source:
  type: regulation
  id: usda-hb-3555-ch17
  authority: USDA HB-1-3555 ch17 bootstrap
  description: Bootstrap for USDA HB-1-3555 ch17 register.
obligations:
- id: usda-hb-3555-ch17-15-day-sale-or-transfer-notification
  canonical_id: usda-hb-3555-ch17-15-day-sale-or-transfer-notification
  section: "USDA HB-1-3555 Ch. 17.1.C — Notifying the Agency of Loan Sales or Servicing Transfers"
  description: 'The Agency must be notified within 15 days of a sale or

    servicing transfer by submitting Form RD 3555-11 to the Single

    Family Housing Servicing Branch, Lender Reporting Section.

    Agency notification should be password protected or encrypted

    and emailed to rd.so.hsb@usda.gov.

    '
  type: notify
  audit_question: For every USDA SFHGLP loan sale or servicing transfer, can [SVCR] evidence that Form RD 3555-11 was submitted to the Single Family Housing Servicing Branch, Lender Reporting Section, within 15 days of the sale or transfer (with the notification password-protected or encrypted)?
  workflow_phase: servicing
  owner_role: default_servicing_analyst
  secondary_owner_role: compliance_officer
  cadence: per_event
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - usda
  - hb-1-3555
  - ch17
  - transfer-notice
  - 15-day
  - promoted
  primary_source:
    tier: 1
    authority: "USDA HB-1-3555 Chapter 17.1.C — Notifying the Agency"
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/sites/default/files/3555-1chapter17.pdf
    snapshot_id: 481dcf71d80912ba
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:da0fdbdb5f6afb800502f054dc4bce198c488ef7306358b80dd5137304eb4175
    paragraph_quote: The Agency must be notified within 15 days of a sale or servicing transfer by
    drafter_attestation: Copied verbatim from USDA HB-1-3555 snapshot 481dcf71d80912ba (Ch 17) at 2026-05-23. Source PDF retrieved via Wayback Machine.
  promoted_at: '2026-05-23T16:19:25+00:00'
  promoted_from: usda-hb-3555-ch17-roundb-v1.yaml
  program_review: Does the program track the 15-day clock so every loan sale or servicing transfer is reported on Form RD 3555-11 to the SFH Servicing Branch, Lender Reporting Section (password-protected/encrypted)?
  file_review: Spot-check sales/transfers; confirm Form RD 3555-11 was submitted within 15 days, encrypted/password-protected.
  judgment: false
- id: usda-hb-3555-ch17-monthly-esr-reporting
  canonical_id: usda-hb-3555-ch17-monthly-esr-reporting
  section: "USDA HB-1-3555 Ch. 17.3 — Reporting Requirements [7 CFR 3555.51(b)(8)]"
  description: '[SVCRS] are required to report monthly loan status (203) and

    monthly loan default status (264) reports for all SFHGLP loans

    in their portfolio via Electronic Status Reporting (ESR) by

    the sixth government workday of each month. [SVCRS] are also

    required to review and correct status and default reject errors

    starting on the 13th business day of the month through the last

    day of the calendar month.

