Revised VA Loan Modification Guidelines

VA home loans

The U.S. Department of Veterans Affairs (VA) has issued new guidelines for modifying VA-guaranteed home loans. The new procedures are effective immediately, and give servicers the authority to restructure distressed loans in accordance with the administration s Home Affordable Modification Program (HAMP) if other loss mitigation options have been exhausted.   The intent of these instructions is to ensure that veteran borrowers receive the opportunity to be considered for affordable loan modifications when other home retention loss mitigation options are not feasible,  the VA s notice to servicers reads. Read more