source:
  type: regulation
  id: usda-sfhglp-lite-pilot-2026
  authority: FR Doc. 2026-05394 — Section 502 SFHGLP Lender Interactive Test Environment (LITE) Delegated
    Authority Pilot Program (Notice)
  description: FR Doc. 2026-05394 (91 FR 13277, March 19, 2026) — USDA Rural Housing Service Notice implementing
    the Section 502 SFHGLP Lender Interactive Test Environment (LITE) Delegated Authority Pilot Program,
    a two-year controlled test of delegated loan approval and Loan Note Guarantee issuance. Effective
    September 1, 2026, ending September 28, 2028. Verbatim, snapshot-verified.
obligations:
- id: usda-sfhglp-lite-2026-agency-action
  canonical_id: usda-sfhglp-lite-2026-agency-action
  section: Agency and Action
  type: reference
  tags:
  - round-b
  - regulator-direct
  - usda
  - sfhglp
  - federal-register
  - full-text
  - delegated-authority
  primary_source:
    tier: 1
    authority: FR Doc. 2026-05394 — Section 502 SFHGLP Lender Interactive Test Environment (LITE) Delegated
      Authority Pilot Program (Notice) — Agency and Action
    source_class: federal-register-text
    source_url: https://www.federalregister.gov/documents/full_text/text/2026/03/19/2026-05394.txt
    snapshot_id: 92ae8cf93c48ccbb
    fetched_at: '2026-07-13T02:16:20Z'
    content_hash: sha256:8f05a94bfd14fac3393fc5464f7ade621c98bb5158bc1acb0f81846583121453
    paragraph_quote: 'AGENCY: Rural Housing Service, USDA.


      ACTION: Notice.'
- id: usda-sfhglp-lite-2026-summary
  canonical_id: usda-sfhglp-lite-2026-summary
  section: Summary
  type: reference
  tags:
  - round-b
  - regulator-direct
  - usda
  - sfhglp
  - federal-register
  - full-text
  - delegated-authority
  primary_source:
    tier: 1
    authority: FR Doc. 2026-05394 — Section 502 SFHGLP Lender Interactive Test Environment (LITE) Delegated
      Authority Pilot Program (Notice) — Summary
    source_class: federal-register-text
    source_url: https://www.federalregister.gov/documents/full_text/text/2026/03/19/2026-05394.txt
    snapshot_id: 92ae8cf93c48ccbb
    fetched_at: '2026-07-13T02:16:20Z'
    content_hash: sha256:8f05a94bfd14fac3393fc5464f7ade621c98bb5158bc1acb0f81846583121453
    paragraph_quote: "The Rural Housing Service (RHS), a division of the Rural \nDevelopment Agency within\
      \ the United States Department of Agriculture \n(USDA), is implementing the Lender Interactive Test\
      \ Environment (LITE) \nDelegated Authority Pilot Program for the Section 502 Single Family \nHousing\
      \ Guaranteed Loan Program (SFHGLP). The purpose of this pilot \nprogram is to test a change in the\
      \ SFHGLP loan approval process by \nreplacing the Agency's pre-closing loan approval requirement\
      \ with the \ndelegation of loan approval authority to eligible lenders, consistent \nwith the Delegated\
      \ Authority final rule (Federal Register Docket Number \nRHS-21-SFH-0017). This pilot program is\
      \ authorized under 42 U.S.C. \n1476(b)."
- id: usda-sfhglp-lite-2026-dates
  canonical_id: usda-sfhglp-lite-2026-dates
  section: Dates — Effective date and pilot duration
  type: reference
  tags:
  - round-b
  - regulator-direct
  - usda
  - sfhglp
  - federal-register
  - full-text
  - effective-date
  primary_source:
    tier: 1
    authority: FR Doc. 2026-05394 — Section 502 SFHGLP Lender Interactive Test Environment (LITE) Delegated
      Authority Pilot Program (Notice) — Dates — Effective date and pilot duration
    source_class: federal-register-text
    source_url: https://www.federalregister.gov/documents/full_text/text/2026/03/19/2026-05394.txt
    snapshot_id: 92ae8cf93c48ccbb
    fetched_at: '2026-07-13T02:16:20Z'
    content_hash: sha256:8f05a94bfd14fac3393fc5464f7ade621c98bb5158bc1acb0f81846583121453
    paragraph_quote: "The effective date of the pilot program is September 1, 2026. \nThe pilot program\
      \ will continue for two years, ending September 28, \n2028."
