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Home Loans

Previous Circulars/News

View by Year 

2013

Circular 26-13-29 - December 26, 2013
Mandatory Electronic Delivery of Loan Files
PURPOSE: This Circular announces that the Department of Veterans Affairs (VA) will require the electronic submission of home loan files selected for full file loan review, effective January 1, 2014. 

Circular 26-13-28 - December 18, 2013
2014 Department of Veterans Affairs Loan Limits
PURPOSE: This circular announces the 2014 county loan limits. 

Circular 26-13-27 - December 16, 2013
Increases in Allowable Attorney Fees and Changes in Preferred Foreclosure Methods
PURPOSE: The purpose of this Circular is to announce new maximum attorney fees allowable in guaranty claims, and changes in preferred foreclosure methods. 

Circular 26-13-26 - December 3, 2013
Special Relief Following the Midwest Tornadoes
PURPOSE: This Circular expresses concern for Department of Veterans Affairs (VA) home loan borrowers affected by the Midwest tornadoes, and describes measures mortgagees may employ to provide relief. 

Circular 26-13-24 - November 8, 2013
Updated Department of Veterans Affairs (VA) Water/Sewer Connection Requirements
PURPOSE: The purpose of this Circular is to provide the updated VA requirements for water/sewer connection for properties which are on individual water and/or sewer systems. 

Circular 26-13-23 - October 9, 2013
Special Relief Following the Federal Government Shutdown
PURPOSE: This Circular expresses concern about Department of Veterans Affairs (VA) home loan borrowers affected by the Federal Government shutdown, and describes measures mortgagees may employ to provide relief. 

Circular 26-13-22 - October 7, 2013
Clarification of Income Verification Guidelines
PURPOSE: This Circular discusses the impact of the Government shutdown as it relates to verifying a borrower’s income. It clarifies Department of Veterans Affairs (VA) income verification guidelines for both W-2 wage earners and self-employed borrowers. 

Circular 26-13-21 - September 30, 2013
Annual Increase in Construction Cost Index and Specially Adapted Housing (SAH), Special Housing Adaptations (SHA), and Temporary Residence Adaptations (TRA) Grants
PURPOSE: Effective October 1, 2013, the Department of Veterans Affairs (VA) announces that the SAH, SHA, and TRA grant amounts will increase. 

Circular 26-13-20 - September 30, 2013
Lender/Servicer Impact on the Department of Veterans Affairs Home Loan Guaranty Program if the Government is Shutdown
PURPOSE: This Circular provides guidance to stakeholders regarding the impact on the Department of Veterans Affairs (VA) Home Loan Guaranty program in the event of a Government shutdown. 

Circular 26-13-19 - September 27, 2013
Department of Veterans Affairs (VA) Acceptance of Properties
PURPOSE: This Circular provides guidance on requests for execution of documents related to the conveyance or reconveyance of properties to the Secretary of the Department of Veterans Affairs (VA) in order to provide more specific details to those authorized to sign documents for the Secretary, and to those who submit such documents. 

Circular 26-13-18 - September 26, 2013
Interim Process for Determining Spousal Income Qualifications in Jurisdictions that Recognize Same-Sex Marriages
PURPOSE: Effective immediately, the Department of Veterans Affairs (VA) will, to the extent legally possible, begin reviewing applications for the home loan guaranty benefit for same-sex married couples in a manner consistent with processes currently used for opposite-sex married couples. 

Circular 26-13-16 - September 19, 2013
Special Relief Following Flooding In Colorado
PURPOSE: This Circular expresses concern about Department of Veterans Affairs (VA) home loan borrowers affected by flooding in Colorado, and describes measures mortgagees may employ to provide relief. 

Circular 26-13-15 - September 3, 2013
New Percentage to Determine Net Value
PURPOSE: The purpose of this circular is to announce a change concerning the percentage to be used in calculating the purchase price of a property that secured a terminated loan. The new percentage is 14.95 percent, effective October 8, 2013. 

Circular 26-13-14 - August 29, 2013
Department of Veterans Affairs (VA) Staff Appraisal Reviewer (SAR) Online Training Program
PURPOSE: The purpose of this circular is to announce the VA SAR online training program known as the SAR Training and Performance Support System (SAR TPSS). 

Circular 26-13-13 - August 22, 2013
Use of Electronic Signatures in Conjunction with Department of Veterans Affairs (VA) Guaranteed Home Loans
PURPOSE: The purpose of this circular is to clarify that electronic signatures are acceptable for use in conjunction with the VA Home Loan program. 

Circular 26-13-12 - June 28, 2013
Principal Reduction Alternative (PRA) for Department of Veterans Affairs (VA) Loans
PURPOSE: This circular clarifies the ability of servicers and loan holders to utilize principal reductions in connection with the modification of VA-guaranteed home loans.

Circular 26-13-11 - June 17, 2013
Special Relief Following the Colorado Fire
PURPOSE: This circular expresses concern about Department of Veterans Affairs (VA) home loan borrowers affected by the Colorado Springs fire, and describes measures mortgagees may employ to provide relief.

Circular 26-13-9 - May 22, 2013
Special Relief Following Oklahoma Tornadoes
PURPOSE: This circular expresses concern about Department of Veterans Affairs (VA) home loan borrowers affected by Oklahoma's severe storms and tornadoes, and describes measures mortgagees may employ to provide relief.

Circular 26-13-8 - May 21, 2013
Important Information on Veterans Information Portal (VIP) Security Functions
PURPOSE: The purpose of this circular is to remind lenders and servicers of recently enhanced security features for VIP as it relates to the PIN and its use.

