[Federal Register Volume 73, Number 186 (Wednesday, September 24, 2008)]
[Notices]
[Page 55428]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-22303]


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DEPARTMENT OF VETERANS AFFAIRS


Loan Guaranty: Loan Servicing and Claims Procedures Modifications 
Segment 5 Effective Date

AGENCY: Department of Veterans Affairs (VA).

ACTION: Notice of applicability of Subpart F of 38 CFR, Part 36, to 
Segment 5 of the mortgage servicing industry.

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SUMMARY: This publication is to serve as notice that on July 25, 2008, 
Subpart F of Title 38, Code of Federal Regulations, Part 36, will be 
applicable to industry segment 5. Program participants in the VA Home 
Loan Guaranty Program's servicing and claims activities were assigned 
to one of nine industry segments as part of the planned phased 
implementation of the rules in Subpart F. All program participants were 
given notice of their respective segments and were afforded opportunity 
to comment during the regulatory development process (see SUPPLEMENTARY 
INFORMATION section below). Segment 5 participants will be under the 
authority of Subpart F rules on July 25, 2008. VA continues to work 
with these participants to ensure that all necessary servicing system 
modifications, defect corrections, interface testing and data 
transmission are addressed.

SUPPLEMENTARY INFORMATION: On Friday, February 1, 2008, VA published 
final regulations that modify its Loan Guaranty Program's loan 
servicing and claims procedures modifications (73 FR 6294). In response 
to comments received to the proposed regulations (70 FR 8472, published 
February 18, 2005) and to a supplemental notice published on November 
27, 2006 (71 FR 68498), VA published a second supplemental notice on 
June 1, 2007 (72 FR 30505), in which the agency put forth a proposal to 
phase-in implementation of the new tracking system.
    Based on comments received to the proposed regulations and the 
first supplemental notice, VA decided to proceed with gradual 
implementation of the new rules and its computer-based tracking system, 
the VA Loan Electronic Reporting Interface (VALERI), with nine separate 
industry segments to be phased in over a period of approximately 11 
months. In order to ease confusion that was created by the original 
schedule showing the fourth segment not subject to the new rules until 
approximately the same time as the ninth segment, VA moved the former 
members of industry segment four into the last segment, and renumbered 
all subsequent segments accordingly. This resulted in only eight 
industry segments. The first segment was subject to the new rules upon 
publication of the final regulations, when the rules became effective. 
The second segment was subject to the new rules effective April 19, 
2008 (73 FR 21176). The third segment was subject to the new rules 
effective May 30, 2008 (73 FR 34993). The fourth segment was subject to 
the new rules effective June 27, 2008. The fifth segment will be 
subject to the new rules effective July 25, 2008. Notices about 
effective dates for other industry segments may be found in this issue 
of the Federal Register.

FOR FURTHER INFORMATION CONTACT: Mike Frueh, Department of Veterans 
Affairs, 810 Vermont Avenue, NW., Washington, DC 20420, (202) 461-9521 
(Not a toll-free number).

    Approved: September 16, 2008.
Gordon H. Mansfield,
Deputy Secretary of Veterans Affairs.
 [FR Doc. E8-22303 Filed 9-23-08; 8:45 am]
BILLING CODE 8320-01-P