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Financial Services Law Insights and Observations

VA encourages loan holders to extend relief to Louisiana and Oklahoma borrowers

Federal Issues Department of Veterans Affairs Disaster Relief

Federal Issues

On June 18, the Department of Veterans Affairs (VA) issued Circular 26-19-14 and Circular 26-19-15, encouraging relief for VA borrowers impacted by severe storms in Louisiana and Oklahoma. Among other things, the Circulars encourage loan holders to (i) extend forbearance to borrowers in distress because of the severe storms and flooding; (ii) establish a 90-day moratorium from the disaster date on initiating new foreclosures on affected loans; (iii) waive late charges on affected loans; and (iv) suspend credit reporting. The Circulars are effective until July 1, 2020. Mortgage servicers and veteran borrowers are also encouraged to review the VA’s Guidance on Natural Disasters.

Find continuing InfoBytes coverage on disaster relief guidance here.

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