Circular 26-13-5 - April 8, 2013
Late Reporting of Guaranty
PURPOSE: The purpose of this circular is to remind lenders of their responsibility to enter guaranty requests in the Department of Veterans Affairs (VA) webLGY system within 60 days of loan closing.

Circular 26-13-4 - March 12, 2013
VIP Administrative User Designation
PURPOSE: The purpose of this circular is to discuss recent e-mails sent to lender and servicer points of contact (POCs) and to inform them of action required to ensure validated users are not deactivated. These actions are required to ensure and enhance overall security for the Department of Veterans Affairs (VA) Veterans Information Portal (VIP).

Circular 26-09-5 - Change 1 - March 12, 2013
VA Appraisal Requirements on Foreclosed Properties
PURPOSE: The purpose of this change is to extend the rescission date of the basic circular so that that all properties, including foreclosed properties, meet minimum property requirements (MPRs) prior to VA Loan Guaranty.

Circular 26-08-4 - Change 2 - March 12, 2013
Temporary Reduction in the Validity Period on VA Notices of Value and Master Certificates of Reasonable Value for Proposed Construction Cases
PURPOSE: The purpose of this change is to extend the rescission date of the basic circular so that stations can continue to issue VA Notices of Value or Master Certificates of Reasonable Value within the 6-month validity period.

Circular 26-09-3 - Change 2 - February 25, 2013
Agreement of Sales/Sales Contract to be Provided to the Fee Appraiser
PURPOSE: The purpose of this change is to extend the rescission date of the basic circular so that stations continue to provide guidance on VA's position with respect to this procedure.

Circular 26-13-3 - February 5, 2013
Continued Forbearance Due to Hurricane Sandy
PURPOSE: This circular requests continued forbearance for Department of Veterans Affairs (VA) home loan borrowers affected by Hurricane Sandy and associated storms affecting the Eastern United States.

Circular 26-13-1 - Change 1 - January 11, 2013
Veterans Information Portal (VIP) Work Procedures During User Reactivation Process
PURPOSE: This change is to clarify procedures for non-Lender Appraisal Processing Program (LAPP) lenders ordering case numbers for Interest Rate Reduction Refinancing Loans (IRRRLs) and/or appraisals for origination and regular refinance assignments. Paragraph 2b of the original circular states that non-LAPP lenders must contact the appropriate VA Regional Loan Center (RLC) to order a case number/appraisal. This is NOT necessary if the non-LAPP lender has a sponsor with LAPP authority. In those cases, the processor or Staff Appraisal Reviewer (SAR) of the sponsoring lender must access the Portal and order an appraisal under LAPP.

Circular 26-13-2 - January 4, 2013
Veterans Information Portal (VIP) PIN Reset and User Reactivation
PURPOSE: This circular conveys the new security process and procedures needed to better secure Department of Veterans Affairs (VA) data and to establish routine procedures that ensure continuous safeguards are followed in the portal or the VIP. VA anticipates that these new security procedures for the VIP user reactivation process and pin changes will be completed swiftly. This circular describes steps to be followed by lender/servicer administration points of contact (POCs) to validate their organization's users, and the instructions to resume normal processing procedures.

Circular 26-13-1 - January 4, 2013
Veterans Information Portal (VIP) Work Procedures During User Reactivation Process
PURPOSE: This circular should be read in conjunction with Circular 26-13-2, which outlines in greater detail security changes relating to Department of Veterans Affairs' (VA) VIP. To strengthen information security, VA is updating procedures and revalidating user access to the VIP. Although VA anticipates the VIP user reactivation process to be completed swiftly, until users are revalidated, they will have to modify normal work procedures in several areas. This circular describes processes to be followed until lender users are reactivated and can resume normal processing procedures.

2012

Circular 26-09-15 Change 2 - December 31, 2012
Processing Requests for Execution of Quitclaim Deeds
PURPOSE: This change clarifies internal procedures, and extends the rescission date of the basic circular to provide guidance on the Department of Veterans Affairs (VA) position with respect to the handling of requests for execution of quitclaim deeds.

Circular 26-09-12 Change 2 - December 18, 2012
Property Preservation Requirements and Fees
PURPOSE: The purpose of this change is to extend the rescission date of the basic circular so that stations continue to provide guidance on VA's position with respect to this procedure.

Circular 26-12-12 - December 13, 2012
2013 Department of Veterans Affairs (VA) Loan Limits
PURPOSE: This circular announces that the 2013 county loan limits have been posted.

Circular 26-12-10 - November 1, 2012
Special Relief Following Hurricane Sandy
PURPOSE: This circular expresses concern about Department of Veterans Affairs (VA) home loan borrowers affected by Hurricane Sandy and associated storms affecting the Eastern United States, and describes measures mortgagees may employ to provide relief.

Circular 26-12-9 - November 9, 2012
Public Law 112-154 Honoring America's Veterans and Caring for Camp Lejeune Families Act of 2012
PURPOSE: Public Law (P.L.) 112-154 was enacted on August 6, 2012. This circular discusses a number of provisions pertaining to the Department of Veteran's Affairs (VA) Loan Guaranty Program that were included in the Act.

Circular 26-12-5 - Change 1 - October 22, 2012
New VA Property Management and Servicing Contractor
PURPOSE: This change adds an additional paragraph to provide clarification on the address to be used for special warranty deeds conveying properties to the Department of Veterans Affairs (VA).

Circular 26-11-14 - Change 1 - October 3, 2012
Uniform Appraisal Dataset (UAD)
PURPOSE: This change updates the instructions on the policy concerning the "Borrower" field for Department of Veterans Affairs (VA) liquidation reports.

