source:
  type: guide
  id: usda-hb-3555-16.7
  authority: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶16.7 —
    Agency Review Of Closing Documents And Issuance Of The Guarantee
  description: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶16.7
    — Agency Review Of Closing Documents And Issuance Of The Guarantee.
  coverage_tier: operative
obligations:
- id: usda-hb-3555-16.7-full
  canonical_id: usda-hb-3555-16.7-full
  section: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶16.7 — Agency
    Review Of Closing Documents And Issuance Of The Guarantee
  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 ¶16.7
      — Agency Review Of Closing Documents And Issuance Of The Guarantee
    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: '16.7 AGENCY REVIEW OF CLOSING DOCUMENTS AND ISSUANCE OF THE
      GUARANTEE The Agency will review the required loan closing documents to ensure
      the lender has completed and fulfilled all requirements specified on the Conditional
      Commitment. A. Incomplete Closing Documents If the Agency determines that the
      closing documentation is incomplete or has correctable errors, the lender should
      be granted up to 30 days to correct the situation. The lender will be notified
      of incomplete packages by telephone, in writing, by e-mail, or, if necessary,
      by regular mail. Agency staff should make every effort to contact the lender
      and determine the time required to provide the necessary documentation. While
      the burden of submitting a complete loan closing package is on the lender, Agency
      staff should be cognizant that the lender cannot satisfy investor requirements
      without possession of the Agency’s Loan Note Guarantee. If the loan package
      is not complete within 30 days, and the account is in default, the Agency will
      not issue a Loan Note Guarantee. The Agency will return the loan closing package
      if corrections cannot be made within 30 days. B. Acceptable Closing Documentation
      Lenders: x Submit their upfront guarantee fee and technology fee electronically
      through the Pay.gov interface with LLC; x Submit all required documentation
      through the LLC system; and x Retrieve and print the Loan Note Guarantee within
      the LLC system. HB 1-3555 (03-09-16) SPECIAL PN 16-13 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. Agency Staff: x Will review and determine if
      the closing documents are acceptable and issue the Loan Note Guarantee within
      10 business days of receipt of the closing package; x Enter loan closing information
      into the Guaranteed Loan System (GLS); x Provide Form RD 3555-17 or Form RD
      3555-17E, Loan Note Guarantee and the Loan Amortization Schedule to the lender;
      and x Retain a copy of Form RD 3555-17 or Form RD 3555-17E for the Agency’s
      Electronic Customer File (ECF). NOTE: The Loan Note Guarantee does not take
      effect until Form RD 3555-17 or Form RD 3555-17E is issued. C. Unacceptable
      Closing Documents The Agency will not issue the Loan Note Guarantee if there
      are errors in the closing documents, the loan does not meet all program requirements,
      does not meet all conditions set forth on the Conditional Commitment, or if
      the applicant receives cash back at closing in excess of the amount the borrower
      paid out of pocket for costs such as a deposit, earnest money, an appraisal,
      or other allowable items that may be financed with the loan being guaranteed.
      Loan funds and/or seller paid concessions may not be disbursed to the applicant(s).
      Lenders can correct oversights and unauthorized use of loan funds. If the lender
      can make the necessary corrections, the Agency will ensure the loan meets regulatory
      requirements prior to issuance of the Loan Note Guarantee. Frequently asked
      questions regarding corrections after the loan has closed can be found in Attachment
      16-B. If the Agency determines the Loan Note Guarantee cannot be issued, the
      Agency will notify the lender of the reasons and provide review and appeal rights
      as described in Appendix 3 of this Handbook. Guaranteed loan funds will not
      be de-obligated until all HB 1-3555 (03-09-16) SPECIAL PN 16-14 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. appeal rights have expired, even if the
      process continues across fiscal years. If the Agency is upheld on appeal, Agency
      staff will de-obligate the funds in GLS. If the Agency’s decision to deny the
      request is overturned, the approval official will immediately take the necessary
      steps to issue the Loan Note Guarantee.'
  judgment: false
