32226 Federal Register / Vol. 66, No. 115 / Thursday, June 14, 2001 / Rules and Regulations

Authority: 10 U.S.C. ch. 107; 38 U.S.C.

501(a), 3695, 5101, 5113, 5303A; 42 U.S.C.

2000; sec. 901, Pub. L. 96–342, 94 Stat. 1111–

1114, unless otherwise noted.

§ 21.5820 [Amended]

2. Section 21.5820 is amended by:

a. In paragraph (b)(1), removing

‘‘1999–2000’’ and adding, in its place,

‘‘2000–01’’; and by removing ‘‘$3,388’’

and adding, in its place, ‘‘$3,524’’;

b. In the introductory text of

paragraph (b)(2)(ii), removing ‘‘1999–

2000’’ and adding, in its place, ‘‘2000–

01’’;

c. In paragraph (b)(2)(ii)(A), removing

‘‘$376.44’’ and adding, in its place,

‘‘$391.56’’; and by removing ‘‘$188.22’’

and adding, in its place, ‘‘$195.78’’;

d. In paragraph (b)(2)(ii)(B), removing

‘‘$12.55’’ and adding, in its place,

‘‘$13.05’’; and by removing ‘‘$6.27’’ and

adding, in its place, ‘‘$6.53’’;

e. In paragraph (b)(2)(ii)(C), removing

‘‘increased by 4¢ ’’ and adding, in its

place, ‘‘decreased by 4¢’’; and by

removing ‘‘increased by 2¢’’ and adding,

in its place, ‘‘decreased by 2¢’’.

f. In the introductory text of paragraph

(b)(3)(ii), removing ‘‘1999–2000’’ and

adding, in its place, ‘‘2000–01’’;

g. In paragraph (b)(3)(ii)(A), removing

‘‘$376.44’’ and adding, in its place,

‘‘$391.56’’; and by removing ‘‘$188.22’’

and adding, in its place, ‘‘$195.78’’;

h. In paragraph (b)(3)(ii)(B), removing

‘‘$12.55’’ and adding, in its place,

‘‘$13.05’’; and by removing ‘‘$6.27’’ and

adding, in its place, ‘‘$6.53’’;

i. In paragraph (b)(3)(ii)(C), removing

‘‘increased by 4¢’’ and adding, in its

place, ‘‘decreased by 4¢’’; and by

removing ‘‘increased by 2¢’’ and adding,

in its place, ‘‘decreased by 2¢’’.

j. Removing ‘‘shall’’ each place in

which it appears and adding, in its

place, ‘‘will’’.

§ 21.5822 [Amended]

3. Section 21.5822 is amended by:

a. In paragraph (b)(1)(i), removing

‘‘$844’’ and adding, in its place, ‘‘$878’’;

and by removing ‘‘1999–2000’’ and

adding, in its place, ‘‘2000–01’’;

b. In paragraph (b)(1)(ii), removing

‘‘$422’’ and adding, in its place, ‘‘$439’’;

and by removing ‘‘1999–2000’’ and

adding, in its place, ‘‘2000–01’’;

c. In paragraph (b)(2)(i), removing

‘‘1999–2000’’ and adding, in its place,

‘‘2000–01’’; and by removing ‘‘$844’’

and adding, in its place, ‘‘$878’’;

d. In paragraph (b)(2)(ii), removing

‘‘1999–2000’’ and adding, in its place,

‘‘2000–01’’; and by removing ‘‘$422’’

and adding, in its place, ‘‘$439’’.

e. Removing ‘‘shall’’ each place in

which it appears and adding, in its

place, ‘‘will’’.

[FR Doc. 01–15068 Filed 6–13–01; 8:45 am]

BILLING CODE 8320–01–U

DEPARTMENT OF VETERANS

AFFAIRS

38 CFR Part 21

RIN 2900–AK44

Increase in Rates Payable Under the

Montgomery GI Bill—Active Duty and

Survivors’ and Dependents’

Educational Assistance

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

SUMMARY: This document amends the

regulations governing rates of

educational assistance payable under

the Montgomery GI Bill—Active Duty

and the regulations governing rates of

Survivors’ and Dependents’ Educational

Assistance to reflect increases required

by statutory provisions.

