their repayment income.

    '
  type: do
  audit_question: For every USDA SFHGLP-guaranteed loan, can [LENDER] evidence that the applicants' proposed monthly housing expense (PITI) is no more than 34 percent of repayment income, OR that valid compensating factors are documented to support a ratio waiver in accordance with HB-1-3555 Chapter 11?
  workflow_phase: underwriting
  owner_role: underwriter
  secondary_owner_role: loan_officer
  cadence: per_loan
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - usda
  - hb-1-3555
  - ch11
  - piti-ratio
  - promoted
  primary_source:
    tier: 1
    authority: "USDA HB-1-3555 Chapter 11.2.A — The PITI Ratio"
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/sites/default/files/3555-1chapter11.pdf
    snapshot_id: 64c7bd1eb63a02a0
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:7bfa8a84c99d3af125f09320e3b47102e164921a554d589649e85d2844f6f437
    paragraph_quote: housing expense does not exceed 34 percent of their repayment income.
    drafter_attestation: Copied verbatim from USDA HB-1-3555 snapshot 64c7bd1eb63a02a0 (Ch 11) at 2026-05-23. Source PDF retrieved via Wayback Machine.
  promoted_at: '2026-05-23T13:45:39+00:00'
  promoted_from: usda-hb-3555-ch11-roundb-v1.yaml
  program_review: Does the program account for the 34% PITI standard and the compensating-factor ratio-waiver path when PITI exceeds 34% of repayment income?
  file_review: Spot-check files; confirm PITI at or below 34% or documented Chapter 11 compensating factors. The officer judges sufficiency of the compensating factors.
  judgment: true
- id: usda-hb-3555-ch11-td-41-percent-standard
  canonical_id: usda-hb-3555-ch11-td-41-percent-standard
  section: "USDA HB-1-3555 Ch. 11.2.B — The Total Debt Ratio"
  description: 'Applicants are considered to have repayment ability when their

    total debts do not exceed 41 percent of their repayment income.

    '
  type: do
  audit_question: For every USDA SFHGLP-guaranteed loan, can [LENDER] evidence that the applicants' total debts do not exceed 41 percent of repayment income, OR that valid compensating factors are documented to support a ratio waiver in accordance with HB-1-3555 Chapter 11?
  workflow_phase: underwriting
  owner_role: underwriter
  secondary_owner_role: loan_officer
  cadence: per_loan
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - usda
  - hb-1-3555
  - ch11
  - td-ratio
  - promoted
  primary_source:
    tier: 1
    authority: "USDA HB-1-3555 Chapter 11.2.B — The Total Debt Ratio"
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/sites/default/files/3555-1chapter11.pdf
    snapshot_id: 64c7bd1eb63a02a0
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:7bfa8a84c99d3af125f09320e3b47102e164921a554d589649e85d2844f6f437
    paragraph_quote: exceed 41 percent of their repayment income.
    drafter_attestation: Copied verbatim from USDA HB-1-3555 snapshot 64c7bd1eb63a02a0 (Ch 11) at 2026-05-23. Source PDF retrieved via Wayback Machine.
  promoted_at: '2026-05-23T13:45:39+00:00'
  promoted_from: usda-hb-3555-ch11-roundb-v1.yaml
  program_review: Does the program account for the 41% total-debt standard and the compensating-factor ratio-waiver path when total debt exceeds 41% of repayment income?
  file_review: Spot-check files; confirm total debt at or below 41% or documented Chapter 11 compensating factors. The officer judges sufficiency of the compensating factors.
  judgment: true
- id: usda-hb-3555-ch11-document-debts
  canonical_id: usda-hb-3555-ch11-document-debts
  section: "USDA HB-1-3555 Ch. 11.2 — The Ratios (debt documentation)"
  description: '[LENDER] must document the applicants'' debts through various

    records including, but not limited to, credit reports, direct

    or third-party verifications, court documents, and verification

    of deposits. All open debts/accounts (including non-medical

    collection accounts and judgments) incurred through the closing

    date must be considered in the total debt calculation.

    '
  type: do
  audit_question: For every USDA SFHGLP-guaranteed loan, can [LENDER] evidence (i) that all of the applicants' debts were documented through credit reports, direct/third-party verifications, court documents, and verification of deposits as applicable, and (ii) that all open debts/accounts incurred through the closing date (including non-medical collections and judgments) were considered in the total debt calculation?
  workflow_phase: underwriting
  owner_role: underwriter
  secondary_owner_role: loan_officer
  cadence: per_loan
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - usda
  - hb-1-3555
  - ch11
  - debt-documentation
  - promoted
  primary_source:
    tier: 1
    authority: "USDA HB-1-3555 Chapter 11.2 — The Ratios"
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/sites/default/files/3555-1chapter11.pdf
    snapshot_id: 64c7bd1eb63a02a0
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:7bfa8a84c99d3af125f09320e3b47102e164921a554d589649e85d2844f6f437
    paragraph_quote: The lender must document the applicants
    drafter_attestation: Copied verbatim from USDA HB-1-3555 snapshot 64c7bd1eb63a02a0 (Ch 11) at 2026-05-23. Source PDF retrieved via Wayback Machine.
  promoted_at: '2026-05-23T13:45:39+00:00'
  promoted_from: usda-hb-3555-ch11-roundb-v1.yaml
  program_review: Does the program ensure all applicant debts are documented (credit reports, direct/third-party verifications, court documents, VOD) and that every open debt/account through the closing date — including non-medical collections and judgments — is counted in total debt?
  file_review: Spot-check files; confirm debt documentation completeness and that all open debts through closing (incl. non-medical collections/judgments) were captured in the ratio.
  judgment: false
_promotion_history:
- promoted_at: '2026-05-23T13:45:39+00:00'
  candidate_path: obligations\_remediation\_round_b_drafts\usda-hb-3555-ch11-roundb-v1.yaml
  candidates_promoted: 3
  candidates_skipped_existing: 0
