38 C.F.R. § 36.4318

Servicer tier ranking—temporary procedures

Read at: eCFRecfr.gov CornellLII GovInfogovinfo.gov CasesGoogle Scholar

(a) The Secretary shall assign to each servicer a “Tier Ranking” based upon the servicer's performance in servicing guaranteed loans. There shall be four tiers, known as tier one, tier two, tier three, and tier four, with tier one being the highest rated and tier four the lowest. Upon the effective date of this regulation, every servicer of loans guaranteed by the Secretary shall be presumed to be in servicer tier two, and shall remain in tier two until the date specified in paragraph (c)(2) of this section.

(b) For purposes of this section, the term “calendar quarter” shall mean the 3-month periods ending on March 31, June 30, September 30, and December 31.

(c)(1) No later than 30 calendar days after the last business day of the first calendar quarter occurring after the rules for determining tier rankings take effect, and then not later than 30 calendar days after the last business day of each subsequent calendar quarter, the Secretary shall provide each servicer with an evaluation of their performance under such rules.

(2) No later than 45 calendar days after the last business day of the fourth calendar quarter during which the Secretary evaluates the performance of servicers, and then annually thereafter, VA shall advise each servicer of its tier ranking.

(3) Any entity which begins servicing guaranteed loans after the first calendar quarter occurring after rules for determining tier rankings take effect shall be presumed to be in tier two. The Secretary will evaluate the performance of such servicer as provided in paragraph (c)(1) of this section. The Secretary will advise such servicer of its tier ranking at the time other servicers are advised of their tier rankings pursuant to paragraph (c)(2) of this section, provided the servicer has received evaluations for at least four continuous calendar quarters.

(d) The quarterly evaluation and tier ranking of a servicer shall be deemed to be confidential and privileged and shall not be disclosed by the Secretary to any other party.

(Authority: 38 U.S.C. 3703(c))

Notes of Decisions

Cited in 8 cases, 1978–1998 · leading case: Rank v. Cleland, 460 F. Supp. 920 (C.D. Cal. 1978).

Sort: Relevance Newest Treatment

Rank v. Cleland, 460 F. Supp. 920 (C.D. Cal. 1978). · cites it 5× “38 C.F.R. § 36.4318 provides that upon receiving a Notice of Default or a Claim for a Guarantee or a Notice of Intention to Foreclose, the Administrator of the VA may require the holder of a mortgage to assign the loan to the VA.”

Fitzgerald v. Cleland, 498 F. Supp. 341 (D. Me. 1980). · cites it 3× “§ 1816 (a); 38 C.F.R. § 36.4318 . The veteran then makes his monthly payments directly to the VA which, in effect, has become the lender.”

Rank v. Nimmo, 677 F.2d 692 (9th Cir. 1982). · cites it 3× “§ 1816 (a); 38 C.F.R. 36.4318. The VA thus may take over defaulted mortgages from private lenders and avoid foreclosure by extending forebearance to the veteran.”

Gatter v. Cleland, 512 F. Supp. 207 (E.D. Pa. 1981). · cites it 4× “If such assignment is accepted by the VA, the private mortgagee pursuant to VA Regulation 4318 (38 C.F.R. 36.4318) assigns the defaulted mortgage to the VA and the mortgagor veteran makes monthly payments to the VA based on a repayment plan.”

Grant v. United States Dep't of Vets.' Affairs, 827 F. Supp. 418 (S.D. Tex. 1993). “§ 1816 (b); 38 C.F.R. § 36.4318 . Thus, the VA assumes the role of the lender and may choose to institute foreclosure proceedings or avoid foreclosure by forbearing on the veteran.”

Donovan v. West, 11 Vet. App. 481 (Vet. App. 1998). “§ 3732 (a)(2); 38 C.F.R. § 36.4318 (a) (1997). There is no specific statutory provision that authorizes the Secretary to accept from the veteran a conveyance of the secured property through a deed in lieu of foreclosure.”

Simpson v. Cleland, 640 F.2d 1354 (D.C. Cir. 1981). “For an example of a regulation reflecting this purpose, and cited by appellant, see 38 C.F.R. § 36.4318 (stating that “[u]pon receiving a notice of default,.”

John & Dolores Rank v. Robert P. Nimmo, Adm'r of the Vets. Admin., John & Dolores Rank v. Robert P. Nimmo, Adm'r of the Vets. Admin., & the Kissell Co., an Ohio Corp., 677 F.2d 692 (9th Cir. 1982). · cites it 3× “1816 (a); 38 C.F.R. 36.4318. The VA thus may take over defaulted mortgages from private lenders and avoid foreclosure by extending forebearance to the veteran.”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.