COVID-19 Refund Modification

Forms and Documents

Document Name	Status
SupportingStatement(2900-0891)- COVID 19 - Refund Modification v5 (1).docx Supporting Statement A	2024-11-14
2024-26476.pdf Supplementary Document	2024-11-14
2024-19939.pdf Supplementary Document	2024-09-05

IC Document Collections

IC ID	Document Title	Status
248154	COVID - 19 Refund Modification Other-Note and Security Instrument	Modified

ICR Details

OMB Control No: 2900-0891	ICR Reference No: 202408-2900-016
Status: Received in OIRA	Previous ICR Reference No: 202109-2900-001
Agency/Subagency: VA	Agency Tracking No: VBA-LGY-NK
Title: COVID-19 Refund Modification
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 11/14/2024

	Requested	Previously Approved
Expiration Date	36 Months From Approved	12/31/2024
Responses	1,059	17,200
Time Burden (Hours)	1,588	25,800
Cost Burden (Dollars)	53,511	869,116

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Abstract: VA is keeping this information collection open for resubmissions regarding the loan modification options available to servicers that do not require VA’s prior approval to include the COVID-19 Refund Modification, to assist certain COVID-impacted veterans as they exit a COVID-19 forbearance. Under 38 U.S.C. 3720(a)(2), Congress has provided the Secretary with discretion “[n]otwithstanding the provisions of any other law” to set the terms and conditions to which the Secretary will consent to loan modifications. Additionally, while VA has outlined in regulation at 38 CFR 36.4315(a) the terms of loan modifications that do not require prior VA approval, VA may waive a regulatory requirement if VA finds the interest of the Government are not adversely affected and such waiver would relieve undue prejudice to a debtor, holder, or other person without impairing the vest rights of any person affected. 38 CFR 36.4338(a). Under the COVID-19 Refund Modification, servicers will be able to combine a partial VA purchase (refund) that includes arrearages and, if needed, outstanding principal amounts (hereinafter known as a COVID-19 Refund) with a modification of the guaranteed loan terms to achieve an affordable loan payment for the veteran. Servicers who offer the COVID-19 Refund Modification will be required to originate a new loan repayable to VA and provide documentation to VA. This collection of information is necessary to ensure that the COVID-19 Refund is appropriately established as a loan repayable to VA. Specifically, the servicer is required to prepare a note and security instrument in favor of “the Secretary of Veterans Affairs, an Officer of the United States.” VA requires that the note be consistent with the terms described in the Circular and include all borrowers who are obligated on the guaranteed loan. The security instrument is required to include all non-borrowers who have an interest in the property securing the guaranteed loan. The servicer is required to submit to the Secretary the request for COVID-19 refund within timelines prescribed in the Circular. VA also requires the servicer to provide VA with the original note no later than 120 days after the veteran exits forbearance; the servicer must also provide VA with the original security instrument and evidence of recordation not later than 180 days following the date the security instrument is executed. If the recording authority causes a delay, VA allows the servicer to request an extension of time, in writing, from VA. Finally, the servicer is required to report information related to the COVID-19 Refund Modification event to VA electronically; this information, however, has been included as a revision to an already approved information collection for VA’s electronic loan servicing system (OMB control number 2900-0021).

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Authorizing Statute(s): US Code: 38 USC 3720(a)(2)
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	89 FR 72713	09/05/2024
30-day Notice:	Federal Register Citation:	Citation Date:
	89 FR 90218	11/14/2024
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
COVID - 19 Refund Modification

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ICR Summary of Burden

	Total Request	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	1,059	17,200	0	-16,141	0	0
Annual Time Burden (Hours)	1,588	25,800	0	-24,212	0	0
Annual Cost Burden (Dollars)	53,511	869,116	0	-815,605	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: Yes

Burden Reduction Due to: Miscellaneous Actions

Short Statement: The decrease in burden is due to a decrease in the number of refund modifications.

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Annual Cost to Federal Government: $28,169

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Yes

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 11/14/2024

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