source:
  type: regulation
  id: usda-hb-3555-1.12
  authority: USDA Technical Handbook HB-1-3555 §1.12 — Agency Loan Approval Authority Guidelines For The Sfhglp
  description: "USDA HB-1-3555 §1.12 (Agency Loan Approval Authority Guidelines For The Sfhglp). Gap-fill (verbatim).\
    \ \n"
obligations:
- id: usda-hb-3555-1.12-0
  canonical_id: usda-hb-3555-1.12-0
  section: USDA HB-1-3555 1.12 — Agency Loan Approval Authority Guidelines For The Sfhglp
  description: '1.12 Agency Loan Approval Authority Guidelines For The Sfhglp: ENCY LOAN APPROVAL AUTHORITY GUIDELINES
    FOR THE SFHGLP All new loan specialists working in the SFHGLP are expected to receive loan approval authority
    prior to officially issuing decisions on program applications. The process consists of initial training, proficiency-based
    tests, …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §1.12 — Agency Loan Approval Authority Guidelines For The Sfhglp
    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 LOAN APPROVAL AUTHORITY GUIDELINES FOR THE SFHGLP All new loan specialists working in
      the SFHGLP are expected to receive loan approval authority prior to officially issuing decisions on program
      applications. The process consists of initial training, proficiency-based tests, mentoring support, file reviews,
      and a formal recommendation by the new specialist’s supervisor. The guidelines detail the expectations to
      be followed by Agency employees delivering the SFHGLP. A. Training x New specialists will complete all approved
      Single Family Housing (SFH) University guaranteed training modules in the order required by the SFH University
      curriculum. x The SFH University curriculum will be supplemented with on-the-job training, provided by an
      experienced loan specialist/mentor. B. Proficiency Testing x The proficiency-based tests are a key component
      of the loan approval authority process. All new specialists are required to pass the test after each training
      module is completed. This will indicate to the supervisor and mentor that the new specialist has an acceptable
      level of knowledge in that program area and can proceed to the next training module. The proficiency-based
      tests and scoring system are administered in accordance with the SFH University curriculum requirements. x
      After the final module is completed, the supervisor shall schedule a time for the specialist to take the final
      exam, which consists of questions generated from information presented in all the completed modules and will
      be used to assess the overall level of knowledge of the specialist. x The minimum passing score for the proficiency
      test is 70. If a new specialist fails the first attempt, the first line supervisor will review the results
      of the test with the
    drafter_attestation: Verbatim from HB-1-3555 §1.12 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-1.12-1
  canonical_id: usda-hb-3555-1.12-1
  section: USDA HB-1-3555 1.12 — Agency Loan Approval Authority Guidelines For The Sfhglp
  description: '1.12 Agency Loan Approval Authority Guidelines For The Sfhglp: 06-24-22) PN 563 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 §1.12 — Agency Loan Approval Authority Guidelines For The Sfhglp
    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: 06-24-22) PN 563 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. specialist, address weaknesses, advise
      the new specialist on the area(s) they need to focus, provide a solution to rectify the deficiencies, and
      allow the specialist to retake the test when the supervisor determines the specialist’s readiness. C. Mentoring
      x At the time of enrollment in SFH University, the supervisor will assign a mentor to assist the new specialist
      in learning the requirements associated with the underwriting and review of SFHGLP applications. x The assigned
      mentor shall prepare written quarterly reports to the new specialist’s supervisor, outlining the progress
      and recommendations on areas needed for continued development. x Mentoring is expected to last at least 12
      months, but may be extended (in six- month increments) in the event the progress the specialist is making
      is not up to par with his/her SFH University curriculum and the proficiency-based tests. x The assigned mentor
      shall not be the new specialist’s supervisor. The mentor’s role is to help facilitate continued learning and
      to serve as a resource for technical questions and procedural guidance. D. File Review x After a new specialist
      attains a passing score on the final test, the supervisor or mentor will assign SFHGLP files to the new specialist
      to review independently. Prior to obligation, the supervisor or mentor will complete a file review of each
      application to evaluate and attest that the new specialist is working at a standard worthy of independent
      loan approval authority. x Once an acceptable level of review has been attained, the first line supervisor
      will submit a minimum of four (4) GUS ACCEPT and six (6) GUS REFER or REFER WITH CAUTION loan files for review
      by a Director of the OPD, or assignee, in order to determine the loan approval authority recommendation. E.
