VA issued Circular 26-23-12 to update COVID-19 home retention waterfall and temporary home retention options (loan deferment and COVID-19 refund modification) following the termination of the COVID-19 pandemic. As of October 29, 2022, VA can no longer accept new applications for the COVID-19 Veterans Assistance Partial Claim Payment. As a result, VA updated the COVID-19 Home Retention Waterfall to reflect existing home retention options (including loan deferment and the COVID-19 Refund Modification) servicers must use through December 31, 2023. This provides servicers with an updated step-by-step waterfall structure that includes updates in all 3 waterfall starting points. The Circular went into effect July 1, 2023.
Click to view the VA Circular 26-23-12: https://www.tenaco.com/wp-content/uploads/2023/08/VA-Circular-26-23-12-7-19-23.pdf
Click to view the VA Circular 26-23-12 Exhibit A: https://www.tenaco.com/wp-content/uploads/2023/08/VA-Circular-26-23-12-Exhibit-A-07-19-23.pdf
