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3.6 LENDER RESPONSIBILITY
The lender will be responsible for the processing and servicing of the loan and may use third party originators, such as agents or correspondents, in carrying out its responsibilities. Lenders are fully responsible for their own actions and the actions of those acting on the lender’s behalf. The approved lender must adhere to SFHGLP guidelines as outlined in Chapter 4, Paragraph 4.8.
x Processing. The lender must abide by restrictions on loan purposes, loan
limitations, interest rates, and terms set forth in 7 CFR 3555 and this Handbook. The lender will underwrite the loan and submit the necessary items as outlined in Chapter 15 in order to receive a Conditional Commitment. The agent may close the loan in its name, provided the loan is immediately transferred to the approved lender to whom the guarantee will be issued.
x Servicing. Lenders are fully responsible for regular and default servicing and
maintaining security interest for all guaranteed loans. Regular and default servicing requirements are outlined in Chapters 17 through 19 of this Handbook. When servicing is subserviced to a third party, the lender will inform Rural Development of the name and address of the servicer by utilizing Form RD 3555- 11.