DATES: Effective Date: This final rule is

effective June 14, 2001.

Applicability Dates. The changes in

rates are applied retroactively to

conform to statutory requirements. For

more information concerning the dates

of applicability, see the SUPPLEMENTARY

INFORMATION section.

FOR FURTHER INFORMATION CONTACT:

William G. Susling, Jr., Assistant

Director for Policy and Program

Development, Education Service,

Veterans Benefits Administration, (202)

273–7187.

SUPPLEMENTARY INFORMATION: Under the

formula mandated by 38 U.S.C. 3015(g)

(as in effect on October 1, 2000) for

fiscal year 2001, the rates of basic

educational assistance under the

Montgomery GI Bill—Active Duty

(MGIB) payable to students pursuing a

program of education full time must be

increased by 3.0%, which is the

percentage by which the total of the

monthly Consumer Price Index-W (CPI–

W) for July 1, 1999, through June 30,

2000, exceeds the total of the monthly

CPI–W for July 1, 1998, through June 30,

1999.

In addition, the rates for the months

during fiscal year 2001 that follow

October 2000 were further increased by

the Veterans Benefits and Health Care

Improvement Act of 2000 (Pub. L. 106–

419). That Act provides that beginning

on November 1, 2000, the rates of basic

educational assistance under the MGIB

must be increased beyond the increase

that went into effect on October 1, 2000.

Changes are made to the regulations

governing rates payable under MGIB to

reflect both rate increases.

Moreover, Pub. L. 106–419 requires

an increase in the monthly rate of

Survivors’ and Dependents’ Educational

Assistance (DEA), effective November 1,

2000. Changes are made to the

regulations governing DEA rates and

entitlement charges to reflect the

statutory changes.

It should be noted that neither the

increase attributable to the CPI–W nor

the increase attributable to the Act

affects all educational assistance

payable under MGIB. The increases

don’t apply to additional amounts

payable by the Secretary of Defense to

individuals with skills or a specialty in

which there is a critical shortage of

personnel (so-called ‘‘kickers’’). They

don’t apply to amounts payable for

dependents. Veterans who previously

had eligibility under the Vietnam Era GI

Bill receive monthly payments that are

in part based upon basic educational

assistance and in part based upon the

rates payable under the Vietnam Era GI

Bill. Only that portion attributable to

basic educational assistance is

increased.

38 U.S.C. 3015(a) and (b) require that

the Department of Veterans Affairs (VA)

pay part-time students at appropriately

reduced rates. Since the first student

became eligible for assistance under the

MGIB in 1985, VA has paid threequarter-time students and one-half-time

students at 75% and 50% of the fulltime institutional rate, respectively.

Students pursuing a program of

education at less than one-half but more

than one-quarter-time have had their

payments limited to 50% or less of the

full-time institutional rate. Similarly,

students pursuing a program of

education at one-quarter-time or less

have had their payments limited to 25%

or less of the full-time institutional rate.

Changes are made consistent with the

authority and formula described in this

paragraph.

In addition, 38 U.S.C. 3032(c) requires

that monthly rates payable to veterans

in apprenticeship or other on-the-job

training must be set at a given

percentage of the full-time rate. Hence,

there are raises effective October 1,

2000, and November 1, 2000, for such

training as well.

Nonsubstantive changes also are made

for the purpose of clarity.

The changes set forth in this final rule

are effective from the date of

publication, but the changes in rates are

applied retroactively from October 1,

2000, and November 1, 2000, in

accordance with the applicable statutory

provisions discussed above.

