VA Servicer Newsflash Refunding Claims and Late Conveyances
On January 30, the U.S. Department of Veterans Affairs (VA) published a VALERI Servicer Newsflash regarding refunding claims, late conveyances to VA, and addtional information.
VALERI Servicer Newsflash
Once VA approves a loan for refunding, both the claim and title packages must be
received by VA no later than the refund settlement date. It may be beneficial to upload
the claim package at the same time as submitting the claim event to avoid any
reduction of reimbursable expenses. If no claim package is received by the
settlement date, VA will only reimburse for the unpaid principal balance (UPB),
accrued delinquent interest and one VA appraisal. Please remember the amount
VA will pay on a refund claim cannot exceed the sum of the Net Value and the
Maximum Guaranty Amount. Therefore, a servicer must agree to forgive any remaining
balance not reimbursed by VA prior to the approval of a refund. Also, the timely receipt
of a title package is important because VA Regional Counsel must approve title before
a refund claim can be certified for payment.
Late Conveyances to VA
We want to remind servicers that your foreclosure attorneys are your agents and should be aware of the timeframes for conveying properties to VA. VA is not a party to contracts between servicers and their foreclosure attorneys; therefore, it is the servicer’s responsibility to ensure compliance with VA timeframes. VA will not accept a foreclosure attorney’s failure to comply as a justification that is beyond the servicer’s control for not conveying a property timely.
FOR YOUR INFORMATION
Payment Denial Report
Servicers can access the Payment Denial Report within a set date range to find information on incentive, acquisition, and claim payments that VA denied. The report displays the VA loan number, payment type (incentive, acquisition, or claim), submission date of the event triggering the payment process, payment amount, denial date, and reason for the denial. Servicers may use this report to submit an appeal within 30 days from the payment denial date.
Claims Bulk Upload Template
Please remember that, when filing your claim using the Bulk Upload Template, always use the available drop-down menus rather than copying and pasting line item descriptions. If you copy and paste a description, VALERI will not properly recognize the line item and could deny an expense or interest due on the claim.
On Saturday, February 8, 2014, VA will deploy VALERI manifest 2.26. The following system enhancements will be included in this release:
CQ 10018 – VALERI will now accept and upload documents that are up to 6MB in size. However, if the document is very close to 6MB it is advisable to split the documentation into two groups.
CQ 9966 – When establishing a new user or updating an existing user, two fields are now required: address of the user (company location) and work phone number. This information is not visible to VA Loan Technicians, but is available to our team in Central Office should we need to contact an individual by phone or written correspondence.
CQ 9466 – Pre-Approval Status Report is now displaying the servicer loan number.
CQ 9468 – Post Audit Results Report will now display all active and completed post audits within a set date range.
CQ 9859 – VA has created an Announcement Board in the Servicer Web Portal (SWP) to advise servicers of new Circulars and servicer newsletters, updates to the Internet site, VA office closures, canceled servicer calls, etc.
Please click here to view the newsflash in PDF.
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