Mitchell6024/quickb · Datasets at Hugging Face

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f039881b-922c-4cfb-89bb-9a19cb6cb06c	. 5-6 VA Lenders Handbook 26-7 Chapter 5: How to Process VA Loans and Submit them to VA Topic 3: Prior Approval Loan Procedures Change Date: May 14, 2024 · This topic has been updated to replace references to the RLC with VA. · References to processing requirements involving a VA-appointed fiduciary have also been removed from this Topic	VA_Guidelines.txt
da2cd4f2-0b47-4779-be0c-48dabcd6f9b9	. · Section a, Loans to be Submitted for Prior Approval, has been updated to remove the prior approval requirement for loans involving a VA-appointed fiduciary, and to further clarify which types of loans are required to be submitted for prior approval	VA_Guidelines.txt
07144ae2-d296-48c0-8477-a8189e6c2818	. · Section c, How to Request Prior Approval, which previously provided the stacking order for prior approval requests for purchase/cash-out refinance loans, has been renamed and updated to refer lenders to the updated stacking orders provided in Appendix B, Topic 2	VA_Guidelines.txt
678598d4-7b27-4b75-975c-512f69c9f6e0	. · Previous section e, Documentation Required for an IRRRL Prior Approval Package, has been removed from this Topic and moved to Appendix B Topic 2.	VA_Guidelines.txt
488e422f-58a3-45c8-b91d-4e01ad4052aa	All subsequent sections were re-lettered and references updated. · Previous section h, Changes Occurring After Issuance of the Certificate of Commitment, including Tables 3, has been updated	VA_Guidelines.txt
2b5423c5-9b3b-4a9a-80b2-af7484607399	. · Previous section i, Conditional Certificates of Commitment, Table 4, has been updated to remove the conditional commitment condition for loans to be made to a Veteran and fiancé(e) who intend to marry prior to closing and who will hold title as Veteran and spouse	VA_Guidelines.txt
98bd73c1-2124-4671-a253-991d3d6ccbc6	. · Previous section k, How to Report Loan Closing and Request Guaranty, which previously provided the stacking order for reporting a closed prior approval loan, has been updated to refer lenders to the updated stacking orders provided in Appendix B	VA_Guidelines.txt
04fd08aa-9ed3-4a64-a403-aecfd0bb0a0c	. · Previous section k, How to Report Loan Closing and Request Guaranty, has been updated with additional information related to the late reporting certification required if the loan is not reported in a timely manner. · Minor grammatical changes were also made throughout the topic. a.	VA_Guidelines.txt
c2b66a30-6c94-4b09-906e-1c2138726eec	Loans to be Submitted for Prior Approval Lenders without automatic authority are strongly encouraged to enter into a sponsor/agent relationship with a VA-approved automatic lender to expedite VA loan processing and underwriting. If a lender does not have a sponsor, then they must submit an application to VA for prior approval lending.	VA_Guidelines.txt
fdb973e0-82d1-4a5a-8c6a-8879c279ad1b	Those without sponsors or automatic authority must upload all loans into WebLGY for prior approval, except IRRRLs made to refinance loans that are not delinquent (see Chapter 1 of this handbook). Continued on next page 5-7 VA Lenders Handbook 26-7 Chapter 5: How to Process VA Loans and Submit them to VA Topic 3: Prior Approval Loan Procedures, continued a.	VA_Guidelines.txt
f157636c-7359-44a9-b606-2529a51e3c18	Loans to be Submitted for Prior Approval, continued Lenders must upload all prior approval documents into WebLGY, for VA review prior to closing the loan (see Appendix B Topic 2 for the prior approval stacking order). The loan may not close until VA issues a Certificate of Commitment.	VA_Guidelines.txt
d1f43863-e15a-43eb-b551-144adf3fb11e	All lenders, whether or not they have automatic authority, must submit the following types of loans to VA for prior approval: · Joint loans, to a Veteran and one or more non-spouse, non-Veterans (see Chapter 7) · Joint loans, to a Veteran and one or more non-spouse Veterans who will not be using entitlement (see Chapter 7) · Loans to Veterans in receipt of VA non-service-connected pension.	VA_Guidelines.txt
46a8a1ef-3abc-442b-b3f8-8dfa33258938	This is not the same as VA service-connected disability compensation	VA_Guidelines.txt
