H.R. 7789: Federal Loan Systems Modernization Act of 2026

This bill, known as the Federal Loan Systems Modernization Act of 2026, aims to improve the management of federal loan programs through the establishment of a centralized online platform called Lending.gov. This new platform will serve as a shared services system for federal agencies, enabling them to access various federal loans more efficiently. The key points of the bill include:

Purpose of the Bill

• To modernize outdated and fragmented technology that is currently used in managing multiple federal lending processes.
• To improve the accessibility and administrative efficiency of federal loan programs by creating a single application platform.
• To set government-wide standards for loan management, enhancing program effectiveness across agencies.

Establishment of Lending.gov

Within six months of the bill's enactment, federal agencies must submit a plan for establishing Lending.gov, which will include:

• Designating a lead agency to host and operate the platform.
• Reviewing existing federal loan programs for integration into the platform.
• Identifying areas of inefficiency and waste in current systems.
• Proposing an operational framework for the platform.
• Integrating commercial loan management technology to facilitate operations.
• Providing an implementation timeline and estimated costs.

Operations of Lending.gov

The lead agency (referred to as the Provider) will have several responsibilities:

• Maintain and improve the Lending.gov platform and ensure compliance with federal regulations.
• Staff will provide support and onboarding for agencies using the platform.
• Implement tools for application processing, underwriting, servicing, reporting, and fraud detection.
• Conduct annual surveys of customer agencies to assess satisfaction with the platform's performance and functionality.
• Establish performance metrics and reporting systems to monitor the effectiveness of the platform.

Migration to the Platform

Within two years of the plan's submission, agencies will begin migrating their loan management systems to Lending.gov, with a deadline of three years for full compliance. Criteria for migration include:

• Agencies must migrate if they handle large volumes of loans (more than 50 annually) or manage significant loan amounts (over $10 million).
• Agencies may receive exceptions if migration is deemed impractical, granted by the Director of the Office of Management and Budget with congressional notification requirements.

Oversight and Compliance

The General Services Administration will oversee the migration and management of Lending.gov, ensuring agencies comply with the established standards and addressing any deficiencies identified through performance surveys.

Financing Operations