Mitchell6024/quickb · Datasets at Hugging Face

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44bd580c-3446-49e0-9e9f-d3dd185883f6	VA will inform the lender of its decision by letter. Continued on next page 1-8 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 3. Lenders That are Considered Supervised, continued d.	VA_Guidelines.txt
2df8a84c-6a38-4514-9840-6f9b7661ae47	If a Lender is A supervised lender has the authority to close VA-guaranteed loans on an Supervised automatic basis (without the prior approval of VA) except for certain types of loans that must be submitted to VA for prior approval by all lenders.	VA_Guidelines.txt
c395b3d0-c882-466c-80ee-10ff0beb45f6	These loan types are listed in Topic 1 of this chapter under “Prior Approval.” The supervised lender must obtain VA recognition of agents it uses to make VA loans. See Topic 7 of this chapter for more information.	VA_Guidelines.txt
03792940-63cf-4bd9-9393-0aadb756bd2f	If the lender uses an agent, it must submit the following to the VA office with jurisdiction over its home office by January 31 of each year: a list of the VA-recognized agency relationships it wishes to renew, the annual renewal fee (see Topic 10 of this chapter) for each lender agent that acts for the lender and had been recognized by VA as the lender’s agent as of September 30 (120 days before	VA_Guidelines.txt
05974b42-29dd-44be-8bab-f8279ffffb1b	agent as of September 30 (120 days before payment is due), and any other information requested by VA	VA_Guidelines.txt
5dcc5a13-d6ff-4d76-bfd1-004bdebd2bbf	.	VA_Guidelines.txt
31602a5e-f58b-4314-8c27-fe08b54fa03e	Although VA offices may issue an annual reminder notice to lenders that the above information is due, lenders bear the ultimate responsibility for timely submission of the information and appropriate fees. Failure to pay annual renewal fees could result in loss of a lender’s automatic processing authority. 1-9 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 4.	VA_Guidelines.txt
9caa8ecd-1279-45f9-a93c-e1d084c28ccf	How a Non-supervised Lender Applies for Automatic Authority Change Date February 1, 2019 This chapter has been revised in its entirety. a.	VA_Guidelines.txt
d6b9bafd-d95f-4584-8c88-332d1e7dfeb3	Procedures Submit a completed VA Form 26-8736, Application for Authority to Close and Criteria for Loans on an Automatic Basis-Non-supervised Lenders, to the VA office with Qualification jurisdiction over the lender’s home office, along with: The documentation specified in the tables in this subsection, The appropriate fee(s), (see Topic 10 of this chapter), and The information specified in Topic	VA_Guidelines.txt
648b77a3-9355-476a-b11b-8aab014f0d97	chapter), and The information specified in Topic 2 of this chapter, if not already submitted, or any updates to that information (including a current list of branch offices involved in VA mortgage lending)	VA_Guidelines.txt
72c259b6-650a-486e-a90e-f1e6e0ab82cc	.	VA_Guidelines.txt
c4d75da5-1e42-4c9d-a9ed-48a902395452	The tables in this section describe the criteria that must be met to qualify for automatic authority, and the documentation the lender must submit with its application to meet each criterion. Continued on next page 1-10 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 4.	VA_Guidelines.txt
35194165-83c9-4d01-b6e2-d0a6e90c1773	How a Non-supervised Lender Applies for Automatic Authority Change Date February 1, 2019 This chapter has been revised in its entirety. a.	VA_Guidelines.txt
f4cc1db4-9507-4109-9b23-faff08db9431	Procedures Submit a completed VA Form 26-8736, Application for Authority to Close and Criteria for Loans on an Automatic Basis-Non-supervised Lenders, to the VA office with Qualification jurisdiction over the lender’s home office, along with: The documentation specified in the tables in this subsection, The appropriate fee(s), (see Topic 10 of this chapter), and The information specified in Topic	VA_Guidelines.txt
38e1f9e9-6264-40dd-81a6-80226e43eb4b	chapter), and The information specified in Topic 2 of this chapter, if not already submitted, or any updates to that information (including a current list of branch offices involved in VA mortgage lending)	VA_Guidelines.txt
dcf61ebd-1af2-4296-9537-fac1ba78b92c	.	VA_Guidelines.txt
624ab84d-4d27-45fe-a5a1-31a15756d303	The tables in this section describe the criteria that must be met to qualify for automatic authority, and the documentation the lender must submit with its application to meet each criterion. Continued on next page 1-10 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 4. How a Non-supervised Lender Applies for Automatic Authority, continued a.	VA_Guidelines.txt
b077c0cc-2ebd-4a75-a8c5-a6a6f58c1993	Procedures Criteria Required Documentation and Criteria for Lender Experience Note: For purposes of determining whether Qualification, (38 C. F.	VA_Guidelines.txt
7a1f0185-e77b-444a-a799-fe606d8d09e3	R. §36.4352(b)) the experience criteria are met, IRRRLs do continued not count as VA loans originated, since no Either: underwriting is involved	VA_Guidelines.txt
435aa22b-e6dd-40e6-9ff4-cccae071869d	. the lender must have at least 2 years active VA For all lenders: origination experience and Completed VA Form 26-8736, have originated and closed Application for Authority to Close Loans at least ten VA loans on an Automatic Basis-Non-supervised (properly documented and Lenders, submitted) within the past VA ID number, and 2 years, or Resume for each principal officer the lender (with less than	VA_Guidelines.txt
2f31dc58-bc0b-4b58-8966-37999b3a9424	each principal officer the lender (with less than 2 (president plus any officers involved in years active VA managing loan origination functions) origination experience) showing mortgage lending experience	VA_Guidelines.txt
d6a4ed0f-3786-41e9-af27-e9b19ffa35d6	. must have originated and The VA underwriter certificate of closed at least 25 VA completion for mandatory training must loans (properly be provided to VA within 90 days of documented and underwriter approval	VA_Guidelines.txt
b6ef2833-200b-4f43-981f-e01cb2199fd1	. submitted), or a principal officer who is Additional documentation for lenders actively involved in qualifying based on experience as agent: managing VA origination functions must have at copy of the VA letter(s) recognizing the least two years lender as an agent for the sponsoring management experience in lender(s), the most recent 5 years, or copy of the corporate resolution sent to the	VA_Guidelines.txt
3c21e343-fff3-4dad-8f50-4205a8ad0170	or copy of the corporate resolution sent to the lender, acting as an VA by the sponsoring lender describing agent for an automatic the functions the agent was to perform, lender(s), must have and originated at least 10 VA a letter from a senior officer of the loans over the past 2 years sponsoring lender(s) indicating the or 25 VA loans (if less number of VA loans submitted by the than 2 years)	VA_Guidelines.txt
8286332c-5e9e-4e37-9ae3-23531697c954	. agent each year, and the loans have been documented and submitted in compliance with VA requirements and procedures.	VA_Guidelines.txt
3d8419a5-94f8-483a-8a36-7b4b3f214519	Continued on next page 1-11 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 4. How a Non-supervised Lender Applies for Automatic Authority, continued a. Procedures Criteria Required Documentation and Criteria Qualified Underwriter(s) For all underwriters for (38 C. F.	VA_Guidelines.txt
b40e0d0d-f0bf-4d26-9c8d-9a77c1db1426	R. §36	VA_Guidelines.txt
2daacbb5-8504-4a94-bb12-52b8bc2f34ec	.4352(b)(2)) Qualification, VA Form 26-8736a, Non-supervised continued A senior officer of the Lender’s Nomination and Recommendation lender must nominate at of Credit Underwriter, completed by a senior least one full-time qualified officer if the underwriter is not located in the employee to act as an lender’s corporate office, a senior officer’s underwriter who has either: certification that the	VA_Guidelines.txt
