This document provides a list of frequently asked questions and answers
regarding what the servicing community needs to do to get ready for the
VALERI implementation. Note that all the documents referred to in this
document can be found on the VALERI web site at
<http://www.homeloans.va.gov/valeri.htm>. If you have any questions,
feel free to contact the VALERI helpdesk at 877-309-6947 or
<valerihelpdesk@ccsin.com> with any questions.

# Going Live in VALERI

+-------------------------------+--------------------------------------+
| ######## Que                  | **Answer**                           |
| stion {#question .unnumbered} |                                      |
+-------------------------------+--------------------------------------+
| When do I go live in VALERI?  | You can find out your scheduled      |
|                               | go-live date in the **Implementation |
|                               | Schedule** document located on the   |
|                               | VALERI website. If you do not see    |
|                               | the name of your servicing shop on   |
|                               | this list and your mortgage company  |
|                               | services VA loans, please contact    |
|                               | the VALERI helpdesk.                 |
+-------------------------------+--------------------------------------+
| What if my mortgage company   | If your mortgage company does not    |
| does not service VA loans?    | service VA loans, the new            |
|                               | regulations do not apply. If the     |
|                               | name of your organization is listed  |
|                               | on the implementation schedule and   |
|                               | you no longer service VA loans,      |
|                               | please contact let the VALERI        |
|                               | helpdesk and it will be removed.     |
+-------------------------------+--------------------------------------+
| When do the new regulations   | The new regulations are effective on |
| apply?                        | your go-live date with three         |
|                               | exceptions. The three exceptions     |
|                               | include a one-year timeframe for     |
|                               | filing claims; the new maximum       |
|                               | allowable attorney fees; and the     |
|                               | opportunity to participate in the    |
|                               | Servicer Appraisal Processing (SAPP) |
|                               | program. These three exceptions are  |
|                               | applicable as of the regulation      |
|                               | publication date of 2/1/08. Refer    |
|                               | **to Circular 26-08-1** for more     |
|                               | details.                             |
+-------------------------------+--------------------------------------+
| What do I need to do to       | In preparation for your              |
| prepare for the VALERI        | implementation, the following        |
| implementation?               | activities will need to be           |
|                               | completed:                           |
|                               |                                      |
|                               | 1.  Complete and return the **VALERI |
|                               |     Servicer Questionnaire** and     |
|                               |     provide point of contact         |
|                               |     information to                   |
|                               |     <valerihelpdesk@ccsin.com> as    |
|                               |     soon as possible.                |
|                               |                                      |
|                               | 2.  Provide the VALERI helpdesk with |
|                               |     your Data Quality File. (Refer   |
|                               |     to data quality section of this  |
|                               |     document for details)            |
|                               |                                      |
|                               | 3.  Determine how your company will  |
|                               |     electronically transmit data     |
|                               |     based on the new reporting       |
|                               |     requirements to VALERI           |
|                               |                                      |
|                               | 4.  If you choose to have a direct   |
|                               |     connection, provide a data       |
|                               |     initialization file and contact  |
|                               |     the VALERI helpdesk to determine |
|                               |     if beta testing is needed        |
|                               |                                      |
|                               | 5.  Provide a list of users from     |
|                               |     your organization that will      |
|                               |     access VALERI and points of      |
|                               |     contact for each business line   |
|                               |                                      |
|                               | 6.  Participate in VALERI web-based  |
|                               |     training (week of your go-live   |
|                               |     date)                            |
+-------------------------------+--------------------------------------+

#  Data Quality File

+-------------------------------+--------------------------------------+
| ######## Quest                | **Answer**                           |
| ion {#question-1 .unnumbered} |                                      |
+-------------------------------+--------------------------------------+
| What is a data quality file   | A data quality file is an extract of |
| and why is it important?      | identifying loan data for all of     |
|                               | your VA loans. VA will compare your  |
|                               | data against VA's origination system |
|                               | data to identify discrepancies. VA   |
|                               | will work with you to resolve        |
|                               | discrepancies prior to your          |
|                               | implementation date.                 |
|                               |                                      |
|                               | The data quality process helps VA to |
|                               | be sure that you can report properly |
|                               | in the new environment and that your |
|                               | loans will be accepted in our        |
|                               | system. This is an essential step to |
|                               | ensure a smooth implementation.      |
+-------------------------------+--------------------------------------+
| Who does this apply to?       | This applies to any organization     |
|                               | that services VA guaranteed loans    |
|                               | that are Type 2 or 6 where the       |
|                               | property is permanently affixed to a |
|                               | permanent foundation.                |
+-------------------------------+--------------------------------------+
| How many records should be    | All your VA loans that are Type 2 or |
| included in this file? What   | Type 6 should be included. Per the   |
| are the selection criteria?   | selection criteria, this does not    |
|                               | include loans that are mobile homes, |
|                               | i.e. those properties NOT affixed to |
|                               | a permanent foundation, or loans     |
|                               | that are 4600 vendee loans (Type 4). |
|                               |                                      |
|                               | Lastly, this file should NOT include |
|                               | any loans that are paid in full or   |
|                               | where the servicing has been         |
|                               | transferred to another servicer.     |
+-------------------------------+--------------------------------------+
| What data must be included in | The data required as part of the     |
| the data quality file?        | data quality file is as follows:     |
|                               |                                      |
|                               | (1) VA Loan Number -- the 12 digit   |
|                               |     numeric number issued by VA to   |
|                               |     the loan                         |
|                               |                                      |
|                               | (2) Obligor Last Name -- the last    |
|                               |     name of the current obligor (do  |
|                               |     not include entire name)         |
|                               |                                      |
|                               | (3) State Abbreviation -- the state  |
|                               |     where the property is located    |
|                               |                                      |
|                               | (4) Loan amount -- the amount of the |
|                               |     loan                             |
|                               |                                      |
|                               | (5) Loan Date -- the date the loan   |
|                               |     was originated                   |
|                               |                                      |
|                               | (6) Due Date -- the payment due date |
|                               |     on the loan                      |
|                               |                                      |
|                               | (7) First principal balance -- the   |
|                               |     unpaid principal balance         |
|                               |                                      |
|                               | (8) Servicer name -- the name of     |
|                               |     your servicing organization      |
|                               |                                      |
|                               | (9) Servicer ID -- the six digit     |
|                               |     numeric number assigned to VA to |
|                               |     your organization                |
|                               |                                      |
|                               | (10) Old Servicer ID -- the number   |
|                               |      assigned to the servicer        |
|                               |      previously servicing this loan  |
|                               |      (if available)                  |
|                               |                                      |
|                               | (11) Old Loan Number -- the old loan |
|                               |      number (if available)           |
|                               |                                      |
|                               | (12) Client Number -- a numeric      |
|                               |      number assigned to your         |
|                               |      organization by a service       |
|                               |      bureau (if available)           |
|                               |                                      |
|                               | (13) Servicer Loan Number -- the     |
|                               |      loan number your organization   |
|                               |      has designated for the loan     |
|                               |                                      |
|                               | (14) Mortgagor Social Security       |
|                               |      Number -- the nine digit social |
|                               |      security number of the obligor  |
|                               |      (SSNs are represented by the 9  |
|                               |      digits of the SSN followed by a |
|                               |      blank space in the 10^th^       |
|                               |      character spot. TINs are        |
|                               |      represented by the 9 digits of  |
|                               |      the TIN followed by a minus     |
|                               |      symbol in the 10^th^ character  |
|                               |      spot).                          |
+-------------------------------+--------------------------------------+
| What is the specification for | The length of each record in the     |
| this file? What is the record | data quality file is 234 bytes. It   |
| length? Does it need to be    | needs to be semi-colon delimited and |
| delimited?                    | have line breaks.                    |
|                               |                                      |
|                               | The specification and examples are   |
|                               | as follows:                          |
|                               |                                      |
|                               | \(1\) VA-LIN PIC X(12). VA LIN       |
|                               | number is a 12 digit number          |
|                               |                                      |
|                               | \(2\) Mortgagor-LAST-NAME PIC X(20). |
|                               | For example, SMITH \***LAST NAME     |
|                               | ONLY MUST BE PROVIDED**              |
|                               |                                      |
|                               | \(3\) STATE-ABBR PIC X(2). For       |
|                               | example, CA                          |
|                               |                                      |
|                               | \(4\) ORIG-MTG-AMT PIC S9(9).(\*Note |
|                               | -- no decimals should be included    |
|                               | and it just be loaded with zeros on  |
|                               | the left. For example, \$50,000      |
|                               | would be represented as 000050000)   |
|                               |                                      |
|                               | \(5\) LOAN-DATE -- **MMDDYY** (For   |
|                               | example, 010199)                     |
|                               |                                      |
|                               | \(6\) DUE-DATE -- **MMDDYY** (For    |
|                               | example, 010199)                     |
|                               |                                      |
|                               | \(7\) FIRST-PRIN-BAL PIC -- Implied  |
|                               | decimal (9V99) for a total of        |
|                               | 11positions (note no decimal point   |
|                               | should be included) For example,     |
|                               | 50,000 would be = 00005000000)       |
|                               |                                      |
|                               | \(8\) SERVICER-NAME PIC X(36). For   |
|                               | example, MortgageServicerName        |
|                               |                                      |
|                               | \(9\) VA-SERVICER-ID PIC X(24). For  |
|                               | example, 12345678                    |
|                               |                                      |
|                               | \(10\) OLD-SERVICER-NO PIC X(3).     |
|                               |                                      |
|                               | \(11\) OLD-LOAN-NO PIC X(15).        |
|                               |                                      |
|                               | \(12\) CLIENT-NO PIC X(3).           |
|                               |                                      |
|                               | \(13\) LOAN-NO PIC X(13).            |
|                               |                                      |
|                               | (14)MTGR-SS-NO.PIC9(9)-.For example. |
|                               | 123456789-                           |
|                               |                                      |
|                               | FILLER PIC X (50).                   |
|                               |                                      |
|                               | Details can be found in the          |
|                               | **Servicer Implementation**          |
|                               | **Guide** located on the VALERI      |
|                               | website.                             |
+-------------------------------+--------------------------------------+
| What do I provide if I do not | We ask that you pad it out so that   |
| have a field you are          | the 234-byte requirement is met.     |
| requesting?                   |                                      |
+-------------------------------+--------------------------------------+
| Is the data quality file the  | No, the data quality file layout is  |
| same file layout as shown in  | different from the initialization    |
| the Servicing Systems         | file layout.                         |
| Interface (dated 3-19-2007)   |                                      |
+-------------------------------+--------------------------------------+
| Is there a required file name | No, however we ask that you include  |
| for this file?                | the name of the servicer and the     |
|                               | date of the file.                    |
+-------------------------------+--------------------------------------+
| How is the file transferred   | Through a secured file transfer web  |
| to VA?                        | site, which VA will provide to you   |
|                               | or through a previously discussed    |
|                               | and approved method. Please contact  |
|                               | the VALERI helpdesk.                 |
+-------------------------------+--------------------------------------+
| How does VA report            | VA will provide an excel spreadsheet |
| discrepancies to the          | with the result of the data quality  |
| servicer?                     | analysis to a designated POC at the  |
|                               | servicing shop.                      |
+-------------------------------+--------------------------------------+
| What action must servicers    | VA will provide you with detailed    |
| take based on the results     | instructions as to what the next     |
| provided by VA?               | steps are along with the results of  |
|                               | the analysis.                        |
+-------------------------------+--------------------------------------+