Federal Register / Vol. 66, No. 115 / Thursday, June 14, 2001 / Rules and Regulations 32227

Administrative Procedure Act

Substantive changes made by this

final rule merely reflect statutory

requirements and adjustments made

based on previously established

formulas. Accordingly, there is a basis

for dispensing with prior notice and

comment and delayed effective date

provisions of 5 U.S.C. 552 and 553.

Paperwork Reduction Act

This document contains no provisions

constituting a collection of information

under the Paperwork Reduction Act (44

U.S.C. 3501–3520).

Executive Order 12866

This document has been reviewed by

the Office of Management and Budget

Under Executive Order 12866.

Regulatory Flexibility Act

The Secretary of Veterans Affairs

hereby certifies that this final rule will

not have a significant economic impact

on a substantial number of small entities

as they are defined in the Regulatory

Flexibility Act, 5 U.S.C. 601–612. This

final rule directly affects only

individuals and does not directly affect

small entities. Pursuant to 5 U.S.C.

605(b), this final rule, therefore, is

exempt from the initial and final

regulatory flexibility analyses

requirements of sections 603 and 604.

Unfunded Mandates

The Unfunded Mandates Reform Act

requires (in section 202) that agencies

prepare an assessment of anticipated

costs and benefits before developing any

rule that may result in an expenditure

by State, local, or tribal governments, in

the aggregate, or by the private sector, of

$100 million or more in any given year.

This rule would have no consequential

effect on State, local, or tribal

governments.

Catalog of Federal Domestic Assistance

Program Numbers

The Catalog of Federal Domestic

Assistance numbers for the programs

affected by this final rule are 64.117 and

64.124.

List of Subjects in 38 CFR Part 21

Administrative practice and

procedure, Armed forces, Civil rights,

Claims, Colleges and universities,

Conflict of interests, Defense

Department, Education, Employment,

Grant programs—education, Grant

programs—veterans, Health care, Loan

programs—education, Loan programs—

veterans, Manpower training programs,

Reporting and recordkeeping

requirements, Schools, Travel and

transportation expenses, Veterans,

Vocational education, Vocational

rehabilitation.

Approved: March 5, 2001.

Anthony J. Principi,

Secretary of Veterans Affairs.

For the reasons set out above, 38 CFR

part 21 (subparts C and K) is amended

as set forth below.

PART 21—VOCATIONAL

REHABILITATION AND EDUCATION

Subpart C—Survivors’ and

Dependents’ Educational Assistance

Under 38 U.S.C. Chapter 35

1. The authority citation for part 21,

subpart C, continues to read as follows:

Authority: 38 U.S.C. 501(a), 512, 3500–

3566, unless otherwise noted.

2. In § 21.3045, paragraph (h) is

revised to read as follows:

§ 21.3045 Entitlement charges.

* * * * *

(h) Entitlement charge for

correspondence courses. The charge

against entitlement for pursuit of a

course exclusively by correspondence

will be 1 month for each:

(1) $485 paid after September 30,

1998, and before November 1, 2000, to

a spouse or surviving spouse as an

educational assistance allowance;

(2) $588 paid after October 31, 2000.

(Authority: 38 U.S.C. 3534(b), 3686(a))

* * * * *

3. In § 21.3131, paragraph (a) is

revised to read as follows:

§ 21.3131 Rates—educational assistance

allowance—38 U.S.C. chapter 35.

(a) Rates. Except as provided in

§ 21.3132, educational assistance

allowance is payable at the following

rates effective November 1, 2000:

Type of course Monthly rate

Institutional:

Full time ................................................................................................ $588

3⁄4 time ................................................................................................... $441 1⁄2 time ................................................................................................... $294

Less than 1⁄2 but more than 1⁄4 time 1 ................................................... $294 1⁄4 time or less 1 .................................................................................... 147

Cooperative training (other than farm cooperative) (Full time only) .... $588

Apprentice or on-job (full time only) 2

First six months ..................................................................................... $428

Second six months ............................................................................... $320

