© 2018 VA Servicers Handbook - M26-4
VA allows servicers to assess late charges and certain other fees in accordance with VA guidelines. VA encourages consideration of waiving fees and charges when it will help a borrower prevent or resolve a delinquency. Late charges may be collected on any installment received more than 15 days after its due date, provided the loan instruments contain a provision for a late charge. In addition, the late installment must be paid before the late charge is collected. The late charge may not be:
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(e) A late charge discourages late payments only when the borrower is able to pay on time, but does not do so. If a borrower is cooperative, but unable to pay, or if collection of late charges could prevent a borrower from reinstating a delinquent account, consideration should be given to waiving the late charge.
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