VA Circular on Hurricane Michael

The VA has issued Circular 26-18-23 regarding borrowers who may be affected by Hurricane Michael.  Measures that mortgagees may use to provide relief are described in this Circular and include:

• Forbearance;
• Moratorium on Foreclosure;
• Late Charge Waivers; and
• Suspension of credit bureau reporting on affected loans.

VA guidance on natural disasters for both borrowers and servicers may be found here.

Additionally, VA indicated that it will not penalize affected servicers for late default reporting and also encourages servicers to extend forbearance to National Guard members who were called to active duty in affected areas and who, because of their service, encounter financial difficulties.

The Circular self-rescinds on October 1, 2019.