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Is Loss Mitigation Letter Questions required on VA Vendee Loans and Mobile Homes ?

Published 08/09/2012 08:01 AM   |    Updated 08/09/2012 01:15 PM

Is Loss Mitigation Letter Questions required on VA Vendee Loans and Mobile Homes (in other words serviced under the old guidelines)?

The letter is not required and would not be appropriate for vendee loans. For manufactured home loans guaranteed under Title 38, United States Code (U.S.C.), section 3712, the letter is not required, as such loans are governed by the regulations at title 38, Code of Federal Regulations (CFR), sections 36.4201 through 36.4287, inclusive. However, loans for manufactured homes that are permanently affixed and are guaranteed under 38 U.S.C. 3710, do fall under the new rules and the letter must be sent. Servicers must exercise due caution in reviewing manufactured home loans in their portfolios to ensure that they are properly designated as guaranteed under 3710 or 3712, and if guaranteed under 3710, that the homes are permanently affixed to the lots in accordance with current State laws.