HAVE YOU HEARD? February 10, 2009

Recent changes to the VA Home Loan Guaranty Program are helping veterans in financial difficulty. The new VA Loan Electronic Reporting Interface (VALERI) system provides banks and lending institutions more opportunities to help veteran borrowers retain their homes in this difficult mortgage environment. VALERI is a rules-based system designed to identify veterans who are experiencing financial difficulty. VALERI automates VA’s previously paper-based processes. Now, via the Internet, servicers can electronically report delinquencies and major loan events, apply VA rules to help borrowers become current, send electronic documents, and file claims. VA completed the transition of all VA-backed loan servicers nationwide to the new electronic reporting system in November. Servicers now report on daily activities for more than 1.2 million VA-guaranteed loans. As a result of VA’s efforts to help veteran borrowers retain their homes, VA’s serious delinquency rate (loans more than 90 days delinquent) has dropped over the past six years. According to the most recent Mortgage Bankers Association National Delinquency Survey, VA’s serious delinquency rate is three percent, as compared to 17.85 percent for subprime loans. Three hundred VA loan technicians at nine regional offices assist veterans and service members with VA-guaranteed loans avoid foreclosure by helping establish repayment plans, special forbearance, or loan modifications. VA loan technicians also provide as much assistance as possible to other veterans who do not have their home loans guaranteed by VA. Information about VA’s home loan guaranty program is available at www.homeloans.va.gov.