The Department of Veterans Affairs has found a defect in “transfer of custody” (TOC) processing, wherein TOC reports are being rejected when submitted to the agency. The reports are not being accepted apparently because servicers are not filling out the “Date of Confirmation/Ratification of Sale” fields, the agency said. Servicers have 15 days after loan termination to report if they want to transfer custody of a foreclosed property to the VA. Loan termination for a foreclosure and loan termination for a deed-in-lieu of foreclosure are defined separately under VA rules. The VA said the defect will be fixed once the agency’s VALERI (VA Loan Electronic Reporting Interface) Manifest 3.4 is released in June. VALERI 3.4 comes in the wake of VALERI 3.3, which the VA deployed on April 11, 2015. The updated version included a revised description of a ...