The lender must report monthly to Rural Development on any loan that is delinquent, in default, or out of compliance

rd538.reporting.lender_monthly_report_on_delinquency_default_or_noncompliance · v1.0.0

The lender must review the borrower's financial reports to assure that the property is in sound fiscal condition and the borrower complies with financial requirements, and must report its findings to the Agency. The lender must submit monthly reports to the Agency on all loans that are either in default, delinquent, or not in compliance with programme requirements, providing information on the financial condition of each loan, the physical condition of the property, the amount of the delinquency, any other noncompliance with programme requirements, and the proposed actions and timetable to resolve the delinquency, default or noncompliance. Where outstanding findings or issues remain from the annual audit, the lender must also submit a plan of action for them.

Confidence

high

Effective from

1998-07-22

Last reviewed

2026-08-31