VA revised Servicer Handbook (M26-4). Revisions to the Servicer Handbook include: clarification of Electronic Default Notification requirements for loss mitigation and alternatives to foreclosure; additional guidance for trial payment plans; clarification of document requirements for repayment plans and special forbearances; additional instruction on insurance policies and related refunds; clarification of policy regarding the payment of taxes after loan termination; additional direction for funds received after an initial claim payment; and correction of criteria for Post Audit selection by removing the “modification with no incentive paid” option. In addition, the Servicer Handbook revisions now permit winterization advances all year in states where the advance is payable. The revisions were issued on February 26, 2019.
Click Here to View the VA Transmittal of Change 8 to Servicer Handbook (M26-4)
