VA Servicer Handbook M26-4 Chapter 12
VA Servicer Handbook M26-4 Chapter 12, verbatim from VA KnowVA (article 554400000314381, updated Dec 16, 2025).
Verbatim regulatory text
Verbatim provisions from VA Servicer Handbook M26-4 Chapter 12 — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
VA Servicer Handbook M26-4 Chapter 12 — 12.01
12.01 QUITCLAIM DEEDS a. When a servicer elects to convey a property to VA followingloan termination, the holder typically records a deed to the property in VA’sname. VA pays an acquisition amount for the property after the transfer of custody(TOC) event is submitted, reviewed, and certified in the VA Loan ElectronicReporting Interface (VALERI). Servicers must provide acceptable evidence oftitle to VA per the Title Documentation, Insurance, and Timeframe Requirementslink at: http://www.benefits.va.gov/HOMELOANS/servicers_valeri.asp. b. If the servicer does not provide an acceptable titletimely, or if the title is deemed unacceptable based on the authority delegatedin (38 CFR 36.4345 (f)), VA’s property management contractor prepares a quitclaimdeed (QCD) to transfer the title of the property back to the servicer. If anextension is necessary for a servicer to provide an acceptable evidence oftitle, an extension request must be received by VA’s property managementcontractor via email prior to the date title documents are due. All QCD inquiriesregarding title reconveyance and execution of said document should be directedto VA’s property management contractor at the link above. c. The following examples reflect situations where a servicererroneously records a deed transferring title of the property to VA: 1. A third-party was the successful bidder at a foreclosuresale and the servicer deeded the property to VA instead of the third-partybidder. 2. VA denies conveyance of the property, but the servicerpreviously executed a deed in VA’s name. 3. A foreclosure sale was not valid, however a deed to VA wasprepared in advance and recorded. 4. There may also be cases where deeds were recorded to VA onproperties securing Federal Housing Administration (FHA) loans.
VA Servicer Handbook M26-4 Chapter 12 — 12.02
12.02 REQUESTING A QUITCLAIM DEED a. Whenevera servicer or its agent determines that a QCD is needed to transfer anyinterest previously conveyed to VA, the request will be sent via e-mail to theVA-assigned technician or the Loan Administration Officer at the Regional LoanCenter (RLC) of jurisdiction for the property location, if no technician isassigned. The e-mail must explain the reason for the request and include anelectronic version of the QCD to be executed by VA, along with instructions fortransmittal of the executed deed to the party that will handle recordation. The effective date of the QCD must be the same date as the initial transfer ofthe property to VA. By using the same date as the initial transfer to VA, theQCD essentially demonstrates that VA never accepted title to the property,despite the previously recorded deed. In addition, nominal considerationshould be shown in the QCD, along with a statement that the property wasconveyed in error.
VA Servicer Handbook M26-4 Chapter 12 — 12.03
12.03 EXECUTING A QUITCLAIM DEED a. Executionof the QCD ensures the property is transferred from the VA’s name to thecorrect holder of the property. Under (38 CFR 36.4345(b)), the Loan GuarantyOfficer (LGO) or the assistant LGO has the authority to execute deeds in anyarea on behalf of the Secretary of Veterans Affairs. Timely submission andexecution of the QCD will avoid delays in the servicer’s ability to respond toliens, code violations, taxes, etc. that may have been assessed on the propertyand remove VA’s name promptly from the title. b. Insome cases, there may be a delay or no request from the servicer for a QCD whenconveyances are not accepted or the QCD to VA may have been erroneouslyrecorded without any notice to VA. VA’s first notice may be in the form of atax bill or a code violation from local authorities. In such cases, afterdetermining that VA should not be the owner of a property, VA will ensure thatcontact is initiated with the servicer to prepare a QCD for VA’s execution.
Operationalizing VA Servicer Handbook M26-4 Chapter 12
This is verbatim, source-snapshotted regulator text from the Claude for Compliance open corpus. To turn a rule like this into compliance work product: gap-analyze your policies and procedures (P&Ps) against these requirements to surface stale, conflicting, or missing provisions; operationalize any change with a ready-to-run update kit; and produce audit-ready evidence — every step grounded only in the regulator’s own words, never invented.
To work from the whole rulebook rather than this one page: download the corpus — every register on this site, verbatim, each with its source snapshot and effective date — then follow the methodology. It asks your assistant to answer only from the downloaded text, cite the register id and effective date it used, and tell you when the corpus does not cover something instead of filling the gap from memory. Running it locally also means no one sees which regulations you are looking at.
Source of record: https://claudeforcompliance.com/regs/va-m26-4-ch12/
· register va-m26-4-ch12 · Claude for Compliance. Free to read and download;
see regulatory updates and methodology.