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Updated Jan 18, 2022

In This Section

  
This section contains the following topics:
 
Topic
Topic Name
1
2

1.  Loan Guaranty Service Responsibilities

Introduction

  
This topic contains information on the responsibilities of the Regional Loan Centers (RLCs) for handling VA pension-related home loans, including

Change Date

  
January 18, 2022

XIII.i.7.B.1.a.  Each RLC’s Jurisdiction and Addresses

  
The Regional Loan Center’s (RLC’s) webpage can be used to locate the toll-free number and determine each RLC’s
  • jurisdiction, and
  • mailing and e-mail addresses.

XIII.i.7.B.1.b.  Sending the Veteran’s Income and Net Worth Information to the PMC for Review

  
After receiving a Department of Veterans Affairs (VA) pension-related home loan application, the RLC faxes documentation containing the Veteran and co-borrower(s)’ income and net worth information to the Pension Management Center (PMC) of jurisdiction for review.
 
The RLC uses an overprinted OF-41, Routing and Transmittal Slip, as a fax cover sheet.  The overprint also provides the name and phone number of the person to contact with questions on the referred materials.

XIII.i.7.B.1.c.  Examples:  Information the RLC May Send the PMC for Review

  
Examples of information sent by the RLC for review to the PMC include verification of
  • employment
  • salary
  • Social Security benefits
  • pensions
  • retirement income
  • savings bonds
  • certificates of deposit
  • bank accounts, and
  • stocks.

2.  PMC Responsibilities

Introduction

  
This topic contains information on the responsibilities of the PMC for the review and development of VA pension-related home loans, including

Change Date

  
December 7, 2018

XIII.i.7.B.2.a.  PMC Action and Response Based on RLC Income and Net Worth Information

 
  
Follow the steps in the table below when reviewing the Veteran’s income and net worth information following receipt of this information from the RLC.
 
Step
Action
1
Compare the income and net worth information submitted by the RLC with income and net worth information of record with the PMC.
 
Note:  The PMC considers the income and net worth information as it would any other third-party income and net worth information it might receive.
2
Does the income and net worth shown in the information from the RLC adversely affect a beneficiary’s pension rate or affect the outcome of a pension claim?
  • If no,
    • respond to the RLC in the manner which the RLC requests (e-mail or another method), and
    • no further action necessary.
  • If yes, go to Step 3.
Note:  The RLC only refers income and net worth information to the PMC when it is greater than that reflected in the corporate record.
3
  • Respond to the RLC, explaining how the information will affect the pension award or claim
  • furnish the name and telephone number of the individual whom the RLC can contact for information on the status of PMC action on the pension award or claim, if necessary
  • maintain a copy of the income and net worth information in the claims folder, and
  • follow standard procedures pertaining to development and notice of proposed adverse action, if warranted, considering the information from the RLC to be third-party information unless signed by the claimant, beneficiary, or fiduciary.
Note:  If the proposed effective date for reduction or discontinuance cannot be determined, set the proposed effective date for the adjustment as the beginning of the Eligibility Verification Report reporting period during which the referral was received from the RLC.
 
References:  For more information on
 
Important:  Further action on the pension-related home loan application is deferred pending a response from the PMC.  If the PMC is unable to respond within a few days, it must e-mail or telephone the RLC point of contact to provide the reason for the delay.

XIII.i.7.B.2.b.  EP Credit Based on PMC Reviews of RLC Information

  
Clear end product (EP) 400 after responding to RLC requests for information of record.
 
If adjustment to a pension award is necessary because of the income and net worth information, process the adjustment under EP 150 and, when appropriate, EP 600.
 
Reference:  For more information on EP requirements, see M21-4, Apendix B.