Third six months ................................................................................... $212

Fourth six months and thereafter ......................................................... $107

Farm cooperative:

Full time ................................................................................................ $475

3⁄4 time ................................................................................................... $356 1⁄2 time ................................................................................................... $238

Correspondence .................................................................................... 55 percent of the established charge for the number of lessons completed by the eligible spouse or surviving spouse and serviced by the

school—Allowance paid quarterly.3

1 If an eligible person under 38 U.S.C. chapter 35 pursuing independent study on a less than one-half-time basis completes his or her program

before the designated completion time, his or her award will be recomputed to permit payment of tuition and fees not to exceed $294 or $147, as

appropriate, per month, if the maximum allowance is not initially authorized. 2See footnote 5 of § 21.4270(c) for measurement of full time and § 21.3132(c) for proportionate reduction in award for completion of less than

120 hours per month. 3Established charge means the charge for the course or courses determined on the basis of the lowest extended time payment plan offered

by the institution and approved by the appropriate State approving agency or the actual cost to the eligible spouse or surviving spouse, whichever is less. VA considers the continuity of an enrollment broken when there are more than 6 months between the servicing of the lessons.

32228 Federal Register / Vol. 66, No. 115 / Thursday, June 14, 2001 / Rules and Regulations

(Authority: 38 U.S.C. 3532(a), 3542(a),

3687(b)(2))

* * * * *

§ 21.3300 [Amended]

4. In § 21.3300, paragraph (c) is

amended by removing ‘‘$152’’ and

adding, in its place, ‘‘$184’’.

§ 21.3333 [Amended]

5. Section 21.3333 is amended by:

a. In paragraphs (a) and (b)(1),

removing ‘‘January 1, 1990’’ and adding,

in its place, ‘‘November 1, 2000,’’.

b. In the table in paragraph (a),

removing ‘‘$485’’ and adding, in its

place, ‘‘$588’’, and by removing ‘‘$152’’

both places it appears and adding, in its

place, ‘‘$184’’;

c. In paragraph (b)(1), removing

‘‘$16.16’’ and adding, in its place,

‘‘$19.60’’, and by removing ‘‘$485’’ and

adding, in its place, ‘‘$588’’.

Subpart K—All Volunteer Force

Educational Assistance Program

(Montgomery GI Bill—Active Duty)

6. The authority citation for part 21,

subpart K, continues to read as follows:

Authority: 38 U.S.C. 501(a), chs. 30, 36,

unless otherwise noted.

7. In § 21.7136, paragraphs (b), (c)(1),

(c)(2), and (c)(3) are revised and

paragraphs (c)(4) and (c)(5) are added to

read as follows:

§ 21.7136 Rates of payment of basic

educational assistance.

* * * * *

(b) Rates. (1) Except as elsewhere

provided in this section or in § 21.7139,

the monthly rate of basic educational

assistance payable for training that

occurs after September 30, 2000, and

before November 1, 2000, to a veteran

whose service is described in paragraph

(a) of this section is the rate stated in the

following table:

Training Monthly rate

Full time .................................... $552.00 3⁄4 time .................................. 414.00 1⁄2 time .................................. 276.00

Less than 1⁄2 but more than 1⁄4

time ....................................... 276.00

1⁄4 time .................................. 138.00

(Authority: 38 U.S.C. 3015)

(2) Except as elsewhere provided in

this section or in § 21.7139, the monthly

rate of basic educational assistance

payable for training that occurs after

October 31, 2000, and before October 1,

2001, to a veteran whose service is

described in paragraph (a) of this

section is the rate stated in the following

table:

Training Monthly rate

Full time .................................... $650.00

3⁄4 time ...................................... 487.50 1⁄2 time ...................................... 325.00

Less than 1⁄2 but more than 1⁄4

time ....................................... 325.00 1⁄4 time ...................................... 162.50

(Authority: 38 U.S.C. 3015)

