source:
  type: regulation
  id: va-38cfr-36.4315
  authority: 38 CFR §36.4315 — Loan modifications
  description: '38 CFR §36.4315 authorizes the holder of a VA-guaranteed loan to modify

    the loan without prior VA approval if all 14 §36.4315(a) conditions are

    met; otherwise the file must be submitted to the Secretary.

    '
obligations:
- id: va-38cfr-36.4315-a
  canonical_id: va-38cfr-36.4315-a
  section: 38 CFR §36.4315(a)
  description: '(a): (a) The terms of any guaranteed loan may be modified by a documented agreement between
    the holder and the borrower, without prior approval of the Secretary , if all of the following conditions
    are met: (1) The loan is in default ; (2) The event or circumstances that caused the default has been
    or wi…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 38 CFR §36.4315(a)
    source_class: va-regulation
    source_url: https://www.law.cornell.edu/cfr/text/38/36.4315
    snapshot_id: ab9498f355f7c6f1
    fetched_at: '2026-05-22T18:52:46Z'
    content_hash: sha256:2d34f028ad7d732afc25aeeaee2a411fa3ce93c7efefee17b9cc473672a76373
    paragraph_quote: '(a) The terms of any guaranteed loan may be modified by a documented agreement between
      the holder and the borrower, without prior approval of the Secretary , if all of the following conditions
      are met: (1) The loan is in default ; (2) The event or circumstances that caused the default has
      been or will be resolved and it is not expected to re-occur; (3) The obligor is considered to be
      a reasonable credit risk, based on a review by the holder of the obligor''s creditworthiness under
      the criteria specified in § 36.4340 , including a current credit report. The fact of the recent
      default will not preclude the holder from determining the obligor is now a satisfactory credit risk
      provided the holder determines that the obligor is able to resume regular mortgage installments
      when the modification becomes effective based upon a review of the obligor''s current and anticipated
      income, expenses, and other obligations as provided in § 36.4340 ; (4) At least 12 monthly payments
      have been paid since the closing date of the loan ; (5) The current owner(s) is obligated to repay
      the loan , and is party to the loan modification agreement; (6) The loan will be reinstated to performing
      status by virtue of the loan modification; (7) A loan has not been modified more than once in a
      3-year period or more than 3 times during the life of the loan ; (8) The loan as modified will bear
      a fixed-rate of interest, which—'
    drafter_attestation: Verbatim subsection of 38 CFR §36.4315 from Cornell LII snapshot ab9498f355f7c6f1;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: va-38cfr-36.4315-i
  canonical_id: va-38cfr-36.4315-i
  section: 38 CFR §36.4315(i)
  description: '(i): (i) May not exceed the most recent Freddie Mac Weekly Primary Mortgage Market Survey
    Rate for 30-year fixed-rate conforming mortgages (U.S. Average), rounded to the nearest one-eighth
    of one percent (0.125%), as of the date the Modification Agreement is approved, plus 50 basis points;
    (ii) After bei…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 38 CFR §36.4315(a)
    source_class: va-regulation
    source_url: https://www.law.cornell.edu/cfr/text/38/36.4315
    snapshot_id: ab9498f355f7c6f1
    fetched_at: '2026-05-22T18:52:46Z'
    content_hash: sha256:2d34f028ad7d732afc25aeeaee2a411fa3ce93c7efefee17b9cc473672a76373
    paragraph_quote: '(i) May not exceed the most recent Freddie Mac Weekly Primary Mortgage Market Survey
      Rate for 30-year fixed-rate conforming mortgages (U.S. Average), rounded to the nearest one-eighth
      of one percent (0.125%), as of the date the Modification Agreement is approved, plus 50 basis points;
      (ii) After being determined and selected in accordance with paragraph (i), is not more than one
      percent higher than the existing rate on the loan ; or, (iii) In the case of a loan in which a State,
      Territorial, or local governmental agency provided assistance to the veteran for the acquisition
      of the dwelling , and the law providing that assistance precludes any revision in the interest rate
      on the loan , then the interest rate on the modified loan is the same or less than that on the original
      note evidencing the loan ; (9) The unpaid balance of the modified loan will be re-amortized over
      the remaining life of the loan , or if the loan term is to be extended, the maturity date will not
      exceed the shorter of:'
    drafter_attestation: Verbatim subsection of 38 CFR §36.4315 from Cornell LII snapshot ab9498f355f7c6f1;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: va-38cfr-36.4315-i
  canonical_id: va-38cfr-36.4315-i
  section: 38 CFR §36.4315(i)
  description: '(i): (i) 360 months from the due date of the first installment required under the modification,
    or (ii) 120 months after the original maturity date of the loan (unless the original term was less
    than 360 months, in which case the term may be extended to 480 months from the due date of the first
    installme…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 38 CFR §36.4315(a)
    source_class: va-regulation
    source_url: https://www.law.cornell.edu/cfr/text/38/36.4315
    snapshot_id: ab9498f355f7c6f1
    fetched_at: '2026-05-22T18:52:46Z'
    content_hash: sha256:2d34f028ad7d732afc25aeeaee2a411fa3ce93c7efefee17b9cc473672a76373
    paragraph_quote: '(i) 360 months from the due date of the first installment required under the modification,
      or (ii) 120 months after the original maturity date of the loan (unless the original term was less
