Unknown. Final rule

7,967 words·~36 min read·/register/2026/03/19/2026-05387·

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--- schema: federal-register doc_type: fedreg source_file: FR-2026-03-19.xml --- 91 53 Thursday, March 19, 2026 Contents Agriculture Agriculture Department See Food and Nutrition Service See Forest Service See Rural Housing Service Centers Disease Centers for Disease Control and Prevention NOTICES World Trade Center Health Program: Petition 026—Anti-Glomerular Basement Membrane Glomerulonephritis; Finding of Insufficient Evidence, 13308-13310 2026-05421 Commerce Commerce Department See Foreign-Trade Zones Board See International Trade Administration See National Institute of Standards and Technology See National Oceanic and Atmospheric Administration Committee for Purchase Committee for Purchase From People Who Are Blind or Severely Disabled NOTICES Hearings, Meetings, Proceedings, etc., 13296 2026-05431 Procurement List;

Additions and Deletions, 13294-13296 2026-05367 2026-05368 Commodity Futures Commodity Futures Trading Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 13296 C1-2026-03761 Defense Department Defense Department See Engineers Corps Drug Drug Enforcement Administration NOTICES Importer, Manufacturer or Bulk Manufacturer of Controlled Substances; Application, Registration, etc.: Patheon API Services, Inc., 13337 2026-05355 Pisgah Laboratories Inc, 13339 2026-05360 Siegfried Grafton, Inc., 13336-13337 2026-05356 2026-05358 SpecGx LLC, 13336 2026-05353 Sterling Wisconsin, LLC, 13338-13339 2026-05357 United States Pharmacopeial Convention, 13338 2026-05359 Education Department Education Department NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Description of Today's TRIO Programs and Proposing Options for Future Outcome Evaluations, 13298-13299 2026-05419 RISE Award, 13297 2026-05448 Shaping the Future of Loan Repayment, 13297-13298 2026-05418 Energy Department Energy Department See Federal Energy Regulatory Commission Engineers Engineers Corps NOTICES Hearings, Meetings, Proceedings, etc.: Mississippi River Commission; Correction, 13296-13297 2026-05328 Environmental Protection Environmental Protection Agency RULES Commercial and Industrial Solid Waste Incineration Units Temporary-Use Incinerators and Air Curtain Incinerators Used in Disaster Recovery;

Rescission, 13225-13227 2026-05395 Final Regulatory Determinations for Contaminants on the Fifth Drinking Water Contaminant Candidate List, 13227-13236 2026-05452 PROPOSED RULES National Emission Standards for Marine Tank Vessel Loading Operations: Technology Review, 13266 C1-2026-04304 Underground Injection Control Program: Colorado; Class VI Primacy, 13266-13271 2026-05453 Federal Aviation Federal Aviation Administration RULES Airspace Designations and Reporting Points: Paxton, IL, 13219-13220 2026-05398 PROPOSED RULES Airworthiness Directives:

General Electric Company Engines, 13238-13240 2026-05403 Pilatus Aircraft Ltd. Airplanes, 13240-13243 2026-05364 NOTICES Intent to Designate as Abandoned: Century Flight Systems, Inc. Supplemental Type Certificates, 13395-13397 2026-05324 Petition for Exemption; Summary: Andrew Stewart Banks, 13394-13395 2026-05410 Federal Energy Federal Energy Regulatory Commission NOTICES Application: Northern Natural Gas Co., 13302-13303 2026-05429 Authorization for Continued Project Operation:

City of Hamilton, OH and American Municipal Power, Inc., 13305 2026-05427 McCallum Enterprises I LP and Shelton Canal Co., 13301 2026-05423 Methuen Falls Hydroelectric Co., 13304-13305 2026-05422 Oswego Hydro Partners, LP, 13305-13306 2026-05425 Combined Filings, 13299-13301, 13304 2026-05385 2026-05386 Environmental Assessments; Availability, etc.: Blue Earth County, 13301 2026-05426 New York Power Authority, 13304 2026-05424 Request under Blanket Authorization: Great Lakes Gas Transmission LP, 13306-13307 2026-05428 Federal Reserve Federal Reserve System NOTICES Formations of, Acquisitions by, and Mergers of Bank Holding Companies, 13307 2026-05414 Proposals to Engage in or to Acquire Companies Engaged in Permissible Nonbanking Activities, 13308 2026-05415 Food and Drug Food and Drug Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Premarket Notifications Submission, 13310-13313 2026-05329 Guidance: General Considerations for the Use of New Approach Methodologies in Drug Development, 13313-13314 2026-05390 Food and Nutrition Food and Nutrition Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 13272-13273 2026-05442 Foreign Trade Foreign-Trade Zones Board NOTICES Application for Subzone: Foreign-Trade Zone 183, Dongjin Semichem Texas, Inc., Killeen, TX, 13280 2026-05438 Forest Forest Service RULES Land Uses;

Special Uses, 13221-13224 2026-05457 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Grazing Permit Administration Forms, 13273-13276 2026-05326 Hearings, Meetings, Proceedings, etc.: National Urban and Community Forestry Advisory Council, 13276-13277 2026-05416 Health and Human Health and Human Services Department See Centers for Disease Control and Prevention See Food and Drug Administration See National Institutes of Health Housing Housing and Urban Development Department NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Indian Housing Block Grants Formula and Competitive Programs, 13316-13317 2026-05437 Indian Affairs Indian Affairs Bureau NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Application to Withdraw Tribal Funds from Trust Status, 13320-13321 2026-05412 Electric Power Service Application, 13318-13319 2026-05446 Indian Child Welfare Act Proceedings in State, 13317-13318 2026-05436 Navajo Partitioned Lands Grazing Permits, 13321-13322 2026-05413 Tribal Energy Resource Agreements, 13319-13320 2026-05420 Interior Interior Department See Indian Affairs Bureau See Land Management Bureau See National Park Service Internal Revenue Internal Revenue Service RULES Consistent Basis Reporting between Estate and Person Acquiring Property from Decedent;

