State housing agencies have expressed support for a proposed rule change by the U.S. Department of Agriculture’s Rural Housing Service that would expedite claim submission, but sought clarification on certain provisions. The proposed rule would amend the USDA’s current rules on liquidation-value appraisals under the agency’s Section 502 Single Family Housing Guaranteed Loan Program. Currently, if a real estate-owned property remains unsold by the lender at the end of a prescribed marketing period, the RHS will order a liquidation value appraisal to estimate the cost of holding and disposing of the REO. However, several housing finance agencies have complained about the RHS’ lengthy claims process, which forces them and other lenders to keep unpaid claims on their books longer than necessary. “Such lengthy waiting periods can be particularly costly to HFAs and other ...