dd59c6ee-e515-424a-889c-39de205804c9	who has either: certification that the underwriter reports to and is supervised by an individual who is not at least 3 years a branch manager or other person with experience in processing, production responsibilities	VA_Guidelines.txt
e998999f-ec2b-4f76-afa6-fdeea273fb7d	. pre-underwriting or underwriting mortgage Additional documentation for loans, and underwriters qualifying based on 3 years at least 1 year of the most of experience recent 3 years must have Underwriter’s resume, outlining the included making underwriter’s specific experience with VA underwriting decisions on loans.	VA_Guidelines.txt
f1195173-e718-4fbd-aaf7-2e88f5d81266	VA loans, a current AMP (Note: For purposes of determining whether (Accredited Mortgage the experience criteria are met, IRRRLs do Professional) designation not count as processing, pre-underwriting, or from the Mortgage underwriting	VA_Guidelines.txt
5df6b0c3-302b-4e40-a15c-cb9fd8f3a13a	.) Bankers Association (MBA), or Additional documentation for a current CRU (Certified underwriters qualifying based on Residential Underwriter) AMP/CRU designation designation from MBA.	VA_Guidelines.txt
92043127-9c38-4ec4-9519-9b9d71ad6481	All VA-approved Evidence that he or she is a current underwriters must be AMP/CRU as designated by the MBA. familiar with VA’s credit See “Underwriter Approval” in Topic 6 of underwriting standards and this VA Lender’s Handbook. underwriters and underwriters who have not underwritten VA loans in the past 24 months.	VA_Guidelines.txt
a624a7ae-229f-406c-871e-57309c8de22d	Continued on next page 1-12 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 4. How a Non-supervised Lender Applies for Automatic Authority, continued a.	VA_Guidelines.txt
a810d2ac-c0a7-4950-82e2-d25c080ee298	Procedures Criteria Required Documentation and Criteria for Sanctions For Prior Acts A statement of facts is required in any case Qualification, where: continued There must be no factors indicating the lender would the lender, or any director or principal not exercise the necessary officer was ever debarred or suspended or care and diligence	VA_Guidelines.txt
5e9f774d-6edf-4108-8773-d83a59d9db6b	. otherwise formally sanctioned by the Government, or any director or officer was ever a director or officer of a debarred or suspended firm, or the lender had a servicing contract with an investor terminated for cause. b.	VA_Guidelines.txt
a1bd8976-a128-4499-a8ea-7037ef7782d9	Application The application checklist provides a quick-reference checklist for application Checklist materials and requirements. Please see Topic 15 of this chapter for more information. c. Nationwide All lenders who have been approved by VA for automatic authority may use Authority this authority on a nationwide basis. d.	VA_Guidelines.txt
db2bac9a-bef2-4552-a567-345eac5d8779	Notification The VA office of jurisdiction reviews the application materials submitted, and of VA Decision makes a determination regarding the lender’s qualifications. The office then sends the lender written notice of its decision and, if approved, any conditions attached to its automatic authority. Lenders are expected to use their automatic authority to the maximum extent possible.	VA_Guidelines.txt
ba0e003d-924a-4be8-9ba4-05f342300ee2	Loans uploaded for prior approval that are not required to be submitted for prior approval must include a written explanation from the underwriter. See Chapter 5, Topic 4 of this handbook for more information. Continued on the page 1-13 1-13 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 4. How a Non-supervised Lender Applies for Automatic Authority, continued e.	VA_Guidelines.txt
dbd22215-d411-4b06-b72c-4dc9cc0fb219	Probationary The lender will be subject to a probationary period of 1 year or longer, during Period which the VA offices to which it submits loans will carefully review the quality of the lender’s underwriting, completeness of loan submissions, compliance with VA requirements and procedures, and delinquency and foreclosure rates.	VA_Guidelines.txt
bdfdb0ea-46fd-448d-9655-56286728aba5	VA must perform a complete review including underwriting analysis for a minimum of the first 15 loans closed and guaranteed, and fifty percent (50%) of the next 50 loans closed automatically. VA may withdraw automatic authority at any time during the probationary period based on poor underwriting and/or consistently careless processing.	VA_Guidelines.txt
0a2789b3-df37-4980-a03f-68d77a5562b2	At the expiration of the probationary period, VA sends the lender written notice of its decision to terminate the probationary period, extend it, or revoke automatic authority. 1-14 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 5. Certifications a Non-supervised Automatic Lender Must Comply With Change Date February 1, 2019 This chapter has been revised in its entirety. a.	VA_Guidelines.txt
a504e6c3-ea02-41e5-b135-45d6d76903fd	Do Not Close The president or principal officer must certify on VA Form 26-8736, Loans for Application for Authority to Close Loans on an Automatic Basis-Non- Others supervised Lenders, that the lender will not close loans on an automatic basis for the following: As a courtesy or accommodation for other mortgage lenders regardless of whether or not such lenders are approved themselves to close on	VA_Guidelines.txt
efa8ec0d-3c8c-4440-8090-5d83f7cd895f	such lenders are approved themselves to close on an automatic basis	VA_Guidelines.txt
638958bb-64c4-4620-b685-2bbd46a794d2	.	VA_Guidelines.txt
6317e0b2-dcbf-44e0-8279-a4b6507d7292	This does not prevent the lender from closing loans based on documents prepared by an authorized agent. For any builder or other entity in which the lender has a financial interest or which it owns, is owned by, or with which it is affiliated, without the express approval of the VA. See “Approval to Close Loans Involving an Affiliate” in Topic 6 of this chapter, for details.	VA_Guidelines.txt
f3d21838-acea-4710-8407-55c766a2fda1	If the only connection between the lender and the builder is a construction loan, the lender may close the permanent mortgage on an automatic basis without VA approval. b.	VA_Guidelines.txt
5fe04eb7-5ee3-42f9-bf6f-098eae8b9fb0	Notify VA of The president or principal officer must certify on VA Form 26-8736, Significant Application for Authority to Close Loans on an Automatic Basis-Non- Changes supervised Lenders, that the lender will notify the VA office with jurisdiction including over its home office of any changes in its corporate structure, operations, or Merger or financial condition which may have a bearing on the	VA_Guidelines.txt
b07ba801-20c6-4750-87b9-060d3dc57eae	condition which may have a bearing on the lender’s continued Acquisition qualifications for authority to close loans automatically	VA_Guidelines.txt
08168bf0-caca-4f8c-a6b2-82ba69c0f740	.	VA_Guidelines.txt
84bc53cc-893c-41d7-8e7d-886af957c550	If the lender no longer meets the qualifications for automatic authority, but no change in ownership has occurred (that is, working capital becomes inadequate), submit a plan of correction to the VA office of jurisdiction.	VA_Guidelines.txt
adb013bd-b336-4eb3-9d08-ee2dba466bf3	Continue to close loans on the automatic basis until the lender receives a determination from VA, except if the lender no longer has a VA-approved underwriter, it may no longer close loans on the automatic basis. Continued on next page 1-15 Continued on next page 1-15 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 5.	VA_Guidelines.txt
655e3f52-df8f-41ff-84bd-6cbe7ff28a3c	Certifications a Non-supervised Automatic Lender Must Comply With, continued b.	VA_Guidelines.txt
