June 15, 2015

VA Circular 26-09-12 – Veterans Benefits Administration

Share Button

8. Reimbursement.

Subject to the maximum guaranty payable, VA reimburses holders via the claim under guaranty for property inspections and preservation costs incurred up to the date of loan termination, or the expiration of 210 days from the due date of the last paid installment plus the foreclosure timeframe for that state, whichever is earlier. All reimbursements are subject to the maximum allowable amounts, but actual expenses in excess of the maximum allowable amount may be appealed. It is not the intent of VA to attempt to regulate the amounts that servicers may pay for the services performed, but to standardize the reasonable maximum amount that VA reimburses for such services. If a servicer advances funds in excess of VA’s maximum allowable amount, the servicer will be paid only the maximum allowable amount on its claim. The servicer will have 30 days to submit an appeal with all relevant documentation to evidence the actual costs, date, and description of work and proof of its completion to justify exceeding the maximum allowable reimbursement.
Mr PreservationMr P. Says: VA has set fees for servicing the property which in their determination is reasonable. Any costs above that “standardized” fee must be appealed within 30 days. It is the contractor’s responsibility to supply field documentation “with all relevant documentation to evidence the actual costs, date, and description of work and proof of its completion to justify exceeding the maximum allowable reimbursement” in order for the servicing company to meet this requirement. The proper time to submit “relevant documentation” is immediately. Any delay in providing the needed documentation places the contractor in jeopardy of a bid refusal or chargeback.

Share Button

Comments are closed.