Loan Guaranty: Maximum Allowable Fees for Legal Services
This notice provides updated information to participants in the Department of Veterans Affairs (VA) Home Loan Guaranty program concerning the maximum allowable fees for legal se...
This notice provides updated information to participants in the Department of Veterans Affairs (VA) Home Loan Guaranty program concerning the maximum allowable fees for legal services performed in connection with the foreclosure of single- family housing loans. This notice also provides updated information concerning the legal fees for bankruptcy-related services. The table in this notice contains the amounts the
( printed page 44756)
Secretary of Veterans Affairs has determined to be reasonable and customary in all states, following an annual review of the amounts allowed by other Government-related home loan programs.
DATES:
The new maximum allowable fees for legal services will be allowed for all guaranty claims submitted to VA for loans terminated on or after October 16, 2025.
FOR FURTHER INFORMATION CONTACT:
Mr. Andrew Trevayne, Assistant Director for Loan and Property Management, Loan Guaranty Service, Veterans Benefits Administration, (202) 632-8795.
SUPPLEMENTARY INFORMATION:
The VA Home Loan Guaranty program, authorized by 38 U.S.C. Ch. 37, offers a partial guaranty against loss to lenders who make home loans to Veterans. VA regulations concerning the payment of loan guaranty claims are set forth at 38 CFR 36.4300,
et seq.
Filing and computation of guaranty claims is addressed in 38 CFR 36.4324, which states that holders shall file a claim for payment under the guaranty no later than 1 year after the completion of the liquidation sale, also referred to as loan termination in 38 CFR 36.4322. 38 CFR 36.4324(d)(1)(i). Section 36.4324 also states one part of the indebtedness upon which the guaranty percentage is applied is the “[a]llowable expenses/advances as described in [38 CFR 36.4314].” 38 CFR 36.4324(a)(2). Section 36.4314(b)(5)(ii) describes the procedures to be followed in determining what constitutes the reasonable and customary fees for legal services performed in connection with the foreclosure of single-family housing loans. 38 CFR 36.4314(b)(5)(ii).
Pursuant to section 36.4314(b)(5)(ii), the Secretary is required to annually review allowances for legal fees in connection with the foreclosure of single-family housing loans, including bankruptcy-related services, issued by the Department of Housing and Urban Development (HUD), the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac). On November 8, 2021, VA published in the
Federal Register
a notice providing updated information concerning the legal fees for foreclosure and bankruptcy-related services. 86 FR 61856 (Nov. 8, 2021). In updating VA's maximum allowable fees for legal services, VA noted that it considered recently announced updates by HUD, Fannie Mae, and Freddie Mac.
Id.
VA's new maximum allowable fees for legal services announced applied to all guaranty claims submitted to VA on or after December 8, 2021.
Id.
Following VA's publication of updated fees, Fannie Mae issued revisions to their allowances for legal fees in December 2022 and December 2024. Fannie Mae, Servicing Guide Announcement (SVC-2022-08) (Dec. 21, 2022) at
https://singlefamily.fanniemae.com/media/33141/display;
Fannie Mae, Servicing Guide Announcement (SVC-2024-07) (Dec. 18. 2024) at
https://singlefamily.fanniemae.com/media/41196/display.
These revisions also had the effect of amending HUD's allowable fees, as the Federal Housing Administration (FHA) directs mortgagees to follow Fannie Mae's fee structure.
See
HUD, FHA Single Family Housing Policy Handbook 4000.1, Appendix 5.0: HUD Schedule of Standard Possessory Action and Deed-in-Lieu of Foreclosure Attorney Fees (May 20, 2024) at
www.hud.gov/sites/dfiles/OCHCO/documents/40001-hsgh-update15-052024.pdf.
Freddie Mac also announced new allowances for legal fees, effective August 9, 2023. Freddie Mac, Exhibit 57A Approved Attorney Fees and Title Expenses, Seller/Servicer Guide (Aug. 09, 2023) at
https://guide.freddiemac.com/app/guide/exhibit/57A.
VA reviewed and considered the updated legal fees allowed by each entity. After considering increases in fees for legal services announced by these Government-related home loan programs, the Secretary is publishing a table in the
Federal Register
setting forth the revised amounts the Secretary has determined to be reasonable and customary. The table reflects the primary method for foreclosing in each state, either judicial or non-judicial, with the exception of those states where either judicial or non- judicial is acceptable. The use of a method not authorized in the table will require prior approval from VA. 38 CFR 36.4314(b)(5)(ii). This table will be available throughout the year at
www.benefits.va.gov/HOMELOANS/servicers_valeri_rules.asp.
There has been no change to the amounts VA will allow for bankruptcy filing fees, but VA is increasing the amount allowed for multiple bankruptcy filings under either chapter to be consistent with Freddie Mac. See Freddie Mac, Exhibit 57A Approved Attorney Fees and Title Expenses, Seller/Servicer Guide (Aug. 09, 2023) at
https://guide.freddiemac.com/app/guide/exhibit/57A.
