[Federal Register Volume 59, Number 183 (Thursday, September 22, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-23212]
[[Page Unknown]]
[Federal Register: September 22, 1994]
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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 36
RIN 2900-AG55
Loan Guaranty: Increase in Attorney Fees
AGENCY: Department of Veterans Affairs.
ACTION: Final Regulatory Amendments.
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SUMMARY: The Department of Veterans Affairs (VA) is amending its loan
guaranty regulations to increase from $700 to $850 the maximum
allowable amount VA will reimburse a loan holder for the cost of
trustee's fees and legal services incurred by the holder in liquidating
a loan guaranteed by VA. Increasing the maximum allowable amount will
make it easier for holders to retain experience legal counsel to
perform required foreclosures in a timely manner.
EFFECTIVE DATE: October 24, 1994.
FOR FURTHER INFORMATION CONTACT:
Mr. Leonard Levy, Assistant Director for Loan Management (261), Loan
Guaranty Service, Veterans Benefits Administration, Department of
Veterans Affairs, 810 Vermont Avenue NW, Washington, DC 20420, (202)
233-3668.
SUPPLEMENTARY INFORMATION: On September 22, 1993, VA published in the
Federal Register (58 FR 49253) proposed regulations on increasing the
maximum allowable amount VA will reimburse a loan holder for the cost
of trustee's fees and legal services. Five comments were received on
the proposed amendments. Four commenters approved of the change. One
commenter stated that increasing the maximum allowable amount will not
make it easier to retain experienced counsel in areas where the local
VA offices do not choose to reimburse attorneys the maximum allowable
amount. This commenter further suggested that the local offices be
required to raise the amount they reimburse attorneys to the maximum
allowable amount.
The regulations are adopted as originally proposed. The suggestion
that regional offices be required to pay the maximum allowable amount
when they reimburse attorneys has not been adopted. We believe that
local VA offices have the experience and knowledge necessary to
determine the appropriate level of attorney and trustee fees for
foreclosure processing in their various areas of jurisdiction.
The Secretary hereby certifies that the final regulatory amendments
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. Increasing the amount VA will reimburse holders for
trustee's fees and legal services will make it easier for holders to
retain experienced legal counsel to perform required foreclosures.
The Catalog of Federal Domestic Assistance Program number are
64.114 and 64.119.
List of Subjects in 38 CFR Part 36
Condominiums, Handicapped, Housing Loan program--housing and
community development, Manufactured homes, Veterans.
This amendment is made final under the authority granted the
Secretary by section 501(a) of title 38, United States Code.
Approved: July 22, 1994.
Jesse Brown,
Secretary of Veterans Affairs.
For the reasons set out in the preamble, 38 CFR part 36, is amended
as set forth below.
PART 36--LOAN GUARANTY
1. The authority citation for part 36 Secs. 36.4201 through 36.4287
continues to read as follows:
Authority: Section 36.4201 through 36.4287 issued under 38
U.S.C. 501(a), 3712.
2. In section 36.4276 the undesignated text at the end of paragraph
(b) is removed and paragraph (b)(5) is revised to read as follows:
Sec. 36.4276 Advances and other charges.
* * * * *
(b) * * *
(5) Reasonable amount for legal services actually performed not to
exceed 10 percent of the unpaid indebtedness as of the date of the
first uncured default, or $850 whichever is less. In no event may the
combined total of the amounts claimed for trustee's fees and legal
services (paragraphs (b)(4) and (5) of this section) exceed $850.
* * * * *
3. The authority citation for part 36, sections 36.4300 through
36.4375 continues to read as follows:
Authority: Sections 36.4300 through 36.4375 issued under 38
U.S.C. 501(a).
4. In section 36.4313 the undesignated text at the end of paragraph
(b) is removed and paragraph (b)(5) is revised to read as follows:
Sec. 36.4313 Advances and other charges.
* * * * *
(b) * * *
(5) Reasonable amount for legal services actually performed not to
exceed 10 percent of the unpaid indebtedness as of the date of the
first uncured default, or $850 whichever is less. In no event may the
combined total of the amounts claimed for trustee's fees and legal
services (paragraphs (b)(4) and (5) of this section) exceed $850.
* * * * *
[FR Doc. 94-23212 Filed 9-21-94; 8:45 am]
BILLING CODE 8320-01-M
