Single Family Housing Guaranteed Loan Program-Limited Party Concessions

Issuing agencies

Abstract

Rural Housing Service (RHS or the Agency), a Rural Development (RD) agency of the United States Department of Agriculture (USDA), amends the Single Family Housing Guaranteed Loan Program (SFHGLP) regulation to clarify real estate commission fees are not included in the limit on interested party concessions.

Full Text

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<title>Federal Register, Volume 91 Issue 215 (Monday, November 9, 2026)</title>
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[Federal Register Volume 91, Number 215 (Monday, November 9, 2026)]
[Rules and Regulations]
[Pages 70769-70771]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-22772]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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Federal Register / Vol. 91, No. 215 / Monday, November 9, 2026 / 
Rules and Regulations

[[Page 70769]]



DEPARTMENT OF AGRICULTURE

Rural Housing Service

7 CFR Part 3555

[Docket No. RHS-26-SFH-0364]
RIN 0575-AD47


Single Family Housing Guaranteed Loan Program-Limited Party 
Concessions

AGENCY: Rural Housing Service (RHS), U.S. Department of Agriculture 
(USDA).

ACTION: Final rule.

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SUMMARY: Rural Housing Service (RHS or the Agency), a Rural Development 
(RD) agency of the United States Department of Agriculture (USDA), 
amends the Single Family Housing Guaranteed Loan Program (SFHGLP) 
regulation to clarify real estate commission fees are not included in 
the limit on interested party concessions.

DATES: This final rule is effective November 9, 2026.

FOR FURTHER INFORMATION CONTACT: Laurie Mohr, Finance & Loan Analyst, 
Single Family Housing Guaranteed Loan Division, Rural Development, U.S. 
Department of Agriculture, STOP 0784, Room 2250, South Agriculture 
Building, 1400 Independence Avenue SW, Washington, DC 20250-0784, 
email: <a href="/cdn-cgi/l/email-protection#6a060b1f18030f44070502182a1f190e0b440d051c"><span class="__cf_email__" data-cfemail="8ae6ebfff8e3efa4e7e5e2f8cafff9eeeba4ede5fc">[email&#160;protected]</span></a>, or Phone: 314-679-6917.

SUPPLEMENTARY INFORMATION:

Abbreviations

CFR Code of Federal Regulations
FR Federal Register
RHS Rural Housing Service
Sec.  Section
SFH Single Family Housing
SFHGLP Single Family Housing Guaranteed Loan Program
USDA U.S. Department of Agriculture

Statutory Authority

    SFHGLP is authorized by Section 502(h) of Title V of the Housing 
Act of 1949 (42 U.S.C. 1472(h)), as amended; and is implemented by 7 
CFR part 3555.

Background

    RHS offers programs to develop and enhance housing and critical 
community infrastructure in rural areas. RHS provides loans, grants, 
and loan guarantees for single and multi-family housing, childcare 
centers, emergency service facilities, hospitals, libraries, nursing 
homes, schools, and housing for agricultural workers, among other 
essential projects. RHS partners with non-profits, tribal governments, 
and state/federal agencies to provide technical assistance and 
supplementary financing to local communities.
    Section 502(h) of the Housing Act of 1949 (42 U.S.C. 1472(h)) 
authorizes RHS to provide Single Family Housing (SFH) loan guarantees, 
providing low- and moderate-income individuals in rural areas an 
opportunity to own decent, safe, and sanitary dwelling and related 
facilities. Providing affordable homeownership opportunities promotes 
prosperity, which in turn creates thriving communities and improves the 
quality of life in rural areas.