The new fee is reflected in the following table. Neither Fannie Mae nor HUD lists multiple bankruptcy filings in their Allowable Bankruptcy Attorney Fees Exhibit. VA will continue to monitor fees for legal services on an annual basis and publish updates in the
Federal Register
as VA deems necessary.
The revised table will apply to all guaranty claims submitted to VA for loans terminated on or after 30 days of the date of publication in the
Federal Register
. The holder's fees for legal services are incurred prior to loan termination. However, as noted herein, holders have up to 1 year after loan termination in which to file a claim for payment under the guaranty.
See38 CFR 36.4324(d)(1)(i). As such, VA will apply the revised fees to future loan terminations to avoid holders being subject to different maximum allowable rates for legal services incurred on the same date solely because of when the holder submits the claim for payment under the guaranty.
The following table reflects the Secretary's determination of the reasonable and customary fees for legal services for the primary method for foreclosing in each state.
Jurisdiction
VA non-judicial
foreclosure 12
VA judicial
foreclosure 12
Deed-in-lieu of
foreclosure
Alabama
$1,850
N/A
$400
Alaska
2,325
N/A
400
American Samoa
1,600
N/A
400
Arizona
1,850
N/A
400
Arkansas
1,925
N/A
400
California
1,850
N/A
400
Colorado
2,500
N/A
400
Connecticut
N/A
4,025
400
Delaware
N/A
2,675
400
District of Columbia
1,650
3,150
400
Florida
N/A
4,800
400
( printed page 44757)
Georgia
1,850
N/A
400
Guam
2,600
N/A
400
Hawaii
N/A
5,850
400
Idaho
1,575
N/A
400
Illinois
N/A
3,300
400
Indiana
N/A
3,300
400
Iowa
1,275
2,675
400
Kansas
N/A
2,675
400
Kentucky
N/A
3,300
400
Louisiana
N/A
2,750
400
Maine
N/A
4,225
400
Maryland
3,300
N/A
400
Massachusetts
N/A
4,700
400
Michigan
2,200
N/A
400
Minnesota
2,375
N/A
400
Mississippi
1,650
N/A
400
Missouri
1,850
N/A
400
Montana
2,050
N/A
400
Nebraska
1,575
N/A
400
Nevada
2,200
N/A
400
New Hampshire
1,850
N/A
400
New Jersey
N/A
5,325
400
New Mexico
N/A
4,425
400
New York—Western Counties 3
N/A
5,300
400
New York—Eastern Counties
N/A
6350
400
North Carolina
2,575
N/A
400
North Dakota
N/A
2,600
400
Ohio
N/A
3,500
400
Oklahoma
N/A
2,950
400
Oregon
1,850
4,050
400
Pennsylvania
N/A
3,425
400
Puerto Rico
N/A
3,500
400
Rhode Island
2,475
N/A
400
South Carolina
N/A
3,125
400
South Dakota
N/A
2,475
400
Tennessee
1,650
N/A
400
Texas
1,850
N/A
400
Utah
1,850
N/A
400
Vermont
N/A
3,500
400
Virgin Islands
N/A
3,250
400
Virginia
2,400
N/A
400
Washington
2,050
N/A
400
West Virginia
1,580
N/A
400
Wisconsin
N/A
2,750
400
Wyoming
1,780
N/A
400
1
When a foreclosure is stopped due to circumstances beyond the control of the holder or its attorney (including, but not limited to bankruptcy, VA-requested delay, property damage, hazardous conditions, condemnation, natural disaster, property seizure, or relief under the Servicemembers Civil Relief Act) and then restarted, VA will allow a $400 restart fee in addition to the base foreclosure attorney fee. This fee recognizes the additional work required to resume the foreclosure action, while also accounting for the expectation that some work from the previous action may be used in starting the new action.
2
VA will allow attorney fees of $1,050 (Chapter 7) or $1,500 (initial Chapter 13) for an initial bankruptcy filing, regardless of whether a bankruptcy release is obtained. For multiple bankruptcy filings under either chapter, VA will allow an additional $600.
3
Western Counties of New York for VA are Allegany, Cattaraugus, Chautauqua, Erie, Genesee, Livingston, Monroe, Niagara, Ontario, Orleans, Steuben, Wayne, Wyoming, and Yates. The remaining counties are in Eastern New York.
Signing Authority
Douglas A. Collins, Secretary of Veterans Affairs, approved this document on September 11, 2025, and authorized the undersigned to sign and submit the document to the Office of the Federal Register for publication electronically as an official document of the Department of Veterans Affairs.
Taylor N. Mattson,
Alternate Federal Register Liaison Officer, Department of Veterans Affairs.