The VA program provides a structured path for struggling borrowers to stabilize their finances through a three-month trial payment plan. Upon successful completion, the servicer covers the overdue balance, which is subsequently reimbursed by the VA. This debt is deferred until the mortgage is paid in full, refinanced, or the property is sold, preventing immediate foreclosure.

Dave Worrall, president of LoanCare, stated that the firm’s early adoption ensures clients can immediately leverage the program to reduce default servicing costs and improve overall portfolio performance. The initiative is designed to offer delinquent VA customers a viable alternative to foreclosure while maintaining the integrity of the underlying mortgage assets. LoanCare, a subsidiary of Fidelity National Financial, serves a diverse range of banks and credit unions, positioning this rollout as a key step in their ongoing commitment to loss mitigation services.