Correction, 13220-13221 2026-05447 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Election to Treat a Qualified Revocable Trust as Party of an Estate, 13402 2026-05393 International Trade Adm International Trade Administration NOTICES Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Alloy and Certain Carbon Steel Threaded Rod from the People's Republic of China, 13282-13285 2026-05444 Certain New Pneumatic Off-The-Road Tires from India, 13285-13287 2026-05440 Certain Steel Wheels from the People's Republic of China, 13280-13282, 13291-13293 2026-05443 2026-05445 Certain Uncoated Paper from Portugal, 13289-13291 2026-05441 Large Diameter Welded Pipe from Canada, 13288-13289 2026-05352 Utility Scale Wind Towers from Canada, the Socialist Republic of Vietnam, Indonesia, and the Republic of Korea, 13287-13288 2026-05439 International Trade Com International Trade Commission NOTICES Investigations;

Determinations, Modifications, and Rulings, etc.: Forged Steel Fittings from India and South Korea, 13335 2026-05331 Tetrahydrofurfuryl Alcohol from China, 13334-13335 2026-05411 Justice Department Justice Department See Drug Enforcement Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Certification of Compliance with the Statutory Eligibility Requirements of the Violence Against Women Act as Amended, STOP Formula Grant Program, 13339-13340 2026-05397 Semi-Annual Progress Report for Justice for Families Program, 13340-13341 2026-05396 Land Land Management Bureau NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Grazing Management: Range Improvement Agreements and Permits Materials, 13324-13325 2026-05406 Land Use Application and Permit, 13323-13324 2026-05354 Tramroads and Logging Roads, 13322-13323 2026-05407 Library Library of Congress RULES Photography on Library Premises, 13224-13225 2026-05430 National Highway National Highway Traffic Safety Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals:

Crash Report Sampling System, Non-Traffic Surveillance, and Special Study Data Collection, 13397-13402 2026-05366 National Institute National Institute of Standards and Technology NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: CHIPS Workforce Solution Participant Data Collection, 13293-13294 2026-05389 National Institute National Institutes of Health NOTICES Hearings, Meetings, Proceedings, etc.: Center for Scientific Review, 13315 2026-05435 National Institute of Diabetes and Digestive and Kidney Diseases, 13316 2026-05417 National Oceanic National Oceanic and Atmospheric Administration RULES Fisheries of the Exclusive Economic Zone off Alaska:

Gulf of Alaska; 2026 and 2027 Harvest Specifications for Groundfish, 13236-13237 C1-2026-04753 NOTICES Permits; Applications, Issuances, etc.: Marine Mammals; File No. 29313, 13294 2026-05351 National Park National Park Service NOTICES Intended Disposition: U.S. Department of Agriculture, Forest Service, Beaverhead-Deerlodge National Forest, Butte, MT, 13329-13330 2026-05373 Inventory Completion: Edge of the Cedars State Park Museum, Blanding, UT, 13327 2026-05369 Mercyhurst University, Erie, PA, 13325 2026-05379 Robert S.

Peabody Institute of Archaeology, Andover, MA, 13326-13327 2026-05377 Rutgers, The State University of New Jersey, New Brunswick, NJ, 13332 2026-05375 Santa Barbara Museum of Natural History, Santa Barbara, CA, 13330-13331 2026-05370 U.S. Department of Agriculture, Forest Service, Chattahoochee-Oconee National Forest, Gainesville, GA, 13331-13332 2026-05372 University of California, Davis, Davis, CA, 13333-13334 2026-05371 University of Hawai'i-West O'ahu, Kapolei, HI, 13328 2026-05378 Repatriation of Cultural Items:

Kalamazoo Valley Museum, Kalamazoo, MI, 13328-13329 2026-05380 Museum of Fine Arts, Boston, Boston, MA, 13330 2026-05376 Museum of Natural History and Planetarium, Providence, RI, 13325-13326 2026-05381 Ohio History Connection, Columbus, OH, 13333 2026-05374 Nuclear Regulatory Nuclear Regulatory Commission NOTICES Requests for Nominations: Advisory Committee on the Medical Uses of Isotopes, 13341-13342 2026-05402 Postal Regulatory Postal Regulatory Commission NOTICES New Postal Products, 13342-13343 2026-05404 Postal Service Postal Service PROPOSED RULES Priority Mail Express and Priority Mail Open and Distribute Parcel Mailings Discontinued, 13263-13266 2026-05405 Presidential Documents Presidential Documents EXECUTIVE ORDERS Committees;

Establishment, Renewal, Termination, etc.: Task Force To Eliminate Fraud; Establishment (EO 14395), 13483-13489 2026-05497 Rural Housing Service Rural Housing Service RULES Single Family Housing Guaranteed Loan Program, 13211-13217 2026-05387 NOTICES Single Family Housing Section 502 Guaranteed Loan Program Lender Interactive Test Environment Delegated Authority Pilot Program, 13277-13280 2026-05394 Securities Securities and Exchange Commission PROPOSED RULES Publication or Submission of Quotations Without Specified Information, 13243-13263 2026-05401 NOTICES Application:

First Trust Portfolios LP and FTP Series, 13354 2026-05432 Megacorn Fund and Forge Global Advisors LLC, 13392 2026-05433 The RBB Fund Trust and M.D. Sass, LLC, 13378-13379 2026-05434 Joint Industry Plan: National Market System Plan Governing the Consolidated Audit Trail, 13410-13481 2026-05350 Self-Regulatory Organizations; Proposed Rule Changes: Cboe BYX Exchange, Inc., 13386-13389 2026-05349 Cboe BZX Exchange, Inc., 13365-13368 2026-05348 Cboe EDGA Exchange, Inc., 13379-13381 2026-05345 Cboe EDGX Exchange, Inc., 13363-13365 2026-05346 MIAX PEARL, LLC, 13343-13346 2026-05333 MIAX Sapphire, LLC, 13359-13363 2026-05334 Nasdaq GEMX, LLC, 13351-13353, 13389-13392 2026-05338 2026-05342 Nasdaq ISE, LLC, 13375-13378, 13384-13386 2026-05335 2026-05341 Nasdaq MRX, LLC, 13354-13357, 13373-13375 2026-05336 2026-05343 Nasdaq PHLX LLC, 13349-13351, 13381-13384 2026-05340 2026-05347 Nasdaq Texas, LLC, 13357-13359 2026-05339 The Depository Trust Co., 13368-13370 2026-05332 The Nasdaq Stock Market LLC, 13346-13349, 13371-13373 2026-05337 2026-05344 Small Business Small Business Administration RULES Program Fraud Civil Remedies Act Regulations Statutory Updates, 13217-13219 2026-05459 NOTICES Disaster Declaration:

Illinois, 13392-13393 2026-05392 State Department State Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Risk Analysis and Management, 13393 2026-05391 Request for Membership Application: Defense Trade Advisory Group, 13393-13394 2026-05408 Trade Representative Trade Representative, Office of United States NOTICES Charter Amendments, Establishments, Renewals and Terminations: Industry Trade Advisory Committees, Request for Membership Application;

Correction, 13394 2026-05409 Transportation Department Transportation Department See Federal Aviation Administration See National Highway Traffic Safety Administration Treasury Treasury Department See Internal Revenue Service Veteran Affairs Veterans Affairs Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Department of Veterans Affairs Acquisition Regulation Contract Clause—Information and Information Systems Security, 13407-13408 2026-05400 Charter Amendments, Establishments, Renewals and Terminations:

Cooperative Studies Scientific Evaluation Committee, 13404-13405 2026-05363 Health Systems Research Scientific Merit Review Board, 13402-13404 2026-05361 Joint Brain, Behavioral, and Mental Health and Medical Health Scientific Merit Review Board, 13405-13406 2026-05362 Rehabilitation Research, Development and Translation Scientific Merit Review Board, 13406-13407 2026-05365 Separate Parts In This Issue Part II Securities and Exchange Commission, 13410-13481 2026-05350 Part III Presidential Documents, 13483-13489 2026-05497 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice of recently enacted public laws.

To subscribe to the Federal Register Table of Contents electronic mailing list, go to https://public.govdelivery.com/accounts/USGPOOFR/subscriber/new, enter your e-mail address, then follow the instructions to join, leave, or manage your subscription. 91 53 Thursday, March 19, 2026 Rules and Regulations DEPARTMENT OF AGRICULTURE Rural Housing Service 7 CFR Part 3555 [Docket Number RHS-21-SFH-0017] RIN 0575-AD08 Single Family Housing Guaranteed Loan Program AGENCY: Rural Housing Service, USDA.

ACTION: Final rule. SUMMARY: The Rural Housing Service (RHS or Agency), a Rural Development

(RD)Agency within the United States Department of Agriculture (USDA), is amending its regulations to grant Delegated Lenders participating in the Single-Family Housing Guaranteed Loan Program (SFHGLP) the authority to make loans and obtain Loan Note Guarantees after closing using automated loan underwriting and closing systems. DATES: *Effective date:* This Final rule is effective June 17, 2026. Implementation will occur on September 28, 2028. The Agency will publish a notice in the **Federal Register** prior to implementation. FOR FURTHER INFORMATION CONTACT: Sara Thieleke, Deputy Director, Single Family Housing Guaranteed Loan Division, Rural Development, U.S. Department of Agriculture, STOP 0784, South Agriculture Building, 1400 Independence Avenue SW, Washington, DC 20250-0784. Telephone:

(314)457-5242; or email: *sara.thieleke@usda.gov.* SUPPLEMENTARY INFORMATION: Abbreviations CFR Code of Federal Regulations DA Delegated Authority FHA Federal Housing Administration FR Federal Register OMB Office of Management and Budget RHS Rural Housing Service § Section SFHGLP Single Family Housing Guaranteed Loan Program UMRA Unfunded Mandates Reform Act of 1995 U.S.C. United States Code USDA U.S. Department of Agriculture VA Department of Veterans Affairs Background The RHS administers the Single-Family Housing Guaranteed Loan Program (SFHGLP) that provides a 90 percent Loan Note Guarantee to approved lenders in order to reduce the lender's risk of extending loans to low- and moderate-income households in rural areas. The RHS is issuing a Final rule to amend the SFHGLP regulation, 7 CFR part 3555, by adding § 3555.55 which provides the requirements for delegated approval authority. The changes being implemented through the Final rule will accelerate approval processing timeframes to the benefit of applicants, Delegated Lenders, and the Agency. Lenders meeting the defined criteria will be able to apply for delegated lender status that allows the Delegated Lender to approve SFHGLP loans and obtain Loan Note Guarantees with limited-to-no Agency involvement. The updates align the SFHGLP with other Federal Agencies that have already moved to the delegated process to leverage the processing power and expertise of private-sector lenders. Discussion of Public Comments The Rural Housing Service

