[Federal Register Volume 90, Number 177 (Tuesday, September 16, 2025)]
[Notices]
[Pages 44755-44757]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-17847]
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DEPARTMENT OF VETERANS AFFAIRS
[Docket No. VA-2025-VACO-0002]
Loan Guaranty: Maximum Allowable Fees for Legal Services
AGENCY: Department of Veterans Affairs.
ACTION: Notice.
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SUMMARY: This notice provides updated information to participants in
the Department of Veterans Affairs (VA) Home Loan Guaranty program
concerning the maximum allowable fees for legal services performed in
connection with the foreclosure of single- family housing loans. This
notice also provides updated information concerning the legal fees for
bankruptcy-related services. The table in this notice contains the
amounts the
[[Page 44756]]
Secretary of Veterans Affairs has determined to be reasonable and
customary in all states, following an annual review of the amounts
allowed by other Government-related home loan programs.
DATES: The new maximum allowable fees for legal services will be
allowed for all guaranty claims submitted to VA for loans terminated on
or after October 16, 2025.
FOR FURTHER INFORMATION CONTACT: Mr. Andrew Trevayne, Assistant
Director for Loan and Property Management, Loan Guaranty Service,
Veterans Benefits Administration, (202) 632-8795.
SUPPLEMENTARY INFORMATION: The VA Home Loan Guaranty program,
authorized by 38 U.S.C. Ch. 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. Filing and computation of guaranty claims is addressed in 38 CFR
36.4324, which states that holders shall file a claim for payment under
the guaranty no later than 1 year after the completion of the
liquidation sale, also referred to as loan termination in 38 CFR
36.4322. 38 CFR 36.4324(d)(1)(i). Section 36.4324 also states one part
of the indebtedness upon which the guaranty percentage is applied is
the ``[a]llowable expenses/advances as described in [38 CFR 36.4314].''
38 CFR 36.4324(a)(2). Section 36.4314(b)(5)(ii) describes the
procedures to be followed in determining what constitutes the
reasonable and customary fees for legal services performed in
connection with the foreclosure of single-family housing loans. 38 CFR
36.4314(b)(5)(ii).
Pursuant to section 36.4314(b)(5)(ii), the Secretary is required to
annually review allowances for legal fees in connection with the
foreclosure of single-family housing loans, including bankruptcy-
related services, issued by the Department of Housing and Urban
Development (HUD), the Federal National Mortgage Association (Fannie
Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac). On
November 8, 2021, VA published in the Federal Register a notice
providing updated information concerning the legal fees for foreclosure
and bankruptcy-related services. 86 FR 61856 (Nov. 8, 2021). In
updating VA's maximum allowable fees for legal services, VA noted that
it considered recently announced updates by HUD, Fannie Mae, and
Freddie Mac. Id. VA's new maximum allowable fees for legal services
announced applied to all guaranty claims submitted to VA on or after
December 8, 2021. Id.
Following VA's publication of updated fees, Fannie Mae issued
revisions to their allowances for legal fees in December 2022 and
December 2024. Fannie Mae, Servicing Guide Announcement (SVC-2022-08)
(Dec. 21, 2022) at https://singlefamily.fanniemae.com/media/33141/display; Fannie Mae, Servicing Guide Announcement (SVC-2024-07) (Dec.
18. 2024) at https://singlefamily.fanniemae.com/media/41196/display.
These revisions also had the effect of amending HUD's allowable fees,
as the Federal Housing Administration (FHA) directs mortgagees to
follow Fannie Mae's fee structure. See HUD, FHA Single Family Housing
Policy Handbook 4000.1, Appendix 5.0: HUD Schedule of Standard
Possessory Action and Deed-in-Lieu of Foreclosure Attorney Fees (May
20, 2024) at www.hud.gov/sites/dfiles/OCHCO/documents/40001-hsgh-update15-052024.pdf. Freddie Mac also announced new allowances for
legal fees, effective August 9, 2023. Freddie Mac, Exhibit 57A Approved
Attorney Fees and Title Expenses, Seller/Servicer Guide (Aug. 09, 2023)
at https://guide.freddiemac.com/app/guide/exhibit/57A.
VA reviewed and considered the updated legal fees allowed by each
entity. After considering increases in fees for legal services
announced by these Government-related home loan programs, the Secretary
is publishing a table in the Federal Register setting forth the revised
amounts the Secretary has determined 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.
38 CFR 36.4314(b)(5)(ii). This table will be available throughout the
year at www.benefits.va.gov/HOMELOANS/servicers_valeri_rules.asp.
