VALERI Servicer Newsflash

Investor Update
October 13, 2017

Reporting on Loans Impacted by Natural Disaster– Servicers should not report an Electronic Default Notification (EDN) event on current loans that are impacted by a natural disaster. The EDN event should only be reported prior to the 61st day of delinquency, with “Property Problems” as the reason for default, if there has been contact with the Veteran and they plan to abandon the property or pursue an alternative to foreclosure. When the loan reaches the 61st day of delinquency, servicers should use “Casualty Loss” as the reason for default when reporting the EDN event. This will assist VA in identifying loans that defaulted as a result of a natural disaster.

Bill of Collections Status and Offsets Report –
The Claim Summary and Claim Detail Results reports currently do not include negative claims. Enhancements to the reports are scheduled for later this year. Servicers should pull the Bill of Collections Status and Offsets report in VALERI to ensure notification of negative claims is received timely.

Title Disputes on Conveyed Properties - We have seen an increase in attorneys going directly to the VA National Practice Group on appeals for re-conveyance. Please refer to Circular 26-15-2, which provides guidance on the dispute process. Any disputes must be submitted by the servicer and not the attorney.

Source: VA


Stay informed about the latest industry news and events with our All Client Alert email newsfeed.

Ask The CEO

Got a question about Safeguard in the industry? Let us know in our Ask the CEO online Q&A section.