558a6c6a-bc33-4475-a2a1-08d40b580110	. · IRRRLs made to refinance delinquent loans (See Chapter 6 of this handbook) · Manufactured home loans (home is not titled as real-estate) · Unsecured loans or loans not secured by a first lien; and · Supplemental loans Note: COEs may indicate required submission of VA Form 26-8937, Verification of VA Benefits, if VA is unable to issue the COE with appropriate conditions.	VA_Guidelines.txt
392eadb5-2d76-4cc7-ac96-2165a16c5862	In these cases, the form should be submitted prior to close as it may indicate the loan requires prior approval. Lenders are not required to obtain prior approval for a loan where the application was taken for a Veteran and fiancé(e) who will marry prior to loan closing and who will hold title jointly as Veteran and spouse.	VA_Guidelines.txt
86a57774-8c81-47d6-a44f-0df7b4167b2b	A copy of the borrowers’ marriage certificate or other proof of marriage showing the marriage preceded loan closing must be retained in the loan file. A marriage license is inadequate. Prior approval is required if the marriage will not take place prior to loan closing.	VA_Guidelines.txt
a72d545c-95f3-4915-b2fd-f5c8367ed4b9	Lenders with automatic authority may also elect to submit a loan (of a type not on the above list) to VA for prior approval when issues or circumstances cannot be resolved by the lender’s own underwriting staff. This provision may not be used to shift the burden of loan denial to VA.	VA_Guidelines.txt
9ec4b108-21f3-4c43-92a9-31ad2f8bf37f	Additionally, VA cannot address overlays established by a company or investor and the loan should not be submitted as a prior approval for the lender to overcome any company or investor requirements. Before submitting such a loan, the underwriter must first attempt to contact VA to discuss the circumstances with a Loan Specialist.	VA_Guidelines.txt
05b84c0e-6d4c-4531-929e-5422bd6b5b6c	While VA cannot make the final underwriting determination without reviewing the loan, VA can discuss VA guidelines to assist the underwriter in making a determination. If, after contacting VA, the underwriter is unable to make a determination, the loan may be submitted for prior approval.	VA_Guidelines.txt
31ab195c-4f5a-4b80-bee4-4423877cf8b2	The submission must include a cover letter from the underwriter that states the reason(s) for the prior approval submission, explains the unique circumstances, and provides the underwriter’s phone number and e-mail address. Continued on next page 5-8 VA Lenders Handbook 26-7 Chapter 5: How to Process VA Loans and Submit them to VA Topic 3: Prior Approval Loan Procedures, continued b.	VA_Guidelines.txt
2cf5e49d-1169-437d-ad77-ae7c8e31c9e4	Before Requesting Prior Approval The lender must perform the following steps prior to submitting a loan package for prior approval: · obtain a COE, and, if the Veteran is an active-duty Service member who indicates they have a pre-discharge claim pending, complete and submit VA Form 26-8937, Verification of VA Benefits, (see Topic 1, section f), · establish the reasonable value of the property	VA_Guidelines.txt
e2015792-6991-40bb-9912-3e789901f7ef	· establish the reasonable value of the property with the issuance of an NOV, · underwrite the loan and complete VA Form 26-6393, Loan Analysis, and · ensure Service members receive counseling using VA Form 26-0592, Counseling Checklist for Military Homebuyers	VA_Guidelines.txt
9db57799-6bc4-486e-9c55-68d4bcee105a	.	VA_Guidelines.txt
184dff12-6861-42cf-847e-f9162d8ccbd2	The prior approval loan review will be suspended and processing will be delayed if all documents are not submitted with the original upload. c. How to Request Prior Approval The stacking order for requesting prior approval and reporting loan closing are provided in Appendix B, Topic 2.	VA_Guidelines.txt
24333e73-2b33-4fe3-89a6-37b04bc999b7	The files should be uploaded as a single-file Portable Document Format (PDF) into VA’s electronic loan system (WebLGY or subsequent system) to the correspondence section of the loan record as a ‘Prior Approval Loan Package’. If the file size exceeds VA’s limit, it is permissible to split the file, but it should still follow the stacking order.	VA_Guidelines.txt