Circular 26-12-8 - October 2, 2012
Annual Increase in Construction Cost Index and Specially Adapted Housing Grants
PURPOSE: Effective October 1, 2012, the Department of Veterans Affairs announces that the Specially Adapted Housing grant amounts will increase. In order to match the Turner cost of construction increase of 1.85 percent, the maximum grant amounts for Veterans and Servicemembers eligible for housing assistance under Title 38 U.S.C, Section 2101(a) and 2101(b) has been increased.

Circular 26-11-3- Change 1 - August 24, 2012
Service Members Civil Relief Act
PURPOSE: This change adds an additional paragraph to remind servicers to stay alert to potential changes to this law, renumbers two paragraphs, and extends the applicability of the circular.

Circular 26-12-7 - August 8, 2012
Maximum Guaranty for Loans Closed August 6, 2012 to December 31, 2012
PURPOSE: The Honoring America's Veterans and Caring for Camp Lejeune Families Act of 2012 was signed into law August 6, 2012. Effective with the signing of this bill, a method previously used to derive the Department of Veterans Affairs (VA) loan limits has been restored and will be in effect through December 31, 2014. Updated loan limits for loans closed on or after August 6, 2012 through December 31, 2012, have been posted at http://www.benefits.va.gov/homeloans/loan_limits.asp. Note that while VA does not have a maximum loan amount, the county "limits" must be used to calculate VA's maximum guaranty amount for that county.

Circular 26-12-6 - August 2, 2012
Credit Policy Updates
PURPOSE: The purpose of this circular is to announce several policy updates and clarifications to Department of Veterans Affairs (VA) Verification of Employment (VOE) guidelines.

Circular 26-12-5 - July 5, 2012
New VA Property Management and Servicing Contractor
PURPOSE: This circular provides details for transferring VA property management (REO) and portfolio loan servicing contracts for the VA home loan guaranty program to Vendor Resource Management (VRM).

Circular 26-12-1 - January 25, 2012
2012 Department of Veterans Affairs Loan Limits
PURPOSE: This circular announces that the 2012 county loan limits have been posted. In general, limits have declined due to market conditions and because legislation pertaining to the Department of Veterans Affairs (VA) guaranty limits expired on December 31, 2011. Note that there is no maximum VA loan, which means lenders can make VA loans in excess of the loan limit for a county; VA's guaranty will be limited to 25% of the county loan limit.

Circular 26-09-15 - Change 1 - January 18, 2012
Processing Requests for Execution of Quitclaim Deeds
PURPOSE: The purpose of this change is to extend the rescission date of the basic circular so that stations continue to provide guidance on VA's position with respect to this procedure.

Circular 26-09-12 - Change 1 - January 18, 2012
Property Preservation Requirements and Fees
PURPOSE: The purpose of this change is to extend the rescission date of the basic circular so that stations continue to provide guidance on VA's position with respect to this procedure.

Circular 26-08-5 - Change 3 - January 9, 2012
Expansion of the Types of Ownership Interests Permissible Under the Specially Adapted Housing (SAH) Grant Program
PURPOSE: The purpose of this change is to extend the rescission date of the basic circular so that stations continue to provide guidance on VA's position with respect to this procedure.

Circular 26-09-3 - Change 1 - January 6, 2012
Agreement of Sale / Sales Contract to be Provided to the Fee Appraiser
PURPOSE: The purpose of this change is to extend the rescission date of the basic circular so that stations continue to provide guidance on VA's position with respect to this procedure.

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2011

Circular 26-11-1 - Change 1 - May 14, 2014
Relocation Assistance for VA Borrowers
PURPOSE: The purpose of this change is to extend the rescission date of the basic Circular so that stations continue to provide guidance on VA's position with respect to this procedure.

Circular 26-11-22 - December 23, 2011
Final Loan Modification Regulation Revision
PURPOSE: The purpose of this circular is to announce a final change to the regulation for modifying Department of Veterans Affairs (VA) guaranteed home loans that was previously published as an interim final rule.

Circular 26-09-8 Change 1 - December 22, 2011
Suspension of Master Certificate of Reasonable Value Issuance
PURPOSE: The purpose of this change is to extend the rescission date of the basic circular so that stations continue to provide guidance on VA's position with respect to this procedure.

Circular 26-11-21 - December 15, 2011
Policy Changes Affecting Value Adjustments and Photographs
PURPOSE: This circular announces changes to two issues - value adjustments to the Department of Veterans Affairs (VA) Notice of Value (NOV) by Lender's Staff Appraisal Reviewers (SARs), and the requirement for interior photographs of subject properties.

Circular 26-11-19 - November 22, 2011
Funding Fee Update As Of November 22, 2011
PURPOSE: On November 21, 2011, the President signed H.R. 674. Section 265 of the law raises funding fees to the pre-November 18, 2011 levels. The fees specified in Section 265 are valid through September 30, 2016.

Circular 26-11-18 - November 15, 2011
Funding Fee Updates
PURPOSE: The purpose of this circular is to provide lenders with information on pending Congressional action affecting Department of Veterans Affairs (VA) funding fees. VA Circular 26-11-17 and other announcements noted the likelihood of funding fees remaining at their present levels.

Circular 26-11-17 - November 4, 2011
Future Funding Fee Changes
PURPOSE: This circular discusses the possibility of future funding fee changes for Department of Veterans Affairs (VA) home loans.

