[Federal Register Volume 61, Number 207 (Thursday, October 24, 1996)]
[Notices]
[Pages 55185-55186]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-27242]


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DEPARTMENT OF VETERANS AFFAIRS


Agency Information Collection Activities: Proposed Collection; 
Comment Request

AGENCY: Veterans Benefits Administration, Department of Veterans 
Affairs.

ACTION: Notice.

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SUMMARY: As part of its continuing effort to reduce paperwork and 
respondent burden, the Veterans Benefits Administration (VBA) invites 
the general public and other Federal agencies to comment on this 
information collection. This request for comment is being made pursuant 
to the Paperwork Reduction Act of 1995 (Public Law 104-13; 44 U.S.C. 
3506(c)(2)(A)). Comments should address the accuracy of the burden 
estimates and ways to minimize the burden including the use of 
automated collection techniques or the use of other forms of 
information technology, as well as other relevant aspects of the 
information collection.

DATES: Written comments and recommendations on the proposal for the 
collection of information should be received on or before December 23, 
1996.

ADDRESSES: Direct all written comments to Veterans Benefits 
Administration (20S52), Department of Veterans Affairs, 810 Vermont 
Avenue, NW, Washington, DC 20420. All written comments will become a 
matter of public record and will be summarized in the VBA request for 
Office of Management and Budget (OMB) approval. In this document VBA is 
soliciting comments concerning the following information collection:
    OMB Control Number: 2900-0021.
    Titles and Form Numbers: Notice of Default, VA Form 26-6850; Notice 
of Default and Intention to Foreclose, VA Form 26-6850a; and Notice of 
Intention to Foreclose, VA Form 26-6851.
    Type of Review: Extension of a currently approved collection.
    Need and Uses: When the VA receives either VA Form 26-6850, 26-
6850a, or 26-6851, the loan service representative will review the form 
and assign a rating as to the timeliness/completeness of the holder's 
report. A complete and timely report is necessary to facilitate the 
VA's determination as to the need for and extent of supplemental 
servicing in individual cases. The loan status is then coded into LCS 
(Liquidation and Claims System). LCS is a centralized automated data 
processing system for the operational control of default reporting, 
loan servicing, liquidations and claims on outstanding GI loans.
    Current Actions: Holders of guaranteed loans are required to notify 
the VA within 45 days of a loan default by reason of nonpayment of any 
installment for a period of 60 days from the date of the first uncured 
default. This notice is required by Title 38, U.S.C. 3732(a)(1), and 
Title 38, CFR 36.4315. Holders are also required to notify the VA of 
their intention to foreclose. This notice is required by Title 38, 
U.S.C. 3732(a)(2), and Title 38, CFR 36.4317. After delivery of such 
notice to the VA, 30 days must pass before the holder can begin court 
proceedings or give notice of sale under power of sale or otherwise 
take steps to terminate the debtor's rights in the security.
    Many times, defaults are determined insoluble by holders at the 
time the notice of default is to be filed with the VA. In such cases, 
holders are requested to file VA Form 26-6850a which will provide both 
notice of default and intent to foreclose together on one form.
    VA Form 26-6850a requires that servicing efforts be fully explained 
so that the VA can determine whether supplemental servicing could 
develop further information which might justify the extension of 
forbearance to the veteran-borrower as opposed to foreclosure. The 
information provided is then used to coordinate the actions of the VA 
and the holder to ensure that all legal requirements regarding 
foreclosure and claim payment are met.
    Estimated Total Annual Burden: 66,166 hours.
    a. VA Form 26-6850--20,166 hours.
    b. VA Form 26-6850a--26,000 hours.
    c. VA Form 26-6851--20,000 hours.
    Estimated Total Average Burden Per Respondent: 14 minutes.
    a. VA Form 26-6850--10 minutes.
    b. VA Form 26-6850a--20 minutes.
    c. VA Form 26-6851--15 minutes.
    Frequency of Response: On occasion.
    Estimated Total Number of Respondents: 279,000.
    a. VA Form 26-6850--121,000 respondents.
    b. VA Form 26-6850a--78,000 respondents.
    c. VA Form 26,6851--80,000 respondents.

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of the form should be directed to Department of Veterans 
Affairs, Attn: Nancy Kessinger, Veterans Benefits Administration 
(20S52), 810 Vermont Avenue, NW, Washington, DC 20420, telephone (202) 
273-7079 or FAX (202) 275-4884.


[[Page 55186]]


    Dated: October 11, 1996.

    By direction of the Secretary.
Donald L. Neilson,
Director, Information Management Service.
[FR Doc. 96-27242 Filed 10-23-96; 8:45 am]
BILLING CODE 8320-01-M