# Determine method for electronically reporting data 

+-------------------------------+---+--------------------------------------+
| ######## Quest                |   | #### Answer {#answer .unnumbered}    |
| ion {#question-2 .unnumbered} |   |                                      |
+-------------------------------+---+--------------------------------------+
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|                               | . |                                      |
+-------------------------------+---+--------------------------------------+
| What are the options for      |   | Data can be transmitted to VA        |
| electronically reporting data |   | through either:                      |
| to VA?                        |   |                                      |
|                               |   | \(a\) Direct connection by using the |
|                               |   | 3,754 byte specification (Servicing  |
|                               |   | System Interface document located on |
|                               |   | the VALERI website). **OR**          |
|                               |   |                                      |
|                               |   | \(b\) Logging onto the Servicer Web  |
|                               |   | Portal (SWP) and manually keying in  |
|                               |   | the data for all required events. If |
|                               |   | you choose this option, you can also |
|                               |   | decide if you would like to use the  |
|                               |   | event bulk upload functionality.     |
|                               |   | Refer to the Bulk Upload section for |
|                               |   | more details.                        |
|                               |   |                                      |
|                               |   | Feel free to call the VALERI         |
|                               |   | Helpdesk to discuss in more detail   |
|                               |   | these options.                       |
+-------------------------------+---+--------------------------------------+
| What do I need to do if I     |   | You will need to contact the VALERI  |
| decide to have a direct       |   | helpdesk to determine if you will    |
| connection?                   |   | need to participate in a beta test.  |
|                               |   | Additionally, you will need to       |
|                               |   | provide a data quality file, an      |
|                               |   | initialization file, and daily       |
|                               |   | change files. Refer to the           |
|                               |   | initialization and the daily change  |
|                               |   | file section for more details.       |
|                               |   | Lastly, as the claim event is not    |
|                               |   | part of the direct connection, you   |
|                               |   | may choose to use the claim bulk     |
|                               |   | upload functionality. If you choose  |
|                               |   | to use this functionality, you will  |
|                               |   | need to provide an extract that      |
|                               |   | meets that **Claims Bulk Upload      |
|                               |   | Template** specification.            |
+-------------------------------+---+--------------------------------------+
| For a direct connection       |   | For the direct connection mechanism, |
| mechanism, what are the       |   | there are two methods of             |
| methods of transferring       |   | transferring the file to VALERI.     |
| files?                        |   | Both use a direct connection to a    |
|                               |   | Tectia 140-2 compliant server.\      |
|                               |   | (1) Virtual Private Network (VPN)\   |
|                               |   | (2) SFTP                             |
+-------------------------------+---+--------------------------------------+
| If a direct connection is the |   | As long as the required data is      |
| method chosen, will servicers |   | provided per the Servicing System    |
| need to report events or just |   | Interface specification, the VA      |
| the required data?            |   | system will generate the proper      |
|                               |   | events.                              |
+-------------------------------+---+--------------------------------------+
| What do I need to do if I     |   | You will need to provide a data      |
| decide to log onto the        |   | quality file. Also, if you choose to |
| Servicer Web Portal to report |   | use the bulk upload functionality    |
| data to VA?                   |   | you will need to provide an extract  |
|                               |   | that conforms to the specification   |
|                               |   | provided in the **SWP Bulk Upload    |
|                               |   | Template** and the **Claims Bulk     |
|                               |   | Upload Template.**                   |
+-------------------------------+---+--------------------------------------+

# Data Initialization File 

+-------------------------------+--------------------------------------+
| ######## Quest                | **Answer**                           |
| ion {#question-3 .unnumbered} |                                      |
+-------------------------------+--------------------------------------+
| What is an initialization     | An initialization file is the first  |
| file?                         | file that is provided to VALERI. It  |
|                               | conforms to the 3,754-byte           |
|                               | specification as described in the    |
|                               | **Servicing System Interface**       |
|                               | document. This is a one-time         |
|                               | occurrence.                          |
+-------------------------------+--------------------------------------+
| What are the selection        | All VA guaranteed Type 2 and Type 6  |
| criteria?                     | loans where the property is affixed  |
|                               | to a permanent foundation would be   |
|                               | included. No mobile homes or 4600    |
|                               | repurchased loans (type 4 loans)     |
|                               | would be included. Lastly, the       |
|                               | initialization file should NOT       |
|                               | include any loans that are paid in   |
|                               | full or where the servicing was      |
|                               | transferred to another servicer.     |
+-------------------------------+--------------------------------------+
| What if I subservice loans?   | If you subservice VA loans for other |
| Should I include those in the | servicing organizations, please      |
| data initialization file?     | contact the VALERI helpdesk. The     |
|                               | VALERI helpdesk will provide         |
|                               | guidance as to whether those loans   |
|                               | should be included.                  |
+-------------------------------+--------------------------------------+
| What is the record length for | The length of each record in the     |
| this initialization file?     | data quality file is 3,754 bytes.    |
+-------------------------------+--------------------------------------+
| What transmission mechanism   | A direct connection would need to be |
| would need to be in place to  | in place. There are two methods of   |
| provide an initialization     | transferring the file to VALERI.     |
| file?                         | Both use a direct connection to a    |
|                               | Tectia 140-2 compliant server.\      |
|                               | (1) Virtual Private Network (VPN)\   |
|                               | (2) SFTP                             |
+-------------------------------+--------------------------------------+
| Does this file have the same  | Yes, this document represents the    |
| layout and specification as   | specification for the initialization |
| shown in the Servicing        | file.                                |
| Systems Interface dated       |                                      |
| 3-19-2007, section 2.6.8      |                                      |
| Field Layout?                 |                                      |
+-------------------------------+--------------------------------------+
| If we do not plan on          | No. However, we do need the data     |
| establishing a direct         | quality file from you.               |
| connection with VALERI, will  |                                      |
| we need to submit an          |                                      |
| initialization file?          |                                      |
+-------------------------------+--------------------------------------+
| Is this data initialization   | No it is not. As long as the         |
| file event based?             | required data is provided per the    |
|                               | Servicing System Interface           |
|                               | specification, the VA system will    |
|                               | generate the proper events.          |
+-------------------------------+--------------------------------------+
| Is there a required file name | Yes. Please refer to the **Servicing |
| for this file?                | Systems Interface** file for the     |
|                               | naming convention.                   |
+-------------------------------+--------------------------------------+
| What is done with the data    | We will use the data initialization  |
| initialization file?          | file to load your loan data into     |
|                               | VALERI. From that point forward, we  |
|                               | would expect you to send a daily     |
|                               | change file, which would include     |
|                               | only those VA loans where one of the |
|                               | fields has changed.                  |
+-------------------------------+--------------------------------------+

