GLICKMAN ANNOUNCES ACTIONS ON LOAN FORECLOSURE ISSUE


                                            Release No. 0132.97



                                   Tom Amontree  (202) 720-4623
                                   Jim Petterson (202) 720-4623


GLICKMAN ANNOUNCES ACTIONS ON LOAN FORECLOSURE ISSUE

     WASHINGTON, April 23, 1997--Agriculture Secretary Dan Glickman today
unveiled a five-point plan for ensuring that discrimination is not a factor
in any USDA farm loan foreclosure.

     "I want to be clear about what this new policy will do,"  Glickman
said.  "This policy assures the farmers who borrow from us and our own
employees that we are serious about implementing the recommendations of the
Civil Rights Action Team (CRAT) report that recommended that the Department
of Agriculture (USDA) ensure that discrimination does not cause loan
foreclosures.  In addition, it strengthens the policy on preventing
discrimination in foreclosures that I announced on December 18, 1996."   

The components of the new policy are:

          One, USDA has established an independent review team to examine
     loans that are facing foreclosures and make sure that discrimination
     or inequitable treatment is not a factor before any foreclosure
     actions are taken.
 
          Two, USDA will continue to apply our loan servicing programs,
     known as 1951-S programs, to all accounts.  USDA can often use these
     tools to work with borrowers who are overdue in making their payments
     to become current and work-out the loans outside of the foreclosure
     process.
  
          Three, USDA will not accelerate any new loans or call any new
     loans due until the independent team has reviewed the account and
     found no evidence of discrimination or inequitable treatment.
  
          Four, if a loan has already been called or accelerated, USDA
     will not take any further steps until the independent team has
     conducted its review and made a finding of no evidence of
     discrimination or inequitable treatment. 
 
          Five, the Farm Service Agency (FSA) must process new loans from
     borrowers with pending discrimination complaints.  If an FSA loan
     officer is alleged to have discriminated against the prospective
     borrower, the application will be assigned to another loan officer. 
     If the new loan is refused, the applicant must be advised both in a
     face-to-face meeting and in writing.



                                
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     "I applaud the efforts of the Civil Rights Implementation Team and all
USDA employees who are working hard to improve the civil rights record of
this Department," Glickman said. "We have made substantial progress.  In
recent weeks, we settled two longstanding discrimination complaint cases   a
strong signal that USDA stands ready to resolve quickly and fairly
legitimate civil rights complaints. With this new plan and strong commitment
to civil rights up and down the ranks, we will continue to move quickly and
accomplish even more."

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