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WBK Industry News - Federal Regulatory Developments

VA Special Relief Following Hurricane Lane

The Department of Veterans Affairs issued Circular 26-18-17 on August 30, 2018, setting forth measures that mortgagees can use to provide special relief to borrowers affected by Hurricane Lane, which struck Hawaii at the end of August.  In addition to directing mortgage servicers and borrowers alike to the VA’s Guidance on Natural Disasters, the Circular discusses measures that VA loan holders are encouraged to consider to provide relief to affected borrowers, including:

  • Forbearance;
  • Moratorium on foreclosure;
  • Late charge waivers;
  • Credit and VA reporting suspension to avoid credit damage; and

Forbearance for affected National Guard members called to active service in conjunction with relief efforts associated with Hurricane Lane.