Rural Housing Service Seeks Comments on Proposed Changes

The USDA’s Rural Housing Service is proposing to make several changes to its Single-Family Housing Guaranteed Loan Program.  The proposed changes are intended to:

• Make it clear that in addition to complying with Agency laws and guidance, compliance is required with other applicable federal, state and local laws. This includes complying with laws under the purview of the CFPB such as TILA and RESPA;
• Make the loss claim process more streamlined for lenders who acquire title through foreclosure or a deed in lieu; and
• Change loss mitigation policies to put more emphasis on quickly achieving payment reductions, including by no longer requiring Agency concurrence before implementing a formal servicing plan or voluntary liquidation, and permitting trial loan modifications. The changes would also give more flexibility in the use of Mortgage Recovery Advances as part of loss mitigation.

Comments are due October 22, 2018.  The proposed rule may be viewed here.