There has been no change to the amounts VA will allow for
bankruptcy filing fees, but VA is increasing the amount allowed for
multiple bankruptcy filings under either chapter to be consistent with
Freddie Mac. See Freddie Mac, Exhibit 57A Approved Attorney Fees and
Title Expenses, Seller/Servicer Guide (Aug. 09, 2023) at https://guide.freddiemac.com/app/guide/exhibit/57A. The new fee is reflected in
the following table. Neither Fannie Mae nor HUD lists multiple
bankruptcy filings in their Allowable Bankruptcy Attorney Fees Exhibit.
VA will continue to monitor fees for legal services on an annual basis
and publish updates in the Federal Register as VA deems necessary.
The revised table will apply to all guaranty claims submitted to VA
for loans terminated on or after 30 days of the date of publication in
the Federal Register. The holder's fees for legal services are incurred
prior to loan termination. However, as noted herein, holders have up to
1 year after loan termination in which to file a claim for payment
under the guaranty. See 38 CFR 36.4324(d)(1)(i). As such, VA will apply
the revised fees to future loan terminations to avoid holders being
subject to different maximum allowable rates for legal services
incurred on the same date solely because of when the holder submits the
claim for payment under the guaranty.
The following table reflects the Secretary's determination of the
reasonable and customary fees for legal services for the primary method
for foreclosing in each state.
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VA non-judicial VA judicial
Jurisdiction foreclosure \1\ foreclosure \1\ Deed-in-lieu of
\2\ \2\ foreclosure
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Alabama................................................ $1,850 N/A $400
Alaska................................................. 2,325 N/A 400
American Samoa......................................... 1,600 N/A 400
Arizona................................................ 1,850 N/A 400
Arkansas............................................... 1,925 N/A 400
California............................................. 1,850 N/A 400
Colorado............................................... 2,500 N/A 400
Connecticut............................................ N/A 4,025 400
Delaware............................................... N/A 2,675 400
District of Columbia................................... 1,650 3,150 400
Florida................................................ N/A 4,800 400
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Georgia................................................ 1,850 N/A 400
Guam................................................... 2,600 N/A 400
Hawaii................................................. N/A 5,850 400
Idaho.................................................. 1,575 N/A 400
Illinois............................................... N/A 3,300 400
Indiana................................................ N/A 3,300 400
Iowa................................................... 1,275 2,675 400
Kansas................................................. N/A 2,675 400
Kentucky............................................... N/A 3,300 400
Louisiana.............................................. N/A 2,750 400
Maine.................................................. N/A 4,225 400
Maryland............................................... 3,300 N/A 400
Massachusetts.......................................... N/A 4,700 400
Michigan............................................... 2,200 N/A 400
Minnesota.............................................. 2,375 N/A 400
Mississippi............................................ 1,650 N/A 400
Missouri............................................... 1,850 N/A 400
Montana................................................ 2,050 N/A 400
Nebraska............................................... 1,575 N/A 400
Nevada................................................. 2,200 N/A 400
New Hampshire.......................................... 1,850 N/A 400
New Jersey............................................. N/A 5,325 400
New Mexico............................................. N/A 4,425 400
New York--Western Counties \3\......................... N/A 5,300 400
New York--Eastern Counties............................. N/A 6350 400
North Carolina......................................... 2,575 N/A 400
North Dakota........................................... N/A 2,600 400
Ohio................................................... N/A 3,500 400
Oklahoma............................................... N/A 2,950 400
Oregon................................................. 1,850 4,050 400
Pennsylvania........................................... N/A 3,425 400
Puerto Rico............................................ N/A 3,500 400
Rhode Island........................................... 2,475 N/A 400
South Carolina......................................... N/A 3,125 400
South Dakota........................................... N/A 2,475 400
Tennessee.............................................. 1,650 N/A 400
Texas.................................................. 1,850 N/A 400
Utah................................................... 1,850 N/A 400
Vermont................................................ N/A 3,500 400
Virgin Islands......................................... N/A 3,250 400
Virginia............................................... 2,400 N/A 400
Washington............................................. 2,050 N/A 400
West Virginia.......................................... 1,580 N/A 400
Wisconsin.............................................. N/A 2,750 400
Wyoming................................................ 1,780 N/A 400
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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 $400 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 used in starting the new action.
\2\ VA will allow attorney fees of $1,050 (Chapter 7) or $1,500 (initial Chapter 13) for an initial bankruptcy
filing, regardless of whether a bankruptcy release is obtained. For multiple bankruptcy filings under either
chapter, VA will allow an additional $600.
\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
Douglas A. Collins, Secretary of Veterans Affairs, approved this
document on September 11, 2025, 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.
Taylor N. Mattson,
Alternate Federal Register Liaison Officer, Department of Veterans
Affairs.
[FR Doc. 2025-17847 Filed 9-15-25; 8:45 am]
BILLING CODE 8320-01-P