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WBK Industry News - Federal Regulatory Developments

VA Announces Special Relief and Guidance During Shutdown

In its Circular 26-19-1, the VA issued guidance concerning relief for home loan borrowers affected by the federal government shutdown.  Several measures that lenders may employ to provide relief to assist government employees and others who may be indirectly affected include:

  • Forbearance;
  • Late charge waivers; and
  • Suspension of credit bureau reporting on affected loans, in order to avoid damage to credit records to veteran borrowers.

VA Circular 26-19-2 provides guidance for borrowers and considerations regarding loan origination during the federal government shutdown.  The issues discussed are:

  • Employment directly affected by the shutdown;
  • Income verification guidelines;
  • Underwriting related to income analysis; and
  • Flood insurance requirements.