3fca8b91-6bc6-4aad-a7d8-14cb0b3e79e6	Failure to provide necessary documents or conditions may result in delays in issuing the Certificate of Commitment. A user’s guide for uploading prior approval loans is available online at: https://www.benefits.va.gov/HOMELOANS/documents/docs/prior_approval_LP_lenders.pdf d.	VA_Guidelines.txt
073b0eb5-0ac7-45b0-9ff5-c744757926e9	Prior Approval on IRRRLs An IRRRL made to refinance a loan that will be 30 or more days past due as of the date of closing, must be submitted for prior approval. The lender must first obtain sufficient information and perform sufficient analysis to determine that: · the cause of the delinquency has been resolved, and · the Veteran is able to make the proposed loan payments.	VA_Guidelines.txt
8df4e54e-8064-4ea3-b74a-4d90c40ee7e0	The stacking order for requesting prior approval and reporting loan closing are provided in Appendix B, Topic 2. Continued on next page 5-9 VA Lenders Handbook 26-7 Chapter 5: How to Process VA Loans and Submit them to VA Topic 3: Prior Approval Loan Procedures, continued e.	VA_Guidelines.txt
cade3fb3-d589-46d3-85f9-5e6a0649533b	VA Processing of a Prior Approval Application VA will review the documents submitted and complete one of the following: · suspend processing and request additional information from the lender, or · send a notice of denial to the lender and borrower, or · issue VA’s certificate of commitment to the lender, which is evidence of VA’s approval of the loan to close and willingness to guaranty the loan	VA_Guidelines.txt
5f040bd4-63be-4445-9fd4-5f53aa5e1c22	.	VA_Guidelines.txt
24e4e6e1-9785-4a1f-a519-07963a069876	Loans submitted on the prior approval basis have a 10-business day timeliness requirement by VA. The processing time may be extended for loans involving the receipt of VA pension income. The VA Pension Management Center may need to complete a review of a loan file in addition to the Loan Guaranty review. f.	VA_Guidelines.txt
2a1da6b5-2f4c-44db-a44c-227f219ed8f1	Certificate of Commitment VA’s certificate of commitment must be obtained prior to closing and is the lender’s evidence of VA’s willingness to guaranty the loan.	VA_Guidelines.txt
6f0be4ed-af83-4bb6-8f78-ddd8786fbe48	The lender is subsequently entitled to evidence of guaranty if: · The closed loan is identical in all respects to that submitted to VA on the URLA and described on the certificate of commitment (or, if not identical, any required VA approval of changes was obtained prior to closing), and · The lender has complied with all applicable provisions of the law and loan guaranty regulations in making	VA_Guidelines.txt
8b581f16-2060-4db7-88ca-ce639bf76ada	the law and loan guaranty regulations in making the loan	VA_Guidelines.txt
ced5bb79-134a-4f03-8213-5face9e26f09	.	VA_Guidelines.txt
a23d643c-ffc0-4bf2-a7ae-12a481513451	Additionally, all conditions of the certificate of commitment must be met. If, at any time prior to closing, the lender or VA has reason to doubt the continued qualification of the loan, the lender will delay closing until all facts are determined and reviewed again by VA.	VA_Guidelines.txt
92360ceb-1c81-49fe-8778-44c6f994250f	VA may cancel a commitment if the validity period of the certificate of commitment has expired (after 180 days), and there is no reasonable expectation that the loan will be reported for guaranty. A commitment may be extended under certain circumstances. Contact VA for a review of the prior approval commitment.	VA_Guidelines.txt
fb43f396-0701-47e3-9cc6-67f7c5a68336	Continued on next page 5-10 VA Lenders Handbook 26-7 Chapter 5: How to Process VA Loans and Submit them to VA Topic 3: Prior Approval Loan Procedures, continued g.	VA_Guidelines.txt
c9ab064f-b8fc-4e82-84b0-fe6afec5709e	Changes Occurring After Issuance of the Certificate of Commitment Table 1: Changes Occurring After Issuance of the Certificate of Commitment If… Then… An increase in the amount of down payment VA approval is not needed. decreases the loan amount (with or without Include an explanation of the change with a reduction in the term of the loan) and the closing package	VA_Guidelines.txt