(3) If a veteran’s service is described

in paragraph (a) of this section, the

monthly rate of basic educational

assistance payable to the veteran for

pursuit of apprenticeship or other onjob training that occurs after September

30, 2000, and before November 1, 2000,

is the rate stated in the following table:

Training period Monthly rate

First six months of pursuit of

training .................................. $414.00

Second six months of pursuit of

training .................................. 303.60

Remaining pursuit of training ... 193.20

(Authority: 38 U.S.C. 3015, 3032(c))

(4) If a veteran’s service is described

in paragraph (a) of this section, the

monthly rate of basic educational

assistance payable to the veteran for

pursuit of apprenticeship or other onjob training that occurs after October 31,

2000, and before October 1, 2001, is the

rate stated in the following table:

Training period Monthly rate

First six months of pursuit of

training .................................. $487.50

Second six months of pursuit of

training .................................. 357.50

Remaining pursuit of training ... 227.85

(Authority: 38 U.S.C. 3015, 3032(c))

(5) If a veteran’s service is described

in paragraph (a) of this section, the

monthly rate of basic educational

assistance payable to the veteran for

pursuit of a cooperative course is:

(i) $536.00 for training that occurs

after September 30, 1999, and before

October 1, 2000;

(ii) $552.00 for training that occurs

after September 30, 2000, and before

November 1, 2000; and

(iii) $650.00 for training that occurs

after October 31, 2000, and before

October 1, 2001.

(Authority: 38 U.S.C. 3015)

(c) * * *

(1) Except as elsewhere provided in

this section or in § 21.7139, the monthly

rate of basic educational assistance

payable to a veteran for training that

occurs after September 30, 2000, and

before November 1, 2000, is the rate

stated in the following table:

Training Monthly rate

Full time .................................... $449.00

3⁄4 time ...................................... 336.75 1⁄2 time ...................................... 224.50

Less than 1⁄2 but more than 1⁄4

time ....................................... 224.50 1⁄4 time or less .......................... 112.25

(Authority: 38 U.S.C. 3015, 3032(c))

(2) Except as elsewhere provided in

this section or in § 21.7139, the monthly

rate of basic educational assistance

payable to a veteran for training that

occurs after October 31, 2000, is the rate

stated in the following table:

Training Monthly rate

Full time .................................... $528.00

3⁄4 time ...................................... 396.00 1⁄2 time ...................................... 264.00

Less than 1⁄2 but more than 1⁄4

time ....................................... 264.00 1⁄4 time or less .......................... 132.00

(Authority: 38 U.S.C. 3015, 3032(c))

(3) The monthly rate of basic

educational assistance payable to a

veteran for pursuit of apprenticeship or

other on-job training that occurs after

September 30, 2000, and before

November 1, 2000, is the rate stated in

the following table:

Training period Monthly rate

First six months of pursuit of

training .................................. $336.75

Second six months of pursuit of

training .................................. 246.95

Remaining pursuit of training ... 157.15

(Authority: 38 U.S.C. 3015, 3032(c))

(4) The monthly rate of basic

educational assistance payable to a

veteran for pursuit of apprenticeship or

other on-job training that occurs after

October 31, 2000, and before October 1,

2001, is the rate stated in the following

table:

Training period Monthly rate

First six months of pursuit of

training .................................. $396.00

Second six months of pursuit of

training .................................. 290.40

Remaining pursuit of training ... 184.80

(Authority: 38 U.S.C. 3015, 3032(c))

(5) The monthly rate of basic

educational assistance payable to a

veteran for pursuit of a cooperative

course is:

(i) $436.00 for training that occurs

after September 30, 1999, and before

October 1, 2000;

Federal Register / Vol. 66, No. 115 / Thursday, June 14, 2001 / Rules and Regulations 32229

(ii) $449.00 for training that occurs

after September 30, 2000, and before

November 1, 2000; and

(iii) $528.00 for training that occurs

after October 31, 2000, and before

October 1, 2001.

