38 CFR §1.966

1. (a)Decisions will be based on the evidence of record. A hearing may be held at the request of the claimant or his/her representative. No expenses incurred by a claimant, his representative, or any witness incident to a hearing will be paid by the Department of Veterans Affairs.
2. (b)A regional office Committee may:
   1. (1)Waive recovery as to certain persons and decline to waive as to other persons whose claims are based on the same veteran's service.
   2. (2)Waive or decline to waive recovery from specific benefits or sources, except that:
      1. (i)There shall be no waiver of recovery out of insurance of an indebtedness secured thereby; i.e., an insurance overpayment to an insured. However, recovery may be waived of any or all of such indebtedness out of benefits other than insurance then or thereafter payable to the insured.