- id: usda-sfhglp-lite-2026-authority
  canonical_id: usda-sfhglp-lite-2026-authority
  section: Authority
  type: reference
  tags:
  - round-b
  - regulator-direct
  - usda
  - sfhglp
  - federal-register
  - full-text
  - statutory-authority
  primary_source:
    tier: 1
    authority: FR Doc. 2026-05394 — Section 502 SFHGLP Lender Interactive Test Environment (LITE) Delegated
      Authority Pilot Program (Notice) — Authority
    source_class: federal-register-text
    source_url: https://www.federalregister.gov/documents/full_text/text/2026/03/19/2026-05394.txt
    snapshot_id: 92ae8cf93c48ccbb
    fetched_at: '2026-07-13T02:16:20Z'
    content_hash: sha256:8f05a94bfd14fac3393fc5464f7ade621c98bb5158bc1acb0f81846583121453
    paragraph_quote: "Title V, Section 502 of the Housing Act of 1949, as amended; 42 \nU.S.C. 1472; 42\
      \ U.S.C. 1476(b)."
- id: usda-sfhglp-lite-2026-eligibility
  canonical_id: usda-sfhglp-lite-2026-eligibility
  section: Eligibility Requirements
  type: do
  tags:
  - round-b
  - regulator-direct
  - usda
  - sfhglp
  - federal-register
  - full-text
  - eligibility
  primary_source:
    tier: 1
    authority: FR Doc. 2026-05394 — Section 502 SFHGLP Lender Interactive Test Environment (LITE) Delegated
      Authority Pilot Program (Notice) — Eligibility Requirements
    source_class: federal-register-text
    source_url: https://www.federalregister.gov/documents/full_text/text/2026/03/19/2026-05394.txt
    snapshot_id: 92ae8cf93c48ccbb
    fetched_at: '2026-07-13T02:16:20Z'
    content_hash: sha256:8f05a94bfd14fac3393fc5464f7ade621c98bb5158bc1acb0f81846583121453
    paragraph_quote: "To qualify for the pilot program, lenders must \ndemonstrate above-average loan\
      \ performance based on delinquencies, loss \nclaims, and default rates over the past two years when\
      \ compared to the \nSFHGLP portfolio; have originated at least 10 SFHGLP loans in the last \n12\
      \ months; and be current on all lender certifications, fees, and loan \nrequirements. Lenders must\
      \ have a satisfactory compliance record, with \nno failed Corrective Action Reviews or Reduced Sample\
      \ Reviews for the \npast 24 months."
- id: usda-sfhglp-lite-2026-operational-aus
  canonical_id: usda-sfhglp-lite-2026-operational-aus
  section: Operational Procedures — automated systems
  type: do
  tags:
  - round-b
  - regulator-direct
  - usda
  - sfhglp
  - federal-register
  - full-text
  - automated-underwriting
  primary_source:
    tier: 1
    authority: FR Doc. 2026-05394 — Section 502 SFHGLP Lender Interactive Test Environment (LITE) Delegated
      Authority Pilot Program (Notice) — Operational Procedures — automated systems
    source_class: federal-register-text
    source_url: https://www.federalregister.gov/documents/full_text/text/2026/03/19/2026-05394.txt
    snapshot_id: 92ae8cf93c48ccbb
    fetched_at: '2026-07-13T02:16:20Z'
    content_hash: sha256:8f05a94bfd14fac3393fc5464f7ade621c98bb5158bc1acb0f81846583121453
    paragraph_quote: "Approved lenders and their agents operating under the LITE \nDelegated program must\
      \ continue to utilize the Agency's automated loan \nunderwriting and closing systems for all supported\
      \ loan submissions."
