source:
  type: regulation
  id: usda-hb-3555-ch03
  authority: USDA HB-1-3555 ch03 bootstrap
  description: Bootstrap for USDA HB-1-3555 ch03 register.
obligations:
- id: usda-hb-3555-ch03-agency-pre-approval-required
  canonical_id: usda-hb-3555-ch03-agency-pre-approval-required
  section: "USDA HB-1-3555 Ch. 3.1 — Lender Approval Required to Participate"
  description: 'The Agency must approve [LENDER] before it participates in the

    SFHGLP. To be approved, [LENDER] must agree to follow the

    Agency''s program guidelines and consistently demonstrate

    high-quality in the areas of loan origination, underwriting,

    servicing, and reporting.

    '
  type: do
  audit_question: Before originating, underwriting, servicing, or holding any USDA SFHGLP-guaranteed loan, can [LENDER] evidence current Agency approval to participate in the program?
  workflow_phase: pre_approval
  owner_role: compliance_officer
  secondary_owner_role: loan_officer
  cadence: continuous
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - usda
  - hb-1-3555
  - ch03
  - lender-approval
  - promoted
  primary_source:
    tier: 1
    authority: "USDA HB-1-3555 Chapter 3.1 — Introduction"
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/sites/default/files/3555-1chapter03.pdf
    snapshot_id: 67d80132b9f2c99b
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:b8fea3c7f2e2f262511ca92c5d5e93934c836d9c1f19f1cf7d7854ebcb2685ba
    paragraph_quote: before it participates in the SFHGLP. To be approved, a lender must agree to follow the
    drafter_attestation: Copied verbatim from USDA HB-1-3555 snapshot 67d80132b9f2c99b (Ch 03) at 2026-05-23. Source PDF retrieved via Wayback Machine.
  promoted_at: '2026-05-23T13:24:33+00:00'
  promoted_from: usda-hb-3555-ch03-roundb-v1.yaml
  program_review: Does the program ensure current Agency approval is in place before [LENDER] originates, underwrites, services, or holds any SFHGLP-guaranteed loan?
  file_review: 'Entity-level check: confirm a current Agency approval/lender agreement is on file covering the activity performed.'
  judgment: false
- id: usda-hb-3555-ch03-principal-officers-two-year-experience
  canonical_id: usda-hb-3555-ch03-principal-officers-two-year-experience
  section: "USDA HB-1-3555 Ch. 3.2 — Lender Approval Criteria"
  description: 'In all cases, [LENDERS] are required to provide evidence that

    all principal officers have a minimum of two years of

    experience in originating or servicing guaranteed mortgage

    loans, and all guaranteed lenders must be registered in the

    System for Award Management (SAM) system.

    '
  type: maintain
  audit_question: At lender approval, can [LENDER] evidence (i) that all principal officers had a minimum of two years of experience in originating or servicing guaranteed mortgage loans, and (ii) that the entity is registered in the System for Award Management (SAM)?
  workflow_phase: pre_approval
  owner_role: compliance_officer
  secondary_owner_role: loan_officer
  cadence: continuous
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - usda
  - hb-1-3555
  - ch03
  - lender-approval
  - sam
  - experience
  - promoted
  primary_source:
    tier: 1
    authority: "USDA HB-1-3555 Chapter 3.2 — Lender Approval Criteria"
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/sites/default/files/3555-1chapter03.pdf
    snapshot_id: 67d80132b9f2c99b
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:b8fea3c7f2e2f262511ca92c5d5e93934c836d9c1f19f1cf7d7854ebcb2685ba
    paragraph_quote: In all cases, lenders are required to provide evidence that all principal officers have a
    drafter_attestation: Copied verbatim from USDA HB-1-3555 snapshot 67d80132b9f2c99b (Ch 03) at 2026-05-23. Source PDF retrieved via Wayback Machine.
  promoted_at: '2026-05-23T13:24:33+00:00'
  promoted_from: usda-hb-3555-ch03-roundb-v1.yaml
  program_review: Does the program evidence, at approval, that all principal officers had at least two years' experience originating or servicing guaranteed mortgage loans and that the entity is SAM-registered?
  file_review: 'Entity-level check: confirm principal-officer experience documentation and active SAM registration.'
  judgment: false
- id: usda-hb-3555-ch03-demonstrated-ability-financial-criteria
  canonical_id: usda-hb-3555-ch03-demonstrated-ability-financial-criteria
  section: "USDA HB-1-3555 Ch. 3.2.B — Approval by Demonstrated Ability"
  description: 'A [LENDER] that does not meet the conditions of Paragraph 3.2A

    (approval by another recognized source) may seek approval by

    demonstrating its ability to originate and/or service sound

    loans, and must be overseen by a Federal regulator, be a Farm

    Credit System institution, be an active participant with an

    approved lender agreement in another USDA guaranteed loan

    program, or meet the demonstrated-ability requirements in this

    section.

    '
  type: do
  audit_question: When [LENDER] seeks SFHGLP approval under the demonstrated-ability path (3.2.B) rather than via another recognized source, can it evidence Federal regulator oversight, FCS membership, an active lender agreement in another USDA guaranteed loan program, or satisfaction of the demonstrated-ability criteria in Chapter 3?
  workflow_phase: pre_approval
  owner_role: compliance_officer
  secondary_owner_role: loan_officer
  cadence: continuous
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - usda
  - hb-1-3555
  - ch03
  - lender-approval
  - demonstrated-ability
  - promoted
  primary_source:
    tier: 1
    authority: "USDA HB-1-3555 Chapter 3.2.B — Approval by Demonstrated Ability"
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/sites/default/files/3555-1chapter03.pdf
    snapshot_id: 67d80132b9f2c99b
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:b8fea3c7f2e2f262511ca92c5d5e93934c836d9c1f19f1cf7d7854ebcb2685ba
    paragraph_quote: A lender that does not meet the conditions of Paragraph 3.2A may seek approval by
    drafter_attestation: Copied verbatim from USDA HB-1-3555 snapshot 67d80132b9f2c99b (Ch 03) at 2026-05-23. Source PDF retrieved via Wayback Machine.
  promoted_at: '2026-05-23T13:24:33+00:00'
  promoted_from: usda-hb-3555-ch03-roundb-v1.yaml
  program_review: Where approval is sought via the demonstrated-ability path rather than another recognized source, does the program evidence Federal-regulator oversight, FCS membership, an active lender agreement in another USDA guaranteed program, or satisfaction of the Chapter 3 demonstrated-ability criteria?
  file_review: 'Entity-level check: confirm the demonstrated-ability basis documentation matches the path claimed under 3.2.B.'
  judgment: false
_promotion_history:
- promoted_at: '2026-05-23T13:24:33+00:00'
  candidate_path: obligations\_remediation\_round_b_drafts\usda-hb-3555-ch03-roundb-v1.yaml
  candidates_promoted: 3
  candidates_skipped_existing: 0