ffecf230-a295-4546-af26-f6f7c95e0553	. there is no increase in the monthly mortgage payments, The maturity of the loan is extended, but VA approval is not needed. does not exceed the maximum of 30 years Include an explanation of the change with and 32 days or the remaining economic life the closing package	VA_Guidelines.txt
e6e63d09-4113-48dc-9103-20aed198eb95	. of the property as provided by the NOV, and there is no increase in the monthly mortgage payments, The maturity of the loan is decreased, and VA approval is needed. there is an increase in the monthly mortgage Upload a new Loan Estimate (LE), URLA payments, signed and dated by the applicant, and an updated VA Loan Analysis, to WebLGY.	VA_Guidelines.txt
69617442-21fc-4513-8433-10d8f0c69b97	The loan amount is increased to cover the VA approval is needed. cost of energy efficiency improvements up See Chapter 7 of the Lender’s Handbook for to $6,000, special underwriting requirements and documentation required with the updated prior approval package. A revised loan analysis must be provided to show the borrower still qualifies with the higher loan amount and payment.	VA_Guidelines.txt
f99b3cc9-a3f2-41b9-8aaa-20ad38e7c7ad	Any increase in the amount of discount VA approval is needed	VA_Guidelines.txt
0737b715-cccb-4e4f-bb36-13383cb93f80	. points to be paid by the applicant above the Include with the updated prior approval points indicated on the certificate of package: commitment, · An explanation of the change, · The URLA with changes initialed and dated by the applicant, and If previously verified assets are not sufficient to cover the additional points, verification of sufficient additional assets.	VA_Guidelines.txt
5c079072-77b2-4fb1-a96f-8442cfadd896	Continued on next page 5-11 5-11 VA Lenders Handbook 26-7 Chapter 5: How to Process VA Loans and Submit them to VA Topic 3: Prior Approval Loan Procedures, continued g.	VA_Guidelines.txt
b93259c9-2ec0-4dbb-9634-9d91af7b380f	Changes Occurring After Issuance of the Certificate of Commitment, continued Table 1: Changes Occurring After Issuance of the Certificate of Commitment, continued If… Then… The loan is to be closed at an interest rate VA approval is needed. more than 0	VA_Guidelines.txt
fb999833-219f-45ad-b637-d9645cce162c	. more than 0.25 percent greater than the rate Upload a new LE, URLA signed and dated indicated on the certificate of commitment, by the applicant, and an updated VA Loan Analysis, to WebLGY.	VA_Guidelines.txt
40bfa603-78ea-4ed4-9b71-09bb6a32c471	A borrower changes jobs or suffers a VA approval is needed. reduction in income.	VA_Guidelines.txt
8d153870-5d6d-4e58-8dda-99f62b09c9fa	Upload an updated VA Loan Analysis, income verification documentation, and an updated URLA to WebLGY There is an increase in liabilities that VA approval is needed. reduces the residual income by 5 percent or Upload an updated VA Loan Analysis, more, or increases the debt-to-income (DTI) credit documentation, and an updated ratio by 2 percent, or increases the DTI to a URLA to WebLGY	VA_Guidelines.txt
3d102790-7ddb-4127-8c49-affe708c8d7a	. percentage above 45%.	VA_Guidelines.txt
586c42c7-5d20-41e9-ae58-d376a8bb75b3	Continued on next page 5-12 VA Lenders Handbook 26-7 Chapter 5: How to Process VA Loans and Submit them to VA Topic 3: Prior Approval Loan Procedures, continued h. Conditional Certificates of Commitment There are circumstances when VA issues a prior approval commitment with special conditions.	VA_Guidelines.txt
f7a680f9-d364-48a0-a70f-3df27056146d	The table below lists circumstances and conditions that warrant special instructions and documentation before closing a loan that has been underwritten by VA.	VA_Guidelines.txt
4cc3509e-d5f7-4af6-8acb-0c86835c42bc	Table 2: Conditional Certificates of Commitment Case Condition/Notation on Certificate Loan is to the spouse of a Prior to closing the subject loan, the lender should obtain serviceperson missing in certification from the borrower that official notice of any action or prisoner of war change in the Service member’s status has not been (MIA/POW) received and that the applicant is still the spouse	VA_Guidelines.txt
401f6743-811d-44b7-b056-fa17677bd230	and that the applicant is still the spouse of the Service member	VA_Guidelines.txt
f0cd8ec2-ace1-4689-a56f-8996dfab6fc2	.	VA_Guidelines.txt
