7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.204 — Security requirements
7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program, §3555.204 Security requirements. Captured section-complete (all subsections verbatim).
Verbatim regulatory text
Verbatim provisions from 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.204 — Security requirements — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
7 CFR §3555.204
Rural Development will only guarantee loans that are adequately secured. A loan will be considered adequately secured only when all of the following requirements are met:
7 CFR §3555.204(a)
(a) Recorded security document. The lender obtains at closing, a mortgage on all required ownership and leasehold interests in the security property and ensures that the loan is properly closed.
7 CFR §3555.204(b)
(b) Prior liens. No liens prior to the guaranteed mortgage exist except in conjunction with a supplemental loan for transfer and assumption. The guaranteed loan must have first lien position at closing. Junior liens by other parties are permitted as long as the junior liens do not adversely affect repayment ability or the security for the guaranteed loan.
7 CFR §3555.204(c)
(c) Adequate security. Existing and proposed property improvements are completely on the site and do not encroach on adjoining property.
7 CFR §3555.204(d)
(d) Collateral. All collateral secures the entire loan.
Operationalizing 7 CFR Part 3555 — USDA Single Family Housing Guaranteed Loan Program § 3555.204 — Security requirements
This is verbatim, source-snapshotted regulator text from the Claude for Compliance open corpus. To turn a rule like this into compliance work product: gap-analyze your policies and procedures (P&Ps) against these requirements to surface stale, conflicting, or missing provisions; operationalize any change with a ready-to-run update kit; and produce audit-ready evidence — every step grounded only in the regulator’s own words, never invented.
Source of record: https://claudeforcompliance.com/regs/usda-7cfr-3555-204/
· register usda-7cfr-3555-204 · Claude for Compliance. Free to read and download;
see regulatory updates and methodology.