VA: Circular 26-20-12: Extended Relief Under the CARES Act for those Affected by COVID-19

VA: Circular 26-20-12: Extended Relief Under the CARES Act for those Affected by COVID-19

Investor Update
August 24, 2020

Source: VA (Circular 26-20-12 Change 1)

Additional Resource:

Circular 26-20-12: Extended Relief Under the CARES Act for Those Affected by COVID-19

1. Purpose. The purpose of this Circular is to clarify the loan modification option, VA Purchase option, and remove a reference to a lump sum payment.

2. Therefore, Circular 26-20-12 is changed as follows:

Page 1
, paragraph 1: Add “and Circular 26-20-8, Foreclosure Moratorium for Borrowers Affected by COVID-19” after “Special Relief for those Potentially impacted by COVID-19”

Page 2
, paragraph 5a.2: Add “Traditional” before “Loan modifications”

Page 2
, paragraph 5b: Remove “if it is paid back at the end of the loan or”

Page 2,
 paragraph 5c: Add “potential” after “home has” and replace “loan refunding” and “refunding” with “VA Purchase.”

Page 2
, paragraph 6: Remove “for not less than the 60-day period beginning on March 18, 2020” and replace with “through December 31, 2020”.

3. Rescission: This Circular is rescinded July 1, 2021.

By Direction of the Under Secretary for Benefits

Jeffrey F. London
Executive Director
Loan Guaranty Service