LP Local Release 26-02-01

DEPARTMENT OF VETERANS AFFAIRS
REGIONAL OFFICE
NORRIS COTTON FEDERAL BUILDING
275 CHESTNUT STREET
MANCHESTER, NH 03101

					

							In Reply Refer to:373/26
							LOCAL RELEASE 26-02-01

TO: PROGRAM PARTICIPANTS

SUBJ: THE VETERANS EDUCATION AND BENEFITS EXPANSION ACT OF 2001

H.R. 1291, Veterans Education and Benefits Expansion Act of 2001, was signed by the President
on December 27, 2001. A Public Law number has not yet been assigned. This release explains the
provisions of this bill which affect the Loan Guaranty Program.

What are the changes affecting the VA Loan Guaranty Program?

VA Loan Entitlement is increased to $60,000 from $50,750 for purchase, construction, or
rate reduction loans in excess of $144,000 which are closed on or after December 27, 2001.
The Native American Veteran Housing Loan Pilot Program has been extended through
December 31, 2005. In addition, tribes may also use the model Memorandum of
Understanding (MOU) and model documents developed by the inter-agency One-Stop
Mortgage Task Force in lieu of an MOU specifically signed by the Secretary or his designee.
A copy of these model documents is available at "www.codetalk.gov/ONE_STOPCTR_main.html" This website also maintains a list of tribes who have adopted these model documents and who
are, therefore, eligible to participate in the Native American Veteran Housing Loan Pilot
Program without entering a separate MOU with VA.
Assumption Notice Requirement is modified to require that the loan assumption notice appear
conspicuously on at least one of the security instruments for the loan. The notice must read
SUBSTANTIALLY, but not necessarily exactly, as follows: "This loan is not assumable without
the approval of the Department of Veterans Affairs or its authorized agent".
Specially Adapted Housing Assistance is increased from $43,000 to $48,000 for severely
disabled veterans. This law also increases the maximum housing adaptations grant for less
severely disabled veterans from $8,250 to $9,250.
Extension of Other Housing Authorities are also listed as follows:
- Reservist and National Guard eligibility extended to September 30, 2009.
- Funding fee requirements extended to December 31, 2011.
- Enhanced loan asset sale authority extended to December 31, 2011.
- Net Value formula for procedures applicable to liquidation sales on defaulted home
  loans guaranteed by the Department of Veterans Affairs is extended to October 1, 2011.

When will VA revise the Certificate of Eligibility form to reflect the change in entitlement?

  VA Form 26-8320, Certificate of Eligibility for Loan Guaranty Benefits (COE), will be revised
  in the near future to provide for the increase in entitlement. Pending revision of this form, any
  field stations issuing COEs will annotate VA Form 26-8320 to show that the amount of
  entitlement may be increased by $24,000 (rather than the $14,750 currently listed) for loans
  in excess of $144,000. Eligibility Centers will make the necessary adjustments to their
  respective systems.

What if there are questions concerning these changes?

  If the property is located in New England or New York, please contact our office at
  (800) 827-6311 extension 7. You can also send questions via e-mail to our office at
  nh_lp@vba.va.gov.

Keith C. Boerner
Loan Guaranty Officer

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