#   {#section .unnumbered}

# Beta Testing

+-------------------------------+--------------------------------------+
| ######## Quest                | **Answer**                           |
| ion {#question-4 .unnumbered} |                                      |
+-------------------------------+--------------------------------------+
| Who should participate in     | If you plan on setting up a direct   |
| beta testing?                 | connection with VA, then VA expects  |
|                               | you will have the opportunity to     |
|                               | complete a beta test to ensure that  |
|                               | the data in your system will         |
|                               | correctly map over to VALERI.        |
|                               |                                      |
|                               | Please contact VALERI Help Desk for  |
|                               | a beta test plan. You also need to   |
|                               | fill out the **SFTP form document**  |
|                               | and return it to VALERI Help Desk.   |
+-------------------------------+--------------------------------------+
| What do I need to do to       | 1\) Select beta test environment (an |
| prepare for the beta test?    | environment where a user can input   |
| What occurs during the week   | the transactions listed in the       |
| of beta?                      | VALERI beta test plan.)\             |
|                               | 2) Select a representative sample of |
|                               | VA loans (some current, some         |
|                               | delinquent, some terminated) and     |
|                               | load them into beta test environment |
|                               | (Note: Need to make sure you are     |
|                               | using valid VA LINS and valid VA     |
|                               | state abbreviations so that they     |
|                               | pass match criteria. If not, all     |
|                               | events will reject.)\                |
|                               | 3) Scrub your data based on the      |
|                               | enclosed criteria (see response      |
|                               | below).                              |
|                               |                                      |
|                               | 4\) Generate an initialization file  |
|                               | out of the beta test environment and |
|                               | transmit it to the VALERI test       |
|                               | environment via a temporary SFTP     |
|                               | site\                                |
|                               | 5) Your initialization file will be  |
|                               | loaded into the VALERI\              |
|                               | 6) Your testers will conduct Day 1   |
|                               | transactions per the VALERI beta     |
|                               | test plan\                           |
|                               | 7) Your system will generate Day 1   |
|                               | Change file and provide it to a      |
|                               | temporary SFTP site.\                |
|                               | 8) We will load Day 1 change file    |
|                               | into VALERI\                         |
|                               | 9) Your testers continue Day 2, 3, 4 |
|                               | transactions; your system generates  |
|                               | change files, we load them into      |
|                               | VALERI accordingly; and lastly your  |
|                               | testers verify.\                     |
|                               | 10) Conference calls will be held    |
|                               | during this week to review activity  |
|                               | and results.                         |
+-------------------------------+--------------------------------------+
| How can I get a beta test     | Please contact VALERI Help Desk      |
| plan?                         |                                      |
+-------------------------------+--------------------------------------+
| What are the criteria needed  | The fields and the values they       |
| to scrub data for beta        | should be set to include:            |
| testing?                      |                                      |
|                               | \[FirstName\] = \'John\',\           |
| []{.mark}                     | \[MiddleName\] = \'\',\              |
|                               | \[LastName\] = \'Smith\',\           |
| []{.mark}                     | \[NameSuffix\] = \'\',\              |
|                               | \[BirthDate\] = \'1977-09-24\',      |
|                               |                                      |
|                               | \[SSN\] = \'\',\                     |
|                               | \[Phone1\] = \'\',                   |
|                               |                                      |
|                               | \[AddressLine1\] = \'601 Riverside   |
|                               | Ave.\',                              |
|                               |                                      |
|                               | \[AddressLine2\] = \'Building 5\',\  |
|                               | \[AddressLine3\] = \'\',             |
|                               |                                      |
|                               | \[City\] = \'Jacksonville\',\        |
|                               | \[PostalCode\] = \'32204\',          |
|                               |                                      |
|                               | \[PostalCodeSuffix\] =\'\',          |
|                               |                                      |
|                               | \[County\] = \'Duval\'               |
+-------------------------------+--------------------------------------+
| The instructions state that   | We would like at least 500 loans if  |
| the initialization file does  | possible. More importantly, we would |
| not have to represent all     | like loans that are reportable       |
| loans, but rather a           | defaults (i.e. payment due date is   |
| \"representative sample\".    | at least 61 days in past) loans as   |
| Approximately how many loans  | well as some current loans.          |
| would be adequate?            |                                      |
+-------------------------------+--------------------------------------+

