VA revised chapter 5 of the Servicer’s Handbook (M26-4). Sections 5.01, 5.02, 5.03, 5.04, 5.05, 5.07 and 5.10 were updated as follows:
- 5.01 to change the term ‘compromise sale’ to ‘short sale’ throughout the chapter, update details on reporting home retention events using the bulk upload template and the National Emergency Declaration (NED) RFD, and add reference to Appendix F and the VA Home Retention Waterfall;
- 5.02 to remove language related servicer reporting requirements;
- 5.03 to update the repayment plan process for loans impacted by a NED;
- 5.04 to update the special forbearance process for loans impacted by a NED;
- 5.05 to update the pre-approval process for loan modification and include and describe a new 40 year modification option;
- 5.07 to update the short sale process; and
- 5.10 to remove language related to Notice of Value Extension and alternatives to foreclosure.
The revisions are effective May 8, 2024.
Click to view the VA Transmittal of Change 10 to M26-4 (VA Servicer Handbook) Chapter 5, Loss Mitigation Options: https://www.tenaco.com/wp-content/uploads/2024/05/VA-Transmittal-of-Change-10-to-M26-4-VA-Servicer-Handbook-05-09-24.pdf
Click to view the VA Transmittal of Change 10 to M26-4 (VA Servicer Handbook): https://www.tenaco.com/wp-content/uploads/2024/05/VA-Transmittal-of-Change-10-to-M26-4-VA-Servicer-Handbook.pdf
