{"data":{"id":"us/7-cfr-3565.103","jurisdiction":"us","citation":"7 CFR 3565.103","heading":"Approval requirements.","body":"The Agency will establish and maintain a “list of approved lenders”. To be an approved lender, eligible lenders must meet the following requirements and maintain them on a continuing basis at a level consistent with the nature and size of their portfolio of guaranteed loans.\n(a) Commitment. A lender must have a commitment for a guaranteed loan or an agreement to purchase a guaranteed loan.\n(b) Audited statement. A lender must provide the Agency with an annual audited financial statement conducted in accordance with generally accepted government auditing standards.\n(c) Previous participation. A lender may not be delinquent on a federal debt or have an outstanding finding of deficiency in a federal housing program.\n(d) Ongoing requirements. A lender must meet the following requirements at initial application and on a continuing basis thereafter:\n(1) Overall financial strength, including capital, liquidity, and loan loss reserves, to have an acceptable level of financial soundness as determined by a lender rating service (such as Sheshunoff, Inc.); or to be an approved Fannie Mae, Freddie Mac, Ginnie Mae or HUD Federal Housing Administration multifamily lender; or, if a state housing finance agency, to have a top tier rating by a rating agency (such as Standard and Poor's Corporation);\n(2) Bonding and insurance to cover business related losses, including directors and officers insurance, business income loss insurance, and bonding to secure cash management operations;\n(3) A minimum of two years experience in originating and servicing multifamily loans;\n(4) A positive record of past performance when participating in RHS or other federal loan programs;\n(5) Adequate staffing and training to perform the program obligations; the head underwriter must have 3 years of experience and all staff must receive annual multifamily training;\n(6) Demonstrated overall financial stability of the business over the past five years;\n(7) Evidence of reasonable and prudent business practices for management of the program; and\n(8) No negative information on Dunn \u0026 Bradstreet or similar type report.","path":["Title 7—Agriculture","Subtitle B—Regulations of the Department of Agriculture","CHAPTER XXXV—RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE","PART 3565—GUARANTEED RURAL RENTAL HOUSING PROGRAM","Subpart C—Lender Requirements"],"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":"e20a937cdbd2879dfab2ef0cffe42312d19178bbf6eaa763532530f8f90c5b0d","source_id":"us-cfr","stale":true,"prev":"us/7-cfr-3565.102","next":"us/7-cfr-3565.104"},"notice":"GroundRules: Original legal text. Not legal advice."}