The U.S. Department of Veterans Affairs (VA) is reinstating its long standing Vendee Mortgage Trust program.

The trust was started in 1992 when the VA got full faith and credit. This program is backed by loans that were made to help sell REO properties that the government has acquired. The last deal under the program was done in 2008.

The agency plans to begin issuing new deals under this full faith and credit program in April, and to come to market  two to three times a year, depending on flow. The transactions are going to be in the $200 million to $$250 million range. 

Thus far, there have been 35 deals that have been issued under the program totalling $13.6 billion.

It recently hired a syndicate to manage the program, led by JPMorgan Securities, with Bank of America Merrill Lynch and Further Lane Securities as co-managers.

BAC Home Loan Servicing is the master servicer while Hunton & Williams is serving as counsel. Deutsche Bank will be serving as trustee and PricewaterhouseCoopers  is the trust auditor.

Although this team does not have a lifetime appointment to work on the trust's offerings, it will hopefully be around for several years, officials from the VA said.



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