[Federal Register Volume 80, Number 147 (Friday, July 31, 2015)]
[Notices]
[Pages 45718-45720]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-18762]


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DEPARTMENT OF VETERANS AFFAIRS


Loan Guaranty: Maximum Allowable Attorney Fees

AGENCY: Department of Veterans Affairs (VA).

ACTION: Notice.

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SUMMARY: This notice provides information to participants in the 
Department of Veterans Affairs (VA) Home Loan Guaranty program 
concerning the maximum attorney fees allowable in calculating the 
indebtedness used to determine the guaranty claim payable upon loan 
termination. The table in this notice contains the amounts the 
Secretary has determined to be reasonable and customary for all States, 
following an annual review of amounts allowed by other government-
related home loan programs.

DATES: The new maximum attorney fees will be allowed for all loan 
terminations completed on or after August 31, 2015.

FOR FURTHER INFORMATION CONTACT: Mr. Andrew Trevayne, Assistant 
Director for Loan and Property Management (261), Loan Guaranty Service, 
Department of Veterans Affairs, Washington, DC 20420, (202) 632-8795 
(Not a toll-free number).

SUPPLEMENTARY INFORMATION: The VA Home Loan Guaranty program authorized 
by title 38, United States Code (U.S.C.), Chapter 37, offers a partial 
guaranty against loss to lenders who make home loans to veterans. VA 
regulations concerning the payment of loan guaranty claims are set 
forth at 38 CFR 36.4300, et seq. Computation of guaranty claims is 
addressed in 38 CFR 36.4324, which states that one part of the 
indebtedness upon which the guaranty percentage is applied is the 
allowable expenses/advances as described in 38 CFR 36.4314 
(redesignated from 36.4814). Paragraph (b)(5)(ii) of section 34.4314 
describes the procedures to be followed in

[[Page 45719]]

determining what constitutes the reasonable and customary fees for 
legal services in the termination of a loan.
    The Secretary annually reviews allowances for legal fees in 
connection with the termination of single-family housing loans, 
including foreclosure, deed-in-lieu of foreclosure, and bankruptcy-
related services, issued by the Department of Housing and Urban 
Development (HUD), Fannie Mae, and Freddie Mac. Based on increases 
announced over the past year by these entities, the Secretary has 
deemed it necessary to publish in the Federal Register a table setting 
forth the revised amounts the Secretary now determines to be reasonable 
and customary. The table reflects the primary method for foreclosing in 
each state, either judicial or non-judicial, with the exception of 
those states where either judicial or non-judicial is acceptable. The 
use of a method not authorized in the table will require prior approval 
from VA. This table will be available throughout the year at: http://www.benefits.va.gov/homeloans/.
    The new VA table closely mirrors amounts and methods for 
foreclosure allowed by Fannie Mae. Unlike Fannie Mae, however, VA 
continues to prefer the judicial method of foreclosure in Hawaii. 
Although there have been changes to include the Hawaii non-judicial 
foreclosure statutes since our last publication, we believe that, with 
regard to VA-guaranteed loans, prudent lenders and attorneys in the 
community continue to prefer the protections provided by the judicial 
method of foreclosure.
    Two other jurisdictions require special mention. Oregon foreclosure 
practice has continued to see changes since our last notice. VA 
understands that some cases may require judicial proceedings while 
others might be suitable for non-judicial actions. Rather than having 
to pre-approve each foreclosure, we indicate in this notice that both 
methods of foreclosure are acceptable in Oregon, with neither method 
requiring prior approval from VA. In addition, the entry for the 
District of Columbia has been revised to reflect the acceptance of both 
judicial and non-judicial foreclosure proceedings. Although VA believes 
that non-judicial foreclosure remains an option in the District of 
Columbia, VA understands that judicial foreclosure is now more common 
and is also accepted by Fannie Mae.
    There is no change to the amounts VA will allow for attorney fees 
for deeds-in-lieu of foreclosure or for bankruptcy relief. VA will 
continue to monitor these fees on an annual basis, as we are aware that 
other entities are conducting ongoing reviews of these fees.
    The following table represents the Secretary's determination of the 
reasonable and customary cost of legal services for the preferred 
method of terminating VA loans in each jurisdiction under the 
provisions of 38 CFR 36.4314(b)(5)(ii). These amounts will be allowed 
for all loan terminations completed on or after August 31, 2015.

