source:
  type: guide
  id: usda-hb-3555-18.1
  authority: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶18.1 —
    Introduction
  description: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶18.1
    — Introduction.
  coverage_tier: operative
obligations:
- id: usda-hb-3555-18.1-full
  canonical_id: usda-hb-3555-18.1-full
  section: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶18.1 — Introduction
  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 ¶18.1
      — Introduction
    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: '18.1 INTRODUCTION The servicer is required to employ an experienced
      and knowledgeable staff, follow accepted industry servicing practices, and maintain
      a servicing platform that keeps records of all servicing actions. Servicers
      are fully responsible for complying with this Chapter regardless of any sub-servicing
      arrangements. Chapter 17 of this Handbook outlines the servicer’s responsibility
      to report to the Agency all loans through Electronic Status Reporting (ESR).
      When a loan becomes past due, the servicer must take prompt and aggressive action
      to help the borrower bring the account current. The servicer should work closely
      with the borrower to resolve any delinquency as early as possible to prevent
      further collection activity. In cases where the borrower is unable or unwilling
      to repay the loan, the servicer must take prompt action to liquidate the loan,
      either by encouraging the borrower to liquidate voluntarily or through foreclosure.
      Section 1 of this Chapter states the minimum actions the servicer is required
      to take to bring past-due accounts current. Section 2 of this Chapter describes
      various alternatives to foreclosure that the servicer will pursue, including
      traditional and streamline servicing actions. Section 3 of this Chapter describes
      the policy on custodial property requirements. Section 4 describes the requirements
      within the foreclosure process. Section 5 provides servicers with requirements
      when a property is in a county, parish or municipality that has been declared
      by the President of the United States to be a major disaster area where federal
      aid in the form of individual assistance is being made available. Servicer’s
      can locate all servicing related cost and fee schedules on the USDA Training
      and Resource Library in the Loan Servicing section under Loss Mitigation found
      at https://www.rd.usda.gov/resources/usda-linc-training-resource-library/loan-
      servicing. SECTION 1: COLLECTION EFFORTS AND REQUIREMENTS [7 CFR 3555.301]'
  judgment: false
