VA Proposes Servicing Revamp

The Department of Veterans Affairs is proposing to revamp its servicing requirements and delegate more responsibilities to private servicers, particularly in the area of loss mitigation."The new regulations will change just about every aspect of our servicing operation," said Keith Pedigo, director of the VA loan guarantee program. VA personnel currently handle loss mitigation efforts after a veteran misses three monthly payments. Under a proposed rule, which is being issued for 60-day comment period, private servicers will handle loss mitigation. However, the VA will be monitoring the servicers' performance through a new electronic reporting system. And the VA will intervene if necessary, Mr. Pedigo told MortgageWire. "We want to make sure -- doubly sure -- that veterans are being given every possible opportunity to save their properties," he said. The proposed rule is expected to be published in the Federal Register by Feb. 18.