source:
  type: guide
  id: usda-hb-3555-15.5
  authority: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶15.5 —
    Agency Review Of Application Package
  description: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶15.5
    — Agency Review Of Application Package.
  coverage_tier: operative
obligations:
- id: usda-hb-3555-15.5-full
  canonical_id: usda-hb-3555-15.5-full
  section: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶15.5 — Agency
    Review Of Application Package
  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 ¶15.5
      — Agency Review Of Application Package
    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: '15.5 AGENCY REVIEW OF APPLICATION PACKAGE The Agency’s automated
      system will track the date and time the application package is received. Agency
      review of the application package is completed in the order it is received.
      As outlined below, there are circumstances which may require a more thorough
      review by the Agency. In these situations, the Agency will contact the lender.
      A. Content of Standard Review In general, the Agency will review applications
      to determine that all program requirements have been met. The lender has sole
      responsibility to properly underwrite the loan and ensure program requirements
      have been met. Agency review of the application does not relieve the lender
      of these responsibilities. Agency staff must determine if the loan: x Is located
      in an eligible rural area, x Meets the adjusted annual income limit, x Has appropriate
      collateral value to support the loan request, x Meets environmental requirements
      of RD Instruction 1970, and x Meets applicable requirements of 7 CFR 3555 and
      this Handbook. Agency staff will utilize the SFHGLP Documentation and Processing
      Checklist in their review of Conditional Commitment requests, which assists
      in the review, processing, and closing of a guaranteed loan. B. Agency Review
      of Lender’s Underwriting Decisions It is the approved lender’s responsibility
      to underwrite loans, however, under limited circumstances, the Agency may determine
      that a more thorough review of the lender’s submission should be performed.
      The Agency must notify the lender in writing of the additional review. The Agency
      may review the lender’s underwriting decisions under the following circumstances:
      1. Lenders who are new to the program When a new lender is approved for participation
      in the program, the initial application submissions will receive a thorough
      Agency review, including a review of the lender’s underwriting decisions. The
      purpose of these reviews is to provide HB-1-3555 (03-09-16) SPECIAL PN 15-5
      Revised (08-05-25) PN 694 Guidance documents lack the force and effect of law,
      unless expressly authorized by statute or incorporated into a contract. USDA
      may not cite, use, or rely on any guidance that is not available through their
      guidance portal, except to establish historical facts. training and ensure that
      the lender has a complete and accurate understanding of the Agency’s requirements.
      The Agency will continue to review new lender underwriting decisions until the
      Agency is confident that the lender is performing satisfactorily. Additional
      training is provided when incomplete or deficient packages are received during
      initial submission. 2. Lenders that submit incomplete or inaccurate applications
      If a lender submits incomplete applications or applications with inaccurate
      information, the Agency may choose to review the lender’s underwriting to ensure
      that they understand the Agency’s requirements. Thorough reviews will continue
      until the lender demonstrates their ability to submit complete and accurate
      application packages on a regular basis. 3. Lenders with significant loan review
      findings Lenders that exhibit above average default, foreclosure, and loss claim
      activity may have their current loan submissions reviewed more thoroughly by
      the Agency. The lender will be referred to the Lender Oversight Branch for continued
      monitoring. C. Conditions for the Loan Guarantee Agency staff will determine
      if any conditions must be met for the loan to qualify for a guarantee. Terms
      and conditions will be listed and issued to the lender on Form RD 3555-18 or
      Form RD 3555-18E, Conditional Commitment for a Single Family Housing Loan Guarantee.'
  judgment: false