2a8737ca-7940-43fc-a000-eef477b663a0	Notify VA of Notification of change of ownership and/or name change of the Significant non-supervised automatic lender should be made through the RLC of the Changes surviving entity. including Merger or All mergers and acquisitions always extinguish automatic authority of the Acquisition, lender unless the new entity is supervised.	VA_Guidelines.txt
f0e80b94-0cf7-4ef9-84d0-415f7b5b7b7f	See Topic 8 of this chapter for continued requirements in the case of a merger, acquisition, or change in ownership and consequences to the lender. c. All Loans The president or principal officer must certify that all prospective VA loans to Must be be closed on an automatic basis will be reviewed and decided by a Reviewed by a VA-approved underwriter.	VA_Guidelines.txt
ce136b45-dd52-4211-bb8a-41e1f3520998	VA-Approved Underwriter All VA-approved underwriters must be familiar with the VA Lender’s Handbook, specifically Chapter 4: Credit Underwriting. d. Submit The president or principal officer must certify that the lender will submit Annual annual financial statements audited and certified by a Certified Public Financial Accountant (CPA) to VA within 120 days of the end of its fiscal year.	VA_Guidelines.txt
66da4ae0-fbd4-4936-b04e-a2dd6be89741	The Statements financial statements must be sent to the RLC with jurisdiction over the lender’s home office. The statements must show either: a minimum of $50,000 working capital.	VA_Guidelines.txt
41491e75-6dd8-4d15-8f09-d37e9e5f5e58	Either the balance sheet must be classified to distinguish between current and fixed assets and between current and long-term liabilities or the information must be provided in a footnote to the statement, or a minimum of $250,000 in adjusted net worth. Adjusted net worth must be calculated by a CPA in accordance with the requirements in Topic 13 of this chapter.	VA_Guidelines.txt
27ef6ded-7f2b-473b-bd9d-ea9f30278a99	Continued on next page 1-16 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 5. Certifications a Non-supervised Automatic Lender Must Comply With, continued b.	VA_Guidelines.txt
978839d4-92aa-484e-87b1-f6ae79e09d50	Notify VA of Notification of change of ownership and/or name change of the Significant non-supervised automatic lender should be made through the RLC of the Changes surviving entity. including Merger or All mergers and acquisitions always extinguish automatic authority of the Acquisition, lender unless the new entity is supervised.	VA_Guidelines.txt
7d3ee5d3-b0ac-4831-819f-880a3115d01a	See Topic 8 of this chapter for continued requirements in the case of a merger, acquisition, or change in ownership and consequences to the lender. c. All Loans The president or principal officer must certify that all prospective VA loans to Must be be closed on an automatic basis will be reviewed and decided by a Reviewed by a VA-approved underwriter.	VA_Guidelines.txt
def2159a-b29d-498f-a7ad-936f38268ea6	VA-Approved Underwriter All VA-approved underwriters must be familiar with the VA Lender’s Handbook, specifically Chapter 4: Credit Underwriting. d. Submit The president or principal officer must certify that the lender will submit Annual annual financial statements audited and certified by a Certified Public Financial Accountant (CPA) to VA within 120 days of the end of its fiscal year.	VA_Guidelines.txt
a59c1afa-c4b1-4815-84c5-83f1d06fa2cf	The Statements financial statements must be sent to the RLC with jurisdiction over the lender’s home office. The statements must show either: a minimum of $50,000 working capital.	VA_Guidelines.txt
b5b38e90-045e-4fcb-9205-e6862445a632	Either the balance sheet must be classified to distinguish between current and fixed assets and between current and long-term liabilities or the information must be provided in a footnote to the statement, or a minimum of $250,000 in adjusted net worth. Adjusted net worth must be calculated by a CPA in accordance with the requirements in Topic 13 of this chapter.	VA_Guidelines.txt
25b24741-ab35-4505-9121-7f7da5fd9585	Continued on next page 1-16 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 5. Certifications a Non-supervised Automatic Lender Must Comply With, continued d.	VA_Guidelines.txt
f5d597e4-d1e2-4a45-a67c-54a71c12eadb	Submit When submitting the financial statements to the RLC of jurisdiction, the Annual lender must also submit the following: Financial Statements, a list of VA-recognized agent relationships the lender wants to renew, if the continued lender uses agents for making VA loans, and the annual fees specified in Topic 10 of this chapter. Any other information requested by VA.	VA_Guidelines.txt
312bc332-20bd-4127-9b9c-58523403c9a2	Any other information requested by VA. Although VA offices may issue an annual reminder notice to lenders that the above information is due, lenders bear the ultimate responsibility for timely submission of this information. e.	VA_Guidelines.txt
f663621b-7bb2-406d-86d7-78eff41fbad7	Other When the president or principal officer signs VA Form 26-8736, Application Certifications for Authority to Close Loans on an Automatic Basis - Non-supervised Lenders, he or she certifies that the lender will comply with a number of other requirements.	VA_Guidelines.txt
c35d509a-72bf-4d9e-b24c-7c9ab562e13a	These include: complying with VA regulations, directives, and law, submitting at any time to VA examination of its records and accounts, furnishing VA any requested information, maintaining $50,000 working capital or $250,000 adjusted net worth, and using its automatic authority to the maximum extent possible; if not used, submitting an explanation as to why a loan was processed prior approval	VA_Guidelines.txt
fdcca609-01b9-4ac3-bc68-644391973bf4	. 1-17 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 6.	VA_Guidelines.txt
159a2356-f6f4-4614-97a8-46bfbc071204	How a Non-supervised Automatic Lender Requests Underwriter Approval or Approval to Close Loans involving an Affiliate Change Date February 1, 2019 This chapter has been revised in its entirety. a. Underwriter All VA loans to be closed on an automatic basis must be reviewed and either Approval approved or rejected by a VA-approved underwriter.	VA_Guidelines.txt
e4bc3897-0ba6-4a9d-b2d1-772aff0b7a9d	A VA-approved underwriter must sign a VA Form 26-6393, Loan Analysis, on each loan to certify his or her review of such loan. An electronic signature is acceptable.	VA_Guidelines.txt
757ee2c1-2f96-4132-839e-bca6d5595565	The lender may request approval of additional underwriters at any time after its initial approval for automatic authority by submitting a request to the VA office with jurisdiction over its home office, including the appropriate fee (as listed in Topic 10 of this chapter) and the documentation for underwriter approval (as listed in Topic 4, Subsection a, of this chapter).	VA_Guidelines.txt
950d4d30-1378-4ee9-a043-71635da20cf0	All VA-approved underwriters must be familiar with VA’s credit underwriting standards and the VA Lender’s Handbook. All VA-approved underwriters must attend a 1-day (8 hour) training course on underwriter responsibilities, VA underwriting requirements, and VA administrative requirements, including the usage of VA forms, within 90 days of approval. Web-based training is also available.	VA_Guidelines.txt
9eecb70e-b688-4563-abf9-b74accc9c01c	Web-based training is also available. The Credit Standards training course is located on your landing page within the Veterans Information Portal (VIP): https://vip.vba.va.gov/portal/VBAH/Home. Successful completion of the Internet-based training meets the 1-day training requirement. Continued on next page 1-18 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 6.	VA_Guidelines.txt
12aa0dd6-3719-4f4f-bcf3-b48ae493d285	How a Non-supervised Automatic Lender Requests Underwriter Approval or Approval to Close Loans involving an Affiliate, continued a. Underwriter VA underwriter training is required of all underwriters whether approved Approval, based on experience or based on an AMP or CRU designation.	VA_Guidelines.txt
