LoanCare Among First Subservicers Ready to Implement VA Partial Claim Program Ahead of the Go-Live Date

LoanCare positions itself as an early adopter of the VA Partial Claim Program, giving clients quicker access to new veteran loss-mitigation options.

Rhea-AI Summary

LoanCare (FNF) has completed operational, technology and training preparations to implement the Department of Veterans Affairs’ new Partial Claim Program ahead of its November 28, 2026, go-live date.

The program is designed to help eligible veteran borrowers in default avoid foreclosure by placing them on a three‑month trial payment plan; after successful completion, the servicer advances overdue amounts, which are reimbursed by the VA and repaid when the loan is paid off, refinanced or the property is sold. LoanCare’s early readiness makes it one of the first subservicers able to offer this home‑retention solution and gives its clients immediate access to benefits such as new payment relief options, reduced default servicing costs and faster delinquency resolution.

Positive

• Early program readiness ahead of November 28, 2026 VA Partial Claim launch
• Reduced default servicing costs expected from use of the VA Partial Claim Program
• Faster delinquency resolution and improved portfolio performance cited as client benefits

Negative

• None.

Key Figures

Implementation date: November 28, 2026 Trial payment plan: Three months

Implementation date

November 28, 2026

VA Partial Claim Program go-live date

Trial payment plan

Three months

Required trial period for qualifying borrowers in default

Key Terms

subservicer, loss mitigation

2 terms

subservicer financial

"LoanCare®, a leading national mortgage subservicer"

A subservicer is a company hired to handle day-to-day loan or asset servicing tasks—such as collecting payments, managing customer inquiries, and enforcing payment terms—on behalf of the main servicer or asset owner. Think of it like a subcontracted building manager who collects rent and handles repairs for a landlord; investors care because the subservicer’s competence affects cash flow, borrower behavior, compliance, and ultimately the timing and size of investor returns.

loss mitigation financial

"the new loss mitigation program and its associated benefits"

Loss mitigation are actions a company or lender takes to reduce or limit financial losses from bad loans, falling asset values, or operational setbacks—examples include restructuring debt, selling assets, using insurance, or hedging exposures. Investors care because these measures affect how much cash a business keeps, how big its reported losses will be, and how risky the investment is; they’re like patching holes in a boat to keep it afloat and protect value.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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VIRGINIA BEACH, Va., Sept. 17, 2026 /PRNewswire/ -- LoanCare®, a leading national mortgage subservicer, today announced that it has completed the operational, technology and training preparations necessary to implement the Department of Veterans Affairs' (VA) new Partial Claim Program. LoanCare is one of the first subservicers in the industry to deliver this important home retention solution to eligible veteran borrowers.

The VA Partial Claim Program is designed to help veterans facing financial hardship avoid foreclosure and remain in their homes. Under the program, veterans who are in default and qualify can work with their mortgage servicer to be placed on a three-month trial payment plan. Once the trial is successfully completed, the servicer advances the overdue amount, which is reimbursed by the VA, to bring the loan current. The VA is repaid when the loan is paid in full, refinanced, or the property is sold.

LoanCare has prepared its servicing operations, technology, and staff to support the program and confirmed its readiness ahead of the program's November 28, 2026, implementation date. Early adoption gives LoanCare's clients immediate access to the new loss mitigation program and its associated benefits, including:

• New options to help eligible, delinquent VA customers achieve payment relief
• Reduced default servicing costs associated with extended default servicing activities
• Faster delinquency resolution and improved portfolio performance
• Confidence that evolving investor and agency requirements are implemented quickly and effectively

"The VA Partial Claim Program gives eligible veterans another opportunity to overcome financial hardship and remain in their homes," said Dave Worrall, president of LoanCare. "We're proud to be among the first subservicers to deliver this solution. Our readiness reflects our commitment to responding quickly to changing requirements and helping our clients achieve meaningful outcomes for the veteran customers they serve."

About LoanCare
LoanCare^® is a leading provider of full-service mortgage loan subservicing, including special loans, private label and retention marketing services. The award-winning company is known for delivering a superior customer experience through personalization and convenience. Its proprietary portfolio management platform, LoanCare Analytics™, identifies risk and opportunity quickly to enable smarter decision-making across the servicing spectrum. For more than 40 years, LoanCare has been servicing loans for banks, credit unions, independent mortgage companies and portfolio investors. LoanCare is part of Fidelity National Financial (NYSE: FNF), a Fortune 500 company and leading provider of title insurance and transaction services to real estate and mortgage industries. For more information, visit www.loancareservicing.com.

View original content:https://www.prnewswire.com/news-releases/loancare-among-first-subservicers-ready-to-implement-va-partial-claim-program-ahead-of-the-go-live-date-302881552.html

SOURCE LoanCare