Farm Service Agency Direct Loan Servicing – Regular: Information Collection Revision Notice
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The U.S. Farm Service Agency (FSA), a division of the U.S. Department of Agriculture, has issued a notice under the Paperwork Reduction Act (PRA) requesting public comments on a proposed revision to an existing, currently approved information collection request titled 'Direct Loan Servicing–Regular.' This is a routine administrative step required by federal law before any changes to government information collection procedures can take effect. The information collected under this program is used by FSA loan officers to monitor and ensure borrower compliance with the terms and conditions of their direct loan agreements. The data also supports FSA's role in advising borrowers on how to meet their agricultural business goals and financial obligations throughout the life of the loan. Specific servicing activities covered by this information collection include loan graduation (transitioning borrowers to commercial credit), subordination of FSA liens, partial release of collateral, verification of use of loan proceeds, and obtaining borrower consent for various account actions. These processes are central to FSA's mission of supporting farm viability and responsible federal lending. Interested individuals, organizations, farmers, and lenders are invited to submit comments on the burden, necessity, and accuracy of this information collection as part of the standard PRA public comment process.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Revision of an existing approved information collection request for FSA Direct Loan Servicing–Regular (not a new program)
- Public comment period opened as required by the Paperwork Reduction Act (PRA) prior to finalizing any changes
- Scope of information collection covers borrower compliance monitoring, loan graduation, subordination, partial collateral release, use-of-proceeds verification, and consent processes
+ 2 more changes with Pro
Obligations
What this law requires
FSA loan officers must monitor and verify borrower compliance with the terms and conditions of direct loan agreements
FSA must collect and maintain information to verify the use of loan proceeds by borrowers
FSA must obtain written borrower consent before taking account actions such as loan graduation, subordination of liens, or partial release of collateral
FSA must process loan graduation activities to transition eligible borrowers from FSA direct loans to commercial credit
FSA must advise borrowers on how to meet their agricultural business goals and financial obligations throughout the life of the loan