source:
  type: guide
  id: usda-hb-3555-4.10
  authority: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶4.10 —
    Prevent Mortgage Fraud
  description: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶4.10
    — Prevent Mortgage Fraud.
  coverage_tier: operative
obligations:
- id: usda-hb-3555-4.10-full
  canonical_id: usda-hb-3555-4.10-full
  section: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶4.10 — Prevent
    Mortgage Fraud
  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 ¶4.10
      — Prevent Mortgage Fraud
    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: '4.10 PREVENT MORTGAGE FRAUD Lenders are accountable for the
      contents of a loan file, including: x The sources of and authenticity of all
      qualifying documentation; and x Representation made on the loan application,
      such as occupancy, employment income, assets, equity contribution, etc. Lenders
      must ensure they have adequate quality control procedures in place to help detect
      and effectively prevent mortgage fraud. Sound pre-funding quality control practices
      and rigorous post-funding quality control programs are examples to safeguard
      against fraud. The quality control procedures should address updating company
      policies and procedures when fraud is discovered. When a lender becomes aware
      of mortgage fraud, they must report the findings surrounding the discovery to
      the Quality Assurance and Lender Oversight Division at SFHGLD.Compliance@usda.gov.
      The following information should be included: x Provide the name, email address,
      and telephone number of the company point of contact of the case reported; x
      Indicate if the fraud involves origination or servicing of the loan; x Indicate
      the originating lender (underwriting lender) and/or servicing lender, as applicable.
      Include the lender’s federal tax identification number and the lender loan number;
      x Agency borrower identification; x Property street, city, state, and zip code;
      x A detailed description of findings; and HB-1-3555 (03-09-16) SPECIAL PN 4-8
      Revised (08-05-25) PN 649 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 Identify the mortgage
      broker, loan officer, appraiser, closing agent, real estate agents, etc., as
      applicable. Refer to Chapter 1 of this Handbook for more information regarding
      falsely submitted information, fraud, and unauthorized assistance.'
  judgment: false
