source:
  type: regulation
  id: usda-hb-3555-ch07
  authority: USDA HB-1-3555 ch07 bootstrap
  description: Bootstrap for USDA HB-1-3555 ch07 register.
obligations:
- id: usda-hb-3555-ch07-30-year-fully-amortizing
  canonical_id: usda-hb-3555-ch07-30-year-fully-amortizing
  section: "USDA HB-1-3555 Ch. 7.3.A — Repayment Period"
  description: 'The loan term must be 30 years and the loan must fully

    amortize in that period. The promissory note must show regular

    monthly payments generally payable on the first day of the

    month.

    '
  type: do
  audit_question: For every USDA SFHGLP-guaranteed loan, can [LENDER] evidence that the loan term is 30 years, that the loan fully amortizes within that period, and that the promissory note shows regular monthly payments generally payable on the first day of the month?
  workflow_phase: underwriting
  owner_role: underwriter
  secondary_owner_role: loan_officer
  cadence: per_loan
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - usda
  - hb-1-3555
  - ch07
  - loan-term
  - amortization
  - promoted
  primary_source:
    tier: 1
    authority: "USDA HB-1-3555 Chapter 7.3.A — Repayment Period"
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/sites/default/files/3555-1chapter07.pdf
    snapshot_id: 065da979ab83ff64
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:4dc41b41a8e12ef2aa00fd1db2a5aece79fc520c03ca7910859db445412e2647
    paragraph_quote: The loan term must be 30 years and the loan must fully amortize in that period. The
    drafter_attestation: Copied verbatim from USDA HB-1-3555 snapshot 065da979ab83ff64 (Ch 07) at 2026-05-23. Source PDF retrieved via Wayback Machine.
  promoted_at: '2026-05-23T13:45:38+00:00'
  promoted_from: usda-hb-3555-ch07-roundb-v1.yaml
  program_review: Does the program ensure every SFHGLP loan is a 30-year term that fully amortizes, with a note showing regular monthly payments generally due the first of the month?
  file_review: Pull a sample; confirm 30-year fully-amortizing term and the note's monthly-payment structure.
  judgment: false
- id: usda-hb-3555-ch07-prohibited-loan-terms
  canonical_id: usda-hb-3555-ch07-prohibited-loan-terms
  section: "USDA HB-1-3555 Ch. 7.3.C — Terms Unacceptable for a Guarantee"
  description: 'The following loan terms are unacceptable for the SFHGLP

    guarantee and must not be used by [LENDER]: adjustable rate

    mortgages (ARMs); balloon mortgages; mortgages for other than

    30 years; interest on interest or negative amortization (or

    any non-fully amortizing loan); and prepayment penalties.

    '
  type: dont
  audit_question: 'For every USDA SFHGLP-guaranteed loan, can [LENDER] evidence that the loan does not contain any of the following terms: adjustable rate (ARM), balloon, term other than 30 years, negative amortization / non-fully-amortizing structure, or prepayment penalty?'
  workflow_phase: underwriting
  owner_role: underwriter
  secondary_owner_role: loan_officer
  cadence: per_loan
  consequence: Loan ineligible for SFHGLP guarantee.
  tags:
  - round-b
  - regulator-direct
  - usda
  - hb-1-3555
  - ch07
  - prohibited-features
  - promoted
  primary_source:
    tier: 1
    authority: "USDA HB-1-3555 Chapter 7.3.C — Terms Unacceptable for a Guarantee"
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/sites/default/files/3555-1chapter07.pdf
    snapshot_id: 065da979ab83ff64
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:4dc41b41a8e12ef2aa00fd1db2a5aece79fc520c03ca7910859db445412e2647
    paragraph_quote: The following terms are unacceptable for the guaranteed loan.
    drafter_attestation: Copied verbatim from USDA HB-1-3555 snapshot 065da979ab83ff64 (Ch 07) at 2026-05-23. Source PDF retrieved via Wayback Machine.
  promoted_at: '2026-05-23T13:45:38+00:00'
  promoted_from: usda-hb-3555-ch07-roundb-v1.yaml
  program_review: Does the program block the prohibited terms (ARM, balloon, non-30-year, negative amortization / non-fully-amortizing, prepayment penalty) from any SFHGLP-guaranteed loan?
  file_review: Pull a sample; confirm none of the prohibited terms is present.
  judgment: false
- id: usda-hb-3555-ch07-fixed-rate-required
  canonical_id: usda-hb-3555-ch07-fixed-rate-required
  section: "USDA HB-1-3555 Ch. 7.3.B — Interest Rate"
  description: '[LENDER] and the borrower are free to negotiate any mutually

    acceptable fixed interest rate. The interest rate should be

    locked by the time of loan settlement.

    '
  type: do
  audit_question: For every USDA SFHGLP-guaranteed loan, can [LENDER] evidence that a fixed interest rate was agreed between [LENDER] and the borrower, and that the rate was locked by the time of loan settlement?
  workflow_phase: underwriting
  owner_role: underwriter
  secondary_owner_role: loan_officer
  cadence: per_loan
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - usda
  - hb-1-3555
  - ch07
  - fixed-rate
  - lock
  - promoted
  primary_source:
    tier: 1
    authority: "USDA HB-1-3555 Chapter 7.3.B — Interest Rate"
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/sites/default/files/3555-1chapter07.pdf
    snapshot_id: 065da979ab83ff64
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:4dc41b41a8e12ef2aa00fd1db2a5aece79fc520c03ca7910859db445412e2647
    paragraph_quote: The lender and the borrower are free to negotiate any mutually acceptable fixed
    drafter_attestation: Copied verbatim from USDA HB-1-3555 snapshot 065da979ab83ff64 (Ch 07) at 2026-05-23. Source PDF retrieved via Wayback Machine.
  promoted_at: '2026-05-23T13:45:38+00:00'
  promoted_from: usda-hb-3555-ch07-roundb-v1.yaml
  program_review: Does the program ensure a fixed interest rate is agreed and locked by the time of loan settlement?
  file_review: Pull a sample; confirm a fixed rate and a lock in place by settlement.
  judgment: false
_promotion_history:
- promoted_at: '2026-05-23T13:45:38+00:00'
  candidate_path: obligations\_remediation\_round_b_drafts\usda-hb-3555-ch07-roundb-v1.yaml
  candidates_promoted: 3
  candidates_skipped_existing: 0