    '
  type: report
  audit_question: For every month and for every USDA SFHGLP loan in portfolio, can [SVCR] evidence (i) submission of the monthly loan-status (203) and default-status (264) ESR reports by the sixth government workday, and (ii) review and correction of status / default reject errors from the 13th business day through the last day of the calendar month?
  workflow_phase: servicing
  owner_role: default_servicing_analyst
  secondary_owner_role: compliance_officer
  cadence: monthly
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - usda
  - hb-1-3555
  - ch17
  - esr
  - monthly-reporting
  - promoted
  primary_source:
    tier: 1
    authority: "USDA HB-1-3555 Chapter 17.3 — Reporting Requirements"
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/sites/default/files/3555-1chapter17.pdf
    snapshot_id: 481dcf71d80912ba
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:da0fdbdb5f6afb800502f054dc4bce198c488ef7306358b80dd5137304eb4175
    paragraph_quote: Servicers are required to report monthly loan status (203) and monthly loan default
    drafter_attestation: Copied verbatim from USDA HB-1-3555 snapshot 481dcf71d80912ba (Ch 17) at 2026-05-23. Source PDF retrieved via Wayback Machine.
  promoted_at: '2026-05-23T16:19:25+00:00'
  promoted_from: usda-hb-3555-ch17-roundb-v1.yaml
  program_review: Does the program ensure monthly loan-status (203) and default-status (264) ESR reports for all portfolio loans by the sixth government workday, and that status/default reject errors are reviewed and corrected from the 13th business day through month-end?
  file_review: Review the monthly ESR submission logs and reject-error correction records; confirm by-the-sixth-workday filing and the 13th-through-month-end error correction.
  judgment: false
- id: usda-hb-3555-ch17-tax-insurance-escrow-controls
  canonical_id: usda-hb-3555-ch17-tax-insurance-escrow-controls
  section: "USDA HB-1-3555 Ch. 17.2.C — Ensuring Payment of Taxes and Insurance"
  description: '[SVCRS] must have adequate internal control processes to

    ensure that real estate taxes, assessments, and flood and

    hazard insurance premiums are paid as required for all

    property securing a guaranteed loan. Escrow funds may be used

    only for the purpose for which they were collected. Escrow

    accounts for all guaranteed loans must be administered in

    accordance with all applicable regulations and must be insured

    by the FDIC or the NCUA insurance fund.

    '
  type: maintain
  audit_question: For every USDA SFHGLP-guaranteed loan in [SVCR]'s portfolio, can [SVCR] evidence (i) adequate internal control processes ensuring that real estate taxes, assessments, and flood / hazard insurance premiums are paid as required, (ii) use of escrow funds only for the purpose for which they were collected, and (iii) escrow account administration in compliance with all applicable regulations with FDIC- or NCUA-insured custody?
  workflow_phase: servicing
  owner_role: default_servicing_analyst
  secondary_owner_role: compliance_officer
  cadence: continuous
  consequence: Taxes / insurance that accrued prior to last-paid-installment due date are excluded from any potential loss claim.
  tags:
  - round-b
  - regulator-direct
  - usda
  - hb-1-3555
  - ch17
  - escrow
  - tax-insurance
  - promoted
  primary_source:
    tier: 1
    authority: "USDA HB-1-3555 Chapter 17.2.C — Ensuring Payment of Taxes and Insurance"
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/sites/default/files/3555-1chapter17.pdf
    snapshot_id: 481dcf71d80912ba
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:da0fdbdb5f6afb800502f054dc4bce198c488ef7306358b80dd5137304eb4175
    paragraph_quote: Servicers must have adequate internal control processes to ensure that real estate
    drafter_attestation: Copied verbatim from USDA HB-1-3555 snapshot 481dcf71d80912ba (Ch 17) at 2026-05-23. Source PDF retrieved via Wayback Machine.
  promoted_at: '2026-05-23T16:19:25+00:00'
  promoted_from: usda-hb-3555-ch17-roundb-v1.yaml
  program_review: Does the servicing program maintain internal controls ensuring taxes, assessments, and flood/hazard premiums are paid as required, escrow funds are used only for their collected purpose, and escrow accounts are administered per regulation in FDIC-/NCUA-insured custody?
  file_review: Pull a serviced-loan sample; confirm timely tax/assessment/insurance disbursement, purpose-restricted escrow use, and FDIC/NCUA-insured custody. The officer judges whether the internal-control process is adequate in operation.
  judgment: true
_promotion_history:
- promoted_at: '2026-05-23T16:19:25+00:00'
  candidate_path: obligations\_remediation\_round_b_drafts\usda-hb-3555-ch17-roundb-v1.yaml
  candidates_promoted: 3
  candidates_skipped_existing: 0
