October 20, 2006 For Immediate Release

VA Loan Guaranty Policy Regarding Natural Disasters

President Bush has declared the State of Hawaii a disaster area due to the recent earthquake on October 20, 2006. The Department of Veterans Affairs (VA) is providing information for individuals who have home loans guaranteed by the VA and secured by property located in the State of Hawaii.

In the event that your property has experienced damage you should:

Contact Your Mortgage Company

Contact your mortgage company as soon as possible regarding your loss. You are not excused from making your regular monthly loan payments even if your home is not habitable. You should discuss forbearance or possible extension or modification of your loan with the mortgage company if you are unable to make your payments on time. VA employees are available to discuss these relief measures with you. Talk to a VA Loan Service Representative by calling our toll free number 1-800-827-1000. Ask your mortgage company to explain their procedure regarding insurance loss checks and repairs to your property, payment to contractors, etc.

Contact Your Insurance Company or Agent

File insurance loss claims as soon as possible. However, do not make a hasty settlement on insurance. Attempt to get the city engineer’s office to make an inspection for structural damage, when the property is damaged but repairable. If a city’s engineer is not obtainable, an inspection by a licensed professional engineer should be obtained before agreeing to an insurance loss settlement. If possible, get at least two estimates from reputable contractors for repairs or rebuilding. Insurance checks for personal property and living expenses should be made payable to you only. Checks for damage to your home should be made payable to you and your mortgage company.

Contact Federal Emergency Management Agency (FEMA)

You begin the disaster application process by calling FEMA’s toll free number 1-800-621-FEMA (3362), or 1-800-462-7585 (TTY) for the hearing and speech impaired. In order to receive the maximum assistance, you must register with FEMA before their deadline expires. You cannot obtain assistance for uninsured losses or damages to your home from the Small Business Administration (SBA) or any other disaster recovery agency if you have not registered with FEMA. More information can be found at the FEMA website, www.fema.gov Be sure to check every source for maximum assistance including the SBA. Do not pay your loan in full before checking with SBA on a loan for the uninsured portion of your loss. Low interest loans, cash grants, and housing assistance may be available from agencies associated with the disaster recovery effort.

Check Other Sources of Help

Veterans should contact local offices of the American Legion, Veterans of Foreign Wars, Disabled American Veterans (DAV), or other veterans organizations to see if special assistance may be available, even to non-members of the organization.

Change Your Address

If you are receiving a monthly benefit check from VA or another source, and you will not be able to receive mail at your regular address, notify your local post office and VA Regional Office of your change of address.

For more information on VA benefits other than home loans, call 1-800-827-1000. You can also visit VA’s website at www.homeloans.va.gov