# Servicer Reporting After Go-Live

+------------------------------+---------------------------------------+
| ######## Questi              | **Answer**                            |
| on {#question-5 .unnumbered} |                                       |
+------------------------------+---------------------------------------+
| ##                           | A daily change file is a file that is |
| ###### What is a daily chang | sent everyday once the initialization |
| e file? Who is required to s | file has been submitted. The file     |
| ubmit one? What is the speci | conforms to the 3,754-byte            |
| fication of the daily change | specification. Change files contain   |
|  file? What are the selectio | VA loans where one of the data fields |
| n criteria?  {#what-is-a-dai | listed in the 3,754-byte              |
| ly-change-file-who-is-requir | specification has changed. If no      |
| ed-to-submit-one-what-is-the | change has taken place on a VA loan,  |
| -specification-of-the-daily- | that loan would not be included in    |
| change-file-what-are-the-sel | the daily change file For more        |
| ection-criteria .unnumbered} | details, please refer to **Servicing  |
|                              | Systems Interface Document.**         |
|                              |                                       |
|                              | Only those servicers that chose to    |
|                              | have a direct connection and          |
|                              | therefore provided an initialization  |
|                              | file would be required to submit a    |
|                              | daily change file.                    |
|                              |                                       |
|                              | The daily change file is a 3,754-byte |
|                              | record length and has the same layout |
|                              | and specification as the Data         |
|                              | Initialization File. Details can be   |
|                              | found in the **Servicing Systems      |
|                              | Interface** document.                 |
|                              |                                       |
|                              | The selection criteria for the daily  |
|                              | change file is all VA guaranteed Type |
|                              | 2 and Type 6 loans where the property |
|                              | is affixed to a permanent foundation. |
|                              | Therefore no mobile homes or 4600     |
|                              | repurchased loans (type 4 loans)      |
|                              | would be included. Additionally, we   |
|                              | would want you to report if any loans |
|                              | that were included as part of the     |
|                              | initialization file were paid in full |
|                              | or if the servicing rights were       |
|                              | transferred to another servicer.      |
|                              |                                       |
|                              | Note that the selection criteria for  |
|                              | the daily change file are different   |
|                              | from the selection criteria of the    |
|                              | data initialization file. In the data |
|                              | initialization file, we do not want   |
|                              | loans that are paid in full or loans  |
|                              | where the servicing has been          |
|                              | transferred to another servicer.      |
+------------------------------+---------------------------------------+
| ######## Do daily c          | We ask that daily change files be     |
| hange files need to be sent  | provided Monday through Saturday.     |
| everyday including weekends? | They should arrive no later than      |
|  By what time do daily chang | 5amEST.                               |
| e files need to arrive to th |                                       |
| e VALERI server? {#do-daily- |                                       |
| change-files-need-to-be-sent |                                       |
| -everyday-including-weekends |                                       |
| -by-what-time-do-daily-chang |                                       |
| e-files-need-to-arrive-to-th |                                       |
| e-valeri-server .unnumbered} |                                       |
+------------------------------+---------------------------------------+
| ######## If I chose          | You will need to ensure that the data |
|  to do a direct connection,  | is keyed into your system per the     |
| do I need to worry about eve | reporting frequency provided in the   |
| nt frequency, as I will be s | **VALERI Reporting Requirements**     |
| ubmitting a daily change fil | document so that the data can come    |
| e?  {#if-i-chose-to-do-a-dir | over in the daily change file.        |
| ect-connection-do-i-need-to- | However if the data is keyed into     |
| worry-about-event-frequency- | your system as it occurs, you do not  |
| as-i-will-be-submitting-a-da | need to be concerned about event      |
| ily-change-file .unnumbered} | frequency for that data that comes    |
|                              | via the direct connection. Also, you  |
|                              | are only required to submit daily     |
|                              | change files, NOT monthly files or    |
|                              | another other variation.              |
+------------------------------+---------------------------------------+
| ######## How do I            | You will need to log onto the         |
|  report events after I go-li | Servicer Web Portal and key in the    |
| ve if I chose not to do a di | events. If you choose to use the bulk |
| rect connection?  {#how-do-i | upload functionality, you will need   |
| -report-events-after-i-go-li | to ensure that your system generates  |
| ve-if-i-chose-not-to-do-a-di | an extract per the Event Bulk Upload  |
| rect-connection .unnumbered} | Specification. To complete the bulk   |
|                              | upload, you would need to log onto    |
|                              | the Servicer Web Portal.              |
+------------------------------+---------------------------------------+
| Which events do I need to    | The following events can only be      |
| manually report on the       | reported to VALERI using the Servicer |
| VALERI web site? (This       | Web Portal (even if you have a direct |
| applies to those with and    | connection and provide a daily change |
| without a direct connection) | file):                                |
|                              |                                       |
|                              | -   Partial Release of Security       |
|                              |                                       |
|                              | -   Partial Payment Returned          |
|                              |                                       |
|                              | -   Transfer of Custody               |
|                              |                                       |
|                              | -   Improper Transfer of Custody      |
|                              |                                       |
|                              | -   Invalid Sale Results              |
|                              |                                       |
|                              | -   Claim/Supplemental Claim          |
|                              |                                       |
|                              | -   Refunding Settlement              |
|                              |                                       |
|                              | Therefore a user would need to log    |
|                              | onto the Servicer Web Portal and to   |
|                              | key in these events. Please note the  |
|                              | requirement as to when they need to   |
|                              | be submitted in the **VALERI          |
|                              | Reporting Requirements** document.    |
+------------------------------+---------------------------------------+
| When I check on my events    | After you report an event to VALERI,  |
| using the Servicer Web       | you have a revision window - a        |
| Portal, I notice that there  | three-day period - to revise or       |
| is a clock next to them and  | withdraw the event before it is       |
| they have not processed, why | processed in VALERI. During this      |
| does this happen?            | period, your event will show up with  |
|                              | a clock icon next to it in the        |
|                              | Servicer Web Portal. This will occur  |
|                              | if the events come through the direct |
|                              | connections or the servicer web       |
|                              | portal.                               |
+------------------------------+---------------------------------------+
| Can I revise or withdraw an  | No. During the three-day              |
| event I submitted using the  | revision/withdraw window, you must    |
| servicing system interface   | update accordingly in your system.    |
| on the Servicer Web Portal?  | Any changes made during the three-day |
|                              | window will come over in the daily    |
|                              | change file. If the change needs to   |
|                              | be made after the three-day window,   |
|                              | please contact the VALERI helpdesk    |
|                              | for more information.                 |
+------------------------------+---------------------------------------+
| Can I revise or withdraw an  | Yes. Click on the event name in the   |
| event I submitted using the  | list of submitted events for a loan.  |
| Servicer Web Portal on the   | If the event is eligible, Revise and  |
| Servicer Web Portal?         | Withdraw will appear as options. This |
|                              | can be done only during the tree-day  |
|                              | revision/withdraw window. If the      |
|                              | change needs to be made after the     |
|                              | three-day window, please contact the  |
|                              | VALERI helpdesk for more information. |
+------------------------------+---------------------------------------+
| Can I revise or withdraw     | No. If you have incorrectly reported  |
| events after the revision    | an event that has since processed,    |
| window has closed and the    | please contact the VA technician      |
| event has been processed?    | assigned to your loan, or the VALERI  |
|                              | helpdesk with more information on how |
|                              | to proceed.                           |
+------------------------------+---------------------------------------+
| If I use a direct            | Attached below is a list of all       |
| connection, what are the     | events detected by VALERI from the    |
| triggering fields for events | daily change file, and a description  |
| to be detected and generated | of how the events are detected.       |
| by VALERI?                   |                                       |
|                              | **Monthly Loan Status Update**        |
|                              |                                       |
|                              | No triggering field. Submitted        |
|                              | automatically on the first of every   |
|                              | month.                                |
|                              |                                       |
|                              | **Loan Paid In Full**                 |
|                              |                                       |
|                              | \(10\) Date loan was paid in full     |
|                              |                                       |
|                              | **Transfer of Ownership**             |
|                              |                                       |
|                              | \(11\) Date of transfer of ownership  |
|                              |                                       |
|                              | **Release of Liability**              |
|                              |                                       |
|                              | \(12\) Date of release                |
|                              |                                       |
|                              | **Servicing Transfer (Transferring    |
|                              | Servicer)**                           |
|                              |                                       |
|                              | \(13\) Servicing release date         |
|                              |                                       |
|                              | **Servicing Transfer (Receiving       |
|                              | Servicer)**                           |
|                              |                                       |
|                              | \(15\) Date loan acquired             |
|                              |                                       |
|                              | **Electronic Default Notification**   |
|                              |                                       |
|                              | \(18\) Payment Due Date or            |
|                              |                                       |
|                              | \(59\) Primary reason for default     |
|                              |                                       |
|                              | **Delinquency Status Update**         |
|                              |                                       |
|                              | No triggering field. Submitted        |
|                              | automatically on the first of every   |
|                              | month.                                |
|                              |                                       |
|                              | **Contact Information Change**        |
|                              |                                       |
|                              | Any of the borrower contact           |
|                              | information fields                    |
|                              |                                       |
|                              | (26, 27, 37, 38, 39, 40, 41, 42, 43,  |
|                              | 51, 52, 53, 54, 55, 56, 57, 58)       |
|                              |                                       |
|                              | **Occupancy Status Change**           |
|                              |                                       |
|                              | \(61\) Date the change in occupancy   |
|                              | status is discovered by servicer      |
|                              |                                       |
|                              | **Bankruptcy Filed**                  |
|                              |                                       |
|                              | \(62\) Date bankruptcy filed          |
|                              |                                       |
|                              | **Bankruptcy Update**                 |
|                              |                                       |
|                              | \(78\) Date relief of stay or         |
|                              |                                       |
|                              | \(79\) Date of discharge or           |
|                              |                                       |
|                              | \(80\) Date of dismissal or           |
|                              |                                       |
|                              | \(81\) Date stay lifted or            |
|                              |                                       |
|                              | **Loss Mitigation Letter Sent**       |
|                              |                                       |
|                              | \(82\) Date that the letter was sent  |
|                              |                                       |
|                              | **Default Cured Loan Reinstated**     |
|                              |                                       |
|                              | \(83\) Date the loan was reinstated   |
|                              |                                       |
|                              | **Default Reported to Credit Bureau** |
|                              |                                       |
|                              | \(84\) Date reported                  |
|                              |                                       |
|                              | **Repayment Plan Approved**           |
|                              |                                       |
|                              | \(85\) Date repayment plan approved   |
|                              |                                       |
|                              | **Special Forbearance Approved**      |
|                              |                                       |
|                              | \(88\) Date special forbearance       |
|                              | approved                              |
|                              |                                       |
|                              | **Loan Modification Approved**        |
|                              |                                       |
|                              | \(90\) Date modification of loan      |
|                              | approved                              |
|                              |                                       |
|                              | **Loan Modification Complete**        |
|                              |                                       |
|                              | \(91\) Date loan modification fully   |
|                              | executed                              |
|                              |                                       |
|                              | **Compromise Sale Complete**          |
|                              |                                       |
|                              | \(98\) Actual settlement date         |
|                              |                                       |
|                              | **Deed In Lieu Complete**             |
|                              |                                       |
|                              | \(100\) Date that deed was recorded   |
|                              |                                       |
|                              | **Foreclosure Referral**              |
