[Federal Register Volume 66, Number 91 (Thursday, May 10, 2001)]
[Proposed Rules]
[Pages 23873-23874]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-11745]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 36

RIN 2900-AE20; 2900-AE60


Loan Guaranty: Title Evidence Requirements and Occupancy 
Requirements for Conveyance of Properties to VA by Holders; Acceptance 
of Partial Payments; Indemnification of Default

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rules: withdrawal.

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SUMMARY: This document withdraws the proposal to amend the loan 
guaranty regulations that was published in the Federal Register on 
August 6, 1990 (55 FR 31847). We proposed to authorize the Secretary of 
Veterans Affairs to specify the title documentation required from the 
holder when VA acquires a property which was financed with a VA-
guaranteed loan that has been terminated and to authorize the Secretary 
of Veterans Affairs to establish a date by which VA must receive such 
title documentation from the holder. Further, we proposed to require 
that a property acquired by VA be vacant

[[Page 23874]]

when conveyed to VA unless someone properly in possession by virtue of 
a redemption period occupies it or VA otherwise directs the holder. 
This document also withdraws the proposal to amend the loan guaranty 
regulations that was published in the Federal Register on March 2, 1994 
(59 FR 9944). In the March 2, 1994 document, we proposed to change the 
regulations by requiring that the mortgage holder provide notice to VA 
when refusing to accept partial payment on a loan in default and to 
clarify when a veteran is liable to VA for a loss due to a loan 
default. We are reconsidering the issues raised in both proposed rules 
in light of changes that have occurred in the industry since the 
proposals were promulgated. These issues may be the subject of a future 
rulemaking proceeding.

FOR FURTHER INFORMATION CONTACT: Mr. Richard Fyne, Assistant Director 
for Loan Management (261), Loan Guaranty Service, Veterans Benefits 
Administration, Department of Veterans Affairs, 810 Vermont Avenue, 
NW., Washington, DC 20420, phone (202) 273-7380. (This is not a toll-
free number.)

    Approved: February 15, 2001.
Anthony J. Principi,
Secretary of Veterans Affairs.
[FR Doc. 01-11745 Filed 5-9-01; 8:45 am]
BILLING CODE 8320-01-P