269c864f-d0c8-4d8c-8a61-e3c66541cd37	It is also continued required of underwriters who have not underwritten VA-guaranteed loans in the past 24 months. Underwriters who consistently approve loans that do not meet VA credit standards will be required to retake this training. VA approval of an underwriter is automatically terminated (without notice) if the underwriter is no longer employed by the same lender.	VA_Guidelines.txt
73bbd32b-f60e-49a2-85a8-5791892a619f	The lender must report any such circumstances to VA. The lender may not continue to close loans automatically without a VA-approved underwriter. b.	VA_Guidelines.txt
25570bf6-10c0-47f0-9934-ee1095b4627d	Approval to The lender may request VA approval to close loans involving an affiliate on Close Loans an automatic basis (“affiliate” as used here includes a real estate brokerage Involving an firm and/or residential builder or developer that the lender has a financial Affiliate interest in, owns, is owned by, or is affiliated with).	VA_Guidelines.txt
e02f820c-b5e6-4439-a0b4-be42de67fb9e	The lender may request such approval at the time it applies for automatic authority or any time thereafter. Submit the request to the VA office with jurisdiction over the lender’s home office along with a corporate resolution from the lender and each affiliate indicating they are separate entities operating independently of each other.	VA_Guidelines.txt
2cb8ad3b-f754-4cba-ace4-4384f8e7c95b	The lender’s corporate resolution must indicate that it will not give more favorable underwriting consideration to its affiliate’s loans. The affiliate’s corporate resolution must indicate that it will not seek to influence the lender to give their loans more favorable underwriting consideration.	VA_Guidelines.txt
d4c9541e-3902-40a3-a839-88b497eb48f7	Letters from permanent investors indicating the percentage of all VA loans based on the affiliate’s production originated by the lender over a 1 year period that are past due 90 days or more. This delinquency ratio must be no higher than the national average for the same period for all mortgage loans. 1-19 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 7.	VA_Guidelines.txt
4d35c3ba-c9e7-4c43-9507-32bc46bcfc2b	How a Supervised or Non-supervised Automatic Lender Requests VA Recognition of an Agent Change Date February 1, 2019 This chapter has been revised in its entirety. a. Limitations A lender must request VA recognition of an ongoing relationship with an on Use of agent.	VA_Guidelines.txt
960a72ea-7797-42bc-af40-9223e225ae0b	The lender may designate any individual or entity as an agent to Agents perform loan-related functions on its behalf or in its name.	VA_Guidelines.txt
7200b4ca-6b52-4202-8c8c-ce3801a82abe	The extent of the relationship between the lender and the agent is at the lender’s discretion and the following lender responsibilities must be met: The lender must accept full responsibility for the acts, errors, or omissions of the agent in processing and/or closing loans.	VA_Guidelines.txt
389a702d-02e5-4990-b493-60e372311464	The lender accepts this responsibility by certification on VA Form 26-1820, Report and Certification of Loan Disbursement, and the corporate resolution. The lender may not subsequently claim that it should not be held accountable for inaccurate or fraudulent credit information or other loan data because it relied on the agent.	VA_Guidelines.txt
00b3fb48-76bf-4c4e-8ba0-a894feb9589e	Irregularities resulting from acts or omissions of the agent are treated as acts or omissions of the lender. The lender’s use of an agent will not prevent VA from taking actions in appropriate cases such as denial of liability, claim adjustments, collection of the amount of any loss incurred due to irregularities, and imposition of sanctions against both the lender and the agent.	VA_Guidelines.txt
3aa98a2b-e39b-46bf-9489-152975d93236	If the lender is a non-supervised automatic lender, loans made by an agent on its behalf which are closed automatically must be reviewed and approved by a VA-approved underwriter employed by the lender. Continued on next page 1-20 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 7. How a Supervised or Non-supervised Automatic Lender Requests VA Recognition of an Agent, continued b.	VA_Guidelines.txt
8b0ac557-9757-4302-b184-240aa081e0c6	How to To begin a relationship with an agent, submit a request for recognition of the Request VA agent relationship to the VA office with jurisdiction over the lender’s home Recognition of office.	VA_Guidelines.txt
a585efb8-0e8c-4fd4-90a0-ced929244a5a	Include a corporate resolution which contains: an Agent the agent’s name, address, telephone, e-mail address, and Federal Tax ID number, the agent’s function(s) (such as, taking the loan application, ordering the credit report and verifications of employment and deposit, holding settlement), a statement that the lender takes full responsibility for all acts, errors, or omissions of the agent and	VA_Guidelines.txt
1847b0ca-be3e-4d9d-82a1-29117c34076f	all acts, errors, or omissions of the agent and its employees, and if the agent will enter into interest rate lock-in agreements on the lender’s behalf, a statement that the lender will honor the lock-in	VA_Guidelines.txt
1545afaa-63e4-491b-91fd-c8d833b9247c	.	VA_Guidelines.txt
4520852f-f455-4971-8c85-4416f8d1998a	Note: A conditional loan purchase agreement, wherein the lender agrees only to purchase the agent’s production subject to the lender’s review and approval, is unacceptable. Also include a fee of $100 for each agent with the request. The lender may begin to use an agent after VA sends recognition of the relationship to the lender in writing.	VA_Guidelines.txt
536bfcd5-0de7-46c4-9ba6-0afa950e895a	Even with formal VA recognition, the lender must identify the agent and its function on VA Form 26-1820, Report and Certification of Loan Disbursement, for each loan. Continued on next page 1-21 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 7. How a Supervised or Non-supervised Automatic Lender Requests VA Recognition of an Agent, continued b.	VA_Guidelines.txt
05daa05a-0b98-48eb-b047-6ab0a484a568	How to To begin a relationship with an agent, submit a request for recognition of the Request VA agent relationship to the VA office with jurisdiction over the lender’s home Recognition of office.	VA_Guidelines.txt
961c239b-d268-4b41-841b-ba8db30a6430	Include a corporate resolution which contains: an Agent the agent’s name, address, telephone, e-mail address, and Federal Tax ID number, the agent’s function(s) (such as, taking the loan application, ordering the credit report and verifications of employment and deposit, holding settlement), a statement that the lender takes full responsibility for all acts, errors, or omissions of the agent and	VA_Guidelines.txt
0de66509-8d88-47b6-b481-4e04e915ec56	all acts, errors, or omissions of the agent and its employees, and if the agent will enter into interest rate lock-in agreements on the lender’s behalf, a statement that the lender will honor the lock-in	VA_Guidelines.txt
8e19f08a-1dc2-4ef4-a36c-950c725924b2	.	VA_Guidelines.txt
de30fd7a-501e-48b8-8e09-6f0678b4461b	Note: A conditional loan purchase agreement, wherein the lender agrees only to purchase the agent’s production subject to the lender’s review and approval, is unacceptable. Also include a fee of $100 for each agent with the request. The lender may begin to use an agent after VA sends recognition of the relationship to the lender in writing.	VA_Guidelines.txt
614d531a-b9f7-4d2e-8c5c-40a31e721c8a	Even with formal VA recognition, the lender must identify the agent and its function on VA Form 26-1820, Report and Certification of Loan Disbursement, for each loan. Continued on next page 1-21 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 7. How a Supervised or Non-supervised Automatic Lender Requests VA Recognition of an Agent, continued c.	VA_Guidelines.txt