(RHS)published a proposed rule on August 4, 2022, (87 FR 47646) to amend the current regulations for the Single-Family Housing Guaranteed Loan Program (SFHGLP) regulation found in 7 CFR part 3555. The Agency received comments from 41 respondents, of which one was not applicable to the contents of the rule. Of the comments received, 30 were from mortgage lenders, one was from a public assistance agency, and ten were from other members of the public. The following is a summary of the relevant comments: *Public Comment:* Twenty-seven respondents replied that they were in favor of the proposed rule, many indicating that the time savings and efficiencies that will be realized with delegated authority will result in faster and better service to customers, will even the playing field for homebuyers utilizing the SFHGLP, and will align the program with other Agencies, including FHA and VA. *Agency's Response:* The Agency appreciates the support and has determined no action is required. *Public Comment:* One respondent replied in favor of the proposed rule as long as it is exercised with due diligence with consequences in place for lenders violating program requirements. *Agency Response:* The Agency appreciates the support of the proposed rule. As part of the rule, the Agency has incorporated a Lender Oversight process specifically for Delegated Lenders to monitor adherence to Agency loan program requirements found in 7 CFR part 3555. This includes reviews of multiple elements of the mortgage origination and servicing processes based on the review of a representative sample of loans, financial requirements, and portfolio performance, among other requirements. In addition to scheduled reviews, the Agency will conduct continuous monitoring of lender performance and adherence to the requirements for Delegated Authority outlined in 7 CFR part 3555. *Public Comment:* Two respondents replied that it is important to maintain the ability to submit files to the Agency for review on a case-by-case basis, such as when there is a unique situation or circumstance. *Agency Response:* The Agency appreciates the commenters' suggestion and anticipates allowing Delegated Lenders to submit files to the Agency for review and approval, in some circumstances. *Public Comment:* Two respondents replied that in order to alleviate the responsibility of the Delegated Lender to ensure loans meet the guidelines of 7 CFR part 3555, the Agency should consider solely delegating the initial loan approval and issuance of the Conditional Commitment to Delegated Lenders and retain the responsibility for issuance of the Loan Note Guarantee. *Agency Response:* The Agency appreciates the commenters' suggestion. Approved lenders and their agents are required by 7 CFR part 3555, Section 3555.51(b) to underwrite loans according to RD regulations, which includes reviewing loan applications for accuracy and completeness; ensuring the applicable income limits are not exceeded; ensuring adequate repayment ability and credit history; and ensuring the loan complies with limitations on loan purposes, loan limitations, interest rates, and loan terms. Thus, the approved lender is responsible for ensuring compliance with 7 CFR part 3555 whether they utilize delegated authority or continue with the current process. Furthermore, delegated authority will not be mandated. Any lender who does not wish to participate in delegated authority may continue to operate as they do today. *Public Comment:* One respondent replied they would not like Delegated Lenders to have the responsibility for issuing Loan Note Guarantees due to already excessive workload and the possibility of errors. *Agency Response:* The Agency appreciates the commenter's concern. The Agency intends for the process of obtaining a Loan Note Guarantee to be entirely electronic, with minimal work required by the Delegated Lender. However, delegated authority will not be mandated. Any lender who does not wish to participate in delegated authority may continue to operate as they do today. *Public Comment:* One respondent replied that due to the specific income calculations involved, delegated authority may be difficult without oversight to catch errors in a timely manner. *Agency Response:* The Agency appreciates the commenter's response. Approved lenders and their agents are required by 7 CFR 3555.51(b) to underwrite loans according to RD regulations, which includes ensuring the applicable income limits are not exceeded and there is adequate repayment ability. The approved lender is responsible for ensuring compliance with 7 CFR part 3555 whether they utilize delegated authority or continue with the current process. To monitor compliance, the Agency has incorporated a Lender Oversight process specifically for Delegated Lenders to verify adherence to Agency loan program requirements found in 7 CFR part 3555. *Public Comment:* One respondent replied that this lending should only be available for buying existing homes or homes damaged by fire or flood. No taxpayer money should be used to build new homes as rural areas do not want growth. *Agency Response:* The Agency appreciates the commenter's response. This rule addresses the processing of loan applications and is not amending the current loan purposes that are eligible under the SFHGLP. The Agency has determined no action is required. *Public Comment:* One respondent replied with concerns that the Agency would be unable to ensure Delegated Lenders are only assisting low- and moderate-income households in rural areas. *Agency Response:* The Agency appreciates the commenter's response. Approved lenders and their agents are required by 7 CFR 3555.51(b) to underwrite loans according to RD regulations, which includes ensuring the applicable income limits are not exceeded, and the loan complies with all loan limitations, including being located in an eligible rural area. Delegated Lenders will be required to use the Agency's automated underwriting system for supported loan types, which identifies if the income exceeds the maximum income limit, or if the property is not located in an eligible rural area. In addition, the Agency has incorporated a Lender Oversight process specifically for Delegated Lenders to monitor adherence to Agency loan program requirements found in 7 CFR part 3555. The Agency has determined no action is required. *Public Comment:* One respondent replied with concerns of predatory lending practices due to the lack of accountability and oversight under delegated authority. *Agency Response:* The Agency appreciates the commenter's response. As part of the rule, the Agency has incorporated a Lender Oversight process specifically for Delegated Lenders to monitor adherence to Agency loan program requirements found in 7 CFR part 3555. This includes reviews of multiple elements of the mortgage origination and servicing processes based on the review of a representative sample of loans, financial requirements, and portfolio performance, among other requirements. If a lender fails to meet the established standards, the Agency may revoke their Delegated Lender status. *Public Comment:* One respondent expressed support of the proposal but expressed encouragement that the Agency remain engaged with industry stakeholders throughout the development and implementation of these changes. *Agency Response:* The Agency appreciates the commenter's suggestion and agrees that collaboration with industry stakeholders throughout the planning and implementation process will be critical to the success of this initiative. *Public Comment:* One respondent expressed support of the proposal and provided additional responses to the questions posed in the proposed rule. The respondent indicated a three-year rollout would be appropriate assuming it is expanded each year to include additional lenders and recommended the Agency retain the current process for loan application review and approval as an option. The respondent recommended the Agency could include a specific loan volume requirement for participation in delegated authority, such as 25 percent of the lender's portfolio being USDA loans, or a set number (such as ten closed loans in the past two years). The respondent agreed with the identified alternatives and benefits, as well as stated that implementation would unquestionably result in a cost savings to lenders, both directly and indirectly. The respondent also agreed the post-closing review sample size and timeframe were reasonable, and indicated they were unaware of any additional implementation costs not already considered. *Agency Response:* The Agency appreciates the commenter's response and has incorporated the feedback, including the proposed roll-out period; cost savings; and review requirements, into the Final Rule. *Public Comment:* One respondent expressed support of the proposal and provided additional responses to the questions posed in the proposed rule. The respondent indicated the proposed three-year rollout seemed excessive as lenders selected for early implementation would have a competitive advantage. The respondent indicated that financial eligibility of the lender should be considered as part of the approval process, and there is not a need to maintain manual underwriting under the current process. In consideration of the alternatives cited, the respondent indicated full delegation is needed and although there will be cost savings with delegated authority, it is difficult to quantify. The respondent agreed with the two-year lender review timeframe, however, did not agree with the 2 percent sample size being used across the board and indicated it should be determined based on the loan volume of the lender. The respondent identified that a lender loan loss reserve increase may result in additional costs to the lender, due to additional risk. *Agency Response:* The Agency appreciates the commenter's response. While we understand the concerns, the Agency believes a three-year rollout is necessary to exercise control over the number of loans guaranteed by Delegated Lenders during the implementation period to provide the opportunity to review processes and analyze the performance and compliance of loans generated under delegated authority. An expedited rollout will be considered, if feasible. The Agency appreciates the recommendation on the lender oversight sample size, which has been considered in the development of the Final rule. The Agency acknowledges the respondent's concern that delegated authority may result in a lender loan loss reserve increase. However, one of the approval criteria for Delegated Lenders includes reaching higher performance metrics than average, while also relying on lenders to make sound underwriting decisions. As a result, we do not anticipate loans processed under delegated authority to have significant additional risk to lenders than those utilizing the current process. Furthermore, delegated authority will not be mandated. Any lender who does not wish to participate in delegated authority may continue to operate as they do today. Summary of Rule Changes Upon implementation of the Final rule, loan approval and issuance of the Loan Note Guarantee will be delegated to the Delegated Lender. Delegated Lenders will be required to use Agency automated loan underwriting and closing systems to originate, process, close, and service loan applications in accordance with the published regulations and handbook guidance. In this respect, the Delegated Lender will act as the Agency and will require limited-to-no Agency involvement in the pre-closing loan approval process and post-closing issuance of the Loan Note Guarantee. The Delegated Lender will approve the loan in the Agency's automated system for all supported loan types. With delegated authority, Conditional Commitments will not be required, and the provisions of § 3555.107(f) for issuance of the Conditional Commitment will not be applicable. After loan closing, Delegated Lenders will continue to adhere to the proper loan closing procedures under § 3555.107(i) and