Circular 26-08-14 Change 2 - October 28, 2011
VA Acceptance of Homebuyer Assistance Programs
PURPOSE: The purpose of this change is to extend the rescission date of the basic circular so that stations continue to provide guidance on VA's position with respect to this procedure.

Circular 26-11-16 - October 13, 2011
Funding Fee Refund Procedures
PURPOSE: This circular announces that the Department of Veterans Affairs (VA) Funding Fee Payment System (FFPS) has been updated to calculate the funding fee changes noted in Circular 26-11-15 per Public Law 112-37, the Veterans Health Facilities Capital Improvement Act of 2011.

Circular 26-11-15 - October 6, 2011
Updated Funding Fee Changes
PURPOSE: The President signed H.R. 2646, Veterans Health Facilities Act Capital Improvement Act of 2011 on October 5, 2011. The bill includes a provision resulting in funding fees reverting to the same rates that existed prior to October 1, 2011 for loans closed October 6, 2011 through and including November 17, 2011. Rates for loans closed prior to enactment of H.R. 2646 and for loans closed on or after November 18, 2011 are discussed below.

Circular 26-11-14 - September 26, 2011
Uniform Appraisal Dataset (UAD)
PURPOSE: The purpose of this circular is to announce the adoption of Uniform Appraisal Dataset (UAD) compliant appraisal reports for Department of Veterans Affairs (VA) Loan Guaranty Program purposes.

Circular 26-11-13 - September 9, 2011
Transfer of Certificate of Eligibility (COE) Processing to Atlanta Regional Loan Center (RLC)
PURPOSE: This circular announces the transfer of all COE processing from the Winston-Salem Eligibility Center (EC) to the Atlanta RLC.

Circular 26-11-12 - September 8, 2011
Funding Fee Changes Effective October 1, 2011
PURPOSE: This circular announces changes in funding fees for Department of Veterans Affairs (VA) loans closed on or after October 1, 2011.

Circular 26-11-11 - September 8, 2011
Funding Fee (FF) Exemption Status and Verification of Income on Certificate of Eligibility (COE)
PURPOSE: This circular announces the first release of COEs incorporating the FF exemption status and Income Verification. By having the FF status shown on the COE, lenders in most cases will no longer be required to fax the Department of Veterans Affairs (VA) Form 26-8937, Verification of VA Benefits, to a VA office for processing. There will still be instances where faxing VA Form 26-8937 is necessary, but the majority of FF exemption determinations will be processed internally and displayed on the COE.

Circular 26-11-8 - May 20, 2011
Elimination of the Prior Loan Validation Requirement
PURPOSE: This circular announces that a Prior Loan Validation (PLV) is no longer required on Department of Veterans Affairs (VA) Interest Rate Reduction Refinance Loans (IRRRLs).

Circular 26-11-6 - May 4, 2011
Additional Relief Following Tornado Outbreaks
PURPOSE: This circular expresses concern about Department of Veterans Affairs (VA) home loan borrowers affected by the high number of tornado outbreaks in April 2011, and describes measures mortgagees may employ to provide relief.

Circular 26-11-5 - February 24, 2011
New Loan Modification Regulation
PURPOSE: The purpose of this circular is to announce the primary changes for modifying Department of Veterans Affairs (VA) guaranteed home loans resulting from a recent regulatory revision.

Circular 26-11-4 - February 22, 2011
Loan Guaranty Regulatory Update
PURPOSE: The purpose of this circular is to announce the completion of the Department of Veteran Affairs' (VA) regulatory restructuring in Title 38 of the Code of Federal Regulations (CFR), part 36.

Circular 26-11-3 - January 26, 2011
Servicemembers Civil Relief Act
PURPOSE: This circular is a short reminder to servicers of several key provisions of the Servicemembers Civil Relief Act (hereafter referred to as either SCRA or the Act) and the need to establish appropriate internal controls to comply with the Act.

Circular 26-11-1 - January 6, 2011
Relocation Assistance For VA Borrowers
PURPOSE: This circular provides authority and instructions for mortgage servicers to pay relocation assistance to borrowers participating in two different loss mitigation options: (1) a deed-in-lieu of foreclosure (DIL); or (2) a short sale with VA compromise claim.

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2010

Circular 26-10-15 - December 22, 2010
Guidance For Implementing New SAH Regulations
PURPOSE: New VA regulations published in Title 38, Code of Federal Regulations, sections 36.4400 through 36.4411, update the regulations and implement changes to the Specially Adapted Housing (SAH) program that have developed over the past few years. The purpose of this circular is to provide guidance on processing SAH cases under the new rules.

Circular 26-10-14 - December 2, 2010
Transfer of TAS Functions to WebLGY
PURPOSE: This circular announces the transfer of some functions from The Appraisal System (TAS) to WebLGY.
Instructions for Using TAS Functions That Have Been Migrated to WebLGY

Circular 26-10-13 - October 15, 2010
The Veterans Benefits Act of 2010
PURPOSE: This circular announces the enactment of the Veterans' Benefits Act of 2010, and explains resulting changes, which relate to the VA Home Loan Program.

Circular 26-10-12 - September 23, 2010
Domain Name Change for the VA Home Loan Program Internet Website
PURPOSE: This circular provides guidance regarding an Internet web address change for the Department of Veterans Affairs (VA) Home Loan Internet website.

Circular 26-10-10 - September 7, 2010
Temporary Relocation of Loan Guaranty Service
PURPOSE: The purpose of this circular is to provide guidance concerning the temporary relocation of Loan Guaranty Service. Effective September 13, 2010, Loan Guaranty Service will temporarily relocate from Washington, DC to Alexandria, VA.

