VA's Home Loan Program Continues to Stay Strong

Shinseki Says VA's Home Loan Program Continues to Stay Strong

Veterans More Likely to Avoid Foreclosure with VA-Backed Loan

WASHINGTON - Mortgage loans guaranteed by the Department of Veterans
Affairs (VA) continue to have the lowest rate for serious delinquency
and foreclosures in the industry.

"The continued high performance of VA loans is due to the dedication of
VA's loan professionals, the support of our partners in the mortgage
industry and most notably, the responsibility of our Veterans and their
desire to maintain home ownership," said Secretary of Veterans Affairs
Eric K. Shinseki. "VA is making good on its promise to help Veterans
achieve the American dream of owning a home."

There are currently about 1.3 million active home loans that have been
obtained using VA's Home Loan Guaranty Program. The program makes home
ownership more affordable for Veterans, active-duty service members, and
eligible surviving spouses by permitting low or no downpayment loans and
by protecting lenders from loss if the borrower fails to repay the loan.


According to the Mortgage Bankers Association National Delinquency
Survey, VA's foreclosure rate for the last eight quarters and serious
delinquency rate for the last five consecutive quarters have been the
lowest of all measured loan types, even prime loans.

Much of the program's strength stems from the efforts of VA employees
and loan servicers nationwide, whose primary mission is to "ensure all
Veterans receive every possible opportunity to remain in their homes,
avoid foreclosure, and protect their credit from the consequences of a
foreclosure," added Shinseki.

Depending on the situation, VA's loan specialists can intervene on a
Veteran's behalf to help pursue home-retention options such as repayment
plans, forbearances and loan modifications. When home retention is not
an option, sometimes VA can help arrange a sale, or a deed-in-lieu of
foreclosure, both of which are better options for Veteran borrowers than
foreclosure.

Since 1944, when home-loan guaranties were first offered under the
original GI Bill, VA has guaranteed more than 18.8 million home loans
worth $1.06 trillion.

To obtain more information about the VA Home Loan Guaranty Program,
Veterans can call VA at 1-877-827-3702. Information can also be
obtained at http://www.homeloans.va.gov .