4.6 SELL LOANS ONLY TO APPROVED LENDERS [7 CFR 3355.54] (06/02/16)

© RHS HB-1-3555 SFH Guaranteed Loan Program Technical Handbook

A. Procedure

A SFHGLP loan may be sold only to an Agency-approved lender, Fannie Mae or Freddie Mac. The selling lender must report any guaranteed loan sale to the Agency by using Form RD 3555-11, “Lender Record Change”, or electronically transmit the information. The notification of transfer of the loan(s) should be sent to the Rural Development Housing Services Branch in St. Louis as indicated on Form RD 3555-11. If the loan is sold to a party not approved to participate in the SFHGLP, the loan note guarantee will be considered invalid for the non-approved lender.Should a lender be unable to complete the sale of a loan due to the loss of the original loan note guarantee (Form RD 3555-17), the lender may request a copy from the Agency. The Agency will provide a copy marked “Duplicate Original” and reserves the right to assess a fee for this service.

B. Purchaser Risks and Responsibilities

The purchaser of a SFHGLP loan acquires all the rights of a loan holder under the guarantee. This means that, should there ever be a loss; the purchaser is entitled to file a loss claim with the Agency. However, the purchaser must ensure that it properly fulfills all servicing obligations, and must provide the Agency any requested assistance for its program monitoring.