7 CFR § 3555.251 - Servicing responsibility.

---
identifier: "/us/cfr/t7/s3555.251"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 3555.251 - Servicing responsibility."
title_number: 7
title_name: "Agriculture"
section_number: "3555.251"
section_name: "Servicing responsibility."
chapter_name: "RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE"
part_number: "3555"
part_name: "GUARANTEED RURAL HOUSING PROGRAM"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 301; 42 U.S.C. 1471"
regulatory_source: "78 FR 73941, December 9, 2013, unless otherwise noted."
cfr_part: "3555"
---


# 3555.251 Servicing responsibility.

(a) *Servicing action.* Lenders must perform those servicing actions that a reasonable and prudent lender would perform in servicing its own portfolio of non-guaranteed loans.

(b) *Third party servicer.* A lender may contract with a third party to service its loans, but the servicing lender of record remains responsible for the quality and completeness of the servicing.

(c) *Transfer of servicing.* Rural Development may require a lender to transfer its loan servicing activities to an approved lender if Rural Development determines that the lender has failed to provide acceptable servicing.

(d) *Non-compliance.* Lenders who fail to comply with Agency requirements or program guidelines may be subject to withdrawal of lender approval, denial and/or reduction in loss claims, withdrawal of the loan guarantee and/or indemnification in accordance with § 3555.108(d).