Outamation Beats the VA Deadline: First to Put Partial Claim Waterfall Decisioning in Clients’ Hands

OutamateMods™ is the first platform to bring the new VA Loss Mitigation Waterfall and VA Partial Claim program into live client user acceptance testing, giving servicers a finished solution before the VA Manual M26-4 deadline

DALLAS, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Outamation, a leader in automation and digital transformation for mortgage servicing, today announced that OutamateMods™ is the first platform to deliver VA Partial Claim waterfall decisioning to clients for user acceptance testing (UAT). While much of the industry is still scoping its VA Partial Claim build, Outamation’s clients are already testing a finished solution, and doing it on a platform where clients complete modifications two to three times faster, with fewer touches and fewer errors.

The timing is not incidental. Under VA Manual M26-4, the VA Loss Mitigation Waterfall and the VA Partial Claim Program must be implemented together, since neither can operate independently. The VA published its final policy on June 1, 2026, and began accepting trial payment plan events for VA Partial Claim submissions on June 15, 2026. Servicers have 180 days from the June 1 publication date to implement internally, which puts the compliance deadline at November 28, 2026.

Outamation got out in front of it. By putting VA Partial Claim waterfall decisioning into client UAT ahead of the deadline, the company gives servicers real testing and validation time, rather than the compressed, error-prone scramble that regulatory changes typically force.

“The VA gave servicers 180 days. We made sure our clients would not be scrambling on day 179,” said Sapan Bafna, Founder & CEO of Outamation. “Servicers should not have to choose between speed and compliance when a new program lands. Our clients go into the deadline already validated, not still building. That is the difference between reacting to a regulatory change and being ready for it.”

The VA Partial Claim capability extends the OutamateMods waterfall decision engine, which delivers automated decisioning across all agencies and investor types. That engine connects directly to Fannie Mae’s SMDU and Freddie Mac’s Resolve platforms and was first to market with full integration of FHA Mortgagee Letter 2025-14 changes when it launched in 2025. Outamation has now done it again with VA. With the VA Partial Claim addition, servicers can process retention options across their entire portfolio, from government loans to private investor requirements, through a single unified platform.

OutamateMods manages the full modification lifecycle, including partial claim document generation for FHA, VA, and USDA, promissory note creation, and submission, along with county-level recordation nationwide, borrower correspondence, trial and permanent modification agreements, and title policy ordering. Outamation provides representation and warranty on every completed modification, giving servicers and investors confidence in the accuracy and compliance of every file.

Built on a compliance-first foundation

Speed means nothing in mortgage servicing without a compliance foundation to stand on. Outamation is the first U.S. mortgage technology company to achieve ISO/IEC 42001 certification, the international standard for responsible AI management systems. That certification sits alongside the company's ISO 27001 and SOC 2 Type II attestations, giving servicers independent, third-party validation of how Outamation governs its AI, security, and data practices. For a regulated program like VA Partial Claim, where every decision has to be auditable, that foundation is not a nice-to-have.

The company’s momentum has drawn broader industry recognition, including back-to-back HousingWire Tech100 recognition for its work in mortgage technology.

The VA Partial Claim waterfall capability is available for client UAT now. Servicers who still need to be ready before the VA deadline can contact Outamation at info@outamation.com.

About Outamation
Outamation is where technology expertise meets bold innovation. Founded by industry veterans with deep expertise in workflow automation, rapid application development, and artificial intelligence, Outamation is fueled by its proprietary DRIP Innovation by Outamation^™ approach, emphasizing small, meaningful improvements that drive significant impact over time. OutamateMods^™ is revolutionizing home retention and default modification processing through intelligent automation, comprehensive compliance management, and seamless integration capabilities. Outamation is the first mortgage technology company in the United States to achieve ISO/IEC 42001 certification for AI governance, in addition to ISO 27001 and SOC 2 Type II, and has earned back-to-back HousingWire Tech100 recognition. Discover how Outamation is redefining possibilities outamation.com.

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