44bd580c-3446-49e0-9e9f-d3dd185883f6

VA will inform the lender of its decision by letter. Continued on next page 1-8 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 3. Lenders That are Considered Supervised, continued d.

VA_Guidelines.txt

2df8a84c-6a38-4514-9840-6f9b7661ae47

If a Lender is A supervised lender has the authority to close VA-guaranteed loans on an Supervised automatic basis (without the prior approval of VA) except for certain types of loans that must be submitted to VA for prior approval by all lenders.

VA_Guidelines.txt

c395b3d0-c882-466c-80ee-10ff0beb45f6

These loan types are listed in Topic 1 of this chapter under “Prior Approval.” The supervised lender must obtain VA recognition of agents it uses to make VA loans. See Topic 7 of this chapter for more information.

VA_Guidelines.txt

03792940-63cf-4bd9-9393-0aadb756bd2f

If the lender uses an agent, it must submit the following to the VA office with jurisdiction over its home office by January 31 of each year: a list of the VA-recognized agency relationships it wishes to renew, the annual renewal fee (see Topic 10 of this chapter) for each lender agent that acts for the lender and had been recognized by VA as the lender’s agent as of September 30 (120 days before

VA_Guidelines.txt

05974b42-29dd-44be-8bab-f8279ffffb1b

agent as of September 30 (120 days before payment is due), and any other information requested by VA

VA_Guidelines.txt

5dcc5a13-d6ff-4d76-bfd1-004bdebd2bbf

.

VA_Guidelines.txt

31602a5e-f58b-4314-8c27-fe08b54fa03e

Although VA offices may issue an annual reminder notice to lenders that the above information is due, lenders bear the ultimate responsibility for timely submission of the information and appropriate fees. Failure to pay annual renewal fees could result in loss of a lender’s automatic processing authority. 1-9 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 4.

VA_Guidelines.txt

9caa8ecd-1279-45f9-a93c-e1d084c28ccf

How a Non-supervised Lender Applies for Automatic Authority Change Date February 1, 2019 This chapter has been revised in its entirety. a.

VA_Guidelines.txt

d6b9bafd-d95f-4584-8c88-332d1e7dfeb3

Procedures Submit a completed VA Form 26-8736, Application for Authority to Close and Criteria for Loans on an Automatic Basis-Non-supervised Lenders, to the VA office with Qualification jurisdiction over the lender’s home office, along with: The documentation specified in the tables in this subsection, The appropriate fee(s), (see Topic 10 of this chapter), and The information specified in Topic

VA_Guidelines.txt

648b77a3-9355-476a-b11b-8aab014f0d97

chapter), and The information specified in Topic 2 of this chapter, if not already submitted, or any updates to that information (including a current list of branch offices involved in VA mortgage lending)

VA_Guidelines.txt

72c259b6-650a-486e-a90e-f1e6e0ab82cc

.

VA_Guidelines.txt

c4d75da5-1e42-4c9d-a9ed-48a902395452

The tables in this section describe the criteria that must be met to qualify for automatic authority, and the documentation the lender must submit with its application to meet each criterion. Continued on next page 1-10 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 4.

VA_Guidelines.txt

35194165-83c9-4d01-b6e2-d0a6e90c1773

How a Non-supervised Lender Applies for Automatic Authority Change Date February 1, 2019 This chapter has been revised in its entirety. a.

VA_Guidelines.txt

f4cc1db4-9507-4109-9b23-faff08db9431

Procedures Submit a completed VA Form 26-8736, Application for Authority to Close and Criteria for Loans on an Automatic Basis-Non-supervised Lenders, to the VA office with Qualification jurisdiction over the lender’s home office, along with: The documentation specified in the tables in this subsection, The appropriate fee(s), (see Topic 10 of this chapter), and The information specified in Topic

VA_Guidelines.txt

38e1f9e9-6264-40dd-81a6-80226e43eb4b

chapter), and The information specified in Topic 2 of this chapter, if not already submitted, or any updates to that information (including a current list of branch offices involved in VA mortgage lending)

VA_Guidelines.txt

dcf61ebd-1af2-4296-9537-fac1ba78b92c

.

VA_Guidelines.txt

624ab84d-4d27-45fe-a5a1-31a15756d303

The tables in this section describe the criteria that must be met to qualify for automatic authority, and the documentation the lender must submit with its application to meet each criterion. Continued on next page 1-10 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 4. How a Non-supervised Lender Applies for Automatic Authority, continued a.

VA_Guidelines.txt

b077c0cc-2ebd-4a75-a8c5-a6a6f58c1993

Procedures Criteria Required Documentation and Criteria for Lender Experience Note: For purposes of determining whether Qualification, (38 C. F.

VA_Guidelines.txt

7a1f0185-e77b-444a-a799-fe606d8d09e3

R. §36.4352(b)) the experience criteria are met, IRRRLs do continued not count as VA loans originated, since no Either: underwriting is involved

VA_Guidelines.txt

435aa22b-e6dd-40e6-9ff4-cccae071869d

. the lender must have at least 2 years active VA For all lenders: origination experience and Completed VA Form 26-8736, have originated and closed Application for Authority to Close Loans at least ten VA loans on an Automatic Basis-Non-supervised (properly documented and Lenders, submitted) within the past VA ID number, and 2 years, or Resume for each principal officer the lender (with less than

VA_Guidelines.txt

2f31dc58-bc0b-4b58-8966-37999b3a9424

each principal officer the lender (with less than 2 (president plus any officers involved in years active VA managing loan origination functions) origination experience) showing mortgage lending experience

VA_Guidelines.txt

d6a4ed0f-3786-41e9-af27-e9b19ffa35d6

. must have originated and The VA underwriter certificate of closed at least 25 VA completion for mandatory training must loans (properly be provided to VA within 90 days of documented and underwriter approval

VA_Guidelines.txt

b6ef2833-200b-4f43-981f-e01cb2199fd1

. submitted), or a principal officer who is Additional documentation for lenders actively involved in qualifying based on experience as agent: managing VA origination functions must have at copy of the VA letter(s) recognizing the least two years lender as an agent for the sponsoring management experience in lender(s), the most recent 5 years, or copy of the corporate resolution sent to the

VA_Guidelines.txt

3c21e343-fff3-4dad-8f50-4205a8ad0170

or copy of the corporate resolution sent to the lender, acting as an VA by the sponsoring lender describing agent for an automatic the functions the agent was to perform, lender(s), must have and originated at least 10 VA a letter from a senior officer of the loans over the past 2 years sponsoring lender(s) indicating the or 25 VA loans (if less number of VA loans submitted by the than 2 years)

VA_Guidelines.txt

8286332c-5e9e-4e37-9ae3-23531697c954

. agent each year, and the loans have been documented and submitted in compliance with VA requirements and procedures.

