USDA: Automated Submission of Loss Claims
Investor Update
December 8, 2016
USDA continues to explore effective means by which to improve the quality and effectiveness of the Single Family Housing Guaranteed Loan Program (SFHGLP). Effective use of automation to submit loss claim packages will benefit both the lender/servicer and the Agency. The submission of loss claims and supporting loss claim documents using automation reduces costs, process times, increases program effectiveness and improves the customer’s experience.
Effective December 31, 2016, USDA is requiring all active participating SFHGLP lenders/servicers to enter and submit loss claims and upload supporting claim documents to the Agency’s Lender Interactive Network Connection (USDA LINC) site.
For more detailed information on submission of loss claims, timelines and required documentation, lender/servicers should refer to 3555 Handbook Chapter 20 Loss Claims – Collecting on the Guarantee 7CFR 3555.351.
The lender/servicer can submit a claim as the result of a loss from a pre-approved pre-foreclosure sale (short sale), a third party purchase at a foreclosure sale, acquisition through voluntary liquidation, or as a result of a purchase by the servicer at a foreclosure sale. Servicers submit loss claim requests to the Customer Service Center (CSC) located in St. Louis, Missouri. A guide “Loss Claim Administration User Guide” along with a CSC Contact information sheet can be found online at our “Training and Resource Library”.
System Access Requirements
In order to properly submit loss claims through USDA LINC, lenders are required to establish a System Administrator, sign a Trading Partner Agreement – Addendum E and provide Level II eAuthentication Access for all applicable staff.
Prior to December 31, 2016, the designated Administrator must first obtain Level II eAuthentication access to the GLS System and complete the Trading Partner Agreement – Addendum E. Below, please utilize the links to obtain system access and complete the agreement.
Obtaining GLS Level II System Access (LexisNexis)
Once the designated Lender Administrator(s) has received confirmation of Level II e-Authentication access and the agreement has been approved, the administrator(s) will need to ensure all internal loss claim processing staff obtain Level II access to USDA LINC. Level II access will allow all loss claim processing staff to input all loss claims into USDA LINC. eAuthentication Training is available to assist the Lender Administrator(s) in navigating Security Administration.
Help Resources
Policy Questions
Customer Service Center
Phone: 866-550-5887
Single Family Housing Guaranteed Loan Division
Phone: 202-720-1452
USDA ITS Service Desk Support Center
For e-Authentication assistance
Email: eAuthHelpDesk@ftc.usda.gov
Phone: 800-457-3642, option 1 (USDA e-Authentication Issues)
Rural Development Help Desk
For GUS system, outage or functionality assistance
Email: RD.HD@STL.USDA.GOV
Phone: 800-457-3642, option 2 (USDA Applications); then option 2 (Rural Development)
Source: USDA
