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17.3 REPORTING REQUIREMENTS [7 CFR 3555.51 (B)(8)
Servicers are required to report monthly loan status (203) and monthly loan default status (264) reports for all SFHGLP loans in their portfolio via Electronic Status Reporting (ESR) by the sixth government workday of each month. Servicers are also required to review and correct status and default reject errors starting on the 13th business day of the month through the last day of the calendar month. New servicers, as part of the lender approval process as outlined in Chapter 3 of this Handbook, will enter into an agreement to electronically report the status of their SFHGLP portfolio. Servicers’ documentation, including detailed guides for reporting can be found at:
https://www.rd.usda.gov/resources/usda-linc-training-resource-library/loan- servicing
The servicer must continue to report on each loan until:
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x The default is cured (default reporting can stop after the appropriate code to end
the default event has been reported via ESR);
x The mortgage is paid-in-full, and the loan has been reported as Paid in Full via
ESR; or
x 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.
If a lender is unable to sell a loan or retains the loan they must contact the Single Family Housing Servicing Branch, Lender Reporting Section at rd.so.hsb@usda.gov to initiate the process for monthly status reporting and annual fee payment. Failure to submit timely loan status reporting or annual fees is a violation of a lender’s participation agreement and could result in reduced or denied loss claim payments (HB-1-3555, Appendix 8).