USDA Removes 10 Lenders From OneRD Loan Program
USDA revoked 10 lenders from the OneRD Guaranteed Lending Program over delinquent loans and compliance concerns.
The U.S. Department of Agriculture (USDA) has removed 10 lenders from participation in the USDA Rural Development OneRD Guaranteed Lending Program, citing irresponsible and noncompliant lending practices.
According to the agency, the lenders being removed hold portfolios with approximately $620 million in delinquent loans, representing about 47% of Rural Development’s delinquent loan portfolio.
U.S. Secretary of Agriculture Brooke Rollins announced the decision May 12.
“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,” said Secretary Rollins. “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 following lenders were removed from the OneRD Guaranteed Lending Program:
- 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
- ReadyCap Commercial
USDA said the move is intended to strengthen responsible lending practices and improve oversight within the program. The department stated that the action will allow Rural Development to focus support and customer service efforts on the more than 750 remaining approved lenders participating in the OneRD Guaranteed Lending Program.
The OneRD Guaranteed Lending Program supports rural economic development through loan guarantees designed to improve access to capital for businesses, infrastructure projects and community development efforts in rural areas.
USDA Rural Development administers loan, grant and loan guarantee programs that support broadband expansion, electric and transportation infrastructure, healthcare, education, housing and business growth across rural America.
Additional information about USDA Rural Development programs is available through USDA Rural Development.