VA_Guidelines.txt

3d8419a5-94f8-483a-8a36-7b4b3f214519

Continued on next page 1-11 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 4. How a Non-supervised Lender Applies for Automatic Authority, continued a. Procedures Criteria Required Documentation and Criteria Qualified Underwriter(s) For all underwriters for (38 C. F.

VA_Guidelines.txt

b40e0d0d-f0bf-4d26-9c8d-9a77c1db1426

R. §36

VA_Guidelines.txt

2daacbb5-8504-4a94-bb12-52b8bc2f34ec

.4352(b)(2)) Qualification, VA Form 26-8736a, Non-supervised continued A senior officer of the Lender’s Nomination and Recommendation lender must nominate at of Credit Underwriter, completed by a senior least one full-time qualified officer if the underwriter is not located in the employee to act as an lender’s corporate office, a senior officer’s underwriter who has either: certification that the

VA_Guidelines.txt

dd59c6ee-e515-424a-889c-39de205804c9

who has either: certification that the underwriter reports to and is supervised by an individual who is not at least 3 years a branch manager or other person with experience in processing, production responsibilities

VA_Guidelines.txt

e998999f-ec2b-4f76-afa6-fdeea273fb7d

. pre-underwriting or underwriting mortgage Additional documentation for loans, and underwriters qualifying based on 3 years at least 1 year of the most of experience recent 3 years must have Underwriter’s resume, outlining the included making underwriter’s specific experience with VA underwriting decisions on loans.

VA_Guidelines.txt

f1195173-e718-4fbd-aaf7-2e88f5d81266

VA loans, a current AMP (Note: For purposes of determining whether (Accredited Mortgage the experience criteria are met, IRRRLs do Professional) designation not count as processing, pre-underwriting, or from the Mortgage underwriting

VA_Guidelines.txt

5df6b0c3-302b-4e40-a15c-cb9fd8f3a13a

.) Bankers Association (MBA), or Additional documentation for a current CRU (Certified underwriters qualifying based on Residential Underwriter) AMP/CRU designation designation from MBA.

VA_Guidelines.txt

92043127-9c38-4ec4-9519-9b9d71ad6481

All VA-approved Evidence that he or she is a current underwriters must be AMP/CRU as designated by the MBA. familiar with VA’s credit See “Underwriter Approval” in Topic 6 of underwriting standards and this VA Lender’s Handbook. underwriters and underwriters who have not underwritten VA loans in the past 24 months.

VA_Guidelines.txt

a624a7ae-229f-406c-871e-57309c8de22d

Continued on next page 1-12 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 4. How a Non-supervised Lender Applies for Automatic Authority, continued a.

VA_Guidelines.txt

a810d2ac-c0a7-4950-82e2-d25c080ee298

Procedures Criteria Required Documentation and Criteria for Sanctions For Prior Acts A statement of facts is required in any case Qualification, where: continued There must be no factors indicating the lender would the lender, or any director or principal not exercise the necessary officer was ever debarred or suspended or care and diligence

VA_Guidelines.txt

5e9f774d-6edf-4108-8773-d83a59d9db6b

. otherwise formally sanctioned by the Government, or any director or officer was ever a director or officer of a debarred or suspended firm, or the lender had a servicing contract with an investor terminated for cause. b.

VA_Guidelines.txt

a1bd8976-a128-4499-a8ea-7037ef7782d9

Application The application checklist provides a quick-reference checklist for application Checklist materials and requirements. Please see Topic 15 of this chapter for more information. c. Nationwide All lenders who have been approved by VA for automatic authority may use Authority this authority on a nationwide basis. d.

VA_Guidelines.txt

db2bac9a-bef2-4552-a567-345eac5d8779

Notification The VA office of jurisdiction reviews the application materials submitted, and of VA Decision makes a determination regarding the lender’s qualifications. The office then sends the lender written notice of its decision and, if approved, any conditions attached to its automatic authority. Lenders are expected to use their automatic authority to the maximum extent possible.

VA_Guidelines.txt

ba0e003d-924a-4be8-9ba4-05f342300ee2

Loans uploaded for prior approval that are not required to be submitted for prior approval must include a written explanation from the underwriter. See Chapter 5, Topic 4 of this handbook for more information. Continued on the page 1-13 1-13 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 4. How a Non-supervised Lender Applies for Automatic Authority, continued e.

VA_Guidelines.txt

dbd22215-d411-4b06-b72c-4dc9cc0fb219

Probationary The lender will be subject to a probationary period of 1 year or longer, during Period which the VA offices to which it submits loans will carefully review the quality of the lender’s underwriting, completeness of loan submissions, compliance with VA requirements and procedures, and delinquency and foreclosure rates.

VA_Guidelines.txt

bdfdb0ea-46fd-448d-9655-56286728aba5

VA must perform a complete review including underwriting analysis for a minimum of the first 15 loans closed and guaranteed, and fifty percent (50%) of the next 50 loans closed automatically. VA may withdraw automatic authority at any time during the probationary period based on poor underwriting and/or consistently careless processing.

VA_Guidelines.txt

0a2789b3-df37-4980-a03f-68d77a5562b2

At the expiration of the probationary period, VA sends the lender written notice of its decision to terminate the probationary period, extend it, or revoke automatic authority. 1-14 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 5. Certifications a Non-supervised Automatic Lender Must Comply With Change Date February 1, 2019 This chapter has been revised in its entirety. a.

VA_Guidelines.txt

a504e6c3-ea02-41e5-b135-45d6d76903fd

Do Not Close The president or principal officer must certify on VA Form 26-8736, Loans for Application for Authority to Close Loans on an Automatic Basis-Non- Others supervised Lenders, that the lender will not close loans on an automatic basis for the following: As a courtesy or accommodation for other mortgage lenders regardless of whether or not such lenders are approved themselves to close on

VA_Guidelines.txt

efa8ec0d-3c8c-4440-8090-5d83f7cd895f

such lenders are approved themselves to close on an automatic basis

VA_Guidelines.txt

638958bb-64c4-4620-b685-2bbd46a794d2

.

VA_Guidelines.txt

6317e0b2-dcbf-44e0-8279-a4b6507d7292

This does not prevent the lender from closing loans based on documents prepared by an authorized agent. For any builder or other entity in which the lender has a financial interest or which it owns, is owned by, or with which it is affiliated, without the express approval of the VA. See “Approval to Close Loans Involving an Affiliate” in Topic 6 of this chapter, for details.

VA_Guidelines.txt

f3d21838-acea-4710-8407-55c766a2fda1

If the only connection between the lender and the builder is a construction loan, the lender may close the permanent mortgage on an automatic basis without VA approval. b.

VA_Guidelines.txt

5fe04eb7-5ee3-42f9-bf6f-098eae8b9fb0

Notify VA of The president or principal officer must certify on VA Form 26-8736, Significant Application for Authority to Close Loans on an Automatic Basis-Non- Changes supervised Lenders, that the lender will notify the VA office with jurisdiction including over its home office of any changes in its corporate structure, operations, or Merger or financial condition which may have a bearing on the

VA_Guidelines.txt

b07ba801-20c6-4750-87b9-060d3dc57eae

condition which may have a bearing on the lender’s continued Acquisition qualifications for authority to close loans automatically

VA_Guidelines.txt

08168bf0-caca-4f8c-a6b2-82ba69c0f740

.

