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1.12 AGENCY LOAN APPROVAL AUTHORITY GUIDELINES FOR THE SFHGLP
All new loan specialists working in the SFHGLP are expected to receive loan approval authority prior to officially issuing decisions on program applications. The process consists of initial training, proficiency-based tests, mentoring support, file reviews, and a formal recommendation by the new specialist’s supervisor. The guidelines detail the expectations to be followed by Agency employees delivering the SFHGLP.
A. Training
x New specialists will complete all approved Single Family Housing (SFH)
University guaranteed training modules in the order required by the SFH University curriculum.
x The SFH University curriculum will be supplemented with on-the-job training,
provided by an experienced loan specialist/mentor.
B. Proficiency Testing
x The proficiency-based tests are a key component of the loan approval authority
process. All new specialists are required to pass the test after each training module is completed. This will indicate to the supervisor and mentor that the new specialist has an acceptable level of knowledge in that program area and can proceed to the next training module. The proficiency-based tests and scoring system are administered in accordance with the SFH University curriculum requirements.
x After the final module is completed, the supervisor shall schedule a time for the
specialist to take the final exam, which consists of questions generated from information presented in all the completed modules and will be used to assess the overall level of knowledge of the specialist.
x The minimum passing score for the proficiency test is 70. If a new specialist fails
the first attempt, the first line supervisor will review the results of the test with the
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specialist, address weaknesses, advise the new specialist on the area(s) they need to focus, provide a solution to rectify the deficiencies, and allow the specialist to retake the test when the supervisor determines the specialist’s readiness.
C. Mentoring
x At the time of enrollment in SFH University, the supervisor will assign a mentor
to assist the new specialist in learning the requirements associated with the underwriting and review of SFHGLP applications.
x The assigned mentor shall prepare written quarterly reports to the new specialist’s
supervisor, outlining the progress and recommendations on areas needed for continued development.
x Mentoring is expected to last at least 12 months, but may be extended (in six-
month increments) in the event the progress the specialist is making is not up to par with his/her SFH University curriculum and the proficiency-based tests.
x The assigned mentor shall not be the new specialist’s supervisor. The mentor’s
role is to help facilitate continued learning and to serve as a resource for technical questions and procedural guidance.
D. File Review
x After a new specialist attains a passing score on the final test, the supervisor or
mentor will assign SFHGLP files to the new specialist to review independently. Prior to obligation, the supervisor or mentor will complete a file review of each application to evaluate and attest that the new specialist is working at a standard worthy of independent loan approval authority.
x Once an acceptable level of review has been attained, the first line supervisor will
submit a minimum of four (4) GUS ACCEPT and six (6) GUS REFER or REFER WITH CAUTION loan files for review by a Director of the OPD, or assignee, in order to determine the loan approval authority recommendation.
E. Supervisor Recommendation for Approval
x Upon successful completion of the SFH University curriculum, proficiency tests,
final exam, mentoring period, and file reviews, a letter will be prepared by the new specialist’s supervisor to a Director of the OPD recommending the delegation of loan approval authority.
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x A Director of the OPD, or assignee, will review the recommendation and any
supporting documentation to grant or deny the delegation of loan approval authority to the new specialist. The designation will be documented in writing. If approval is granted, a certificate will be awarded to the specialist noting his/her approval status with USDA Rural Development. Attachment 1-C, Delegation of Loan Approval Authority, may be used. x The expected amount of time to complete this process may vary between 12 and
18 months. If more than 24 months have elapsed, a Director of the OPD, or assignee, will examine the reason(s) for the delay and will develop a plan of action. x In the event the supervisor is unable to recommend loan approval authority within
24 months due to recurring deficiencies in the specialist’s file reviews, a revised training plan will be developed by the supervisor to assist the new specialist in overcoming and resolving the identified deficiencies.
F. Continued Training Process
Supervisors should continue to evaluate the quality of loan reviews by new specialists after loan approval authority has been granted. Close monitoring by an established quality assurance process is recommended to determine if specific training might be required based on unusual application submissions.
G. Reinstatement of Approval Authority
If a specialist’s loan approval authority is revoked, RD Instruction 1901-A authorizes the Administrator to provide written restrictions or revocations of the authority given to any loan approval official. The Administrator may take action upon the recommendation of a Director of the OPD, or assignee. Supervisors are granted the authority to determine what actions, training, and conditions are required to reinstate loan approval authority to a specialist.