55430 Federal Register / Vol. 73, No. 186 / Wednesday, September 24, 2008 / Notices 

DEPARTMENT OF VETERANS 

AFFAIRS 

Loan Guaranty: Loan Servicing and 

Claims Procedures Modifications 

Segment 8 Effective Date 

AGENCY: Department of Veterans Affairs 

(VA). 

ACTION: Notice of applicability of 

Subpart F of 38 CFR, Part 36, to 

Segment 8 of the mortgage servicing 

industry. 

SUMMARY: This publication is to serve as 

notice that on November 14, 2008, 

Subpart F of Title 38, Code of Federal 

Regulations, Part 36, will be applicable 

to industry segment 8. Program 

participants in the VA Home Loan 

Guaranty Program’s servicing and 

claims activities were assigned to one of 

nine industry segments as part of the 

planned phased implementation of the 

rules in Subpart F. All program 

participants were given notice of their 

respective segments and were afforded 

opportunity to comment during the 

regulatory development process (see 

SUPPLEMENTARY INFORMATION section, 

below). Segment 8 participants will be 

under the authority of Subpart F rules 

on November 14, 2008. VA continues to 

work with these participants to ensure 

that all necessary servicing system 

modifications, defect corrections, 

interface testing and data transmission 

are addressed. 

SUPPLEMENTARY INFORMATION: On Friday, 

February 1, 2008, VA published final 

regulations that modify its Loan 

Guaranty Program’s loan servicing and 

claims procedures modifications (73 FR 

6294). In response to comments 

received to the proposed regulations (70 

FR 8472, published February 18, 2005) 

and to a supplemental notice published 

on November 27, 2006 (71 FR 68498), 

VA published a second supplemental 

notice on June 1, 2007 (72 FR 30505), 

in which the agency put forth a proposal 

to phase-in implementation of the new 

tracking system. 

Based on comments received to the 

proposed regulations and the first 

supplemental notice, VA decided to 

proceed with gradual implementation of 

the new rules and its computer-based 

tracking system, the VA Loan Electronic 

Reporting Interface (VALERI), with nine 

separate industry segments to be phased 

in over a period of approximately 11 

months. In order to ease the confusion 

that was created by the original 

schedule showing the fourth segment 

not subject to the new rules until 

approximately the same time as the 

ninth segment, VA moved the former 

members of industry segment four into 

the last segment and renumbered all 

subsequent segments accordingly. This 

resulted in only eight industry 

segments. The first segment was subject 

to the new rules upon publication of the 

final regulations, when the rules became 

effective. The second segment was 

subject to the new rules effective April 

19, 2008 (73 FR 21176). The third 

segment was subject to the new rules 

effective May 30, 2008 (73 FR 34993). 

The fourth segment was subject to the 

new rules effective June 27, 2008. The 

fifth segment was subject to the new 

rules effective July 25, 2008. The sixth 

segment was subject to the new rules 

effective September 19, 2008. The 

seventh segment was subject to the new 

rules effective October 17, 2008. The 

eighth segment will be subject to the 

new rules effective November 14, 2008. 

FOR FURTHER INFORMATION CONTACT: 

Mike Frueh, Department of Veterans 

Affairs, 810 Vermont Avenue, NW., 

Washington, DC 20420, (202) 461–9521 

(Not a toll-free number). 

Approved: September 16, 2008. 

Gordon H. Mansfield, 

Deputy Secretary of Veterans Affairs. 

[FR Doc. E8–22223 Filed 9–23–08; 8:45 am] 

BILLING CODE 8320–01–P 


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