17.3 REPORTING REQUIREMENTS (05/17/17)

Owned by Kacey Olson
Nov 24, 2018
2 min read

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

Servicers must submit monthly default reports and quarterly portfolio status reports indicating the status of loans they are servicing via Electronic Data Interchange (EDI) to the National Financial and Accounting Operations Center (NFAOC). New servicers, as part of the lender approval process outlined in Chapter 3, will enter into an agreement to electronically report the status and default status of SFHGLP portfolio serviced. Servicers’ documentation can be found at: https://usdalinc.sc.egov.usda.gov/USDALincTrainingResourceLib.do. Scroll to “Electronic Status Reporting.”

If a lender is unable to sell a loan and/or retains the loan for servicing they must contact the NFAOC at rd.nfaoc.hsb@stl.usda.gov to initiate the process for default, quarterly status reporting, and annual fee payment. Failure to submit timely reporting or annual fees is a violation of a lender’s participation agreement and could result in a reduced or denied loss claim payments.

  1. Monthly Report The servicer must transmit EDI Transaction Set 264 or web-based documentation by the sixth government workday of each month identifying each borrower with a loan that is 30 or more days past due. For example, a payment that is due on April 1 and remains unpaid on April 30 will be included on the default report submitted by the sixth working day in May. This report will be transmitted following the EDI or web-based documentation in Appendix 8 of this Handbook. The servicer must continue to report on each loan that is past due until:
  • The default is cured or the mortgage is paid-in-full; or
  • The account is liquidated through foreclosure sale, pre-foreclosure sale, or a deed in- lieu of foreclosure until the servicer is in receipt of the loss claim payment.
  1. Quarterly Report The servicer must transmit quarterly portfolio reports within six government workdays following the last day of the month of each quarter, which end March 31, June 30, September 30, and December 31. The servicer must transmit EDI Transaction set 203 or web-based documentation to the NFAOC reporting on the status of each guaranteed loan in the servicer’s portfolio. The servicer must continue to report on each loan until:
  • The mortgage is paid-in-full; or
  • The account is liquidated through foreclosure sale, pre-foreclosure sale, or a deed-in-lieu of foreclosure until the servicer is in receipt of the loss claim payment.

Appendix 8 provides electronic reporting documentation.

  1. Non-Compliance Failure by the lender to comply with the Agency’s reporting requirements or other program guidelines, or failure to provide high quality origination, underwriting, or servicing can result in the following Agency actions: withdraw the lender’s approval; transfer its portfolio of SFHGLP loans; require the lender to indemnify the Agency if a loss is paid; deny or reduce future loss claims; and/or withdraw the loan guarantee. The Agency will notify the lender in writing of non-compliance and provide appeal rights, if necessary, in accordance with Appendix 3. Failure to comply with the reporting requirements and other lender responsibilities outlined in Chapter 4 could indicate noncompliance.