|                              |                                       |
|                              | \(103\) Date of referral to attorney  |
|                              |                                       |
|                              | **Foreclosure Sale Scheduled**        |
|                              |                                       |
|                              | \(106\) Date of scheduled foreclosure |
|                              | sale or                               |
|                              |                                       |
|                              | \(107\) Foreclosure Type              |
|                              |                                       |
|                              | **Results of Sale**                   |
|                              |                                       |
|                              | \(108\) Date of Sale                  |
|                              |                                       |
|                              | **Confirmed Sale (No TOC)**           |
|                              |                                       |
|                              | \(195\) Confirmation or ratification  |
|                              | date (when no transfer of custody)    |
+------------------------------+---------------------------------------+
| What is the minimum required | Attached below is a list of all       |
| fields for each event        | events and the minimum required data  |
| submitted to VALERI?         | elements.                             |
|                              |                                       |
|                              | If you are a servicer that uses a     |
|                              | direct connection, we have provided   |
|                              | the sequence numbers for those fields |
|                              | that can be reported via the daily    |
|                              | change file. If these required fields |
|                              | are not provided, your event will     |
|                              | fail once it has been processed in    |
|                              | VALERI.                               |
|                              |                                       |
|                              | If you are a servicer that does not   |
|                              | have a direct connection, all of the  |
|                              | data can be reported on the Servicer  |
|                              | Web Portal. If these required fields  |
|                              | are not provided, your event will     |
|                              | fail once it has processed in VALERI. |
|                              |                                       |
|                              | Note that there are certain events    |
|                              | marked as "Servicer Web Portal".      |
|                              | These events can only be submitted on |
|                              | the Servicer Web Portal regardless of |
|                              | whether you have a direct connection. |
|                              |                                       |
|                              | **Monthly Loan Status Update**        |
|                              |                                       |
|                              | \(45\) Unpaid principal balance (UPB) |
|                              |                                       |
|                              | \(18\) Payment due date               |
|                              |                                       |
|                              | **Loan Paid In Full**                 |
|                              |                                       |
|                              | \(10\) Date loan was paid in full     |
|                              |                                       |
|                              | **Transfer of Ownership**             |
|                              |                                       |
|                              | \(11\) Date of transfer of ownership  |
|                              |                                       |
|                              | \(26\) Last name of current obligor   |
|                              | (individual or entity assuming the    |
|                              | loan)                                 |
|                              |                                       |
|                              | \(27\) First name of current obligor  |
|                              | (individual or entity assuming the    |
|                              | loan)                                 |
|                              |                                       |
|                              | \(30\) SSN or TIN (whichever          |
|                              | applicable)                           |
|                              |                                       |
|                              | **Release of Liability**              |
|                              |                                       |
|                              | \(12\) Date of release                |
|                              |                                       |
|                              | **Partial release of security         |
|                              | (Servicer Web Portal Only)**          |
|                              |                                       |
|                              | Date partial release of security      |
|                              | document was executed                 |
|                              |                                       |
|                              | **Partial payment returned**          |
|                              |                                       |
|                              | Date partial payment was returned     |
|                              |                                       |
|                              | **Servicing Transfer (Transferring    |
|                              | Servicer)**                           |
|                              |                                       |
|                              | \(13\) Servicing release date         |
|                              |                                       |
|                              | \(14\) Name of new servicer           |
|                              |                                       |
|                              | **Servicing Transfer (Receiving       |
|                              | Servicer)**                           |
|                              |                                       |
|                              | \(15\) Date loan acquired             |
|                              |                                       |
|                              | \(16\) Previous servicer loan number  |
|                              |                                       |
|                              | **Electronic Default Notification**   |
|                              |                                       |
|                              | **(**17) Date of first payment on     |
|                              | original loan                         |
|                              |                                       |
|                              | \(18\) Payment Due Date or            |
|                              |                                       |
|                              | \(19\) Property address line 1        |
|                              |                                       |
|                              | \(22\) Property address city          |
|                              |                                       |
|                              | \(23\) Property address zip code      |
|                              |                                       |
|                              | \(25\) Property address state         |
|                              | abbreviation                          |
|                              |                                       |
|                              | \(26\) Last name of current obligor   |
|                              |                                       |
|                              | \(27\) First name of current obligor  |
|                              |                                       |
|                              | \(30\) SSN or TIN (whichever          |
|                              | applicable)                           |
|                              |                                       |
|                              | \(44\) Interest rate on the loan      |
|                              |                                       |
|                              | \(45\) Unpaid principal balance       |
|                              |                                       |
|                              | \(46\) Principal and Interest portion |
|                              | of monthly payment                    |
|                              |                                       |
|                              | \(47\) Taxes and insurance portion of |
|                              | monthly payment                       |
|                              |                                       |
|                              | \(48\) Other portion of monthly       |
|                              | installment (if applicable)           |
|                              |                                       |
|                              | \(49\) Late charges due               |
|                              |                                       |
|                              | \(50\) Occupant of property           |
|                              |                                       |
|                              | \(59\) Primary reason for default     |
|                              |                                       |
|                              | \(60\) Expenses incurred to date (if  |
|                              | applicable)                           |
|                              |                                       |
|                              | **Delinquency Status Update**         |
|                              |                                       |
|                              | \(45\) Unpaid principal balance       |
|                              |                                       |
|                              | \(46\) Principal and Interest portion |
|                              | of monthly payment                    |
|                              |                                       |
|                              | \(47\) Taxes and insurance portion of |
|                              | monthly payment                       |
|                              |                                       |
|                              | \(48\) Other portion of monthly       |
|                              | installment (if applicable)           |
|                              |                                       |
|                              | \(49\) Late charges due (if           |
|                              | applicable)                           |
|                              |                                       |
|                              | \(60\) Expenses incurred to date (if  |
|                              | applicable)                           |
|                              |                                       |
|                              | **Contact Information Change**        |
|                              |                                       |
|                              | Any of the borrower contact           |
|                              | information fields                    |
|                              |                                       |
|                              | (26, 27, 37, 38, 39, 40, 41, 42, 43,  |
|                              | 51, 52, 53, 54, 55, 56, 57, 58)       |
|                              |                                       |
|                              | **Occupancy Status Change**           |
|                              |                                       |
|                              | \(61\) Date the change in occupancy   |
|                              | status is discovered by servicer      |
|                              |                                       |
|                              | \(50\) Occupant of property           |
|                              |                                       |
|                              | **Bankruptcy Filed**                  |
|                              |                                       |
|                              | \(62\) Date bankruptcy filed          |
|                              |                                       |
|                              | \(63\) Type of bankruptcy             |
|                              |                                       |
|                              | \(64\) Bankruptcy case number         |
|                              |                                       |
|                              | \(65\) Bankruptcy code                |
|                              |                                       |
|                              | \(66\) Name of primary debtor         |
|                              |                                       |
|                              | \(67\) Bankruptcy filing indicator    |
|                              |                                       |
|                              | \(68\) SSN or TIN of primary debtor   |
|                              |                                       |
|                              | (69-71) Co-obligor info (if           |
|                              | applicable)                           |
|                              |                                       |
|                              | (72-77) Alternate debtor info (if     |
|                              | applicable)                           |
|                              |                                       |
|                              | **Bankruptcy Update**                 |
|                              |                                       |
|                              | \(78\) Date relief of stay or         |
|                              |                                       |
|                              | \(79\) Date of discharge or           |
|                              |                                       |
|                              | \(80\) Date of dismissal or           |
|                              |                                       |
|                              | \(81\) Date stay lifted or            |
|                              |                                       |
|                              | **Loss Mitigation Letter Sent**       |
|                              |                                       |
|                              | \(82\) Date that the letter was sent  |
|                              |                                       |
|                              | **Default Cured Loan Reinstated**     |
|                              |                                       |
|                              | \(83\) Date the loan was reinstated   |
|                              |                                       |
|                              | **Default Reported to Credit Bureau** |
|                              |                                       |
|                              | \(84\) Date reported to the credit    |
|                              | bureau                                |
|                              |                                       |
|                              | **Repayment Plan Approved**           |
|                              |                                       |
|                              | \(85\) Date repayment plan approved   |
|                              |                                       |
|                              | \(86\) Plan start date                |
|                              |                                       |
|                              | \(87\) Estimated cure date            |
|                              |                                       |
|                              | **Special Forbearance Approved**      |
|                              |                                       |
|                              | \(88\) Date special forbearance       |
|                              | approved                              |
|                              |                                       |
|                              | \(89\) Estimated cure date            |
|                              |                                       |
|                              | **Loan Modification Approved**        |
|                              |                                       |
|                              | \(90\) Date modification of loan      |
|                              | approved                              |
|                              |                                       |
|                              | **Loan Modification Complete**        |
|                              |                                       |
|                              | \(91\) Date loan modification fully   |
|                              | executed                              |
|                              |                                       |
|                              | \(92\) Modified loan amount           |
|                              |                                       |
|                              | \(93\) Term                           |
|                              |                                       |
|                              | \(94\) Modified loan maturity date    |
|                              |                                       |
|                              | \(95\) Interest rate                  |
|                              |                                       |
|                              | \(96\) Date of first payment of       |
|                              | modified loan                         |
|                              |                                       |
|                              | \(97\) New principal and interest     |
|                              | payment                               |
|                              |                                       |
|                              | **Compromise Sale Complete**          |
|                              |                                       |
|                              | \(98\) Actual settlement date (date   |
|                              | HUD 1 was signed by all parties)      |
|                              |                                       |
|                              | \(99\) Payoff of first mortgage loan  |
|                              | (line 504 from HUD1)                  |
|                              |                                       |
