VA Temporarily Suspends Property Inspection Requirements for Loans With CARES Act Forbearance
The U.S. Department of Veterans Affairs (VA) issued Loan Guaranty Circular 26-20-21 to announce the temporary suspension of property inspections for loans subject to a CARES Act forbearance.VA regulations require that a property inspection be performed before the 60th day of delinquency, unless a repayment plan is in place. Under the temporary suspension, property inspections for loans with a CARES Act forbearance are not required if the loan is current or had not reached the 60th day of delinquency when the borrower requested a forbearance. However, inspections still are required for vacant or abandoned properties. The VA notes that through the temporary suspension it “seeks to reduce costly inspections that it believes do not provide enough value to meet the challenges in the current environment.”
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