(Authority: 38 U.S.C. 3015)

8. In § 21.7137, paragraph (a); the

introductory texts of paragraphs (b) and

(c); and paragraph (c) (2) are revised to

read as follows:

§ 21.7137 Rates of payment of basic

educational assistance for individuals with

remaining entitlement under 38 U.S.C. ch.

34.

(a) Minimum rates. (1) Except as

elsewhere provided in this section, the

monthly rate of basic educational

assistance for training that occurs after

September 30, 2000, and before

November 1, 2000, is the rate stated in

the following table:

Training

Monthly rate

No

dependents

One

dependent

Two

dependents

Additional for

each

additional

dependent

Full time ........................................................................................................... $740.00 $776.00 $807.00 $16.00 3⁄4 time ............................................................................................................. 555.50 582.00 605.50 12.00 1⁄2 time ............................................................................................................. 370.00 388.00 403.50 8.50

Less than 1⁄2 but more than 1⁄4 time ................................................................ 370.00 370.00 370.00 0 1⁄4 time or less ................................................................................................. 185.00 185.00 185.00 0

(Authority: 38 U.S.C. 3015(e), (f), (g))

(2) Except as elsewhere provided in this section, the monthly rate of basic educational assistance for training that

occurs after October 31, 2000, and before October 1, 2001, is the rate stated in the following table:

Training

Monthly rate

No

dependents

One

dependent

Two

dependents

Additional for

each

additional

dependent

Full time ........................................................................................................... $838.00 $874.00 $905.00 $16.00 3⁄4 time ............................................................................................................. 629.00 655.50 679.00 12.00 1⁄2 time ............................................................................................................. 419.00 437.00 452.50 8.50

Less than 1⁄2 but more than 1⁄4 time ................................................................ 419.00 419.00 419.00 0 1⁄4 time or less ................................................................................................. 209.50 209.50 209.50 0

(Authority: 38 U.S.C. 3015(e), (f), (g))

(3) For veterans pursuing apprenticeship or other on-job training, the monthly rate of basic educational assistance

for training that occurs after September 30, 2000, and before November 1, 2000, is the rate stated in the following

table:

Training

Monthly rate

No

dependents

One

dependent

Two

dependents

Additional for

each

additional

dependent

1st six months of pursuit of program ............................................................... $516.75 $529.13 $540.00 $5.25

2nd six months of pursuit of program .............................................................. 359.98 369.33 377.03 3.85

3rd six months of pursuit of program .............................................................. 217.00 223.13 227.85 2.45

Remaining pursuit of program ......................................................................... 205.10 210.88 216.13 2.45

(Authority: 38 U.S.C. 3015(e), (f), (g))

(4) For veterans pursuing apprenticeship or other on-job training, the monthly rate of basic educational assistance

for training that occurs after October 31, 2000, and before October 1, 2001, is the rate stated in the following table:

32230 Federal Register / Vol. 66, No. 115 / Thursday, June 14, 2001 / Rules and Regulations

Training

Monthly rate

No

dependents

One

dependent

Two

dependents

Additional for

each

additional

dependent

1st six months of pursuit of program ............................................................... $590.25 $602.63 $613.50 $5.25

2nd six months of pursuit of program .............................................................. 413.88 423.23 430.93 3.85

3rd six months of pursuit of program .............................................................. 251.30 257.43 262.15 2.45

Remaining pursuit of program ......................................................................... 239.40 245.18 250.43 2.45

(Authority: 38 U.S.C. 3015(e), (f), (g))

(5) The monthly rate of basic educational assistance payable to a veteran who is pursuing a cooperative course

is the rate stated in the following table:

Training period

Monthly rate

No

dependents

One

dependent

Two

dependents

Additional for

each

additional

dependent

Oct. 1, 1999–Sept. 30, 2000 ........................................................................... $724.00 $760.00 $791.00 $16.00

Oct. 1, 2000–Oct. 31, 2000 ............................................................................. 740.00 776.00 807.00 16.00

Nov. 1, 2000–Sept. 30, 2001 .......................................................................... 838.00 874.00 905.00 16.00

(Authority: 38 U.S.C. 3015)

(b) Less than one-half-time training.