|                              | **Deed In Lieu Complete**             |
|                              |                                       |
|                              | \(100\) Date that deed was recorded   |
|                              | (this is not the date the deed in     |
|                              | lieu was approved)                    |
|                              |                                       |
|                              | \(101\) Net value                     |
|                              |                                       |
|                              | \(102\) Total eligible indebtedness   |
|                              |                                       |
|                              | **Foreclosure Referral**              |
|                              |                                       |
|                              | \(103\) Date of referral to attorney  |
|                              |                                       |
|                              | \(104\) Date of most recent property  |
|                              | inspection                            |
|                              |                                       |
|                              | \(105\) Updated reason for default at |
|                              | time of foreclosure                   |
|                              |                                       |
|                              | **Foreclosure Sale Scheduled**        |
|                              |                                       |
|                              | \(106\) Date of scheduled foreclosure |
|                              | sale or                               |
|                              |                                       |
|                              | \(107\) Foreclosure Type              |
|                              |                                       |
|                              | **Results of Sale**                   |
|                              |                                       |
|                              | \(108\) Date of Sale                  |
|                              |                                       |
|                              | \(109\) Sheriff's Appraised value (if |
|                              | applicable)                           |
|                              |                                       |
|                              | \(110\) Successful Bidder             |
|                              |                                       |
|                              | \(111\) Amount of Successful Bid      |
|                              |                                       |
|                              | \(112\) Net value                     |
|                              |                                       |
|                              | \(113\) Total eligible indebtedness   |
|                              |                                       |
|                              | **Transfer of Custody** **(Servicer   |
|                              | Web Portal Only**)                    |
|                              |                                       |
|                              | \(114\) Insurance type                |
|                              |                                       |
|                              | \(115\) Policy number                 |
|                              |                                       |
|                              | \(116\) Name of carrier               |
|                              |                                       |
|                              | \(117\) Expiration date               |
|                              |                                       |
|                              | (118-133) Additional insurance        |
|                              | information (if multiple insurance    |
|                              | types)                                |
|                              |                                       |
|                              | \(134\) Tax parcel identification     |
|                              | number                                |
|                              |                                       |
|                              | \(135\) Tax type                      |
|                              |                                       |
|                              | \(136\) Tax type description          |
|                              |                                       |
|                              | (137-193) Additional tax information  |
|                              | (if multiple tax types)               |
|                              |                                       |
|                              | \(194\) Date of confirmation or       |
|                              | ratification date, if applicable      |
|                              | (when there is a transfer of custody) |
|                              |                                       |
|                              | \(196\) Mortgage holder's payee       |
|                              | vendor ID (per FMS)                   |
|                              |                                       |
|                              | \(197\) Payee loan number (if differs |
|                              | from servicer)                        |
|                              |                                       |
|                              | **Confirmed Sale (No TOC)**           |
|                              |                                       |
|                              | \(195\) Confirmation or ratification  |
|                              | date (when no transfer of custody)    |
|                              |                                       |
|                              | **Invalid Sale (Servicer Web Portal   |
|                              | Only)**                               |
|                              |                                       |
|                              | Date invalid sale discovered          |
|                              |                                       |
|                              | Reason for invalid sale               |
|                              |                                       |
|                              | **Improper Transfer of Custody        |
|                              | (Servicer Web Portal Only)**          |
|                              |                                       |
|                              | Date improper transfer of custody was |
|                              | discovered                            |
|                              |                                       |
|                              | Reason for improper transfer of       |
|                              | custody                               |
|                              |                                       |
|                              | **Claim (Servicer Web Portal Only)**  |
|                              |                                       |
|                              | Payee vendor ID                       |
|                              |                                       |
|                              | Payee loan number                     |
|                              |                                       |
|                              | All allowable fees and liquidation    |
|                              | expenses incurred                     |
|                              |                                       |
|                              | All allowable advances incurred       |
|                              |                                       |
|                              | All allowable credits                 |
|                              |                                       |
|                              | Interest rate changes (if applicable) |
|                              |                                       |
|                              | Prepayments (if applicable)           |
|                              |                                       |
|                              | **Refunding Settlement (Servicer Web  |
|                              | Portal Only)**                        |
|                              |                                       |
|                              | Insurance Type                        |
|                              |                                       |
|                              | Insurance Expiration date             |
|                              |                                       |
|                              | Last date insurance paid              |
|                              |                                       |
|                              | Name of carrier                       |
|                              |                                       |
|                              | Policy number                         |
|                              |                                       |
|                              | Premium amount                        |
|                              |                                       |
|                              | Tax type                              |
|                              |                                       |
|                              | Next tax payment due date             |
|                              |                                       |
|                              | Last date tax paid                    |
|                              |                                       |
|                              | Tax parcel identification number      |
|                              |                                       |
|                              | Annual tax amount                     |
+------------------------------+---------------------------------------+
| What will the servicer see   | Servicers will be able to view the    |
| when they log onto the       | event history on their VA loans on    |
| Servicer web portal?         | the Servicer Web Portal. When a       |
|                              | servicer logs on to the Portal and    |
|                              | searches for a particular loan,       |
|                              | VALERI will display all of the events |
|                              | that have been reported on the loan   |
|                              | and the results of the business rule  |
|                              | evaluations for each of the loan\'s   |
|                              | events. It will also indicate if the  |
|                              | events were accepted or rejected.     |
|                              | Servicers will also be able to submit |
|                              | appeals and supporting documentation  |
|                              | (if applicable) on the Servicer Web   |
|                              | Portal.                               |
+------------------------------+---------------------------------------+
| Will there be any data that  | No. Servicers receive important data  |
| can be imported from the     | about their events through Valero's   |
| servicer web portal to the   | Reports application, which can be     |
| servicers' system?           | exported. When servicers access the   |
|                              | reports application, they can choose  |
|                              | from 13 servicer operational reports  |
|                              | to help them keep track of the        |
|                              | activity that has been going on with  |
|                              | their loans in VALERI, including      |
|                              | payment status, event status, and     |
|                              | post-audit selection information.     |
|                              | Each report is explained in detail in |
|                              | Annex 7 of the VALERI Servicer Guide, |
|                              | available on the VALERI website:      |
|                              | <http://homeloans.va.gov/velari.htm>. |
+------------------------------+---------------------------------------+
| If a payment is made,        | If a payment is made, an EDN has      |
| bringing the loan to 30 days | already been submitted, but the loan  |
| delinquent, for example, but | is still delinquent, VALERI will      |
| not current, is the last     | recognize the new payment due date    |
| reported EDN still valid, or | through the next \"Delinquency Status |
| should a "Default Cured"     | Update\" event that is reported by    |
| event be reported?           | the servicer. This event must be      |
|                              | reported once per month on every      |
|                              | delinquent loan in the service's      |
|                              | portfolio and it informs VA that the  |
|                              | loan is still delinquent, and in this |
|                              | case that it just has a new payment   |
|                              | due date that is 30 days rather than  |
|                              | 61 days delinquent. This will not     |
|                              | cause a new EDN to be submitted, nor  |
|                              | will the information in               |
|                              | the previously reported EDN be        |
|                              | altered in any way. A default         |
|                              | cured/loan reinstated event may only  |
|                              | be submitted when the loan is brought |
|                              | current (i.e. all funds have been     |
|                              | received to reinstate the loan).      |
+------------------------------+---------------------------------------+
| Monthly Reporting - if we    | It should only include information as |
| report on the 7^th^ of the   | of the last day of the previous       |
| month, does this include     | month. The timeframe for this event   |
| information from the 1^st^   | is \"by the seventh calendar day of   |
| to the end of the month of   | the month following the month in      |
| the previous month? Or does  | which the reported information        |
| the monthly include a        | applies.\" For the monthly loan       |
| complete 30 or 31 days of    | status update, we ask that you report |
| information if reporting on  | the unpaid principal balance and      |
| the 7^th^ every month is the | payment due date.                     |
| information reported from    |                                       |
| the 7^th^ to the 7^th^?      | If you have a direct connection with  |
|                              | VA, VALERI will \"detect\" the        |
|                              | information that needs to be reported |
|                              | on these two events on the first day  |
|                              | of every month based on your daily    |
|                              | change file.                          |
|                              |                                       |
|                              | If you do not have a direct           |
|                              | connection, we ask that you log on to |
|                              | the Servicer Web Portal no later than |
|                              | the 7^th^ calendar day of the month   |
|                              | following the month in which the      |
|                              | reported information applies.         |
+------------------------------+---------------------------------------+
| If a loan has two events in  | If two separate events occur on one   |
| a daily event do we report   | loan in one day, for example,         |
| the data per event or the    | an occupancy status change occurs and |
| results of the loan after    | a loan modification has been          |
| the second event is created? | completed, both of these events will  |
|                              | be reported to VA on the same day.    |
|                              | If, for example, a loan modification  |
|                              | is completed and you accidentally     |
|                              | enter the incorrect interest rate on  |
|                              | the loan, VALERI automatically allows |
|                              | three days to revise or withdraw the  |
|                              | loan modification event that was      |
|                              | submitted. This is because VALERI     |
|                              | holds events for three days before    |
|                              | fully processing them (i.e.           |
|                              | displaying the business rule results  |
|                              | and either accepting or rejecting the |
|                              | event). You can correct the interest  |
|                              | rate in your system (if it has a      |
|                              | direct connection with VA) or, change |
|                              | the information in the Servicer Web   |
|                              | Portal (if there is no direct         |
|                              | connection and the event was          |
|                              | submitted through the Servicer Web    |
|                              | Portal), and VALERI will be updated   |
|                              | with the corrected data before the    |
|                              | event is fully processed. If a        |
|                              | revision need to occur after the      |
|                              | three-day window, we ask that you     |
|                              | contact the VALERI Help Desk for      |
|                              | support.                              |
+------------------------------+---------------------------------------+
| How do I know if the Notice  | Prior to submitting the TOC event,    |
| of Value (NOV) is available  | you should check the loan on SWP to   |
| in VALERI when I submit      | determine if there is a valid ROS     |
| Transfer of Custody event?   | event in VALERI for the loan.         |
+------------------------------+---------------------------------------+
| What can we do if we have    | Please contact VALERI Helpdesk to     |
| had problems with the        | resolve this issue. You will need     |
| mapping of client numbers to | correct vender ID to submit TOC and   |
| servicer numbers to vendor   | claims on SWP.                        |
| numbers?                     |                                       |
+------------------------------+---------------------------------------+
| How do I handle rejected     | Please contact the VALERI Helpdesk.   |
| events?                      | After the three calendar days, your   |
|                              | servicer administrator can resubmit   |
|                              | rejected events on the Servicer Web   |
|                              | Portal.                               |
+------------------------------+---------------------------------------+