VA_Guidelines.txt

84bc53cc-893c-41d7-8e7d-886af957c550

If the lender no longer meets the qualifications for automatic authority, but no change in ownership has occurred (that is, working capital becomes inadequate), submit a plan of correction to the VA office of jurisdiction.

VA_Guidelines.txt

adb013bd-b336-4eb3-9d08-ee2dba466bf3

Continue to close loans on the automatic basis until the lender receives a determination from VA, except if the lender no longer has a VA-approved underwriter, it may no longer close loans on the automatic basis. Continued on next page 1-15 Continued on next page 1-15 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 5.

VA_Guidelines.txt

655e3f52-df8f-41ff-84bd-6cbe7ff28a3c

Certifications a Non-supervised Automatic Lender Must Comply With, continued b.

VA_Guidelines.txt

2a8737ca-7940-43fc-a000-eef477b663a0

Notify VA of Notification of change of ownership and/or name change of the Significant non-supervised automatic lender should be made through the RLC of the Changes surviving entity. including Merger or All mergers and acquisitions always extinguish automatic authority of the Acquisition, lender unless the new entity is supervised.

VA_Guidelines.txt

f0e80b94-0cf7-4ef9-84d0-415f7b5b7b7f

See Topic 8 of this chapter for continued requirements in the case of a merger, acquisition, or change in ownership and consequences to the lender. c. All Loans The president or principal officer must certify that all prospective VA loans to Must be be closed on an automatic basis will be reviewed and decided by a Reviewed by a VA-approved underwriter.

VA_Guidelines.txt

ce136b45-dd52-4211-bb8a-41e1f3520998

VA-Approved Underwriter All VA-approved underwriters must be familiar with the VA Lender’s Handbook, specifically Chapter 4: Credit Underwriting. d. Submit The president or principal officer must certify that the lender will submit Annual annual financial statements audited and certified by a Certified Public Financial Accountant (CPA) to VA within 120 days of the end of its fiscal year.

VA_Guidelines.txt

66da4ae0-fbd4-4936-b04e-a2dd6be89741

The Statements financial statements must be sent to the RLC with jurisdiction over the lender’s home office. The statements must show either: a minimum of $50,000 working capital.

VA_Guidelines.txt

41491e75-6dd8-4d15-8f09-d37e9e5f5e58

Either the balance sheet must be classified to distinguish between current and fixed assets and between current and long-term liabilities or the information must be provided in a footnote to the statement, or a minimum of $250,000 in adjusted net worth. Adjusted net worth must be calculated by a CPA in accordance with the requirements in Topic 13 of this chapter.

VA_Guidelines.txt

27ef6ded-7f2b-473b-bd9d-ea9f30278a99

Continued on next page 1-16 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 5. Certifications a Non-supervised Automatic Lender Must Comply With, continued b.

VA_Guidelines.txt

978839d4-92aa-484e-87b1-f6ae79e09d50

Notify VA of Notification of change of ownership and/or name change of the Significant non-supervised automatic lender should be made through the RLC of the Changes surviving entity. including Merger or All mergers and acquisitions always extinguish automatic authority of the Acquisition, lender unless the new entity is supervised.

VA_Guidelines.txt

7d3ee5d3-b0ac-4831-819f-880a3115d01a

See Topic 8 of this chapter for continued requirements in the case of a merger, acquisition, or change in ownership and consequences to the lender. c. All Loans The president or principal officer must certify that all prospective VA loans to Must be be closed on an automatic basis will be reviewed and decided by a Reviewed by a VA-approved underwriter.

VA_Guidelines.txt

def2159a-b29d-498f-a7ad-936f38268ea6

VA-Approved Underwriter All VA-approved underwriters must be familiar with the VA Lender’s Handbook, specifically Chapter 4: Credit Underwriting. d. Submit The president or principal officer must certify that the lender will submit Annual annual financial statements audited and certified by a Certified Public Financial Accountant (CPA) to VA within 120 days of the end of its fiscal year.

VA_Guidelines.txt

a59c1afa-c4b1-4815-84c5-83f1d06fa2cf

The Statements financial statements must be sent to the RLC with jurisdiction over the lender’s home office. The statements must show either: a minimum of $50,000 working capital.

VA_Guidelines.txt

b5b38e90-045e-4fcb-9205-e6862445a632

Either the balance sheet must be classified to distinguish between current and fixed assets and between current and long-term liabilities or the information must be provided in a footnote to the statement, or a minimum of $250,000 in adjusted net worth. Adjusted net worth must be calculated by a CPA in accordance with the requirements in Topic 13 of this chapter.

VA_Guidelines.txt

25b24741-ab35-4505-9121-7f7da5fd9585

Continued on next page 1-16 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 5. Certifications a Non-supervised Automatic Lender Must Comply With, continued d.

VA_Guidelines.txt

f5d597e4-d1e2-4a45-a67c-54a71c12eadb

Submit When submitting the financial statements to the RLC of jurisdiction, the Annual lender must also submit the following: Financial Statements, a list of VA-recognized agent relationships the lender wants to renew, if the continued lender uses agents for making VA loans, and the annual fees specified in Topic 10 of this chapter. Any other information requested by VA.

VA_Guidelines.txt

312bc332-20bd-4127-9b9c-58523403c9a2

Any other information requested by VA. Although VA offices may issue an annual reminder notice to lenders that the above information is due, lenders bear the ultimate responsibility for timely submission of this information. e.

VA_Guidelines.txt

f663621b-7bb2-406d-86d7-78eff41fbad7

Other When the president or principal officer signs VA Form 26-8736, Application Certifications for Authority to Close Loans on an Automatic Basis - Non-supervised Lenders, he or she certifies that the lender will comply with a number of other requirements.

VA_Guidelines.txt

c35d509a-72bf-4d9e-b24c-7c9ab562e13a

These include: complying with VA regulations, directives, and law, submitting at any time to VA examination of its records and accounts, furnishing VA any requested information, maintaining $50,000 working capital or $250,000 adjusted net worth, and using its automatic authority to the maximum extent possible; if not used, submitting an explanation as to why a loan was processed prior approval

VA_Guidelines.txt

fdcca609-01b9-4ac3-bc68-644391973bf4

. 1-17 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 6.

VA_Guidelines.txt

159a2356-f6f4-4614-97a8-46bfbc071204

How a Non-supervised Automatic Lender Requests Underwriter Approval or Approval to Close Loans involving an Affiliate Change Date February 1, 2019 This chapter has been revised in its entirety. a. Underwriter All VA loans to be closed on an automatic basis must be reviewed and either Approval approved or rejected by a VA-approved underwriter.

VA_Guidelines.txt

e4bc3897-0ba6-4a9d-b2d1-772aff0b7a9d

A VA-approved underwriter must sign a VA Form 26-6393, Loan Analysis, on each loan to certify his or her review of such loan. An electronic signature is acceptable.

VA_Guidelines.txt

757ee2c1-2f96-4132-839e-bca6d5595565

The lender may request approval of additional underwriters at any time after its initial approval for automatic authority by submitting a request to the VA office with jurisdiction over its home office, including the appropriate fee (as listed in Topic 10 of this chapter) and the documentation for underwriter approval (as listed in Topic 4, Subsection a, of this chapter).

