U.S. Secretary of Agriculture Brooke Rollins announced the removal of lenders from the USDA Rural Development Lending program.
The lenders removed from participation in the OneRD Guaranteed Lending program include portfolios with approximately $620 million in delinquent loans. According to the department this accounts for approximately 47% of Rural Development’s delinquent loans.
Secretary Rollins said, ““The Trump Administration has absolutely no tolerance for the irresponsible and noncompliant actions of these lenders and has banned them from participating in USDA guaranteed lending programs. I will continue to protect the American taxpayer and ensure their hard-earned dollars are spent where they belong – on projects that revive and strengthen rural America.”
The lenders that have been removed from the program include: Bank of Montgomery (BOM) Bank, Byline Bank, Celtic Bank, Community Bank & Trust – West Georgia, Genisys Credit Union, Greater Nevada Credit Union, North Avenue Capital, Optus Bank, U.S. Eagle Federal Credit Union, and ReadyCap Commercial.
According to the Department, “By taking immediate action to root out abuse, the USDA is strengthening its commitment to responsible lending practices and program integrity. This action will allow the USDA to provide improved customer service and support to the over 750 remaining lenders who continue to provide critical access to capital for rural America through the OneRD Guaranteed Lending Program.”
Audio Reporting by Dale Sandlin for Southeast AgNet.