- id: usda-sfhglp-lite-2026-processing-times
  canonical_id: usda-sfhglp-lite-2026-processing-times
  section: Operational Procedures — delegated approval and processing times
  type: do
  tags:
  - round-b
  - regulator-direct
  - usda
  - sfhglp
  - federal-register
  - full-text
  - delegated-authority
  primary_source:
    tier: 1
    authority: FR Doc. 2026-05394 — Section 502 SFHGLP Lender Interactive Test Environment (LITE) Delegated
      Authority Pilot Program (Notice) — Operational Procedures — delegated approval and processing times
    source_class: federal-register-text
    source_url: https://www.federalregister.gov/documents/full_text/text/2026/03/19/2026-05394.txt
    snapshot_id: 92ae8cf93c48ccbb
    fetched_at: '2026-07-13T02:16:20Z'
    content_hash: sha256:8f05a94bfd14fac3393fc5464f7ade621c98bb5158bc1acb0f81846583121453
    paragraph_quote: "For LITE Delegated Lenders, the \norganization will perform the pre-closing loan\
      \ approval process and \nmanage post-closing issuance of the Loan Note Guarantee with minimal \n\
      Agency oversight. These lenders have the delegated authority to approve \nloans either through the\
      \ Agency's automated underwriting system, or by \nmanually underwriting a file not supported by\
      \ GUS. Processing times \nvary by submission type. GUS submissions will be completed within 2 \n\
      business hours, while manual submissions will follow standard \nprocessing timeframes."
- id: usda-sfhglp-lite-2026-streamlined-closing
  canonical_id: usda-sfhglp-lite-2026-streamlined-closing
  section: Operational Procedures — streamlined closing and Loan Note Guarantee issuance
  type: do
  tags:
  - round-b
  - regulator-direct
  - usda
  - sfhglp
  - federal-register
  - full-text
  - closing
  primary_source:
    tier: 1
    authority: FR Doc. 2026-05394 — Section 502 SFHGLP Lender Interactive Test Environment (LITE) Delegated
      Authority Pilot Program (Notice) — Operational Procedures — streamlined closing and Loan Note Guarantee
      issuance
    source_class: federal-register-text
    source_url: https://www.federalregister.gov/documents/full_text/text/2026/03/19/2026-05394.txt
    snapshot_id: 92ae8cf93c48ccbb
    fetched_at: '2026-07-13T02:16:20Z'
    content_hash: sha256:8f05a94bfd14fac3393fc5464f7ade621c98bb5158bc1acb0f81846583121453
    paragraph_quote: "After closing, LITE Delegated Authority submissions qualify for a \nstreamlined\
      \ closing process. LITE Delegated Lenders will use the Lender \nLoan Closing system to enter basic\
      \ loan closing information and \nauthorize electronic payment of the upfront Guarantee Fee and USDA\
      \ \nTechnology Fee via the Pay.gov system. Documentation uploads are only \nrequired if specifically\
      \ requested by the Agency. The Agency will issue \nthe Loan Note Guarantee within two business days\
      \ of receipt, \nretrievable from the Agency's Lender Loan Closing system."
- id: usda-sfhglp-lite-2026-variance-appraisal
  canonical_id: usda-sfhglp-lite-2026-variance-appraisal
  section: Variance From Procedures — Appraisal Reviews
  type: do
  tags:
  - round-b
  - regulator-direct
  - usda
  - sfhglp
  - federal-register
  - full-text
  - appraisal
  primary_source:
    tier: 1
    authority: FR Doc. 2026-05394 — Section 502 SFHGLP Lender Interactive Test Environment (LITE) Delegated
      Authority Pilot Program (Notice) — Variance From Procedures — Appraisal Reviews
    source_class: federal-register-text
    source_url: https://www.federalregister.gov/documents/full_text/text/2026/03/19/2026-05394.txt
    snapshot_id: 92ae8cf93c48ccbb
    fetched_at: '2026-07-13T02:16:20Z'
    content_hash: sha256:8f05a94bfd14fac3393fc5464f7ade621c98bb5158bc1acb0f81846583121453
    paragraph_quote: "Appraisal Reviews: Agency administrative appraisal reviews under \nSec. 3555.107(d)(4)\
      \ are inapplicable to loans approved via LITE \ndelegated authority. LITE Delegated Lenders are\
      \ responsible for \nensuring that appraisal reports meet all requirements under Sec. \n3555.107(d)."