# Bulk Upload Functionality

+--------------------------------+-------------------------------------+
| ######## Ques                  | **Answer**                          |
| tion {#question-6 .unnumbered} |                                     |
+--------------------------------+-------------------------------------+
| What is "Event Bulk Load"? Who | It is a feature provided on the     |
| can use it? What is the        | Servicer Web Portal that allows a   |
| format?                        | servicer to submit multiple events  |
|                                | for multiple loans all at once. To  |
| ####                           | use this feature, your system must  |
| ####  {#section-1 .unnumbered} | generate an extract per the         |
|                                | specification described in the      |
|                                | **SWP Bulk Upload Template          |
|                                | document.** You would need to log   |
|                                | on to the Servicer Web Portal to    |
|                                | upload this document.               |
|                                |                                     |
|                                | Servicers that have chosen NOT to   |
|                                | have a direct connection with       |
|                                | VALERI are the only ones that can   |
|                                | use this feature.                   |
+--------------------------------+-------------------------------------+
| What is "Claim Bulk Load"? Who | It is a feature provided on the     |
| can use it? What is the        | Servicer Web Portal that allows all |
| format?                        | servicers to submit multiple claims |
|                                | on more than one loan at a time. To |
|                                | use this feature, your system must  |
|                                | generate an extract per the         |
|                                | specification described in the      |
|                                | **Claims Bulk Upload Template       |
|                                | document.** You would need to log   |
|                                | on to the Servicer Web Portal to    |
|                                | upload this document.               |
|                                |                                     |
|                                | All servicers can use this feature. |
+--------------------------------+-------------------------------------+
| Is this used for the daily     | Yes, this can be used for reporting |
| reporting of events?           | daily events if the servicer has    |
|                                | chosen to use the bulk upload as    |
|                                | the reporting mechanism. This would |
|                                | not apply to servicers who choose   |
|                                | to use the Servicing System daily   |
|                                | change file and report the daily    |
|                                | change file through a VPN or SFTP.  |
+--------------------------------+-------------------------------------+
| How many bulk upload templates | There are two bulk upload           |
| are there?                     | templates, one to be used for       |
|                                | claims and the other to be used for |
|                                | all other events. The **SWP Bulk    |
|                                | Upload Template** and **Claims Bulk |
|                                | Upload Template** can be found on   |
|                                | the VALERI website.                 |
+--------------------------------+-------------------------------------+
| Is this the same file layout   | No, it is not.                      |
| as shown in the Servicing      |                                     |
| Systems Interface dated        |                                     |
| 3-19-2007, section 2.6.8 Field |                                     |
| Layout?                        |                                     |
+--------------------------------+-------------------------------------+
| Do the File Naming             | No. This naming requirement does    |
| requirements as shown in the   | not apply. We ask that the name of  |
| Servicing Systems Interface    | servicer and the date be included   |
| dated 3-19-2007, section 2.1,  | in the file name.                   |
| apply to the Bulk Update file? |                                     |
+--------------------------------+-------------------------------------+
| How is the Bulk Update file    | The bulk update file would be       |
| transferred to the Servicer    | transferred by someone physically   |
| Web Portal? Does this require  | logging on and uploading the file   |
| anything from us, the software | on the Servicer Web Portal. The     |
| vendor?                        | Servicer would need to ensure that  |
|                                | a file could be generated per the   |
|                                | specification so it could be        |
|                                | uploaded.                           |
+--------------------------------+-------------------------------------+
| How quickly are Bulk updates   | Servicers have three days to make   |
| available to the servicer      | revisions and withdraw to events    |
| should a correction be         | submitted on the VALERI Servicer    |
| necessary?                     | Web Portal.                         |
+--------------------------------+-------------------------------------+
| May the servicer send more     | We would expect to get one bulk     |
| than one Bulk update file in a | update file for claims and one bulk |
| day**?**                       | update file for all other events.   |
+--------------------------------+-------------------------------------+
| Should records be in any       | No.                                 |
| particular order (grouped by   |                                     |
| event, for instance)?          |                                     |
+--------------------------------+-------------------------------------+
| Are all fields on the layout   | Yes all the fields on the layout    |
| remitted with every event? If  | are remitted with every event.      |
| not, what is the layout for    |                                     |
| the Bulk Update?               |                                     |
+--------------------------------+-------------------------------------+
| Does you have a list of values | The schema for events, including    |
| for all required field?        | enumerated lists values is located  |
|                                | at:                                 |
|                                |                                     |
|                                | <https://www.vbava                  |
|                                | leri.com/xmlschema/SERV-EVENTS.xsd> |
|                                |                                     |
|                                | The schema for the claim event,     |
|                                | including enumerated lists values   |
|                                | is located at:                      |
|                                |                                     |
|                                | <https://www.vbava                  |
|                                | leri.com/xmlschema/SERV-CLAIMS.xsd> |
+--------------------------------+-------------------------------------+
| Required Information Tab --    | Yes all fields are required. Fields |
| Are all of these fields        | for which no data exists should be  |
| required? If so, what should   | set to 0                            |
| be used to fill the field(s)   |                                     |
| if not applicable?             |                                     |
+--------------------------------+-------------------------------------+
| For all tabs where we enter    | Yes. That is correct.               |
| expense information, within    |                                     |
| each tab if data exists,       |                                     |
| should something be filled in  |                                     |
| for each field? For Example -  |                                     |
| If I have an appraisal-listed  |                                     |
| under the Appraisal Tab, is    |                                     |
| the appraisal date required?   |                                     |
+--------------------------------+-------------------------------------+

# Servicing Appraisal Processing Program (SAPP)

  ----------------------------- ---------------------------------------------
  Question                      **Answer**

  What is Servicer Appraisal    In connection with VALERI, VA is also rolling
  Processing Program (SAPP)?    out the Servicer Appraisal Processing Program
  Who do I contact?             (SAPP). For those of you familiar with our
                                Lender Appraisal Processing Program, it is
                                modeled after that program - chapter 15 of
                                the **Lender\'s Handbook** found at
                                <http://www.warms.vba.va.gov/pam26_7.html>.
                                SAPP authorizes servicers to review VA
                                liquidation appraisals and issue notices of
                                values on VA\'s behalf. Therefore, this
                                program helps expedite the bidding process
                                and, in turn, helps servicers to meet the
                                timeliness goals for incentive pay under
                                VALERI. Any servicers who meet the
                                qualification requirements may apply to this
                                voluntary program.

  How will I be trained?        VA will be conducting training sessions the
                                week of your VALERI implementation date.

  Who do I contact?             We would appreciate a point of contact for
                                this program in your organization, and we ask
                                that he or she contact Larre Brown by email
                                at <larre.brown@va.gov> or by phone at
                                202-461-9547 to let us know their interest in
                                participating. For planning purposes, please
                                contact us as soon as possible so that the
                                application process is complete prior to
                                training.
  ----------------------------- ---------------------------------------------