Circular 26-10-9 - Change 1 - August 6, 2010
Itemization of Credits and Title Service Charges
PURPOSE: This circular clarifies language in paragraph 2b of the original circular dated July 30, 2010. Specifically, the sentence "Lenders will now be required to provide a breakout of the charges shown on line 1101, Title Services and lender's title insurance, similar to the breakout required of line 801, Our origination charge, on the HUD-1" mistakenly implies that the breakout must be on the HUD-1 itself. This is not the case. The reference "‚on the HUD-1" was only intended to identify where line 801, our origination charge, is found. The breakout should be on any attachment or addendum that can be attached to the HUD-1.

Circular 26-10-9 - July 30, 2010
Itemization of Credits and Title Service Charges
PURPOSE: This circular announces new requirements concerning closing costs. Effective for loan applications taken on or after October 1, 2010, lenders must include an itemization of (a) seller, lender, mortgage broker, or real estate agent/broker credits and (b) title service charges. Lenders are encouraged to combine the itemization of credits and title charges with the VA origination statement required by Circular 26-10-1.

Circular 26-10-4 - Change 1 - July 29, 2010
Title Documentation in Florida
PURPOSE: The purpose of this change is to amend the information in the circular concerning the fixed period of liability preceding acquisition of title in a foreclosure for Home Owners Association (HOA) dues and assessments on a condominium unit, as a result of a recent change in Florida law that became effective July 1, 2010.

Circular 26-08-5 - Change 2 - June 23, 2010
Expansion of the Types of Ownership Interests Permissible Under the Specially Adapted Housing (SAH) Grant Program
PURPOSE: The purpose of this change is to extend the rescission date of the basic circular so that stations continue to provide guidance on VA's position with respect to this procedure.

Circular 26-10-8 - June 23, 2010
Relief for Veteran Homeowners Affected by the Gulf Oil Crisis
PURPOSE: This circular expresses concern for VA-guaranteed home loan borrowers who are experiencing difficulties due to the oil spill in the Gulf of Mexico and describes measures VA urges mortgage servicers to employ in providing relief to distressed borrowers.

Circular 26-10-7 - June 1, 2010
Forbearance For Homeowners With Problem Drywall
PURPOSE: This circular provides guidance on the servicing of VA-guaranteed home loans where borrowers are experiencing difficulty due to the presence of drywall that may be causing health issues and/or damage to homes.

Circular 26-09-19 - Change 1 - May 17, 2010
Rescission of VA Acceptance of HUD/FHA Condominium Approvals
PURPOSE: The purpose of this change is to clarify when VA can and cannot accept HUD/FHA/USDA condominium project approvals.

Circular 26-08-8 - Change 1 - April 26, 2010
Loan Modifications Under VALERI
PURPOSE: The purpose of this change is to extend the rescission date of the basic circular so that stations continue to provide guidance on VA's position with respect to this procedure.

Circular 26-08-14 - Change 1 - April 23, 2010
VA Acceptance of Homebuyer Assistance Programs
PURPOSE: The purpose of this change is to extend the rescission date of the basic circular so that stations continue to provide guidance on VA's position with respect to this procedure.

Circular 26-10-4 - March 24, 2010
Title Documentation in Florida
PURPOSE: This circular provides guidance on the submission of title documents to VA's property management contractor when conveying a property to VA in the State of Florida.

Circular 26-08-4 - Change 1 - March 16, 2010
Temporary Reduction in the Validity Period on VA Notices of Value and Master Certificates of Reasonable Value for Proposed Construction Cases
PURPOSE: The purpose of this change is to extend the rescission date of the basic circular so that stations can continue to issue VA Notices of Value or Master Certificates of Reasonable Value within the 6-month validity period.

Circular 26-08-3 - Change 1 - February 3, 2010
Processing Transfers of Ownership Under VALERI
PURPOSE: The purpose of this change is to extend the rescission date of the basic circular so that stations continue to provide guidance on VA's position with respect to this procedure.

Circular 26-09-17 - Change 1 - January 11, 2010
Interim Process for Pre-Approval of Loan Modifications on Current Loans
PURPOSE: The purpose of this change is to extend the rescission date of the basic circular to coincide with the rescission date of Circular 26-10-2.

Circular 26-10-1 - January 7, 2010
Impact of New Real Estate Settlement and Procedures Act (RESPA) Rule on Fees and Charges for Department of Veterans Affairs (VA) Loans
PURPOSE: In response to the new RESPA rule that took effect January 1, 2010, this circular provides guidance on fees and charges a veteran may pay when obtaining a VA-guaranteed home loan. The circular also announces new documentation requirements for lenders and the elimination of a previously required disclosure statement.

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2009

Circular 26-09-12 - Change 3 - May 7, 2014
Property Preservation Requirements and Fees
PURPOSE: The purpose of this change is to provide clarification on the minimum requirements for Department of Veterans Affairs (VA) guaranteed home loans with regard to securing of the property and fees that will be reimbursed by VA for those services in a claim under the loan guaranty.

Circular 26-09-5 - Change 1 - March 12, 2013
VA Appraisal Requirements on Foreclosed Properties
PURPOSE: The purpose of this change is to extend the rescission date of the basic circular so that that all properties, including foreclosed properties, meet minimum property requirements (MPRs) prior to VA Loan Guaranty.

Circular 26-09-3 - Change 2 - February 25, 2013
Agreement of Sale / Sales Contract to be Provided to the Fee Appraiser
PURPOSE: The purpose of this change is to extend the rescission date of the basic circular so that stations continue to provide guidance on VA's position with respect to this procedure.