      Supervisor Recommendation for Approval x Upon successful completion of the SFH University curriculum, proficiency
      tests, final exam, mentoring period, and file reviews, a letter will be prepared by the new specialist’s supervisor
      to a Director of the OPD recommending the delegation of loan approval authority.
    drafter_attestation: Verbatim from HB-1-3555 §1.12 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-1.12-2
  canonical_id: usda-hb-3555-1.12-2
  section: USDA HB-1-3555 1.12 — Agency Loan Approval Authority Guidelines For The Sfhglp
  description: '1.12 Agency Loan Approval Authority Guidelines For The Sfhglp: 06-24-22) PN 563 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 §1.12 — Agency Loan Approval Authority Guidelines For The Sfhglp
    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: 06-24-22) PN 563 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 A Director of the OPD, or assignee,
      will review the recommendation and any supporting documentation to grant or deny the delegation of loan approval
      authority to the new specialist. The designation will be documented in writing. If approval is granted, a
      certificate will be awarded to the specialist noting his/her approval status with USDA Rural Development.
    drafter_attestation: Verbatim from HB-1-3555 §1.12 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-1.12-3
  canonical_id: usda-hb-3555-1.12-3
  section: USDA HB-1-3555 1.12 — Agency Loan Approval Authority Guidelines For The Sfhglp
  description: '1.12 Agency Loan Approval Authority Guidelines For The Sfhglp: -C, Delegation of Loan Approval Authority,
    may be used. x The expected amount of time to complete this process may vary between 12 and 18 months. If more
    than 24 months have elapsed, a Director of the OPD, or assignee, will examine the reason(s) for the delay and
    will develop a p…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §1.12 — Agency Loan Approval Authority Guidelines For The Sfhglp
    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: -C, Delegation of Loan Approval Authority, may be used. x The expected amount of time to complete
      this process may vary between 12 and 18 months. If more than 24 months have elapsed, a Director of the OPD,
      or assignee, will examine the reason(s) for the delay and will develop a plan of action. x In the event the
      supervisor is unable to recommend loan approval authority within 24 months due to recurring deficiencies in
      the specialist’s file reviews, a revised training plan will be developed by the supervisor to assist the new
      specialist in overcoming and resolving the identified deficiencies. F. Continued Training Process Supervisors
      should continue to evaluate the quality of loan reviews by new specialists after loan approval authority has
      been granted. Close monitoring by an established quality assurance process is recommended to determine if
      specific training might be required based on unusual application submissions. G. Reinstatement of Approval
      Authority If a specialist’s loan approval authority is revoked, RD Instruction 1901-A authorizes the Administrator
      to provide written restrictions or revocations of the authority given to any loan approval official. The Administrator
      may take action upon the recommendation of a Director of the OPD, or assignee. Supervisors are granted the
      authority to determine what actions, training, and conditions are required to reinstate loan approval authority
      to a specialist.
