Agency Information Collection Activities: Proposed Collection; Comment Request

DEPARTMENT OF VETERANS AFFAIRS

Agency Information Collection Activities: Proposed Collection;

Comment Request

AGENCY: Veterans Benefits Administration, Department of Veterans

Affairs.

ACTION: Notice.

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SUMMARY: As part of its continuing effort to reduce paperwork and

respondent burden, the Veterans Benefits Administration (VBA) invites

the general public and other Federal agencies to comment on this

information collection. This request for comment is being made pursuant

to the Paperwork Reduction Act of 1995 (Public Law 104-13; 44 U.S.C.

3506(c)(2)(A)). Comments should address the accuracy of the burden

estimates and ways to minimize the burden including the use of

automated collection techniques or the use of other forms of

information technology, as well as other relevant aspects of the

information collection.

DATES: Written comments and recommendations on the proposal for the

collection of information should be received on or before December 23,

1996.

ADDRESSES: Direct all written comments to Veterans Benefits

Administration (20S52), Department of Veterans Affairs, 810 Vermont

Avenue, NW, Washington, DC 20420. All written comments will become a

matter of public record and will be summarized in the VBA request for

Office of Management and Budget (OMB) approval. In this document VBA is

soliciting comments concerning the following information collection:

OMB Control Number: 2900-0021.

Titles and Form Numbers: Notice of Default, VA Form 26-6850; Notice

of Default and Intention to Foreclose, VA Form 26-6850a; and Notice of

Intention to Foreclose, VA Form 26-6851.

Type of Review: Extension of a currently approved collection.

Need and Uses: When the VA receives either VA Form 26-6850, 26-

6850a, or 26-6851, the loan service representative will review the form

and assign a rating as to the timeliness/completeness of the holder's

report. A complete and timely report is necessary to facilitate the

VA's determination as to the need for and extent of supplemental

servicing in individual cases. The loan status is then coded into LCS

(Liquidation and Claims System). LCS is a centralized automated data

processing system for the operational control of default reporting,

loan servicing, liquidations and claims on outstanding GI loans.

Current Actions: Holders of guaranteed loans are required to notify

the VA within 45 days of a loan default by reason of nonpayment of any

installment for a period of 60 days from the date of the first uncured

default. This notice is required by Title 38, U.S.C. 3732(a)(1), and

Title 38, CFR 36.4315. Holders are also required to notify the VA of

their intention to foreclose. This notice is required by Title 38,

U.S.C. 3732(a)(2), and Title 38, CFR 36.4317. After delivery of such

notice to the VA, 30 days must pass before the holder can begin court

proceedings or give notice of sale under power of sale or otherwise

take steps to terminate the debtor's rights in the security.

Many times, defaults are determined insoluble by holders at the

time the notice of default is to be filed with the VA. In such cases,

holders are requested to file VA Form 26-6850a which will provide both

notice of default and intent to foreclose together on one form.

VA Form 26-6850a requires that servicing efforts be fully explained

so that the VA can determine whether supplemental servicing could

develop further information which might justify the extension of

forbearance to the veteran-borrower as opposed to foreclosure. The

information provided is then used to coordinate the actions of the VA

and the holder to ensure that all legal requirements regarding

foreclosure and claim payment are met.

Estimated Total Annual Burden: 66,166 hours.

a. VA Form 26-6850--20,166 hours.

b. VA Form 26-6850a--26,000 hours.

c. VA Form 26-6851--20,000 hours.

Estimated Total Average Burden Per Respondent: 14 minutes.

a. VA Form 26-6850--10 minutes.

b. VA Form 26-6850a--20 minutes.

c. VA Form 26-6851--15 minutes.

Frequency of Response: On occasion.

Estimated Total Number of Respondents: 279,000.

a. VA Form 26-6850--121,000 respondents.

b. VA Form 26-6850a--78,000 respondents.

c. VA Form 26,6851--80,000 respondents.

FOR FURTHER INFORMATION CONTACT: Requests for additional information or

copies of the form should be directed to Department of Veterans

Affairs, Attn: Nancy Kessinger, Veterans Benefits Administration

(20S52), 810 Vermont Avenue, NW, Washington, DC 20420, telephone (202)

273-7079 or FAX (202) 275-4884.

[[Page 55186]]

Dated: October 11, 1996.

By direction of the Secretary.

Donald L. Neilson,

Director, Information Management Service.

[FR Doc. 96-27242 Filed 10-23-96; 8:45 am]

BILLING CODE 8320-01-M