Circular 26-09-15 - Change 2 - December 31, 2012
Processing Requests for Execution of Quitclaim Deeds
PURPOSE: This change clarifies internal procedures, and extends the rescission date of the basic circular to provide guidance on the Department of Veterans Affairs (VA) position with respect to the handling of requests for execution of quitclaim deeds.

Circular 26-09-12 - Change 2 - December 18, 2012
Propety Preservation Requirements and Fees
PURPOSE: The purpose of this change is to extend the rescission date of the basic circular so that stations continue to provide guidance on VA's position with respect to this procedure.

Circular 26-09-19 - November 30, 2009
Rescission of VA Acceptance of HUD/FHA Condominium Approvals
PURPOSE: The purpose of this circular is to announce the rescission of the VA policy regarding acceptance of HUD/FHA approvals of condominium projects, as stated in the VA Lender's Handbook, Chapter 16, Common Interest Communities, Condominiums and Planned Unit Developments, section 16-A.02.

Circular 26-09-17 - October 1, 2009
Interim Process for Pre-approval of Loan Modifications on Current Loans
PURPOSE: This circular provides an interim process for the pre-approval of modifications on current loans while VA develops an automated solution.

Circular 26-09-16 - October 1, 2009
Changes to the Specially Adapted Housing Program Public Law 110-289
PURPOSE: This circular explains changes to the Specially Adapted Housing (SAH) program made by Section 2605 of the Housing and Economic Recovery Act of 2008, which provides for automatic annual increases in the dollar amounts available to certain SAH grant recipients.

Circular 26-09-15 - September 8, 2009
Processing Requests for Execution of Quitclaim Deeds
PURPOSE: This circular provides guidance on the Department of Veterans Affairs (VA) handling of requests for execution of quitclaim deeds.

Circular 26-09-13 - Change 1 - August 28, 2009
Centralization of LAPP and SAPP Programs
PURPOSE: The purpose of this change is to add an e-mail site linking to the Staff Appraisal Review (SAR) application and to make a correction to an e-mail site used by SARs.

Circular 26-09-13 - August 24, 2009
Centralization of LAPP and SAPP Programs
PURPOSE: The purpose of this circular is to announce the centralization of application processing and training for the Lender Appraisal Processing Program (LAPP) and Servicer Appraisal Processing Program (SAPP). The centralization of these programs will ensure that program participants receive consistent training across the nation.

Circular 26-09-12 - August 13, 2009
Property Preservation Requirements and Fees
PURPOSE: This circular describes minimum requirements for the inspection of properties securing VA-guaranteed home loans and the maintenance, preservation, and repair of any properties found to be abandoned. Additionally, this circular contains a table of the maximum fees that will be reimbursed by VA for those services in a claim under the loan guaranty.

Circular 26-09-11 - July 7, 2009
Market Conditions Addendum to VA Appraisal - Preparation Fee
PURPOSE: The purpose of this circular is to announce that, effective with appraisal assignments dated August 1, 2009 or later, VA is increasing the maximum allowable appraisal fees for all property types by $50.

Circular 26-09-8 - May 22, 2009
Suspension of Master Certificate of Reasonable Value Issuance
PURPOSE: The purpose of this circular is to announce the suspension of issuing Master Certificates of Reasonable Value (MCRV).

Circular 26-09-7 - May 1, 2009
Reporting Paid-In-Full Loans
PURPOSE: This circular describes the procedures for reporting paid-in-full loans to VA upon full satisfaction of the loan by payment or otherwise.

Circular 26-09-6 - March 31, 2009
Sale of New Construction Properties by Lenders
PURPOSE: The purpose of this circular is to announce that, under certain circumstances, the Department of Veterans Affairs (VA) will allow for the purchase of "new construction" properties without either a VA 1-year warranty or a 10-year insurance backed protection plan.

Circular 26-09-5 - March 31, 2009
VA Appraisal Requirements on Foreclosed Properties
PURPOSE: This circular reaffirms Department of Veterans Affairs (VA) policy that all properties, including foreclosed properties, must meet minimum property requirements (MPRs) prior to VA Loan Guaranty.

Circular 26-09-3 - March 27, 2009
Agreement of Sale/Sales Contract to be Provided to the Fee Appraiser
PURPOSE: The purpose of this circular is to announce the Department of Veterans Affairs (VA) requirement that a copy of the agreement of sale or sales contract be provided to the fee appraiser by the requester of the VA appraisal immediately upon assignment.

Circular 26-09-2 - March 12, 2009
Minor Change to the Certificate of Eligibility
PURPOSE: The purpose of this circular is to announce a minor change to VA Form 26-8320, Certificate of Eligibility, for home loan benefits.

Circular 26-09-1 - February 2, 2009
Changes to VA Form 26-0286, VA Loan Summary Sheet
PURPOSE: Effective May 1, 2009, lenders will be required to report additional information on all regular (also referred to as "cash-out") refinance loans. The additional data will enable VA to more effectively monitor aspects of our program. The appropriate enhancements have been incorporated in WebLGY.

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2008

Circular 26-08-4 - Change 2 - March 12, 2013
Temporary Reduction in the Validity Period on VA Notices of Value and Master Certificates of Reasonable Value for Proposed Construction Cases
PURPOSE: The purpose of this change is to extend the rescission date of the basic circular so that stations can continue to issue VA Notices of Value or Master Certificates of Reasonable Value within the 6-month validity period.

Circular 26-08-21 - December 9, 2008
Reporting Paid-In Full Loans
PURPOSE: This circular describes the procedures for reporting paid-in-full loans to VA upon full satisfaction of the loan by payment or otherwise.

