VA Not Issuing ‘No Bids’ on Pending Mortgage Loan Terminations
October 21, 2016
The Department of Veterans Affairs is reminding servicers that it does not issue “no-amount-specified bids,” commonly known as VA “no-bids,” on pending loan terminations. A regulatory change in 2008 allowed VA only two bid types: net value bid and total debt bid. Prior to the change, when VA issued a no bid, servicers were barred from conveying the property to VA following a completed termination action. A allows servicers the option to convey property to VA on loans that have been terminated through foreclosure or deed-in-lieu of foreclosure. The option to convey reduces additional mortgage-industry expenses associated with missed foreclosure sales, maintenance and marketing of properties that could not be conveyed, the VA explained. Other servicer news from the VA Loan Electronic Reporting Interface (VALERI): Oregon Appraisals. Effective Sept. 1, 2016, all Oregon liquidation ...