Single Family Housing Section 502 Guaranteed Loan Program Lender Interactive Test Environment (LITE) Delegated Authority Pilot Program

The Rural Housing Service (RHS), a division of the Rural Development Agency within the United States Department of Agriculture (USDA), is implementing the Lender Interactive Test Environment (LITE) Delegated Authority Pilot Program for the Section 502 Single Family Housing Guaranteed Loan Program (SFHGLP). The purpose of this pilot program is to test a change in the SFHGLP loan approval process by replacing the Agency's pre-closing loan approval requirement with the delegation of loan approval authority to eligible lenders, consistent with the Delegated Authority final rule (Federal Register Docket Number RHS-21-SFH-0017). This pilot program is authorized under 42 U.S.C. 1476(b). This notice provides detailed information about the pilot program, including eligibility criteria, application process, operational procedures, monitoring, and oversight mechanisms.