Circular 26-08-10 - Change 1 - November 7, 2008
New VA Property Management Contractor
PURPOSE: The purpose of this change is to revise the address for holders and servicers to submit title documents to VA's property management contractor, Countrywide Home Loans (CHL), and to change the address to be reflected on all endorsements on insurance in force at the time of loan termination.

Circular 26-08-17 - September 5, 2008
Elimination/Consolidation of Certain Certifications
PURPOSE: This circular announces the elimination of certain certifications and requirements in the processing of VA guaranteed home loans. It also provides a consolidated certification (exhibit A) for use in originating VA loans. These changes will help lenders by eliminating redundancies and consolidating mandatory certifications into a single certification. The changes do not signal a relaxing of VA credit underwriting standards or a lessening of lender responsibilities.

Circular 26-08-15 - September 4, 2008  (Rescinded by Circular 26-08-19 on 10/16/2008)
Expiration of VA Authority to Guarantee Adjustable Rate Mortgages and Hybrid Adjustable Rate Mortgages
PURPOSE: Unless Congress extends the Department of Veterans Affairs' authority to guarantee adjustable rate mortgages (ARMs) and hybrid adjustable rate mortgages (HARMs), these loan types will expire on September 30, 2008. Lenders should not accept applications for VA-guaranteed ARMs and HARMs after September 30, 2008. Lenders with an ARM or HARM application dated September 30, 2008 or earlier may obtain a VA Loan Guaranty Certificate so long as the loan closes within a reasonable time and satisfies all other VA program requirements.

Circular 26-08-14 - August 19, 2008
VA Acceptance of Homebuyer Assistance Programs
PURPOSE: The purpose of this circular is to establish requirements for VA acceptance of Homebuyer Assistance Programs (HAP) for use by veteran-homebuyers in conjunction with VA-guaranteed home financing.

Circular 26-08-13 - August 7, 2008
Access to Vacant Properties for Liquidation Appraisals
PURPOSE: This circular describes the policies and procedures for VA fee appraisers to obtain access to vacant properties to perform VA liquidation appraisals.

Circular 26-08-10 - July 22, 2008
New VA Property Management Contractor
PURPOSE: This circular provides guidance for submission of title documents to the new property management contractor for the VA home loan guaranty program, which is Countrywide Home Loans (CHL), a wholly-owned subsidiary of Bank of America.

Circular 26-08-9 - June 18, 2008
Interior Inspections on Abandoned Properties
PURPOSE: The purpose of this circular is to clarify VA's position on requirements for conducting interior inspections on abandoned properties.

Circular 26-08-7 - Change 1 - June 18, 2008
Allowable Attorney Fees and Outsourcing
PURPOSE: The purpose of this change is to clarify as simply as possible VA's position on outsourcing.

Circular 26-08-8 - June 10, 2008
Loan Modifications Under VALERI
PURPOSE: The purpose of this circular is to clarify the applicable maximum interest rate and new requirements when modifying a loan under the new VA Loan Electronic Reporting Interface (VALERI) environment.

Circular 26-08-7 - May 1, 2008
Allowable Attorney Fees and Outsourcing
PURPOSE: The purpose of this circular is to clarify VA's position on allowable attorney fees and costs of outsourcing foreclosure referral and management services.

Circular 26-08-5 - March 12, 2008
Expansion of the Types of Ownership Interests Permissible Under the Specially Adapted Housing (SAH) Grant Program
PURPOSE: This circular announces an expansion of the types of ownership interests permissible under the Specially Adapted Housing (SAH) grant program.

Circular 26-08-4 - February 14, 2008
Temporary Reduction in the Validity Period on VA Notices of Value and Master Certificates of Reasonable Value for Proposed Construction Cases
PURPOSE: The purpose of this circular is to announce a temporary reduction in the validity period for VA Notices of Value (NOV) and Master Certificates of Reasonable Value (MCRV) for proposed construction cases. VA will use a 6-month validity period for all proposed construction cases. This action will result in the same validity periods for both existing construction and proposed construction cases.

Circular 26-08-3 - February 7, 2008
Processing Transfers of Ownership Under VALERI
PURPOSE: The purpose of this circular is to explain how to process transfers of ownership under new VA regulations, specifically subpart F of part 36 of Title 38 of the Code of Federal Regulations (CFR), which establishes the VA Loan Electronic Reporting Interface (VALERI) environment.

Circular 26-08-1 - February 5, 2008
Allowable Attorney Fees, Claim Time Limits, and New Liquidation Appraisal Review Authority
PURPOSE: The purpose of this circular is to announce new limits on allowable attorney fees, the establishment of a time limit on the submission of claims under loan guaranty, and new authority for review of liquidation appraisals.

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2007

Circular 26-07-1 - August 7, 2007
"Any Qualified Veteran" as the Borrower on VA Appraisals
PURPOSE: The purpose of this circular is to advise program participants of a new policy for VA appraisal reports.

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2006

Circular 26-06-8 - November 17, 2006
Louisiana's "The Road Home" Program - Hurricane Katrina and Rita Grants
PURPOSE: This circular will provide direction to VA-guaranteed loan holders and servicers who receive requests from borrowers concerning grants under Louisiana's "The Road Home" program to offer relief to victims of Hurricanes Katrina and Rita.

Circular 26-06-6 - August 30, 2006
Mississippi Development Authority Katrina Grant
PURPOSE: This circular will provide direction to VA-guaranteed loan holders who receive requests from borrowers concerning grants under the initial Mississippi Development Authority (MDA) plan to offer relief to victims of Hurricane Katrina.