    drafter_attestation: Verbatim from HB-1-3555 §1.12 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-1.12-4
  canonical_id: usda-hb-3555-1.12-4
  section: USDA HB-1-3555 1.12 — Agency Loan Approval Authority Guidelines For The Sfhglp
  description: '1.12 Agency Loan Approval Authority Guidelines For The Sfhglp: 06-24-22) PN 563 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 §1.12 — Agency Loan Approval Authority Guidelines For The Sfhglp
    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: '06-24-22) PN 563 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. ATTACHMENT 1-A NOTICE OF RELATIONSHIP/ASSOCIATION
      BETWEEN SFHGLP APPLICANT AND RURAL DEVELOPMENT EMPLOYEE TO: Origination And Processing Division SUBJECT: Notice
      of relationship or association between applicant and Rural Development employee This is to notify you that
      the following applicant is requesting a Single Family Housing Guaranteed loan and is related or is associated
      with a Rural Development employee: Applicant Name: _______________________________________________ Borrower
      Id Number: ____________________________________________ Property Address: _______________________________________________
      _______________________________________________ County Name: ________________________________ Status Of Application:
      _____Pre-Eligibility _____Ready To Submit _____In Process Rural Development Employee Name: _________________________________
      Duty Station: _____________________________________________________ Details of relationship/association: _______________________________________
      ___________________________________________________________________ ___________________________________________________________________
      Submitted By: _____________________________ Date: ____________ Employee Or Lender Title/Organization Email:
      _______________________________'
    drafter_attestation: Verbatim from HB-1-3555 §1.12 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-1.12-5
  canonical_id: usda-hb-3555-1.12-5
  section: USDA HB-1-3555 1.12 — Agency Loan Approval Authority Guidelines For The Sfhglp
  description: '1.12 Agency Loan Approval Authority Guidelines For The Sfhglp: 06-24-22) PN 563 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 §1.12 — Agency Loan Approval Authority Guidelines For The Sfhglp
    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: '06-24-22) PN 563 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. ATTACHMENT 1-B REQUIREMENTS FOR HANDLING
      SFHGLP APPLICATION OF EMPLOYEE, RELATIVE OR ASSOCIATE TO: (Lender Name) SUBJECT: Requirements for handling
      SFHGLP applications of employee, relative or associate for (Applicant Name, Borrower ID Number) The following
      application processing procedures have been established by a Director of the Origination and Processing Division:
      Review Of Application, Approval And Issuance Of Conditional Commitment: _________________________________
      Review Of Closing Documents, Issuance Of Loan Note Guarantee: _____________________________________ Post Closing
      Review: ____________________________________ Access to the applicant’s electronic case file in the Agency’s
      automated systems will be restricted to the aforementioned employees. All servicing actions will be in accordance
      with 7 CFR 3555. [Date] ________________________________ [Name] Director, Origination And Processing Branch
      cc: [Employee First-Line Supervisor] Employee eOPF'
    drafter_attestation: Verbatim from HB-1-3555 §1.12 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-1.12-6
  canonical_id: usda-hb-3555-1.12-6
  section: USDA HB-1-3555 1.12 — Agency Loan Approval Authority Guidelines For The Sfhglp
  description: '1.12 Agency Loan Approval Authority Guidelines For The Sfhglp: 06-24-22) PN 563 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 §1.12 — Agency Loan Approval Authority Guidelines For The Sfhglp
    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: '06-24-22) PN 563 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. ATTACHMENT 1-C DELEGATION OF LOAN APPROVAL
      AUTHORITY TO: [Name] [Title] USDA Rural Development [Location] By my authority as Director of Origination
      and Processing Division for USDA Rural Development, in accordance with Rural Development Instruction 1901-A,
      I hereby make a delegation to the aforementioned employee: x Loan approval authority for Single Family Housing
      Section 502 Guaranteed Loans described in 7 CFR Part 3555. This delegation is effective immediately and will
      continue until the delegate leaves his/her position or until revocation or other change is made in writing.
      [Date] __________________________ [Name] Director, Origination and Processing Division cc: [first-line supervisor]
      eOPF'
    drafter_attestation: Verbatim from HB-1-3555 §1.12 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-1.12-7
  canonical_id: usda-hb-3555-1.12-7
  section: USDA HB-1-3555 1.12 — Agency Loan Approval Authority Guidelines For The Sfhglp
  description: '1.12 Agency Loan Approval Authority Guidelines For The Sfhglp: 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 §1.12 — Agency Loan Approval Authority Guidelines For The Sfhglp
    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. CHAPTER 2: RECORD RETENTION 7 CFR 3555.51'
    drafter_attestation: Verbatim from HB-1-3555 §1.12 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
