VA: VALERI Servicer Newsflash

VA: VALERI Servicer Newsflash

Investor Update
February 23, 2021

Source: VA

VALERI Downtime – The application will be unavailable on Thursday, February 25, 2021, from 9:00 to 11:59 p.m. EST for maintenance. Users must log out of the system by 8:45 p.m. EST.

Circular 26-21-4 – Approving Forbearance Requests for Veterans Affected by COVID-19, was issued on February 16, 2021, and is located at https://www.benefits.va.gov/HOMELOANS/resources_circulars_valeri.asp.

Circular 26-21-5 – Extended Foreclosure and Eviction Relief for Borrowers Affected by COVID-19, was issued on February 16, 2021, and is located at https://www.benefits.va.gov/HOMELOANS/resources_circulars_valeri.asp.

ServiceNow – Per VA Circular 26-20-39, Transition to ServiceNow as Loan Guaranty Service’s Unified Helpdesk tool, servicers are to submit all technical and policy inquiries in ServiceNow instead of the VALERI Helpdesk. Loan specific inquiries should continue to be directed to the assigned loan technician.

Adequacy of Servicing – The oversight of VA-guaranteed loans is initially completed during the Adequacy of Servicing process. Technicians may reach out to servicers for information regarding the servicing of a VA loan as referenced in M26-4, Chapter 4, section 4.03.

Expenses on Compromise Sales – Claims on loans terminated via compromise sales should not include any expenses (including relocation assistance expenses) that were already paid to the servicer from the sale proceeds on the Closing Disclosure (VA Servicer Handbook M26-4, Chapter 14.04).

Late Transfer of Custody Appeal – Not all rejected Transfer of Custody (TOC) events may be appealed in VALERI. The only instance the appeal link will become available in VALERI to allow servicers to appeal a late reporting of the TOC event is if the business rule “Event must not be reported more than 15 days after” loan termination date is the only rule that failed. If there are other fatal business rule failures in the TOC event, the appeal link in VALERI does not become available. Therefore, servicers should review all failed business rules in the event before contacting the assigned loan technician for assistance.

Special Forbearance Incentive – A forbearance under the CARES Act may not meet the definition of a VA Special Forbearance as outlined in Chapter 5 of the VA Servicer Handbook M26-4, and as a result, it may not be eligible for an incentive payment. If an incentive is denied, servicers may submit an appeal providing supporting documentation. If VA has erroneously paid an incentive on a CARES Act forbearance that was not eligible for an incentive, a bill of collection will be issued to the servicer.

Pre-Approval Submissions – After the pre-approval request is submitted in the Servicer Web Portal, a second VALERI tab will open. Users will need to close the second tab and then refresh the original VALERI screen to populate the Pre-Approval request. Steps and screenshots are available in Servicer Knowledge Article “Pre-Approval Update After February 13, 2021.