Discussion of Public Comments

    RHS published a proposed rule on April 20, 2026 (91 FR 20941) to 
amend SFHGLP regulation at 7 CFR part 3555. RHS received comments from 
11 respondents, including individuals, interested parties, and one 
association.
    The following summary presents the relevant comments:
    Public Comment: Ten respondents replied they were in favor of the 
proposed rule, indicating real estate commission fees should not be 
included in the limit on interested party concessions.
    Agency's Response: RHS appreciates the commenters' support and has 
determined no action is required.
    Public Comment: One respondent agreed the proposal may offer 
benefits to homebuyers but cautioned the provision could be susceptible 
to misuse, potentially resulting in improper rebates to homebuyers.
    Agency's Response: RHS appreciates this comment. Lenders must 
follow all consumer financial protection laws and standards enforced by 
the Consumer Financial Protection Bureau (CFPB) when originating and 
closing mortgage loans. RHS regulations also prohibit applicants from 
receiving cash back at closing beyond out-of-pocket costs.
    In addition, lenders must set fees and charges which are reasonable 
and customary pursuant to 7 CFR 3555.101(b)(6), must comply with point 
and fee limits established by the CFPB, and may not charge amounts 
higher than those charged to other applicants for comparable 
transactions. Based on these existing safeguards, RHS has determined no 
action is required.

Summary of Changes to Rule

    RHS amends its regulations to clarify real estate commission fees 
are excluded from the interested party concession limitation, aligning 
the policy with prevailing mortgage industry standards. Excluding real 
estate commission fees from the six percent seller concession 
limitation allows sellers to contribute more toward borrower closing 
costs, necessary repairs, or other permissible transaction expenses. 
This change enables applicants to retain more of their own funds for 
future investments, home improvements, or the purchase of goods and 
services, thereby supporting economic activity.
    This final rule implements the changes published in the proposed 
rule (91 FR 20941; April 20, 2026), as follows:
    (1) Amend 7 CFR 3555.102(h) by revising the definition of seller 
concessions to read as follows:
    Seller concessions. Purchasing a home if the seller, or other 
interested third party, contributes more than 6 percent, unless 
otherwise provided by the Agency, of the property's sales price toward 
the purchaser's mortgage financing costs, closing costs, escrow 
accounts, furniture, or other giveaways. Real estate commission fees 
are excluded from the 6 percent seller concession limitation.

Executive Orders and Statutory Regulatory Review Requirements

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.

[[Page 70770]]

Executive Order 12866, Regulatory Planning and Review

    This final rule has been determined to be not significant under 
section 3(f) of Executive Order 12866 and, therefore, has not been 
reviewed by the Office of Management and Budget (OMB).

Executive Order 12988, Civil Justice Reform

    This final rule was reviewed under Executive Order 12988. In 
accordance with this rule: (1) unless otherwise specifically provided, 
all State and local laws that conflict with this rule will be 
preempted; (2) no retroactive effect will be given to this rule except 
as specifically prescribed in the rule; and (3) administrative 
proceedings of the National Appeals Division of the Department of 
Agriculture (7 CFR part 11) must be exhausted before bringing suit in 
court that challenges action taken under this rule.

Executive Order 13132, Federalism

    The policies contained in this final rule do not have any 
substantial direct effect on states, on the relationship between the 
national government and states, or on the distribution of power and 
responsibilities among the various levels of government. This rule does 
not impose substantial direct compliance costs on state and local 
governments. Therefore, consultation with the state is not required.

Executive Order 13175, Consultation and Coordination With Indian Tribal 
Governments

    This final rule was 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. Consultation is also 
required for any regulation that preempts tribal law or that imposes 
substantial direct compliance costs on Indian tribal governments and 
that is not required by statute.
    The Agency has determined that this rule does not 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.

Assistance Listing Number

    The program affected by this final rule is listed in the Assistance 
Listing (AL) Number 10.410, Very Low- to Moderate-Income Housing Loans 
(Section 502 Rural Housing Loans).

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, political 
beliefs, marital status, familial status, parental status, veteran 
status, religion, reprisal and/or resulting from all or a part of an 
individual's income being derived from any public assistance program. 
This final rule is within a Guarantee-based program. Guarantees are not 
covered under Title VI of the Civil Rights Act of 1964, Section 504 of 
the Rehabilitation Act of 1973, and Title IX of the Education 
Amendments Act of 1972, as amended, when the Federal assistance does 
not include insurance or interest credit loans. Lenders must comply 
with other applicable Federal laws, including Equal Employment 
Opportunities, the Equal Credit Opportunity Act, the Fair Housing Act, 
and the Civil Rights Act of 1964. Guaranteed loans that involve the 
construction of or addition to facilities that accommodate the public 
must comply with the Architectural Barriers Act Accessibility Standard. 
The borrower and lender are responsible for ensuring compliance with 
these requirements.

Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated this final 
rule as not a major rule, as defined by 5 U.S.C. 804(2).

E-Government Act Compliance

    Rural Development 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 and to promote the use of the internet 
and other information technologies to provide increased opportunities 
for citizen access to Government information and services, and for 
other purposes.

National Environmental Policy Act

    In accordance with the National Environmental Policy Act of 1969, 
Public Law 91-190, this rule was 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 
1b.4(c)(31) and (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.

Paperwork Reduction Act

    This final rule contains no new reporting or recordkeeping burden 
under OMB Control Number 0575-0179 that would require approval under 
the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35).

Regulatory Flexibility Act

    This final rule was reviewed with regard to the requirements of the 
Regulatory Flexibility Act (5 U.S.C. 601-612). 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 required of a large entity.

The Reform Act for Unfunded Mandates

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for federal agencies to assess the 
effects of their regulatory actions on state, local, and tribal 
governments and on 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.

[[Page 70771]]

    This final rule contains no Federal mandates (under the regulatory 
provisions of Title II of the UMRA) for state, local, and tribal 
governments, or for the private sector. Therefore, this rule is not 
subject to the requirements of sections 202 and 205 of the UMRA.

Non-Discrimination Policy

    In accordance with Federal civil rights laws and U.S. Department of 
Agriculture (USDA) civil rights regulations and policies, the USDA, its 
Agencies, offices, and 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.
    Persons with disabilities who require alternative means of 
communication for program information (e.g., Braille, large print, 
audiotape, American Sign Language, etc.) should contact the State or 
local Agency that administers the program or contact USDA through the 
Telecommunications Relay Service at 711 (voice and TTY). Additionally, 
program information may be made available in languages other than 
English.
    To file a program discrimination complaint, complete the USDA 
Program Discrimination Complaint Form, AD-3027, found online at How to 
File a Program Discrimination Complaint and at any USDA office or write 
a letter addressed to USDA and provide in the letter all of the 
information requested in the form. To request a copy of the complaint 
form, call (866) 632-9992. Submit your completed form or letter to USDA 
by: (1) mail: U.S. Department of Agriculture, Office of the Assistant 
Secretary for Civil Rights, 1400 Independence Avenue SW, Mail Stop 
9410, Washington, DC 20250-9410; (2) fax: (202) 690-7442; or (3) email: 
<a href="/cdn-cgi/l/email-protection#a3d3d1ccc4d1c2ce8dcacdd7c2c8c6e3d6d0c7c28dc4ccd5"><span class="__cf_email__" data-cfemail="aededcc1c9dccfc380c7c0dacfc5cbeedbddcacf80c9c1d8">[email&#160;protected]</span></a>.
    USDA is an equal opportunity provider, employer, and lender.

List of Subjects in 7 CFR Part 3555

    Administrative practice and procedure, Conflicts of interest, 
Credit, Environmental impact statements, Fair housing, Flood insurance, 
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, RHS amends 7 CFR part 
3555 as follows:

PART 3555--GUARANTEED RURAL HOUSING PROGRAM

0
1. The authority citation for 7 CFR Part 3555 continues to read as 
follows:

    Authority:  5 U.S.C. 301; 42 U.S.C. 1471 et seq.

Subpart C--Loan Requirements

0
2. Amend Sec.  3555.102 by revising paragraph (h) to read as follows:


Sec.  3555.102   Loan restrictions.

* * * * *
    (h) Seller concessions. Purchasing a home if the seller, or other 
interested third party, contributes more than 6 percent, unless 
otherwise provided by the Agency, of the property's sales price toward 
the purchaser's mortgage financing costs, closing costs, escrow 
accounts, furniture, or other giveaways. Real estate commission fees 
are excluded from the 6 percent seller concession limitation.

George Kelly,
Administrator, Rural Housing Service.
[FR Doc. 2026-22772 Filed 11-6-26; 8:45 am]
BILLING CODE 3410-XV-P


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