Metro 2 Account Type Code 2C: USDA (Rural Development) Mortgage

Specification

Code	2C
Meaning	USDA (Rural Development) Mortgage
Field	Account Type (Field 15)
Record	Base Segment
Length / position	2 chars · 84–85
Category	Government Obligations
CRRG reference	CRRG Exhibits 1 & 2 (Account Type Codes)

Eligibility turns on the property's location and the borrower's income, which is unusual among the mortgage codes.
Covers both the guaranteed programme, where a private lender originates and the agency guarantees, and direct agency lending where the agency itself is the lender. That is a wider span than 19 or 25 cover, and it is why two 2C tradelines can look structurally different from each other.
A mortgage account type carrying the K3 segment, sitting in the mortgage view of the consumer file.
Does NOT cover an FHA or VA loan. Those are 19 and 25, and each affects different downstream eligibility questions.
Does NOT cover a conventional loan on a rural property. Rural location alone does not make a loan a Rural Development loan, and payment-subsidy features on direct loans change the payment reported, never the account type.

1A lender reports a 30-year USDA guaranteed purchase loan on a home in an eligible rural area.
2A servicer reports a Rural Development direct loan with a payment subsidy, reporting the subsidized payment as scheduled.
3A servicer reports a USDA loan boarded from an acquired portfolio under 2C rather than defaulting to 08.
4A lender reports a USDA streamlined-assist refinance as a new tradeline while the prior loan reports paid.
5A servicer reports a USDA loan in a loss-mitigation plan through Account Status and Special Comment.

Populate the K3 segment with the correct mortgage type and property indicator.
Do not report a USDA loan as conventional. The programme is a material fact for refinance eligibility.
Report a subsidized payment as the scheduled payment actually owed, and update it when the subsidy is recalculated. Direct-loan subsidies are recalculated periodically, so a Scheduled Monthly Payment Amount that never moves on a subsidized loan is a red flag.
Keep Account Type 2C through modification, forbearance, and foreclosure. The programme does not change because the loan's performance did.
When servicing transfers, board and report the same account type so the loan does not appear to change products, and close the transferring tradeline with a zero balance.

A file can be structurally valid and still be wrong. These are the cross-field conditions Account Type Code 2C has to satisfy.

Portfolio Type must be M (Mortgage), which is the portfolio type that brings the K3 segment into play with mortgage identification number, mortgage type, and property indicator.
Portfolio Type M requires a Scheduled Monthly Payment Amount and a numeric Terms Duration in months, typically 360 and occasionally 384 on direct loans.
Credit Limit must be zero-filled.
Highest Credit / Original Loan Amount carries the original principal, including a financed guarantee fee where applicable.
Terms Frequency is normally M.
When a payment subsidy changes the amount owed, update Scheduled Monthly Payment Amount rather than leaving the original figure in place.
Date of First Delinquency must be populated on any delinquent tradeline and must survive a subsidy recalculation or modification unchanged.