# Blackout Period and Handling Transition Loans 

+------------------------+---------------------------------------------+
| ######## Question {#q  | **Answer**                                  |
| uestion-7 .unnumbered} |                                             |
+------------------------+---------------------------------------------+
| ######                 | A blackout period has been established to   |
| ## What is a blackout  | help facilitate the transition from the     |
| period? When does it s | existing VA system (Loan Servicing and      |
| tart?  {#what-is-a-bla | Claims) to VALERI. The blackout period will |
| ckout-period-when-does | only be for a total period of three days.   |
| -it-start .unnumbered} | That said, you must submit all paper        |
|                        | documentation that you would like to get    |
|                        | processed in LS&C such as Notices of        |
|                        | Default (NODs), Notices of Intention to     |
|                        | Foreclose (NOIs), and Notices of Election   |
|                        | to Convey (NOE) PRIOR to the start of the   |
|                        | blackout period. For more details on        |
|                        | blackout procedures, please refer to the    |
|                        | **Servicer Implementation Guide.**          |
+------------------------+---------------------------------------------+
| ######## Wh            | The primary objective is to prepare for the |
| at do I need to do in  | transfer of your VA loans to VALERI from    |
| preparation of the bla | LS&C. VA will work with you to ensure that  |
| ckout period?  {#what- | all data in LS&C is accurate and            |
| do-i-need-to-do-in-pre | up-to-date. Refer to the **Servicer         |
| paration-of-the-blacko | Implementation Guide** for more details.    |
| ut-period .unnumbered} |                                             |
+------------------------+---------------------------------------------+
| We were given a        | The servicer should work with the Loan      |
| blackout date and that | Administration Officer (LAO) at the RLC of  |
| date was the last day  | jurisdiction to determine the reason the    |
| for submission of the  | NOE was not processed and if VA intends to  |
| Notice of Election to  | accept custody of the property. Here are    |
| Convey (NOE) under the | the specific procedures:                    |
| pre-VALERI             |                                             |
| regulations. VA did    | -   The servicer contacts the LAO at the    |
| not process some NOEs  |     Regional Loan Center (RLC) of           |
| submitted prior to the |     jurisdiction to obtain VA's preliminary |
| cutoff and many were   |     approval to accept custody. This step   |
| returned to us. What   |     is necessary to help ensure the results |
| do we do with these    |     from the appeal process are expected    |
| loans?                 |     and to inform the LAO that the servicer |
|                        |     plans to appeal.                        |
| []{.mark}              |                                             |
|                        | -   Contact the VALERI helpdesk.            |
|                        |                                             |
|                        | The VALERI Helpdesk is available to support |
|                        | all aspects of this process and can         |
|                        | facilitate communication between the        |
|                        | servicer and the RLC.                       |
|                        |                                             |
|                        |   --                                        |
|                        | -------------- ------------ --------------- |
|                        |   **Loan           **Regional   **Phone**   |
|                        |   Administration   Loan\                    |
|                        |   Officer Name**   Center**                 |
|                        |                                             |
|                        |                                             |
|                        |  Mike Everett     Atlanta      404-929-5417 |
|                        |                                             |
|                        |                                             |
|                        | Rita Falcioni    Cleveland    216-522-3610, |
|                        |                                 ext. 3900   |
|                        |                                             |
|                        |                                             |
|                        |  Kelly Russo      Denver       303-914-5650 |
|                        |                                             |
|                        |                                             |
|                        |  Barbara Courtney Houston      713-383-1763 |
|                        |                                             |
|                        |                                             |
|                        |  Dean Eckes       Phoenix      602-627-3064 |
|                        |                                             |
|                        |                                             |
|                        | Diane Foltz      Roanoake     800-933-5499, |
|                        |                                 ext. 3128   |
|                        |                                             |
|                        |                                             |
|                        |  Arlen Klarenbeek St. Paul     612-970-5504 |
|                        |                                             |
|                        |                                             |
|                        |  John Acosta      St. Pete     727-319-7545 |
|                        |   --                                        |
|                        | -------------- ------------ --------------- |
+------------------------+---------------------------------------------+
| After I go live, under | Enclosed are the scenarios of when a        |
| what circumstances do  | servicer would submit a paper claim vs. an  |
| I submit a paper       | electronic claim after they go live in      |
| claim? Also, under     | VALERI:                                     |
| what circumstances do  |                                             |
| I submit an electronic | >                                           |
| claim?                 | >                                           |
|                        | > \(1\) **Paper claim** - listed below are  |
|                        | > the instances when a servicer would       |
|                        | > submit a paper claim:                     |
|                        | >                                           |
|                        | >                                           |
|                        |                                             |
|                        | (a) On a loan where a compromise sale was   |
|                        |     completed and coded in LS&C as          |
|                        |     terminated prior to the date your       |
|                        |     initialization file was loaded in       |
|                        |     VALERI. (Note: This is typically 3 days |
|                        |     prior to your go-live date.) Also, need |
|                        |     to check Servicer Web Portal to see     |
|                        |     what the status in VALERI. If           |
|                        |     terminated in VALERI, a paper claim     |
|                        |     will need to be submitted. If the loan  |
|                        |     is still in a \"guaranteed issued\"     |
|                        |     status, then you will need to contact   |
|                        |     the VALERI helpdesk as you will need to |
|                        |     terminate loan in VALERI and submit     |
|                        |     electronic claim.                       |
|                        |                                             |
|                        | (b) On a loan where a deed of lieu was      |
|                        |     completed and you submitted an NOE and  |
|                        |     it was processed in LS&C and your       |
|                        |     acquisition payment was made from LS&C  |
|                        |                                             |
|                        | (c) On a loan where a deed of lieu was      |
|                        |     completed and coded in LS&C as          |
|                        |     terminated prior to the date your       |
|                        |     initialization file was loaded  and you |
|                        |     chose not to transfer custody. As with  |
|                        |     the compromise sales, you will need to  |
|                        |     check the SWP to see what the status is |
|                        |     in VALERI. If terminated in VALERI, a   |
|                        |     paper claim will need to be submitted.  |
|                        |     If the loan is still in a \"guaranteed  |
|                        |     issued\" status, then you will need to  |
|                        |     contact the VALERI helpdesk as you will |
|                        |     need to terminate loan in VALERI and    |
|                        |     submit electronic claim.                |
|                        |                                             |
|                        | (d) On a loan where a foreclosure sale was  |
|                        |     completed and you submitted your NOE    |
|                        |     and it was processed in LS&C and your   |
|                        |     acquisition payment came from LS&C      |
|                        |                                             |
|                        | (e) On a loan where a foreclosure sale was  |
|                        |     completed and you chose not to transfer |
|                        |     custody.  As with the compromise sales  |
|                        |     and deeds, you will need to check the   |
|                        |     SWP to see what the status is in        |
|                        |     VALERI. If terminated in VALERI, a      |
|                        |     paper claim will need to be submitted.  |
|                        |     If the loan is still in a \"guaranteed  |
|                        |     issued\" status, then you will need to  |
|                        |     contact the VALERI helpdesk as you will |
|                        |     need to terminate loan in VALERI and    |
|                        |     submit electronic claim. Note: If the   |
|                        |     property were located in a state with a |
|                        |     confirmation/ratification period, the   |
|                        |     sale would have needed to have been     |
|                        |     confirmed and reported as terminated in |
|                        |     LS&C  prior to your go-live date.       |
|                        |                                             |
|                        | >                                           |
|                        |                                             |
|                        | \(2\) **Electronic claim** - listed below   |
|                        | are instances when you should submit an     |
|                        | electronic claim in VALERI:                 |
|                        |                                             |
|                        | >                                           |
|                        |                                             |
|                        | (a) On a loan that resulted in a compromise |
|                        |     sale after  the date your               |
|                        |     initialization file was loaded in       |
|                        |     VALERI and therefore the \"compromise   |
|                        |     sale\" event is appearing in VALERI     |
|                        |     (Need to check SWP. If not              |
|                        |     displayed and it was completed after ,  |
|                        |     call the helpdesk)                      |
|                        |                                             |
|                        | (b) On a loan that resulted in deed in lieu |
|                        |     after the date your initialization file |
|                        |     was loaded and therefore the \"DIL      |
|                        |     event\" was reported in VALERI.         |
|                        |     Regardless if a TOC event was reported  |
|                        |     or not, the claim will need to be       |
|                        |     submitted electronically in VALERI.     |
|                        |     (Representatives should check the SWP   |
|                        |     to verify if a DIL was reported as an   |
|                        |     event.)                                 |
|                        |                                             |
|                        | (c) On a loan that resulted in a deed in    |
|                        |     lieu prior to the date your             |
|                        |     initialization file was loaded and the  |
|                        |     servicer submitted an NOE but it was    |
|                        |     not processed in LS&C. Therefore, the   |
|                        |     acquisition could only be paid out of   |
|                        |     VALERI and the submission of a TOC      |
|                        |     event was required (Representatives     |
|                        |     should check the SWP. (If there is a    |
|                        |     TOC event, an electronic claim will be  |
|                        |     required)                               |
|                        |                                             |
|                        | (d) On a loan that resulted in a            |
|                        |     foreclosure sale after the date your    |
|                        |     initialization file was loaded and      |
|                        |     therefore the \"results of sale\" event |
|                        |     was reported in VALERI. Regardless if a |
|                        |     TOC event was reported or not, the      |
|                        |     claim will need to be submitted         |
|                        |     electronically in VALERI.               |
|                        |     (Representatives should check the SWP   |
|                        |     to verify if a results of sale          |
|                        |     event was reported as an event.)        |
|                        |                                             |
|                        | (e) On a loan that resulted in a            |
|                        |     foreclosure sale prior to the date your |
|                        |     initialization file was loaded and the  |
|                        |     servicer submitted an NOE but it was    |
|                        |     not processed in LS&C. Therefore, the   |
|                        |     acquisition could only be paid out of   |
|                        |     VALERI and the submission of a TOC      |
|                        |     event was required (Representatives     |
|                        |     should check the SWP. (If there is a    |
|                        |     TOC event, an electronic claim will be  |
|                        |     required)                               |
|                        |                                             |
|                        | (f) On a loan that resulted in a            |
|                        |     foreclosure sale prior to the date your |
|                        |     initialization file was loaded  but it  |
|                        |     was a state with a confirmation         |
|                        |     requirement and the confirmation of     |
|                        |     that foreclosure sale did not take      |
|                        |     place until after you were live in      |
|                        |     VALERI. Therefore, the termination date |
|                        |     of that loan would either be reported   |
|                        |     with the TOC event in the data field    |
|                        |     named \"confirmation/ratification date  |
|                        |     or in the event \"confirmed with no     |
|                        |     TOC\". In both these cases, the claim   |
|                        |     will need to be submitted in VALERI.    |
|                        |                                             |
|                        | (g) Refund loans - on any loan that was     |
|                        |     approved for a refund where you were    |
|                        |     not able to submit the paper claim by   |
|                        |     the blackout date.                      |
+------------------------+---------------------------------------------+