      than 360 months, in which case the term may be extended to 480 months from the due date of the first
      installment on the original loan); (10) Only the following items may be included in the modified
      indebtedness: Unpaid principal; accrued interest; deficits in the taxes and insurance impound accounts;
      amounts incurred to pay actual legal fees and foreclosure costs related to the canceled foreclosure;
      (subject to the maximum amounts prescribed in § 36.4314 ) the cost of a title insurance policy endorsement
      or other update for the modified loan ; and advances required to preserve the lien position, such
      as homeowner association fees, special assessments, water and sewer liens, etc. Late fees and other
      charges may not be capitalized; (11) The holder will not charge a processing fee, and all unpaid
      late fees will be waived. Any other actual costs incurred and legally chargeable, but which cannot
      be capitalized in the modified indebtedness , may be collected directly from the borrower as part
      of the modification process or waived, at the discretion of the servicer ; (12) Holders will ensure
      the first lien status of the modified loan ; (13) The dollar amount of the guaranty will not exceed
      the greater of:'
    drafter_attestation: Verbatim subsection of 38 CFR §36.4315 from Cornell LII snapshot ab9498f355f7c6f1;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: va-38cfr-36.4315-i
  canonical_id: va-38cfr-36.4315-i
  section: 38 CFR §36.4315(i)
  description: '(i): (i) The original guaranty amount of the loan being modified (but if the modified
    loan amount is less than the original loan amount, then the amount of guaranty will be equal to the
    original guaranty percentage applied to the modified loan), or (ii) 25 percent of the loan being modified
    subject to th…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 38 CFR §36.4315(a)
    source_class: va-regulation
    source_url: https://www.law.cornell.edu/cfr/text/38/36.4315
    snapshot_id: ab9498f355f7c6f1
    fetched_at: '2026-05-22T18:52:46Z'
    content_hash: sha256:2d34f028ad7d732afc25aeeaee2a411fa3ce93c7efefee17b9cc473672a76373
    paragraph_quote: (i) The original guaranty amount of the loan being modified (but if the modified
      loan amount is less than the original loan amount, then the amount of guaranty will be equal to
      the original guaranty percentage applied to the modified loan), or (ii) 25 percent of the loan being
      modified subject to the statutory maximum specified at 38 U.S.C. 3703(a)(1)(B) ; and (14) The obligor
      will not receive any cash back from the modification.
    drafter_attestation: Verbatim subsection of 38 CFR §36.4315 from Cornell LII snapshot ab9498f355f7c6f1;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: va-38cfr-36.4315-b
  canonical_id: va-38cfr-36.4315-b
  section: 38 CFR §36.4315(b)
  description: '(b): (b) If a loan fails to meet one or more of the conditions identified in paragraph
    (a), the holder must submit the loan file to the Secretary for approval before entering into any loan
    modification agreement. The Secretary will grant such approval if the Secretary determines that the
    modification is …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 38 CFR §36.4315(a)
    source_class: va-regulation
    source_url: https://www.law.cornell.edu/cfr/text/38/36.4315
    snapshot_id: ab9498f355f7c6f1
    fetched_at: '2026-05-22T18:52:46Z'
    content_hash: sha256:2d34f028ad7d732afc25aeeaee2a411fa3ce93c7efefee17b9cc473672a76373
    paragraph_quote: (b) If a loan fails to meet one or more of the conditions identified in paragraph
      (a), the holder must submit the loan file to the Secretary for approval before entering into any
      loan modification agreement. The Secretary will grant such approval if the Secretary determines
      that the modification is in the best interests of the veteran and the Government after balancing
      the risks of non-approval versus approval despite the absence of one or more of the conditions identified
      in paragraph (a) of this section.
    drafter_attestation: Verbatim subsection of 38 CFR §36.4315 from Cornell LII snapshot ab9498f355f7c6f1;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: va-38cfr-36.4315-c
  canonical_id: va-38cfr-36.4315-c
  section: 38 CFR §36.4315(c)
  description: '(c): (c) This section does not create a right of a borrower to have a loan modified, but
    simply authorizes the loan holder to modify a loan in certain situations without the prior approval
    of the Secretary . [ 76 FR 6558 , Feb. 7, 2011, as amended at 76 FR 78829 , Dec. 20, 2011; 89 FR 25144
    , Apr. 10, 20…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 38 CFR §36.4315(a)
    source_class: va-regulation
    source_url: https://www.law.cornell.edu/cfr/text/38/36.4315
    snapshot_id: ab9498f355f7c6f1
    fetched_at: '2026-05-22T18:52:46Z'
    content_hash: sha256:2d34f028ad7d732afc25aeeaee2a411fa3ce93c7efefee17b9cc473672a76373
    paragraph_quote: (c) This section does not create a right of a borrower to have a loan modified, but
      simply authorizes the loan holder to modify a loan in certain situations without the prior approval
      of the Secretary . [ 76 FR 6558 , Feb. 7, 2011, as amended at 76 FR 78829 , Dec. 20, 2011; 89 FR
      25144 , Apr. 10, 2024] CFR Toolbox Law about... Articles from Wex Table of Popular Names Parallel
      Table of Authorities Accessibility About LII Contact us Advertise here Help Terms of use Privacy
    drafter_attestation: Verbatim subsection of 38 CFR §36.4315 from Cornell LII snapshot ab9498f355f7c6f1;
      body isolated between nav and notes; substring-verified.
  judgment: false
