[Federal Register Volume 85, Number 62 (Tuesday, March 31, 2020)]
[Rules and Regulations]
[Page 17721]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06706]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 85, No. 62 / Tuesday, March 31, 2020 / Rules
and Regulations
[[Page 17721]]
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Part 1779
Rural Housing Service
7 CFR Part 3575
Rural Business-Cooperative Service
7 CFR Part 4287
Notification of Guarantee Loan Payment Deferrals for Business and
Industry Loan Guarantees, Rural Energy for America Program Loan
Guarantees, Community Facilities Loan Guarantees, and Water and Waste
Loan Guarantees
AGENCY: Rural Business-Cooperative Service, Rural Housing Service, and
Rural Utilities Service, USDA.
ACTION: Notification.
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SUMMARY: The Rural-Business Cooperative Service (RBCS), Rural Housing
Service (RHS), and Rural Utilities Service (RUS) agencies of the Rural
Development mission area, hereinafter referred to as Agency, will
temporarily allow lenders with guaranteed loans with the Agency to
unilaterally offer payment deferrals for the period specified in the
DATES section of this notification to their customers who may be
experiencing temporary cash flow issues due to the Coronavirus (COVID-
19) pandemic.
DATES: This policy is effective March 31, 2020 and the temporary
authorization expires on September 30, 2020.
FOR FURTHER INFORMATION CONTACT: For RBCS, Aaron Morris, Director,
Program Processing Division, 202-720-1501, [email protected]; for
RHS, Deborah Jackson, Director, Guaranteed Loan Processing and
Servicing Division, 202-720-8454, [email protected]; for RUS,
James Fritz, Water and Environmental Programs, 413-253-4303,
[email protected].
SUPPLEMENTARY INFORMATION: In accordance with 7 CFR 4287.107 (RBCS), 7
CFR 3575.69 (RHS), and 7 CFR 1779.69 (RUS), the lender is responsible
for servicing the entire loan and for taking all servicing actions that
a reasonably prudent lender would perform in servicing its own
portfolio of loans that are not guaranteed. Beginning immediately and
through September 30, 2020, the USDA Business and Industry Guaranteed
Loan Program (B&I), Rural Energy for America Program (REAP), Community
Facilities Guaranteed Loan Program, and Water and Waste Guaranteed
Program lenders may assist borrowers experiencing temporary cash flow
issues resulting from the COVID-19 pandemic, by deferring payments for
a period no longer than 180 days from the date the original payment is
due. The lender must notify the Agency in writing of any payment
deferments. Written notification to the Agency will meet the standard
for concurrence until September 30, 2020. After September 30, 2020,
lenders must resume obtaining Agency approval in accordance with all
applicable program regulations, forms, and existing authorities. A
response from the Agency is not required. This guidance applies to all
borrowers that had a current repayment status as of January 31, 2020.
If the loan has been sold on the secondary market, the secondary
market holder and lender must agree to the deferment actions being
taken. The Agency will expect a written agreement signed by both
parties in these instances prior to executing any payment deferral
action.
The Agency does not consider a loan that is under a deferral or
forbearance agreement to be a delinquent loan. Unpaid interest accruing
during a deferral or forbearance agreement is not subject to the
limitation of the guarantee of accrued interest under 7 CFR 4287.145(d)
(RBCS), 7 CFR 3575.3 (RHS), nor 7 CFR 1779.3 (RUS).
Bette B. Brand,
Deputy Under Secretary Rural Development.
[FR Doc. 2020-06706 Filed 3-27-20; 11:15 am]
BILLING CODE 3410-XY-P