Metro 2 Account Type Code 68: Government Secured Direct Loan

Specification

Code	68
Meaning	Government Secured Direct Loan
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)

Direct and secured: the government agency lent the money and holds a lien on pledged collateral.
The distinction from code 67 is collateral. The distinction from code 66 is that no private lender is involved.
Common in disaster-assistance and specialised agency lending programs where the agency takes a security interest in property or equipment.
Does NOT mean a government-insured mortgage. FHA, VA and USDA real-estate mortgages have their own Account Type codes and Portfolio Type M.
Does NOT mean a government fine or fee. A secured direct loan is a voluntary borrowing, not an imposed obligation.

1An agency reports a disaster-assistance loan secured by the repaired property, repaid on a long fixed amortization.
2An agency reports a direct loan secured by titled equipment used in the borrower's operation.
3An agency servicer reports a secured direct loan that was restructured with a longer term and a lower payment.
4An agency reports a secured direct loan on which the collateral was liquidated, leaving a deficiency balance still owed.
5An agency reports a secured direct loan paid in full at maturity with the lien released.

Report the disbursed principal as the Original Loan Amount and the remaining principal as the Current Balance.
Do not report the appraised or pledged collateral value. There is no field for it.
When a loan is restructured, report the new Terms Duration and Scheduled Monthly Payment going forward rather than rewriting the delinquency history that preceded it.
Do not report a secured direct loan on real estate as a mortgage Account Type unless the program actually is one of the mortgage products with its own code.
Continue reporting the tradeline through any administrative offset or collection process rather than dropping it from the file.

A file can be structurally valid and still be wrong. These are the cross-field conditions Account Type Code 68 has to satisfy.

Portfolio Type must be I (Installment).
Portfolio Type I requires Terms Duration and Scheduled Monthly Payment and does not use Credit Limit.
Because the loan is not Portfolio Type M, the K3 Mortgage Information segment does not apply. Shipping a K3 segment against Portfolio Type I is a segment-versus-portfolio contradiction.
Terms Duration on long-dated agency loans can run well past a typical consumer term; report the actual contractual months rather than truncating to a common value.
A restructure changes Terms Duration and Scheduled Monthly Payment prospectively; the Payment History Profile continues unbroken.
Date of First Delinquency, once set by an uncured delinquency, survives a restructure unless the account genuinely returns to current under the original terms.
Credit Limit must be blank or zero. A populated limit on Portfolio Type I triggers utilization and over-limit edits that an amortizing loan can never satisfy.
Where recovery moves to administrative offset against federal payments, report the offset amounts as payments so the falling Current Balance and the Actual Payment Amount reconcile.
A co-borrower or co-signer on the agency note ships in a J1 or J2 segment with a joint or co-maker ECOA code, never as a second Base Segment for the same loan.