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                                                          VA non-judicial      VA judicial      Deed-in-lieu of
                      Jurisdiction                        foreclosure 1 2    foreclosure 1 2      foreclosure
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Alabama................................................             $1,325                N/A               $350
Alaska.................................................              1,600                N/A                350
Arizona................................................              1,350                N/A                350
Arkansas...............................................              1,400                N/A                350
California.............................................              1,350                N/A                350
Colorado...............................................              1,650                N/A                350
Connecticut............................................                N/A              2,450                350
Delaware...............................................                N/A              1,800                350
District of Columbia...................................              1,200                N/A                350
Florida................................................                N/A              2,800                350
Georgia................................................              1,325                N/A                350
Guam...................................................              1,600                N/A                350
Hawaii.................................................                N/A              2,950                350
Idaho..................................................              1,150                N/A                350
Illinois...............................................                N/A              2,300                350
Indiana................................................                N/A              2,050                350
Iowa...................................................                850              1,880                350
Kansas.................................................                N/A              1,800                350
Kentucky...............................................                N/A              2,250                350
Louisiana..............................................                N/A              1,900                350
Maine..................................................                N/A              2,300                350
Maryland...............................................              2,400                N/A                350
Massachusetts..........................................                N/A              2,550                350
Michigan...............................................              1,425                N/A                350
Minnesota..............................................              1,450                N/A                350
Mississippi............................................              1,200                N/A                350
Missouri...............................................              1,350                N/A                350
Montana................................................              1,150                N/A                350
Nebraska...............................................              1,150                N/A                350
Nevada.................................................              1,525                N/A                350
New Hampshire..........................................              1,350                N/A                350
New Jersey.............................................                N/A              2,975                350
New Mexico.............................................                N/A              2,000                350
New York--Western Counties \3\.........................                N/A              2,675                350
New York--Eastern Counties.............................                N/A              3,475                350
North Carolina.........................................              1,575                N/A                350
North Dakota...........................................                N/A              1,750                350
Ohio...................................................                N/A              2,250                350
Oklahoma...............................................                N/A              2,000                350
Oregon.................................................              1,350                N/A                350
Pennsylvania...........................................                N/A              2,350                350
Puerto Rico............................................                N/A              2,050                350

[[Page 45720]]

 
Rhode Island...........................................              1,725                N/A                350
South Carolina.........................................                N/A              1,650                350
South Dakota...........................................                N/A              2,200                350
Tennessee..............................................              1,200                N/A                350
Texas..................................................              1,325                N/A                350
Utah...................................................              1,350                N/A                350
Vermont................................................                N/A              2,250                350
Virgin Islands.........................................                N/A              1,800                350
Virginia...............................................              1,350                N/A                350
Washington.............................................              1,350                N/A                350
West Virginia..........................................              1,150                N/A                350
Wisconsin..............................................                N/A              2,000                350
Wyoming................................................              1,150                N/A                350
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\1\ When a foreclosure is stopped due to circumstances beyond the control of the holder or its attorney
  (including, but not limited to bankruptcy, VA-requested delay, property damage, hazardous conditions,
  condemnation, natural disaster, property seizure, or relief under the Servicemembers Civil Relief Act) and
  then restarted, VA will allow a $350 restart fee in addition to the base foreclosure attorney fee. This fee
  recognizes the additional work required to resume the foreclosure action, while also accounting for the
  expectation that some work from the previous action may be utilized in starting the new action.
\2\ VA will allow attorney fees of $650 (Chapter 7) or $850 (initial Chapter 13) for obtaining bankruptcy
  releases directly related to loan termination. For additional relief filed under either chapter, VA will allow
  an additional $250.
\3\ Western Counties of New York for VA are: Allegany, Cattaraugus, Chautauqua, Erie, Genesee, Livingston,
  Monroe, Niagara, Ontario, Orleans, Steuben, Wayne, Wyoming, and Yates. The remaining counties are in Eastern
  New York.

Signing Authority

    The Secretary of Veterans Affairs, or designee, approved this 
document and authorized the undersigned to sign and submit the document 
to the Office of the Federal Register for publication electronically as 
an official document of the Department of Veterans Affairs. Robert L. 
Nabors, II, Chief of Staff approved this document on July 24, 2015, for 
publication.

    Dated: July 27, 2015.
William F. Russo,
Acting Director, Office of Regulation Policy & Management, Office of 
the General Counsel, U.S. Department of Veterans Affairs.
[FR Doc. 2015-18762 Filed 7-30-15; 8:45 am]
 BILLING CODE 8320-01-P