VA Home Loans
VA Partial Claims Program and Loss Mitigation Waterfall FAQs for Servicers
These frequently asked questions (FAQs) and answers aim to provide approved, detailed information for the mortgage industry about the VA Partial Claim Program and Loss Mitigation Waterfall.
VA will be ready to accept a trial payment plan event for VA Partial Claim submissions on 6/15/2026. However, VA recognizes servicers will need time to implement the program, internally. Servicers have 180 days to implement, from the date the final policy was published on June 1, 2026. This information can be found in the VA Manual M26-4 Transmittal Sheet, Changes 13 and 14.
No, the VA Partial Claim can only be offered to a borrower when directed to the option through the VA Loss Mitigation Waterfall. The VA Loss Mitigation Waterfall and VA Partial Claim program must be implemented together, as neither can operate independently.
Borrowers should always re-enter the Waterfall at Step 1. There is one exception, when a borrower has been approved for a Special Forbearance and wishes to enter into a Repayment Plan at the conclusion of the forbearance timeframe, servicers may offer a Repayment Plan without reviewing the previous Steps within the Waterfall. However, in all other circumstances, the borrower should re-enter and be reviewed under the Waterfall, starting at Step 1.
The servicer would review the date the borrower executed a modification agreement, when determining if a modification was completed within the past 24 months.
Servicers would review the date a VA Partial Claim was certified, and if the certification date falls within the last 24 months of the date the servicer is reviewing the loan under the Loss Mitigation Waterfall, the loan does not meet the modification criteria. Since partial claims paid under the COVID-Era Programs sunset more than 24 months ago, those partial claim payments do not need to be considered.
No, partial claims paid under any COVID-Era Programs, including standalone Partial Claims and Refund Modifications, are considered a paid partial claim and would prohibit the borrower from meeting the qualifying criteria for a VA Partial Claim on the same guaranteed loan.
VA recognizes the estimated VA Partial Claim advance amount may change as the borrower makes payments under the Trial Payment Plan (TPP). When servicers report the VA Partial Claim Payment Request Event, after successful completion of the TPP, they should include the actual amount advanced to reinstate the loan.
No, the PC qualifying criteria must be met at the time the loan is being reviewed under the Waterfall. Borrowers cannot buy down the delinquency as part of the PC.
If the servicer places the borrower in a forbearance agreement and the borrower makes payments in an amount that would bring the delinquent amount equal to or less than the applicable percentage of the unpaid principal balance, the loan may not move directly to PC consideration. The loan must re-enter the Loss Mitigation Waterfall at Step 1, to be reviewed for the appropriate loss mitigation option.