fd935e03-46a7-4b79-bc65-8a5a94e36241	See Chapter 2 for required documentation. Loan is to an eligible “Conditioned on certification of status as a surviving surviving spouse of a spouse.” deceased Veteran. What this means: Conditioned on the borrower’s certification that their status as an eligible surviving spouse has not changed since the COE was issued. See Chapter 2 for required documentation.	VA_Guidelines.txt
3c3d1758-ce35-4570-a3a3-6f5643b4d9c9	See Chapter 2 for required documentation. Loan is to an active-duty Certification of active-duty status as of date of note service person who has not required. been discharged and must To ensure compliance, the active-duty Service member certify to continuous active should check the active duty box in Section III, Veteran’s duty.	VA_Guidelines.txt
efa67ba9-bc9c-4559-8d24-004369e359d5	Certifications, on VA Form 26-1820, Report and Certification of Loan Disbursement. Ensure that the Veteran signs the form on the date of closing. Loan involves use of an “Conditioned on proof Veteran was alive and not MIA.” attorney-in-fact.	VA_Guidelines.txt
2f653fee-2050-4a5d-8006-421c11004e8d	What this means: No evidence of guaranty with respect to the loan to which this commitment relates will be issued by the Secretary unless the lender makes the certification specified by the Department of Veterans Affairs at the time the lender requests a certificate of guaranty to the effect that the Veteran was alive and, if the Veteran is on active military duty, not in a “missing in action”	VA_Guidelines.txt
c1b31ef0-9513-4424-8c35-0eedf22b6950	military duty, not in a “missing in action” status on the date the note and security instruments were executed on the Veteran’s behalf by the attorney-in-fact	VA_Guidelines.txt
53c093d4-7ea9-4630-8a95-e2fb180dcebd	.	VA_Guidelines.txt
a911792a-0da9-4191-8280-6a00a43931db	Continued on next page 5-13 VA Lenders Handbook 26-7 Chapter 5: How to Process VA Loans and Submit them to VA Topic 3: Prior Approval Loan Procedures, continued h. Conditional Certificates of Commitment There are circumstances when VA issues a prior approval commitment with special conditions.	VA_Guidelines.txt
f632f478-2cdd-401a-9797-69b1abd8cd14	The table below lists circumstances and conditions that warrant special instructions and documentation before closing a loan that has been underwritten by VA.	VA_Guidelines.txt
05c8e3f2-9416-400a-ad14-c304992adfa8	Table 2: Conditional Certificates of Commitment Case Condition/Notation on Certificate Loan is to the spouse of a Prior to closing the subject loan, the lender should obtain serviceperson missing in certification from the borrower that official notice of any action or prisoner of war change in the Service member’s status has not been (MIA/POW) received and that the applicant is still the spouse	VA_Guidelines.txt
a2b4acb2-7d2c-4e7e-89e2-974bdb138c9b	and that the applicant is still the spouse of the Service member	VA_Guidelines.txt
5b533f78-3e7d-4619-9ceb-fc9a27efc49b	.	VA_Guidelines.txt
d3e35a2e-b471-4425-a1e4-f257eac467ca	See Chapter 2 for required documentation. Loan is to an eligible “Conditioned on certification of status as a surviving surviving spouse of a spouse.” deceased Veteran. What this means: Conditioned on the borrower’s certification that their status as an eligible surviving spouse has not changed since the COE was issued. See Chapter 2 for required documentation.	VA_Guidelines.txt
3a64c81c-4f5c-42cf-99fa-95cd7d0c7a59	See Chapter 2 for required documentation. Loan is to an active-duty Certification of active-duty status as of date of note service person who has not required. been discharged and must To ensure compliance, the active-duty Service member certify to continuous active should check the active duty box in Section III, Veteran’s duty.	VA_Guidelines.txt
a234d358-4ab2-4ca1-bc13-d96b032ff5b5	Certifications, on VA Form 26-1820, Report and Certification of Loan Disbursement. Ensure that the Veteran signs the form on the date of closing. Loan involves use of an “Conditioned on proof Veteran was alive and not MIA.” attorney-in-fact.	VA_Guidelines.txt
