The VA requires all mortgage applicants to furnish a form designating a "nearest living relative". It's not a standardized, official VA form but rather a letter or lender generated form stating who the veteran's family contact is in case the VA has lost touch with the borrower.
Is it a collection tool? Perhaps but the VA states that it needs this information in case the veteran moves or is abruptly re-assigned.
The "nearest" part of the form means the closest relative in blood rather than distance. if your mother-in-law lived a mile away but your brother lived across the country, your brother would be considered to be your "nearest" living relative. Veterans will be asked to furnish his name, address, phone number, and relationship to the veteran.
No verifications about this information are performed by the underwriters at this time.