source:
  type: regulation
  id: usda-7cfr-3555.304
  authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.304 — Streamline servicing
    options
  description: '7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program, §3555.304 Streamline servicing
    options. Captured section-complete (all subsections verbatim).

    '
obligations:
- id: usda-7cfr-3555.304-a
  canonical_id: usda-7cfr-3555.304-a
  section: 7 CFR §3555.304(a)
  description: 'Streamline servicing options — (a): (a) General. (1) Lenders must exhaust traditional servicing
    options outlined in this part without received a completed package to be used in evaluating the borrower for
    traditional servicing options and have sent a demand letter in accordance with &#xA7; 3555.306 to the borrower
    prior to considerati…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.304
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (a) General. (1) Lenders must exhaust traditional servicing options outlined in this part without
      received a completed package to be used in evaluating the borrower for traditional servicing options and have
      sent a demand letter in accordance with &#xA7; 3555.306 to the borrower prior to consideration of streamline
      servicing options. (2) Use of streamline loan servicing does not change the terms of the loan note guarantee.
      (3) Streamline options may be provided to the borrower with at least a 10 percent reduction to their principal
      and interest payment with no consideration of the borrower's financials.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.304 subsection (a) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.304-b
  canonical_id: usda-7cfr-3555.304-b
  section: 7 CFR §3555.304(b)
  description: 'Streamline servicing options — (b): (b) Conditions for streamline servicing options. In addition
    to the requirements in &#xA7; 3555.303(a), the following conditions apply to all special loan servicing: (1)
    The borrower must be at least 90 days past due and prior to initiation of any acceleration or foreclosure action.
    (2) The borrower…'
  type: dont
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.304
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: '(b) Conditions for streamline servicing options. In addition to the requirements in &#xA7;
      3555.303(a), the following conditions apply to all special loan servicing: (1) The borrower must be at least
      90 days past due and prior to initiation of any acceleration or foreclosure action. (2) The borrower must
      successfully complete a trial payment plan of sufficient duration, as determined by the Agency, to demonstrate
      that the borrower will be able to make regularly scheduled payments as modified by the special loan servicing.
      (3) Expenses related to streamline loan servicing including, but not limited to, title search and recording
      fees, shall not be charged to the borrower. (4) Capitalization of late charges and lender fees is not permitted
      in the special loan servicing option.'
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.304 subsection (b) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.304-c
  canonical_id: usda-7cfr-3555.304-c
  section: 7 CFR §3555.304(c)
  description: 'Streamline servicing options — (c): (c) Extended streamline loan modification. The Lender may modify
    the loan by reducing the interest rate to a level at or below the maximum allowable interest rate and extending
    the repayment term to 40 years from the date of loan modification. The servicer may limit the extension to 30
    years if limi…'
  type: dont
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  primary_source:
    tier: 1
    authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.304
    source_class: ecfr-xml
    source_url: https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555
    snapshot_id: 60bd6fb03befa14c
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:f1f884c828bb807baf369d30e1a9479648dfa62165e28511a0730ed785181a8b
    paragraph_quote: (c) Extended streamline loan modification. The Lender may modify the loan by reducing the interest
      rate to a level at or below the maximum allowable interest rate and extending the repayment term to 40 years
      from the date of loan modification. The servicer may limit the extension to 30 years if limited by any investor
      or pooling restrictions. The loan guarantee will apply to loan terms extending beyond the 30-year loan term
      from the date of origination when a loan modification meets the criteria set forth in this section. (1) Streamline
      loan modifications may capitalize all or a portion of the arrearage and/or reamortization of the balance due
      including, tax and insurance advances and past due Agency annual fees imposed by the lender. Late charges
      and lender fees may not be capitalized. (2) Streamline loan modifications must be a fixed interest rate and
      cannot exceed the current market interest rate at the time of modification. When reducing the interest rate,
      the maximum rate is subject to paragraph (c)(3) of this section. (3) The term shall be extended to a maximum
      of 40 years as noted above to provide the borrower with at least a 10 percent reduction in their principal
      and interest payment. (4) If the targeted mortgage payment reduction cannot be achieved using a modification
      as described in this section, the loan is not eligible for streamline loan servicing and foreclosure may be
      initiated. [78 FR 73941, Dec. 9, 2013, as amended at 81 FR 6430, Feb. 8, 2016; 84 FR 70886, Dec. 26, 2019;
      89 FR 66194, Aug. 15, 2024; 90 FR 9375, Feb. 12, 2025]
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.304 subsection (c) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
