On October 15, the Department of Veterans Affairs (VA) issued Circular 26-18-23, requesting relief for homeowners impacted by Hurricane Michael. Among other things, the Circular encourages loan holders to (i) extend forbearance to borrowers in distress because of the storms; (ii) establish a 90-day moratorium from the date of the disaster on initiating new foreclosures on affected loans; (iii) waive late charges on affected loans; and (iv) suspend reporting affected loans to credit bureaus. The Circular is effective until October 1, 2019. Mortgage servicers and veteran borrowers are also encouraged to review the VA’s Guidance on Natural Disasters.

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