VA revised chapter 9 of the Servicer’s Handbook (M26-4). Chapter 9 was retitled from “Refunds” to “VA Purchase”. Sections 9.01 and 9.02 were also updated as follows:
- 9.01 to retitle the section VA Purchase General and to establish 2 types of VA purchases; and
- 9.02 to retitle the section Traditional VA Purchase (tVAP) Consideration and to provide process updates, including initiating a tVAP consideration and general requirements.
In addition, 7 new sections (9.03 through 9.09) were added to outline:
- The processing of tVAP loans, including guidance on what VA will pay in a refund, reaching out to the National Practice group and checking for government debt, the timing and necessity of the Purchase Claim and the addition of more details on set up sheets, loan boarding, VA Purchase loan modification details and title policy processing;
- The VA Servicing Purchase (VASP) submission process, including the servicers review of qualifying loan criteria and VASP eligibility requirements;
- VASP Terms for VASP submissions;
- The terms of VASP with a trial payment plan;
- The review and timeframes of the VASP event submission;
- The VASP payment process and loan review, including the VASP loan modification process; and
- Where additional information on the VASP post-audit process can be found.
Appendix F was also added to provide instructions regarding the VA Home Retention Waterfall. The revisions are effective May 31, 2024.
Click to view the VA VA Transmittal of Change 9 to M26-4, Servicer Handbook: https://www.tenaco.com/wp-content/uploads/2024/04/VA-Transmittal-of-Change-9-to-M26-4-Servicer-Handbook-04-11-24.pdf
