Veterans

Administration

DVB Manual M26-3, Revised

Loan Guaranty Operations for Regional Offices

Loan Management and Servicing Policies, Procedures, and Methods

Department of Veterans Benefits

Washington, D.C. 20420

September 26, 1988

M26-3 Department of Veterans Benefits

Revised Veterans Administration

September 26, 1988 Washington, D.C. 20420

DVB Manual M26-3, \"Loan Management and Servicing Policies, Procedures,
and Methods, Loan Guaranty Operations for Regional Offices,\" is
published for the compliance of all concerned.

R. J. VOGEL

Chief Benefits Director

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January 28, 1992 M26-3

Change 8

[FOREWORD]{.underline}

The \[\] Manual M26- series consists of the following:

M26-1\--Guaranteed Loan Processing Procedure.

M26-2\--Construction and Valuation Policies, Procedures, and Methods.

Methods. M26-1\--Loan Management and Servicing Policies, Procedures, and

M26-4\--Claims and Liquidation Policies and Procedures.

M26-5\--Property Management Policies and Procedures.

M26-6\--Direct Loan Procedures and Policies.

M26-7\--GIL (Guaranteed or Insured Loan) System.

M26-8\--Work Measurement and Performance Standards.

M26-9\--Quality Control Procedures.

M26-10\--Systematic Analysis Procedures.

M26-11\--PLS-Portfolio Loan System Procedures.

26-12\--Specially Adapted Housing Grant Processing Procedure.

Each manual is self-contained and is issued separately. Copies of
individual manuals may be distributed to those concerned with the
activity covered.

Policies and procedures contained in this manual are to be \[used\] in
conjunction with 38 U.S.C. chapter 37, as amended, and \[I 38 CFR
36.4300, 36.4500, and 36.4600 series. When any discrepancy is found to
exist between the policies and procedural requirements in this manual
and the requirements of the statute and related regulations, the latter
requirements will prevail.

The duties assigned to specific positions, sections, or divisions in
this manual are to be performed under the direction of, and authority
vested in, the Director.

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January 28, 1992

M26-3

Change 8

[RESCISSIONS]{.underline}

1\. [Interim Issues]{.underline}

a\. [Complete Rescissions]{.underline}

26-80-16 26-84-3 26-86-22 26-90-6

26-80-19 26-84-5 26-86-24 26-90-12

26-80-21 26-84-7 26-87-8 26-90-16

26-81-2 26-84-12 26-87-12 26-90-26\]

26-81-3 26-84-13 26-87-21

26-81-9 26-84-20 26-87-31

26-81-29 26-84-21 26-88-3

26-82-15 26-84-26 26-88-13

26-82-19 26-84-32 26-88-16

26-82-22 26-84-34 \[26-89-15

26-82-25 26-84-44 26-89-18

26-83-1 26-85-9 26-89-19

26-83-21 26-85-14 26-89-22

26-83-28 26-85-26 26-90-4

26-83-34 26-86-20 26-90-5

b\. [Partial Rescissions]{.underline}

26-80-2, paragraph C.1 26-86-28, paragraph C.1

26-80-14, paragraph C.1 26-87-7, paragraph C.1

26-80-18, paragraph C.1 26-87-16, paragraph C.1

26-81-7, paragraph C.1 26-87-23, paragraph C.1

26-81-16, paragraph C.1 26-87-26, paragraph C.1

26-81-20, paragraph C.1 26-88-12, paragraph C.1

26-82-4, paragraph C.1 26-88-17, paragraph C.1

26-82-9, paragraph C.1 \[26-89-17, paragraph C.1

26-82-20, paragraph C.1 26-89-21, paragraph C.1

26-82-24, paragraph C.1 26-90-20, paragraph C-2

26-83-4, paragraph C.1 26-91-7, paragraph C-1

26-84-23, paragraph C.1 26-91-8, paragraph C-1

26-84-33, paragraph C.1 26-91-9, paragraph D.1\]

26-84-39, paragraph C.1

26-85-12, paragraph C.1

26-85-18, paragraph C-1

26-86-19, paragraph C.1

2\. [Manual Changes]{.underline}: 14, 15, 18 and errata, 32, 39, 54, 56,
62, 64 and 65 to M26-3.

3\. [Circulars]{.underline}: 26-79-8; 26-82-10; 26-84-5 and erratum;
26-85-4; 26-85-10 and change 2.

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February 2, 1993 M26-3

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[CONTENTS]{.underline}

[CHAPTER]{.underline} [PAGE]{.underline}

1 GENERAL 1-1

2 VA LOAN MANAGEMENT AND SERVICING 2-1

3 INTERNAL PROCEDURES\--LOAN MANAGEMENT 3-1

[APPENDIX]{.underline}

[FIGURE]{.underline}

1 STANDARD OUTPUT App.-l

2 \"NO RECORD\" OUTPUT App.-l.

3· SUGGESTED LETTER FOR RESUMED SERVICE CASES App.-2.

4· SUGGESTED RELEASE INVOLVING RELEASE OF LIABILITY App.-4.

5· BULLETIN - LOAN GUARANTY BENEFITS App.-6.

\[6 SUGGESTED APPROVAL LETTER App.-7

7 SUGGESTED DENIAL LETTER App.-8.

8 SUGGESTED LETTER TO VETERAN REQUESTING INFO App.-11

9· SUGGESTED LETTER TO TRANSFEREE REQUESTING INFO App.-12

10 SUGGESTED LETTER TO HOLDER REQUESTING INFORMATION App.-13\]