Except as provided in paragraphs (d)

and (e) of this section, the monthly rate

of basic educational assistance for a

veteran who is pursuing a course on a

less than one-half-time basis is the

lesser of:

* * * * *

(c) Rates for servicemembers. The

monthly rate of basic educational

assistance for a servicemember may not

exceed the lesser of the following rates

(except as provided in paragraph (d) of

this section):

* * * * *

(2) (i) The following monthly rates for

training that occurs after September 30,

2000, and before November 1, 2000—

(A) $740.00 for full-time training;

(B) $555.50 for three-quarter-time

training;

(C) $370.00 for one-half-time training

and training that is less than one-half

but more than one-quarter-time training;

and

(D) $185.00 for one-quarter-time

training; and

(ii) The following monthly rates for

training that occurs after October 31,

2000, and before October 1, 2001—

(A) $838.00 for full-time training;

(B) $629.00 for three-quarter-time

training;

(C) $419.00 for one-half-time training

and training that is less than one-half

but more than one-quarter-time training;

and

(D) $209.50 for one-quarter-time

training.

(Authority: 38 U.S.C. 3015(d), (f))

* * * * *

[FR Doc. 01–15070 Filed 6–13–01; 8:45 am]

BILLING CODE 8320–01–P

DEPARTMENT OF VETERANS

AFFAIRS

38 CFR Part 36

RIN 2900–AK72

Delegation of Authority—Portfolio

Loan Servicing Contractor

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

SUMMARY: This document delegates to

certain officers of the entity performing

loan servicing functions under a

contract with the Secretary authority to

execute all documents necessary for the

servicing and termination of a loan

made or acquired by the Secretary.

DATES: Effective Date: June 14, 2001.

FOR FURTHER INFORMATION CONTACT:

Richard Fyne, Assistant Director for

Loan Management (261), Veterans

Benefits Administration, 810 Vermont

Ave., Washington, DC 20420, telephone

202–273–7380.

SUPPLEMENTARY INFORMATION: The

provisions of 38 U.S.C. chapter 37

authorize the Secretary of Veterans

Affairs (VA) to guarantee or make loans

to veterans. Under a number of

circumstances VA becomes the holder

of a housing loan. The most common

reasons are: VA acquired the property

securing a guaranteed loan following

foreclosure and sold the security on

terms (sometimes called a ‘‘vendee

loan.’’), VA took an assignment of (or

‘‘refund’’) a guaranteed loan pursuant to

38 U.S.C. 3732(a)(2), or VA made a

direct loan to a veteran pursuant to 38

U.S.C. 3711 or 3761.

VA has contracted with a private

entity for the servicing of its housing

loan portfolio. In order to increase the

efficiency of this contract, certain

officers of the contractor are being

delegated authority to execute, on behalf

of VA, routine documents necessary for

the servicing and foreclosing of the

loans being serviced.

Currently, 38 CFR 36.4342 authorizes

certain VA officials, such as field station

Directors, Loan Guaranty Officers, and

Assistant Loan Guaranty Officers, to

execute these documents. Regional

Offices are required to maintain a

cumulative list of all employees of that

office who have held the designated

positions since May 1, 1980.

This rule adds a new paragraph (e) to

38 CFR 36.4342 which delegates to

persons holding the office of Vice

President, Assistant Vice President, and

Assistant Secretary of the entity

performing loan servicing functions

under a contract with VA the authority

to execute all documents necessary for

the servicing and termination of a

housing loan made or acquired by VA.

Documents authorized to be executed

will include loan modification

agreements, notices of default, notices of

appointment or substitution of trustees,

releases or satisfactions of mortgages,