066c904b-a256-4b14-be91-22f179d417b8	What this means: No evidence of guaranty with respect to the loan to which this commitment relates will be issued by the Secretary unless the lender makes the certification specified by the Department of Veterans Affairs at the time the lender requests a certificate of guaranty to the effect that the Veteran was alive and, if the Veteran is on active military duty, not in a “missing in action”	VA_Guidelines.txt
f2a144aa-a085-4884-a400-88d84e1da855	military duty, not in a “missing in action” status on the date the note and security instruments were executed on the Veteran’s behalf by the attorney-in-fact	VA_Guidelines.txt
4d7751f3-5ee6-494c-9853-e244d3d87526	.	VA_Guidelines.txt
1ed7cf84-027a-4a2c-bc52-767a3fdfc0c2	Continued on next page 5-13 VA Lenders Handbook 26-7 Chapter 5: How to Process VA Loans and Submit them to VA Topic 3: Prior Approval Loan Procedures, continued h.	VA_Guidelines.txt
976af1fb-dfb7-4774-b4c2-fb50a03db0d0	Conditional Certificates of Commitment, continued Table 2: Conditional Certificates of Commitment, continued Case Condition/Notation on Certificate Veteran intends to sell the “Conditioned on restoration of entitlement	VA_Guidelines.txt
f4db697f-fdba-452b-9564-ca93b53a93fc	.” property on which he/she has What this means: This commitment is conditioned upon an existing VA loan prior to submission of evidence of disposal of the property which closing on the new VA loan, the Veteran now owns and previously purchased using VA in order to have entitlement entitlement and evidence that the loan has been paid in full restored or that an eligible Veteran has substituted	VA_Guidelines.txt
9e36dfc6-12fe-4c3c-aeb2-282c0392370d	or that an eligible Veteran has substituted their entitlement for that used by the original Veteran	VA_Guidelines.txt
cb3c087d-c523-439d-98ba-41c561d94c8f	.	VA_Guidelines.txt
14065dfe-9b44-45b5-a486-60ca44d24b97	Veteran intends to sell “Commitment conditioned on disposal of the property.” property now owned in order What this means: This commitment is conditioned upon to have sufficient income, the completion of the sale of residential real property now eligibility and/or assets to owned by the Veteran, as proposed in the loan application	VA_Guidelines.txt
c74a0ae0-9389-41e3-9b03-aaf56d650dbc	. qualify for the loan Notice of Value (NOV) The commitment is conditioned upon the completion and conditions that were not all required NOV conditions. satisfied prior to the commitment Failure to document these conditions with the closing package can result in a delay of the guaranty, affect the percentage of guaranty, and/or affect the ability of VA to issue the Loan Guaranty Certificate (LGC)	VA_Guidelines.txt
a856d162-88d6-4393-ac24-2186bc10aaa9	. i.	VA_Guidelines.txt
3a4c631b-61f8-462b-8857-56ec49d6d153	Before Closing a Prior Approval Loan Complete all applicable procedures in Topics 1 and 2 of this chapter. j. How to Report Loan Closing and Request Guaranty A loan must be reported to VA within 60 calendar days of closing.	VA_Guidelines.txt
e990ccca-51a7-4ad6-a165-8507ec8b9ef6	A lender that fails to report the loan within 60 calendar days of closing must provide a written explanation signed by an officer of the company that includes the following: · The reason for the delay in reporting the loan for guaranty, and · Certification that the loan is not 30 or more days past due, and · Certification that the loan otherwise conforms with standards established under chapter	VA_Guidelines.txt
491d3724-81de-4e3a-a233-c7b4c816e983	conforms with standards established under chapter 37 of Title 38 U	VA_Guidelines.txt
77fff2c5-8a8c-4630-a42b-620f0e98eab8	.	VA_Guidelines.txt
9ef40185-e67e-4701-a17f-4678afbb5e3c	S. C. and 38 C. F. R. part 36. The stacking order for reporting loan closing is provided in Appendix B, Topic 2. The file should be uploaded as a single-file Portable Document Format (PDF) into VA’s electronic loan system (WebLGY or subsequent system) to the correspondence section of the loan record as a ‘Prior Approval Loan Package’.	VA_Guidelines.txt
fd30d35a-2aa3-4c44-acb2-e2d3d3a243ec	If the file size exceeds VA’s limit, it is permissible to split the file, but it should still follow the stacking order.	VA_Guidelines.txt
1c62f2ed-77f1-47c4-b105-a6d2b69ae1ef	Failure to provide any of the necessary documents or conditions can result in a delaying of issuing the LGC, affect the percentage of guaranty, and/or affect the ability to issue the LGC	VA_Guidelines.txt
