source:
  type: regulation
  id: usda-7cfr-3555.355
  authority: 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.355 — Reducing or denying
    the claim
  description: '7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program, §3555.355 Reducing or denying
    the claim. Captured section-complete (all subsections verbatim).

    '
obligations:
- id: usda-7cfr-3555.355-a
  canonical_id: usda-7cfr-3555.355-a
  section: 7 CFR §3555.355(a)
  description: 'Reducing or denying the claim — (a): (a) Determination of loss payment. Subject to the requirements
    of &#xA7; 3555.108, if Rural Development determines that the amount of the loss was increased due to the lender''s
    failure to comply with the conditions of the Loan Note Guarantee, the Agency may reduce or deny any loss claim
    by the porti…'
  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 § 3555.355
    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) Determination of loss payment. Subject to the requirements of &#xA7; 3555.108, if Rural
      Development determines that the amount of the loss was increased due to the lender''s failure to comply with
      the conditions of the Loan Note Guarantee, the Agency may reduce or deny any loss claim by the portion of
      the loss determined was caused by the lender''s action or failure to act. The circumstances under which loss
      claims may be denied or reduced include, but are not limited to, the following lender actions: (1) Failure
      to adhere to required servicing and liquidation procedures as set forth in Agency regulations and guidance,
      including the payment of real estate taxes or hazard insurance when due; (2) Failure to report defaulted loans
      to Rural Development within required timeframes; (3) Failure to ensure that the security property is adequately
      maintained during liquidation; (4) Delay in filing a loss claim; (5) Claiming unauthorized expenses; (6) Providing
      unauthorized assistance; (7) Failure to obtain the required security or maintain the security position; (8)
      Violating usury laws; (9) Negligence, gross negligence or misrepresentation; or (10) Committing fraud, or
      failing to report knowledge of fraud or false information.'
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.355 subsection (a) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
- id: usda-7cfr-3555.355-b
  canonical_id: usda-7cfr-3555.355-b
  section: 7 CFR §3555.355(b)
  description: 'Reducing or denying the claim — (b): (b) Disputes. If the lender disputes the loss claim amount
    determined by Rural Development, Rural Development will pay the undisputed portion of the loss claim, and the
    lender may appeal the decision in accordance with &#xA7; 3555.4.'
  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 § 3555.355
    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) Disputes. If the lender disputes the loss claim amount determined by Rural Development,
      Rural Development will pay the undisputed portion of the loss claim, and the lender may appeal the decision
      in accordance with &#xA7; 3555.4.
    drafter_attestation: Verbatim (whitespace-normalized) slice of §3555.355 subsection (b) from snapshot 60bd6fb03befa14c;
      substring-verified.
  judgment: false