(j)for issuance of the Loan Note Guarantee. The Agency will remove § 3555.107(i)(5) which provides lenders a self-certification option in lieu of submitting full documentation. Delegated Lenders will retrieve the Loan Note Guarantee from the Agency's automated system, which will have the same force and effect as a Loan Note Guarantee issued directly by the Agency. The Loan Note Guarantee will be supported by the full faith and credit of the United States, as provided in § 3555.108, regardless of whether the Loan Note Guarantee is obtained by a Delegated Lender through the Agency's automated system, or from the Agency directly. Therefore, unless provided otherwise or inapplicable, the Delegated Lender will be responsible for ensuring that both the applicant and the property meet the eligibility requirements and certification for the loan guarantee under subparts C, D, and E of 7 CFR part 3555 and the environmental requirements in § 3555.5. The Agency is modifying the procedures for Delegated Lenders as follows: *Environmental Reviews* —SFHGLP loans are generally considered to meet the requirements for a categorical exclusion from the environmental review process described in 7 CFR 3555.5 and 7 CFR part 1970, absent any extraordinary circumstances. If there is an extraordinary circumstance, the Delegated Lender must notify the Agency to decide the appropriate course of action. *Appraisal Reviews* —Agency administrative appraisal reviews under § 3555.107(d)(4) are inapplicable to loans approved via delegated authority. Delegated Lenders are responsible for ensuring that appraisal reports meet all requirements under § 3555.107(d). *Application priority processing* —The requirements under § 3555.107(a) for prioritizing applications do not apply to Delegated Lenders. When a conflict of interest is disclosed by either the borrower or a RD employee, as described in § 3555.8, the Delegated Lender is required to document the disclosure in the permanent loan file. A Delegated Lender remains responsible for documenting any conflict of interest. However, since Delegated Lenders will process pre-closing and post-closing activities with limited-to-no Agency assistance, reassignment of the application as described in § 3555.8(d) is not necessary. Upon implementation, the Agency will be able to deliver the program more efficiently with fewer FTEs. The changes, which align Agency processes with industry standards, will streamline processes, and provide faster and better service to low- and moderate-income borrowers, resulting in earlier home move-in dates. RHS will delegate pre-closing loan approval and post-closing guarantee issuance authority to Delegated Lenders that meet specific requirements for portfolio performance and underwriting capability. The Agency is not changing basic lender eligibility requirements, as outlined in 7 CFR 3555.51, “Lender Eligibility,” but rather adding a section to define a Delegated Lender as an entity with delegated authority

(DA)approval. RHS will add § 3555.55, “Delegated Lenders,” to delegate the authority to approve and execute loan guarantees with limited-to-no involvement of Agency staff. Paragraphs

(a)and

(b)outline requirements for lenders to qualify for Delegated Lender status, which include meeting the general lender eligibility requirements in § 3555.51, participation in the SFHGLP for at least the previous two years, and higher than average performance standards in delinquency, default, and loss claim rates for that two-year period prior to approval, among other requirements. Delegated Lenders need to maintain general lender eligibility under § 3555.51 as well as the higher performance metrics in delinquency, loss claim, and default rates, among other requirements, to retain delegated lender status, which will be evaluated at least every two years. The Agency may adjust, modify, or cancel the delegated lender program based on overall program considerations such as budget, program performance, and program integrity. In the event that modifications are made to the performance metrics for new Delegated Lenders, existing Delegated Lenders will retain their status, and the Agency will provide a reasonable timeframe to meet the new performance metrics in order to continue retaining delegated lender status. The Agency will be performing a controlled rollout for the delegated authority of Delegated Lenders to foster a smooth implementation. The rollout will be phased-in to allow the Agency some control over the number of loans guaranteed by Delegated Lenders over a period of at least three years after implementation of the Final rule. The Agency will then evaluate the performance of the process, the efficiency of the process, and make any necessary adjustments to the process. The Agency will continue to phase in new lenders as the process is refined. The number of lenders approved for delegated lender status will be contingent on the progress of the Agency's systems modifications, staff reductions, portfolio performance, and the timeliness of implementing enhanced lender oversight and monitoring. Full implementation is expected by the end of the third year of the implementation period. Paragraphs