0f77ccc1-170b-4509-830e-1ee7090ecba6	. 5-14 VA Lenders Handbook 26-7 Chapter 5: How to Process VA Loans and Submit them to VA Topic 4: Automatically Closed Loan Procedures Change Date: May 14, 2024 · This topic has been edited to make minor grammatical changes	VA_Guidelines.txt
49253846-a2f9-418d-895a-22694b60b9b5	. · Section a, How to Request Guaranty, has been updated with additional information related to the late reporting certification required if the loan is not reported in a timely manner	VA_Guidelines.txt
a72be7ba-1ef1-4b6c-afbe-6fba6f828b9a	. · Section b, Documents Required if the Lender is Unable to Obtain an Electronic LGC, has been updated to remove the stacking order for manual guaranty requests and to direct the lender to the updated stacking order in Appendix B, Topic 1	VA_Guidelines.txt
bc0ef586-9882-4c8a-9f68-cc530a74a896	. · Section c, FFLR Procedures, has been updated to remove the stacking orders for VA FFLR requests and to direct the lender to the updated stacking orders in Appendix B. a.	VA_Guidelines.txt
8e1f9d0c-d45e-4beb-9d05-652a8659516c	How to Request Guaranty The LGC is the lender's evidence that VA has guaranteed the loan. See Chapter 3 of this handbook for an explanation of what evidence of guaranty means to the lender.	VA_Guidelines.txt
465137ff-3469-4c76-bc11-fbccd31285e8	Loans must be reported to VA within 60 calendar days of closing¹ except construction and alteration/repair loans which must be reported within 60 calendar days of completion of the construction or improvements in accordance with the plans and specifications as evidenced by the post construction inspection report.	VA_Guidelines.txt
8fa3ccd0-dd9a-4de0-b26a-5c18c7c4320a	A lender that fails to report the loan in a timely manner must provide a written explanation signed by an officer of the company that includes the following: · The reason for the delay in reporting the loan for guaranty, and · Certification that the loan is not 30 or more days past due, and · Certification that the loan otherwise conforms with standards established under chapter 37 of Title 38 U.	VA_Guidelines.txt
c0ccbce0-6f2c-48d9-a4a1-a882aa962f18	S. C. and 38 C. F. R. part 36. Note: failure to report a loan for guaranty in a timely manner may result in the automatic selection of the loan for VA FFLR. Lenders must use WebLGY to obtain electronic LGCs for loans closed on the automatic basis.	VA_Guidelines.txt
b0f06fa4-4175-4719-b330-968aea11e260	Exceptions to an automatically issued LGC in WebLGY include, but are not limited to: · Loans that were underwritten as a prior approval and VA issued a certificate of commitment in WebLGY, and · Veteran/Veteran joint loans where two or more Veterans are splitting entitlement. Continued on next page 1 38 C. F.	VA_Guidelines.txt
5a1ba430-a4ef-4fdc-85bb-d03e78cc1702	Continued on next page 1 38 C. F. R. § 36.4303(a) 5-15 VA Lenders Handbook 26-7 Chapter 5: How to Process VA Loans and Submit them to VA Topic 4: Automatically Closed Loan Procedures, continued b.	VA_Guidelines.txt
b8b3636c-34b8-4338-97c7-6665ea4041d7	Documents Required if the Lender is Unable to Obtain an Electronic LGC If a lender is unable to obtain an electronic LGC, the lender may request VA’s assistance by uploading a manual guaranty package to the loan record in WebLGY. The stacking order for manual guaranty requests is provided in Appendix B, Topic 1.	VA_Guidelines.txt
920413de-a053-48a8-b663-6127816180ad	The file should be uploaded as a single-file PDF into VA’s electronic loan system (WebLGY or subsequent system) to the correspondence section of the loan record as a ‘Prior Approval Loan Package’. If the file size exceeds VA’s limit, it is permissible to split the file, but it should still follow the stacking order.	VA_Guidelines.txt
316a6561-9ce7-4b88-ba3c-0f64b5a71abf	VA will then issue the LGC or notify the lender of additional information needed for LGC issuance. c. FFLR Procedures VA requires lenders to maintain loan origination records and make them available to VA for oversight and audit purposes². Lenders will be notified, either immediately by WebLGY or in writing by VA offices, when a loan has been selected for FFLR.	VA_Guidelines.txt

