VA issued Circular 26-20-7: Special Relief for those Potentially Impacted by COVID-19 (Circular). Per the Circular, loan holders are encouraged to extend forbearance to borrowers in distress as a result of COVID-19. Servicers should work with impacted borrowers who are unable to make their mortgage payments to ensure they are evaluated for VA Loss Mitigation options. In addition, servicers are encouraged to suspend credit bureau reporting and to adopt policies that waive late charges for affected loans.
For more information, see:
https://www.benefits.va.gov/HOMELOANS/documents/circulars/26_20_7.pdf
