Supporting Statement_26-6808 2900-0249.rtf

SUPPORTING STATEMENT FOR VA FORM 26-6808

LOAN SERVICE REPORT

(2900-0249)

A. JUSTIFICATION

1. Pursuant to 38 U.S.C. § 3732, the holder of a VA-guaranteed loan is required to notify VA of a default in the payment of any loan guaranteed pursuant to 38 U.S.C. chapter 37. VA Form 26-6808 (fillable printable) is used when servicing delinquent guaranteed and insured loans and loans sold under 38 CFR 36.4600. With respect to the servicing of guaranteed and insured home loans and loans sold under 38 CFR 36.4600, the holder has the primary servicing responsibility.

2. VA Form 26-6808 is completed by Loan Technicians (LSs) during the course of personal contacts with delinquent obligors. The information documented on the form is necessary for VA to determine whether a loan default is insoluble or whether the obligor has reasonable prospects for curing the default and maintaining the mortgage obligation in the future.

3. Use of improved information technology in gathering this information has been employed in VA’s Loan Electronic Reporting Interface (VALERI) system. That data is still captured via telephone interview, but the system guides the LS through the items needing review. However, the form is still used when telephone contact cannot be made or the borrower does not have time to provide the information over the telephone and requests a written document for completion.

4. Program reviews were conducted to identify potential areas of duplication; however, none were found to exist.  There is no known Department or agency which maintains the necessary information, nor is it available from other sources within our Department.

5. Small organizations are generally not involved.

6. This information collection is not a recurring or repetitive report. It is accomplished on a one-time basis per applicant.

7. There are no special circumstances that require the collection to be conducted in a manner inconsistent with the guidelines in 5 CFR 1320.6.

8. The Department notice was published in the Federal Register on June 27, 2022, volume 87, number 122, page 38264. No comments were received.

9. Decisions to provide any payment or gift to respondents does not apply.

10. VA will not disclose information collected on this form to any source other than what has been authorized under the Privacy Act of 1974 or Title 38, Code of Federal Regulations 1.576 for routine uses identified in the VA system of records, 55VA26, Loan Guaranty Home, Condominium and Manufactured Home Loan Applicant Records, Specially Adapted Housing Applicant Records, and Vendee Loan Applicants Records – VA, and published in the Federal Register.

11. No questions of a sensitive nature are contained on the form.

12. Estimate of the hour burden of the collection:

Estimate of Information Collection Burden

a. Number of respondents is estimated at 5,000.

b. Frequency of response is generally one-time per loan.

c. Annual burden is 2,083 hours.

d. The estimated burden of 25 minutes per transaction has been determined by LS to be an average time spent to collect the information and no wide variance is likely.

e. The respondent population is composed of Veterans. VBA cannot make further

assumptions about the population of respondents because of the variability of factors such as the educational background and wage potential of respondents.  Therefore, VBA used general wage data to estimate the respondents’ costs associated with completing the information collection.

The Bureau of Labor Statistics (BLS) gathers information on full-time wage and salary workers.  According to the latest available BLS data, the median weekly earnings of full-time wage and salary workers are $1,120.  Assuming a forty (40) hour work week, the mean hourly wage is $28.01 based on the BLS wage code – “00-0000 All Occupations. This information was taken from the following website: (https://www.bls.gov/oes/current/oes_nat.htm, May 2021). 

Legally, respondents may not pay a person or business for assistance in completing the information collection and a person or business may not accept payment for assisting a respondent in completing the information collection. Therefore, there are no expected overhead costs for completing the information collection. VBA estimates the total cost to all respondents to be an estimated $58,345 (2,083 hours x $28.01 per hour).

13. This submission does not involve any recordkeeping costs.

14. Estimated Annualized Cost to the Federal Government

Grade	Step	Burden Time	Fraction of Hour	Hourly Rate	Cost Per Response	Total Responses	Total
11	5	.25	.42	$30.94	13.00	5,000	$ 65,000
Overhead at 100% Salary							$ 65,000
0	0	0	0	0	0	0	$ 0
Overhead at 100% Salary							$ 0
Printing and Production Cost							$ 0
Total Cost to Government							$ 65,000

Note: The hourly wage information above is based on the hourly 2022 General Schedule (Base) Pay (https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2022/GS_h.pdf). This rate does not include any locality adjustment as applicable.

The processing time estimates above are based on the actual amount of time employees of that grade level spend to process to completion a claim received on this form.

15. There is no change in burden hours or respondent time.

16. Information collection is not for tabulation or publication use.

17. We are not seeking approval to omit the expiration date for OMB approval.

18. There is no exception to the certification statement identified in Item 19,

"Certification for Paperwork Reduction Act Submissions," of OMB Form 83-l.

B. COLLECTION OF INFORMATION EMPLOYING STATISTICAL METHODS

1. The Veterans Benefits Administration does not collect information employing statistical methods.