- id: usda-sfhglp-lite-2026-variance-conflict
  canonical_id: usda-sfhglp-lite-2026-variance-conflict
  section: Variance From Procedures — Conflict of Interest
  type: do
  tags:
  - round-b
  - regulator-direct
  - usda
  - sfhglp
  - federal-register
  - full-text
  - conflict-of-interest
  primary_source:
    tier: 1
    authority: FR Doc. 2026-05394 — Section 502 SFHGLP Lender Interactive Test Environment (LITE) Delegated
      Authority Pilot Program (Notice) — Variance From Procedures — Conflict of Interest
    source_class: federal-register-text
    source_url: https://www.federalregister.gov/documents/full_text/text/2026/03/19/2026-05394.txt
    snapshot_id: 92ae8cf93c48ccbb
    fetched_at: '2026-07-13T02:16:20Z'
    content_hash: sha256:8f05a94bfd14fac3393fc5464f7ade621c98bb5158bc1acb0f81846583121453
    paragraph_quote: "Conflict of Interest: When a conflict of interest is disclosed by \neither the borrower\
      \ or a Rural Development employee, as described in \nSec. 3555.8, the LITE Delegated Lender is required\
      \ to document the \ndisclosure in the permanent loan file."
- id: usda-sfhglp-lite-2026-evaluation-oversight
  canonical_id: usda-sfhglp-lite-2026-evaluation-oversight
  section: Pilot Program Evaluation and Oversight — file reviews and corrective timeframe
  type: do
  tags:
  - round-b
  - regulator-direct
  - usda
  - sfhglp
  - federal-register
  - full-text
  - oversight
  primary_source:
    tier: 1
    authority: FR Doc. 2026-05394 — Section 502 SFHGLP Lender Interactive Test Environment (LITE) Delegated
      Authority Pilot Program (Notice) — Pilot Program Evaluation and Oversight — file reviews and corrective
      timeframe
    source_class: federal-register-text
    source_url: https://www.federalregister.gov/documents/full_text/text/2026/03/19/2026-05394.txt
    snapshot_id: 92ae8cf93c48ccbb
    fetched_at: '2026-07-13T02:16:20Z'
    content_hash: sha256:8f05a94bfd14fac3393fc5464f7ade621c98bb5158bc1acb0f81846583121453
    paragraph_quote: "The program's effectiveness will be \nevaluated through comprehensive file reviews.\
      \ Participating lenders \nwill be required to submit fully documented, post-closing, loan \nsubmissions\
      \ for evaluation. Initially, the Agency will review the first \n5 to 15 loan files submitted by\
      \ participating lenders, depending on \nloan volume. Additionally, 2% of files originated each month,\
      \ per \nlender, will be reviewed utilizing the existing compliance review \nprocess. Should any\
      \ concerns regarding regulatory or statutory non-\ncompliance be identified during these reviews,\
      \ participating lenders \nwill be given 90 days from the date of notification by the Agency to \n\
      make the necessary corrections. Failure to address these issues within \nthe stipulated timeframe\
      \ will result in the lender's removal from the \npilot program."
- id: usda-sfhglp-lite-2026-status-requirements
  canonical_id: usda-sfhglp-lite-2026-status-requirements
  section: Pilot Program Evaluation and Oversight — LITE Delegated Lender status requirements
  type: do
  tags:
  - round-b
  - regulator-direct
  - usda
  - sfhglp
  - federal-register
  - full-text
  - eligibility
  primary_source:
    tier: 1
    authority: FR Doc. 2026-05394 — Section 502 SFHGLP Lender Interactive Test Environment (LITE) Delegated
      Authority Pilot Program (Notice) — Pilot Program Evaluation and Oversight — LITE Delegated Lender
      status requirements
    source_class: federal-register-text
    source_url: https://www.federalregister.gov/documents/full_text/text/2026/03/19/2026-05394.txt
    snapshot_id: 92ae8cf93c48ccbb
    fetched_at: '2026-07-13T02:16:20Z'
    content_hash: sha256:8f05a94bfd14fac3393fc5464f7ade621c98bb5158bc1acb0f81846583121453
    paragraph_quote: "The requirements for LITE Delegated Lender status include meeting \nthe general\
      \ eligibility criteria in Sec. 3555.51, having participated \nin the SFHGLP for at least two years,\
      \ and maintaining above-average \nperformance standards in delinquency, default, and loss claim\
      \ rates. \nEligibility is reassessed every two years, requiring lenders to be \nregistered in SAM,\
      \ complete mandatory recertification training, and \nrespond within the timeframe specified in the\
      \ agency notification \nprovided to the Lender."