VA Housing Assistance to Gulf Coast Hurricane Victims - Update - 3/21/2006
VA removed property rental listings in the states of Kentucky and Oklahoma from the Ocwen website. For information regarding availability of rentals in those states please contact VA at 1-866-396-5362.
VA Policy Regarding Natural Disasters
Disaster Advice for Veteran Homeowners

Circular 26-06-02 February 15, 2006
Conveyance of Properties to VA
PURPOSE: This circular provides guidance on procedures for conveyance of properties to VA, including (1) clarification about insurance requirements; (2) timeframe's for submission of title documents to the Property Management service provider, Ocwen Loan Servicing LLC (Ocwen); and (3) VA policies on Bills of Collection (BOC) for re conveyed properties.

Circular 26-06-01 February 15, 2006
Procedures Modification for Processing Proposed and Under Construction Cases
PURPOSE: The purpose of this circular is to advise program participants of procedural changes that will facilitate compliance with new Department of Veterans Affair's (VA) requirements for proposed construction cases. These changes will result in more streamlined processing and reduction of paperwork.

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2005

Circular 26-05-11 - December 8, 2005
Claim Adjustment on a Modified Loan
PURPOSE: The purpose of this circular is to provide guidance and authorization for VA field stations to adjust loan guaranty claims on modified loans when appropriate.

Circular 26-05-09 - December 02, 2005
Continued Forbearance on Loans Affected by Hurricanes Katrina and Rita
PURPOSE: This circular is to request continued forbearance for VA home loan borrowers affected by the enormity of Hurricanes Katrina and Rita.

Circular 26-05-07 - September 27, 2005
Additional Relief Following Hurricanes Katrina and Rita

PURPOSE: This circular expresses concern about VA home loan borrowers affected by the enormity of Hurricanes Katrina and Rita, and describes measures mortgages may employ to provide relief.

Circular 26-05-06 - September 27, 2005
Eligibility and Underwriting Guidance for Hurricane Katrina and Hurricane Rita Impacted Veterans
PURPOSE: This circular provides guidance on eligibility and underwriting issues relating to veterans who have been impacted by Hurricane Katrina and Hurricane Rita.

Circular 26-05-04 - September 7, 2005
Mortgage Electronic Registration System (MERS)

PURPOSE: This circular announces that the Mortgage Electronic Registration System (MERS) registration fee is considered an allowable closing cost for veterans obtaining a VA guaranteed home loan.

Circular 26-05-02 - May 25, 2005
Computer Based Training for Appraisal Field Reviews

PURPOSE: Loan Guaranty Service has produced a new computer-based training course for Construction & Valuation (C&V) field appraisers. Its purpose is to provide staff with uniform procedures and acceptable practices for VA appraisal field reviews. In December 2004, this auto-run CD program entitled "Field Appraisal Review" was distributed to the VA Regional Loan Centers as well as Honolulu and San Juan Regional Offices for use by their C&V staff. This circular contains information and instructions for use on this training course.

Circular 26-05-01 - May 17, 2005
New Appraisal Report Forms and Instructions for Use

PURPOSE: The purpose of this circular is to provide information to program participants on the revision of appraisal report forms by Fannie Mae and Freddie Mac.

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2003 - 2004

Circular 26-04-5 - May 7, 2004
The Department of Veterans Affairs as the Client on VA Appraisals
PURPOSE: The purpose of this circular is to advise program participants of a new VA policy as a result of a change in the Uniform Standards of Professional Appraisal Practice (USPAP) for 2004.

Circular 26-04-4 - May 7, 2004
Request for Reconsideration of Value on VA Appraisals
PURPOSE: The purpose of this circular is to reaffirm VA policy for processing requests for Reconsideration of Value (ROV) and to confirm compliance with the Uniform Standards of Professional Appraisal Practice (USPAP). Expeditious processing of ROV's is essential to ensure timely closing of VA loans.

Circular 26-03-11 - December 22, 2003
New Procedures for Improving Communication with Fee Appraisers and Streamlining Reconsiderations of Value
PURPOSE: The purpose of this circular is to encourage VA program participants to provide relevant market data to VA fee and staff appraisers during the appraisal process. These guidelines should help limit the number of cases that reach the reconsideration of value phase and also provide a more timely response to those cases that are submitted for reconsideration. However, the procedures described in this Circular should in no way suggest that appraisers are being pressured to make appraised values meet or exceed sale prices.

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1996 - 2001

Circular 26-01-7 Erratum - September 6, 2001
Circular has been changed.

Circular 26-01-7 - August 31, 2001
Procedures for Obtaining "Bidding Instructions" from VA
PURPOSE: This circular clarifies existing guidance on information that must be provided to obtain specified amount advice ("bidding instructions") from VA, including cases involving reductions of loan indebtedness in order to avoid "no-bids."

Circular 26-96-1 - January 17, 1996
Flood Insurance Requirements for VA as a Direct Lender, Servicer or Seller of Loans

APPLICABILITY: On September 23, 1994, the President signed Public Law 103-325, which included amendments to the National Flood Insurance Act. The amendments impose new procedural requirements on "Federal Agency Lenders," including VA in its capacity as a lender, servicer, seller and buyer of loans. The requirements addressed in this circular are effective immediately, unless otherwise specified. This circular addresses only the flood insurance requirements and procedures VA must comply with as a direct lender, servicer, seller and buyer of loans. For flood insurance requirements on loans guaranteed by VA, see Circular 26-90-13.

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