VA Automates Loan Administration.

Washington -- The Department of Veterans Affairs' multiyear effort to revamp its mortgage servicing operation is due to cross the finish line with the rollout of its automated loan servicing information system now slated for November.

The new system called VALERI, which stands for VA Loan Electronic Reporting Interface system, is designed to make information reporting between VA and its loan servicers almost paperless.

"This new system is going to give us an enormous capacity to interact on a totally electronic basis with our servicers," Keith Pedigo, the director of VA's loan guaranty service, recently told a Mortgage Bankers Association conference.

The automated system, which is being tested, will allow the VA to monitor the servicing of individual loans and ensure private servicers are taking the proper steps to help veterans that are behind in their payments.

Currently, VA staff work directly with veterans to provide financial counseling and other assistance to avoid foreclosure.

In fiscal year 2006, VA staff intervention was successful in preventing 8,748 foreclosures, Mr. Pedigo said.

Under regulations expected to be finalized later this year, the VA will turn over those loss mitigation responsibilities to its servicers.