(a)and

(b)outline the conditions under which a lender's delegated status may be removed. As stated in paragraph (a), the Agency has the right to suspend or terminate any lender's delegated status for reasons including, but not limited to, approving loans that do not meet Agency loan program guidelines; providing data to the Agency's automated underwriting system which is not supported by documentation retained by the lender; maintaining a portfolio that does not meet the established delinquency, loss claim, and default rate performance metrics, among other requirements; and an inability to meet the criteria described in § 3555.51, “Lender Eligibility.” The Agency will enhance its current lender monitoring and oversight for Delegated Lenders from two perspectives:

(1)Continue to monitor Performance—regular collection and analysis of loan level data and performance, and

(2)Increase Lender Oversight—on-site and off-site reviews.

(1)Monitoring Performance Loan level data is collected from lenders each month through the Electronic Status Reporting system. This data is compiled, reviewed, and monitored by the Agency every month to determine portfolio performance as well as risks and trends in delinquency, default, and loss claim rates. This loan level data will be collected and analyzed for Delegated Lenders to provide the Agency with information regarding the performance of Delegated Lenders.

(2)Lender Oversight

(LO)Reviews The Agency's Quality Assurance and Lender Oversight Division will institute a regular LO process specifically for Delegated Lenders to monitor adherence to Agency loan program requirements found in 7 CFR part 3555 and continuing eligibility for the program. The process consists of reviews of multiple elements of the mortgage origination and servicing processes based on the review of a representative sample of loans, financial requirements, and portfolio performance, among other requirements. A report will be provided, and findings and observations will be recorded and reported back to the lender or servicer, along with any suggestions for improvement. If necessary, the lender will have the opportunity to incorporate a Corrective Action Plan

(CAP)to resolve any deficiencies, and will be counseled, offered training, and given the opportunity to improve. Recurring findings identified through the LO process may result in additional reviews and may adversely affect a lender's delegated lender status. To bolster the Agency's efforts to perform robust monitoring and lender oversight across the program (not just for Delegated Lenders), this Final rule also eliminates the self-certification option at § 3555.107(i)(5). The Agency is unaware of any lenders using the option to self-certify instead of submitting complete loan closing documentation. Furthermore, the Agency has determined that such option would be inappropriate in balancing the streamlining of the program with risk mitigation and is eliminating the option so that the Agency would have easier and direct access to loan documents. § 3555.55(f) will provide the Agency with the authority to revoke the Delegated Lender status of those lenders that fail to meet the delegated lender criteria. This revocation is distinct from termination of the program as an approved lender under § 3555.52. However, if the Agency pursues termination of a Delegated Lender's participation under § 3555.52, the Agency need not separately pursue a separate revocation of Delegated Lender status, as termination from the program would automatically revoke delegated lender status. Taken together, this Final rule continues the Agency's efforts to streamline and improve delivery of the SFHGLP while providing measures to mitigate risk. Agency approval of a lender for Delegated Authority does not create or imply a warranty or endorsement by the Agency of the approved lender, or its employees, nor does it represent a warranty of any service provided by the lender or any employee of the lender. Statutory Authority Section 201 of the Housing Opportunity Through Modernization Act of 2016 (Pub. L. 114-201) (42 U.S.C. 1472(h)(18)) authorizes the Secretary to delegate loan approval authority to certain preferred lenders, and Section 510(k) of Title V of the Housing Act of 1949 (42 U.S.C. 1480(k)), as amended, authorizes the Secretary of the Department of Agriculture to promulgate rules and regulations as deemed necessary to carry out the purpose of that title. Executive Orders 12866 and 13563 Executive Orders 12866 (Regulatory Planning and Review) and 13563 (Improving Regulation and Regulatory Review) direct agencies to assess the costs and benefits of available regulatory alternatives and, if a regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, reducing costs, harmonizing rules, and promoting flexibility. This Final rule has been designated a “significant regulatory action,” under section 3(f) of Executive Order 12866. Accordingly, the rule has been reviewed by the Office of Management and Budget (OMB). In accordance with Executive Order 12866, a Regulatory Impact Analysis

(RIA)was completed, outlining the costs and benefits of implementing this program in rural America. For a complete analysis, please see the RIA on *https://www.regulations.gov* using docket number RHS-21-SFH-0017. Executive Order 14192, Unleashing Prosperity Through Deregulation This Final rule is an Executive Order 14192 deregulatory action. Details on the estimated cost savings of this proposed action can be found in the accompanying RIA. Executive Order 12988, Civil Justice Reform This Final rule has been reviewed under Executive Order 12988, Civil Justice Reform. Except where specified, all state and local laws and regulations that are in direct conflict with this rule will be preempted. Federal funds carry federal requirements. No person is required to apply for funding under SFHGLP, but if they do apply and are selected for funding, they must comply with the requirements applicable to recipients of SFHGLP federal financial assistance, including all applicable nondiscrimination federal laws and regulations. This Final rule is not retroactive. It will not affect agreements entered into prior to the effective date of the rule. Before any judicial action may be brought regarding the provisions of this rule, the administrative appeal provisions of 7 CFR part 11 must be exhausted. Unfunded Mandates Reform Act Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public Law 104-4, establishes requirements for federal agencies to assess the effect of their regulatory actions on state, local, and tribal governments, and the private sector. Under section 202 of the UMRA, the Agency generally must prepare a written statement, including a cost-benefit analysis, for proposed and Final rules with “federal mandates” that may result in expenditures to state, local, or tribal governments, in the aggregate, or to the private sector, of $100 million or more in any one year. When such a statement is needed for a rule, section 205 of the UMRA generally requires the Agency to identify and consider a reasonable number of regulatory alternatives and adopt the least costly, most cost-effective, or least burdensome alternative that achieves the objectives of the rule. This Final rule contains no federal mandates (under the regulatory provisions of Title II of the UMRA) for state, local, and tribal governments, or the private sector. Therefore, this rule is not subject to the requirements of sections 202 and 205 of the UMRA. National Environmental Policy Act In accordance with the National Environmental Policy Act of 1969, Public Law 91-190, this Final rule has been reviewed in accordance with 7 CFR part 1b (“National Environmental Policy Act”). The Agency has determined that:

(i)this action meets the criteria established in 7 CFR;

(ii)no extraordinary circumstances exist. Therefore, the Agency has determined that the action does not have a significant effect on the human environment, and therefore, neither an Environmental Assessment nor an Environmental Impact Statement is required. Executive Order 13132, Federalism The policies contained in this Final rule do not have any substantial direct effect on the states, the relationship between the national government and the states, or the distribution of power and responsibilities among the various levels of government. This Final rule does not impose substantial direct compliance costs on state and local governments. Therefore, consultation with the states is not required. Regulatory Flexibility Act Under section 605(b) of the Regulatory Flexibility Act, 5 U.S.C. 605(b), the Agency certifies that this Final rule will not have a significant economic impact on a substantial number of small entities. The North American Industry Classification System (NAICS) classifies small lenders in the following categories: NAICS code NAICS U.S. industry title Size standards in millions of dollars 522120 Savings Institutions $600 in assets. 522130 Credit Unions $600 in assets. 522190 Other Depository Credit Intermediation $600 in assets. 522292 Real Estate Credit $41.5. 522310 Mortgage and Nonmortgage Loan Brokers $8.0. This Final rule affects lenders that utilize the SFHGLP and any potential lenders that may utilize the program in the future. There are approximately 1,873 lenders currently approved to utilize the SFHGLP. The Agency does not maintain data that identifies the number of approved lenders that would be considered small lenders, as defined above. However, it is estimated that less than 3 percent of approved SFHGLP lenders meet the criteria of a small lender. The Final rule is an enhancement to the SFHGLP, providing an opportunity for participating lenders to obtain delegated loan approval authority. Applying to become a Delegated Lender is optional. Small lenders, as described above, will be afforded the same opportunities to become a Delegated Lender as large lenders. Lenders who choose not to pursue delegated authority will continue to operate as they do today. All lenders are required to maintain a permanent loan file on each individual guaranteed borrower. This will remain a requirement for lenders utilizing delegating authority, as well as those who do not. This is typical for any mortgage loan product and is an action that is completed in a lenders' normal course of business. This requirement is consistent with standard mortgage industry practices and represents no additional burden of recordkeeping placed upon the lender or public. The qualifying factors involved in becoming a Delegated Lender will be based on a lender's loan performance using the same criteria regardless of the size of the lender. There are no costs assessed to lenders to apply for delegated authority, to continue participation in the program, or to receive Agency training. The undersigned has determined and certified by signature on this document, that this rule will not have a significant economic impact on a substantial number of small entities, since this rulemaking action does not involve a new or expanded program, nor does it require any more action on the part of a small business than would be required of a large entity. Executive Order 12372, Intergovernmental Review of Federal Programs This program is not subject to the requirements of Executive Order 12372, “Intergovernmental Review of Federal Programs,” as implemented under USDA's regulations at 7 CFR part 3015. Executive Order 13175, Consultation and Coordination With Indian Tribal Governments This proposed rule has been reviewed in accordance with the requirements of Executive Order 13175, “Consultation and Coordination with Indian Tribal Governments.” Executive Order 13175 requires Federal agencies to consult and coordinate with tribes on a government-to-government basis on policies that have tribal implications, including regulations, legislative comments or proposed legislation, and other policy statements or actions that have substantial direct effects on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes or on the distribution of power and responsibilities between the Federal Government and Indian tribes. The Agency has determined that this proposed rule does not, to our knowledge, have tribal implications that require formal tribal consultation under Executive Order 13175. If a Tribe requests consultation, the Rural Housing Service will work with the Office of Tribal Relations to ensure meaningful consultation is provided where changes, additions and modifications identified herein are not expressly mandated by Congress. Civil Rights Impact Analysis RD has reviewed this Final rule in accordance with USDA Regulation 4300-4, “Civil Rights Impact Analysis,” to identify any major civil rights impacts the rule might have on program participants on the basis of age, race, color, national origin, sex, disability, or marital or familial status. Based on the review and analysis of the rule and all available data, issuance of this Final rule is not likely to negatively impact low- and moderate-income populations, minority populations, women, Indian tribes or persons with disability, by virtue of their age, race, color, national origin, sex, disability, or marital or familial status. Programs Affected The program affected by this Final rule is listed in the Assistance Listing

(AL)( *formerly Catalog of Federal Domestic Assistance* ) Number 10.410, Very Low to Moderate Income Housing Loans and Loan Guarantees (Section 502 Rural Housing Loans). Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501, *et seq.* ), the information collection activities associated with this rule are covered under OMB Control Number 0575-0179. This Final rule contains no new reporting or recordkeeping requirements that would require approval under the Paperwork Reduction Act of 1995. Agency forms currently required will be eliminated for Delegated Lenders. As a result, the Agency anticipates a reduction in recordkeeping requirements upon implementation of this rule. E-Government Act Compliance RD is committed to the E-Government Act, which requires Government agencies in general to provide the public the option of submitting information or transacting business electronically to the maximum extent possible. USDA Non-Discrimination Policy In accordance with Federal civil rights laws and USDA civil rights regulations and policies, the USDA, its Mission Areas, agencies, staff offices, employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident. Program information may be made available in languages other than English. Persons with disabilities who require alternative means of communication to obtain program information ( *e.g.,* Braille, large print, audiotape, American Sign Language) should contact the responsible Mission Area, agency, staff office or the Federal Relay Service at

