VA lenders will be able to get more out of the government for legal fees associated with loans gone bad. The Department of Veterans Affairs issued final regulatory amendments to proposed regulations that were published in September 1993.
The new amendments, which were published in the Sept. 22, 1994, Federal Register, increase 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 VA-guaranteed loan.
The increase lifts the limit to $850 from $700, a move VA believes will make it easier for holders to retain experienced legal counsel to perform foreclosures in a more timely manner. The increase takes effect Oct. 24, 1994.