{"data":{"id":"us/7-cfr-3555.251","jurisdiction":"us","citation":"7 CFR 3555.251","heading":"Servicing responsibility.","body":"(a) Servicing action. Lenders must perform those servicing actions that a reasonable and prudent lender would perform in servicing its own portfolio of non-guaranteed loans.\n(b) Third party servicer. A lender may contract with a third party to service its loans, but the servicing lender of record remains responsible for the quality and completeness of the servicing.\n(c) Transfer of servicing. Rural Development may require a lender to transfer its loan servicing activities to an approved lender if Rural Development determines that the lender has failed to provide acceptable servicing.\n(d) Non-compliance. Lenders who fail to comply with Agency requirements or program guidelines may be subject to withdrawal of lender approval, denial and/or reduction in loss claims, withdrawal of the loan guarantee and/or indemnification in accordance with § 3555.108(d).","path":["Title 7—Agriculture","Subtitle B—Regulations of the Department of Agriculture","CHAPTER XXXV—RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE","PART 3555—GUARANTEED RURAL HOUSING PROGRAM","Subpart F—Servicing Performing Loans"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-7.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:01Z","sha256":"9304392169892fc2eb885ce11587a51503ca94fa5a4f5d1451d1a9c656ac6e2f","source_id":"us-cfr","stale":true,"prev":"us/7-cfr-3555.250","next":"us/7-cfr-3555.252"},"notice":"GroundRules: Original legal text. Not legal advice."}