(800)877-8339.To file a program discrimination complaint, a complainant should complete a Form AD-3027, *USDA Program Discrimination Complaint Form,* found online at *https://www.usda.gov/sites/default/files/documents/ad-3027.pdf,* from any USDA office, by calling

(866)632-9992, or by writing a letter addressed to USDA. The letter must contain the complainant's name, address, telephone number, and a written description of the alleged discriminatory action in sufficient detail to inform the Assistant Secretary for Civil Rights about the nature and date of an alleged civil rights violation. The completed AD-3027 form or letter must be submitted to USDA by

(1)*Mail:* U.S. Department of Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC 20250-9410; or

(2)*Fax:*

(202)690-7442; or

(3)*Email: Program.Intake@usda.gov* . USDA is an equal opportunity provider, employer, and lender. List of Subjects in 7 CFR Part 3555 Administrative practice and procedure, Conflict of interest, Credit, Environmental impact statements, Fair housing, Flood insurance, Home improvement, Housing loan programs, Housing and community development, Low- and moderate-income housing, Manufactured homes, Mortgages, Reporting and recordkeeping requirements, Rural areas. For the reasons discussed in the preamble, the Agency is amending 7 CFR part 3555 as follows: PART 3555—GUARANTEED RURAL HOUSING PROGRAM 1. The authority citation for part 3555 continues to read as follows: Authority: 5 U.S.C. 301; 42 U.S.C. 1471 *et seq.* Subpart A—General 2. Amend § 3555.10 by adding the definition of “Delegated Lender” in alphabetical order to read as follows: § 3555.10 Definitions and abbreviations. *Delegated Lender.* An entity that meets the requirements under § 3555.51 and has been delegated authority by the Agency to underwrite and approve loans that meet the requirements of this part without prior review and approval by Agency staff, unless provided otherwise in this part. Subpart B—Lender Participation 3. Add § 3555.55 to read as follows: § 3555.55 Delegated Lenders.

(a)*General requirements.* The Agency may approve certain lenders for Delegated Lender status as defined in § 3555.10. The Delegated Lender assumes the responsibility for meeting all loan requirements on behalf of the Agency for the purposes of pre-closing loan processing, loan approval, and post-closing issuance of loan guarantee under subparts C, D, and E of this part with the following exceptions and clarifications:

(1)Application priority processing procedures under § 3555.107(a) are not applicable to applications processed by Delegated Lenders.

(2)Delegated Lenders must ensure appraisals meet the requirements under § 3555.107(d); however, loans made by Delegated Lenders are not subject to Agency administrative appraisal reviews prior to loan approval under § 3555.107(d)(4).

(3)The requirements relating to Conditional Commitments under § 3555.107(f) is not applicable to those lenders approved by the Agency as Delegated Lenders under the provisions of this subpart.

(b)*Modifications.* The following regulatory provisions in subpart A of this part are not applicable to Delegated Lenders or are modified as described in paragraphs (b)(1) and

(2)of this section:

(1)Applications processed by Delegated Lenders with a conflict of interest under § 3555.8 are not subject to the requirements under § 3555.8(d). The other paragraphs of § 3555.8 still apply.

(2)Environmental reviews will be completed under § 3555.5 and 7 CFR part 1970 prior to loan approval. SFHGLP loans are generally considered to meet the requirements for a categorical exclusion from the environmental review process described in the cited authorities, absent any extraordinary circumstances. If there is an extraordinary circumstance, the Delegated Lender must notify the Agency to decide the appropriate course of action.

(c)*Eligibility.* Lenders must be approved to participate in the SFHGLP as provided in § 3555.51 and meet the following requirements:

(1)Have participated in the SFHGLP for at least the previous two years;

(2)Met the performance standards established by the Agency for delinquency, default, loss claims, etc. for the previous two years; and

(3)Complete Agency sponsored training each year.

(d)*Automated underwriting system.* Delegated lenders must use the Agency's automated underwriting system as described in § 3555.107(b).

(e)*Oversight.* The Agency will monitor lender performance through the regular use of loan level data and lender oversight and monitoring reviews. If the lender is unwilling or unable to improve performance within an acceptable timeframe, the Agency may revoke Delegated Lender status.

(f)*Termination of delegated authority.*

(1)The Agency may suspend or terminate the lender's delegated status for reasons including, but not limited to:

(i)Approving loans that do not meet Agency guidelines.

(ii)Providing data to the Agency's automated underwriting system which is not supported by documentation retained by the lender.

(iii)Unacceptable portfolio performance as evidenced by delinquency, loss claim, default rates, material deficiencies, or any other performance metric established by the Agency; and

(iv)Noncompliance with other requirements described in § 3555.51, or if the Agency determines that other good cause exists.

(2)Termination of a Delegated Lender's participation in the SFHGLP under § 3555.52 automatically revokes Delegated Lender status without separate Agency action under paragraph

(g)of this section.

(g)*Revocation of delegated status.* Delegated Lenders will retain delegated status until revoked by the Agency or withdrawn by the lender. If the Agency revokes the delegated authority of a Delegated Lender, the Delegated Lender will be given appeal rights as specified in § 3555.4. This is distinct from termination from participation in the SFHGLP under § 3555.52.

(h)*Administration of delegated program.* The Agency may adjust, modify, or cancel the Delegated Lender program based on overall program considerations such as budget, program performance, and program integrity. Subpart C—Loan Requirements § 3555.107 [Amended] 4. Amend § 3555.107 by removing paragraph (i)(5). George Kelly, Administrator, Rural Housing Service. [FR Doc. 2026-05387 Filed 3-18-26; 8:45 am]

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