Can disaster set-aside be used to bypass servicing under the Agency's primary loan servicing authorities?

Can disaster set-aside be used to bypass servicing under the Agency's primary loan servicing authorities?

• A. True
• B. False
• C. Only during severe disasters
• D. It depends on the type of loan

Answer: (B)

The statement is false because disaster set-aside funds are not intended to circumvent or bypass the servicing requirements outlined under the Agency's primary loan servicing authorities. Instead, disaster set-aside programs are designed to provide financial relief to borrowers affected by natural disasters, allowing them to manage and recover from the impacts without neglecting their responsibilities associated with their loans. Such programs complement existing loan servicing authorities rather than replace them, ensuring borrowers can access necessary support while still adhering to the established servicing protocols. This understanding highlights the structured approach the Agency takes in administering assistance while maintaining the integrity of the servicing process. Consequently, borrowers still need to follow the outlined steps and fulfill the requirements of their loans despite receiving disaster assistance.

The statement is false because disaster set-aside funds are not intended to circumvent or bypass the servicing requirements outlined under the Agency's primary loan servicing authorities. Instead, disaster set-aside programs are designed to provide financial relief to borrowers affected by natural disasters, allowing them to manage and recover from the impacts without neglecting their responsibilities associated with their loans. Such programs complement existing loan servicing authorities rather than replace them, ensuring borrowers can access necessary support while still adhering to the established servicing protocols.

This understanding highlights the structured approach the Agency takes in administering assistance while maintaining the integrity of the servicing process. Consequently, borrowers still need to follow the outlined steps and fulfill the requirements of their loans despite receiving disaster assistance.