VA_Guidelines.txt

950d4d30-1378-4ee9-a043-71635da20cf0

All VA-approved underwriters must be familiar with VA’s credit underwriting standards and the VA Lender’s Handbook. All VA-approved underwriters must attend a 1-day (8 hour) training course on underwriter responsibilities, VA underwriting requirements, and VA administrative requirements, including the usage of VA forms, within 90 days of approval. Web-based training is also available.

VA_Guidelines.txt

9eecb70e-b688-4563-abf9-b74accc9c01c

Web-based training is also available. The Credit Standards training course is located on your landing page within the Veterans Information Portal (VIP): https://vip.vba.va.gov/portal/VBAH/Home. Successful completion of the Internet-based training meets the 1-day training requirement. Continued on next page 1-18 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 6.

VA_Guidelines.txt

12aa0dd6-3719-4f4f-bcf3-b48ae493d285

How a Non-supervised Automatic Lender Requests Underwriter Approval or Approval to Close Loans involving an Affiliate, continued a. Underwriter VA underwriter training is required of all underwriters whether approved Approval, based on experience or based on an AMP or CRU designation.

VA_Guidelines.txt

269c864f-d0c8-4d8c-8a61-e3c66541cd37

It is also continued required of underwriters who have not underwritten VA-guaranteed loans in the past 24 months. Underwriters who consistently approve loans that do not meet VA credit standards will be required to retake this training. VA approval of an underwriter is automatically terminated (without notice) if the underwriter is no longer employed by the same lender.

VA_Guidelines.txt

73bbd32b-f60e-49a2-85a8-5791892a619f

The lender must report any such circumstances to VA. The lender may not continue to close loans automatically without a VA-approved underwriter. b.

VA_Guidelines.txt

25570bf6-10c0-47f0-9934-ee1095b4627d

Approval to The lender may request VA approval to close loans involving an affiliate on Close Loans an automatic basis (“affiliate” as used here includes a real estate brokerage Involving an firm and/or residential builder or developer that the lender has a financial Affiliate interest in, owns, is owned by, or is affiliated with).

VA_Guidelines.txt

e02f820c-b5e6-4439-a0b4-be42de67fb9e

The lender may request such approval at the time it applies for automatic authority or any time thereafter. Submit the request to the VA office with jurisdiction over the lender’s home office along with a corporate resolution from the lender and each affiliate indicating they are separate entities operating independently of each other.

VA_Guidelines.txt

2cb8ad3b-f754-4cba-ace4-4384f8e7c95b

The lender’s corporate resolution must indicate that it will not give more favorable underwriting consideration to its affiliate’s loans. The affiliate’s corporate resolution must indicate that it will not seek to influence the lender to give their loans more favorable underwriting consideration.

VA_Guidelines.txt

d4c9541e-3902-40a3-a839-88b497eb48f7

Letters from permanent investors indicating the percentage of all VA loans based on the affiliate’s production originated by the lender over a 1 year period that are past due 90 days or more. This delinquency ratio must be no higher than the national average for the same period for all mortgage loans. 1-19 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 7.

VA_Guidelines.txt

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How a Supervised or Non-supervised Automatic Lender Requests VA Recognition of an Agent Change Date February 1, 2019 This chapter has been revised in its entirety. a. Limitations A lender must request VA recognition of an ongoing relationship with an on Use of agent.

VA_Guidelines.txt

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The lender may designate any individual or entity as an agent to Agents perform loan-related functions on its behalf or in its name.

VA_Guidelines.txt

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The extent of the relationship between the lender and the agent is at the lender’s discretion and the following lender responsibilities must be met: The lender must accept full responsibility for the acts, errors, or omissions of the agent in processing and/or closing loans.

VA_Guidelines.txt

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The lender accepts this responsibility by certification on VA Form 26-1820, Report and Certification of Loan Disbursement, and the corporate resolution. The lender may not subsequently claim that it should not be held accountable for inaccurate or fraudulent credit information or other loan data because it relied on the agent.

VA_Guidelines.txt

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Irregularities resulting from acts or omissions of the agent are treated as acts or omissions of the lender. The lender’s use of an agent will not prevent VA from taking actions in appropriate cases such as denial of liability, claim adjustments, collection of the amount of any loss incurred due to irregularities, and imposition of sanctions against both the lender and the agent.

VA_Guidelines.txt

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If the lender is a non-supervised automatic lender, loans made by an agent on its behalf which are closed automatically must be reviewed and approved by a VA-approved underwriter employed by the lender. Continued on next page 1-20 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 7. How a Supervised or Non-supervised Automatic Lender Requests VA Recognition of an Agent, continued b.

VA_Guidelines.txt

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How to To begin a relationship with an agent, submit a request for recognition of the Request VA agent relationship to the VA office with jurisdiction over the lender’s home Recognition of office.

VA_Guidelines.txt

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Include a corporate resolution which contains: an Agent the agent’s name, address, telephone, e-mail address, and Federal Tax ID number, the agent’s function(s) (such as, taking the loan application, ordering the credit report and verifications of employment and deposit, holding settlement), a statement that the lender takes full responsibility for all acts, errors, or omissions of the agent and

VA_Guidelines.txt

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all acts, errors, or omissions of the agent and its employees, and if the agent will enter into interest rate lock-in agreements on the lender’s behalf, a statement that the lender will honor the lock-in

VA_Guidelines.txt

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.

VA_Guidelines.txt

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Note: A conditional loan purchase agreement, wherein the lender agrees only to purchase the agent’s production subject to the lender’s review and approval, is unacceptable. Also include a fee of $100 for each agent with the request. The lender may begin to use an agent after VA sends recognition of the relationship to the lender in writing.

VA_Guidelines.txt

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Even with formal VA recognition, the lender must identify the agent and its function on VA Form 26-1820, Report and Certification of Loan Disbursement, for each loan. Continued on next page 1-21 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 7. How a Supervised or Non-supervised Automatic Lender Requests VA Recognition of an Agent, continued b.

VA_Guidelines.txt

05daa05a-0b98-48eb-b047-6ab0a484a568

How to To begin a relationship with an agent, submit a request for recognition of the Request VA agent relationship to the VA office with jurisdiction over the lender’s home Recognition of office.

VA_Guidelines.txt

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Include a corporate resolution which contains: an Agent the agent’s name, address, telephone, e-mail address, and Federal Tax ID number, the agent’s function(s) (such as, taking the loan application, ordering the credit report and verifications of employment and deposit, holding settlement), a statement that the lender takes full responsibility for all acts, errors, or omissions of the agent and

VA_Guidelines.txt

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all acts, errors, or omissions of the agent and its employees, and if the agent will enter into interest rate lock-in agreements on the lender’s behalf, a statement that the lender will honor the lock-in

VA_Guidelines.txt

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.

VA_Guidelines.txt

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Note: A conditional loan purchase agreement, wherein the lender agrees only to purchase the agent’s production subject to the lender’s review and approval, is unacceptable. Also include a fee of $100 for each agent with the request. The lender may begin to use an agent after VA sends recognition of the relationship to the lender in writing.

VA_Guidelines.txt

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Even with formal VA recognition, the lender must identify the agent and its function on VA Form 26-1820, Report and Certification of Loan Disbursement, for each loan. Continued on next page 1-21 VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 7. How a Supervised or Non-supervised Automatic Lender Requests VA Recognition of an Agent, continued c.

VA_Guidelines.txt