The VA Home Loan and the new VALERI system

The VA has undergone many recent changes while redesigning their loan servicing systems. If you are planning to use the VA Home Loan Guarantee Program you should be aware of the new changes in the processes, requirements for reporting, and servicing regulations.

The system that is replacing their current servicing system is called the VA Loan Electronic Reporting Interface, or VALERI. The VALERI program starts on February 20, 2008 and will take over the current procedures for obtaining a VA Home Loan. Some of the areas that VALERI will change include:

• The procedures for dealing with VA loans that have foreclosed or are in default. This includes more services to homeowners who want to keep their homes and can work with the VA to avoid foreclosure.
• A more streamlined refunding/refinancing process.
• Allow the property holder to turn over the deed to the home instead of having a foreclosure process.
• Require veterans to report any significant events dealing with their loans immediately to the VA so that other options can be pursued in a timely manner.

The VALERI system makes many changes to the procedures of the VA in the area of the Home Loan Guarantee Program. Many of these procedures are internal and effect the way loan guarantees are processed, but many of these procedures changes also effect veteran borrowers directly. For more information on these changes and how they may effect you go to http://www.homeloans.va.gov/pdf/2005-02-18%20Proposed%20VALERI%20Regu.pdf or contact your local VA home Loan Servicing Center.