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12.2.5.3 Mortgage Forbearance, Credit Reporting, and Late Fee Suspension

The VA Guidance on Natural Disasters states that the VA “encourages servicers of guaranteed loans in disaster areas to extend all possible forbearance to borrowers in distress.”212 When members of the National Guard are called to active duty as part of recovery efforts, the VA “encourages servicers to extend special forbearance to National Guard members who experience financial difficulties as a result of their service.”213 The Servicer Handbook also urges suspension of credit reporting and encourages waiver of late fees for loans in disaster areas.214

Footnotes

  • 212 U.S. Dep’t of Veterans Affairs, VA Guidance on Natural Disasters, available at https://www.benefits.va.gov.

  • 213 U.S. Dep’t of Veterans Affairs, VA Servicer Handbook M26-4, § 21.02, Borrower Assistance.

  • 214 U.S. Dep’t of Veterans Affairs, VA Servicer Handbook M26-4, §§ 21.06, 21.07.