VA Circular Outlines Relief Efforts For Gulf Coast Borrowers

Posted by Orb Staff on June 24, 2010 No Comments
Categories : Mortgage Servicing

partment of Veterans Affairs (VA) has joined agencies Fannie Mae and Freddie Mac in encouraging its servicers to ‘extend every possible forbearance’ to veteran borrowers experiencing difficulties because of the Gulf Coast oil spill. According to VA circular 26-10-8, borrower counseling can help servicers determine whether a homeowner's difficulties are directly or indirectly related to the oil-spill crisis, or whether they stem from other reasons. The agency instructs servicers to consider payment histories and loan seasoning and extend forebearance for borrowers with excellent records who are suddenly struggling because of the spill. Borrowers with less than excellent payment histories should also be given additoinal opportunities to resolve their issues, the VA says. The VA also is encouraging its servicers to waive late-payment charges and suspend derogatory credit reporting on borrowers affected by the spill. SOURCE: [link=http://www.homeloans.va.gov/circulars/26_10_8.pdf ]Department of Veterans Affairs

Register here to receive our Latest Headlines email newsletter




Leave a Comment