The U.S. Department of Veterans Affairs (VA) completed a project where we redesigned virtually all of our loan servicing regulations, processes, and reporting requirements. The new regulatory environment is being implemented through process changes, organizational changes, and a new application service that replaces our current loan servicing system. The new application service is called the VA Loan Electronic Reporting Interface (VALERI ).

As we near our initial implementation date of November 9, 2007, we need to communicate more detailed information about our implementation approach to industry. Our primary vehicle will be our VALERI website . This includes information about our transition plan, implementation schedule, and new reporting processes.