f039881b-922c-4cfb-89bb-9a19cb6cb06c

. 5-6 VA Lenders Handbook 26-7 Chapter 5: How to Process VA Loans and Submit them to VA Topic 3: Prior Approval Loan Procedures Change Date: May 14, 2024 · This topic has been updated to replace references to the RLC with VA. · References to processing requirements involving a VA-appointed fiduciary have also been removed from this Topic

VA_Guidelines.txt

da2cd4f2-0b47-4779-be0c-48dabcd6f9b9

. · Section a, Loans to be Submitted for Prior Approval, has been updated to remove the prior approval requirement for loans involving a VA-appointed fiduciary, and to further clarify which types of loans are required to be submitted for prior approval

VA_Guidelines.txt

07144ae2-d296-48c0-8477-a8189e6c2818

. · Section c, How to Request Prior Approval, which previously provided the stacking order for prior approval requests for purchase/cash-out refinance loans, has been renamed and updated to refer lenders to the updated stacking orders provided in Appendix B, Topic 2

VA_Guidelines.txt

678598d4-7b27-4b75-975c-512f69c9f6e0

. · Previous section e, Documentation Required for an IRRRL Prior Approval Package, has been removed from this Topic and moved to Appendix B Topic 2.

VA_Guidelines.txt

488e422f-58a3-45c8-b91d-4e01ad4052aa

All subsequent sections were re-lettered and references updated. · Previous section h, Changes Occurring After Issuance of the Certificate of Commitment, including Tables 3, has been updated

VA_Guidelines.txt

2b5423c5-9b3b-4a9a-80b2-af7484607399

. · Previous section i, Conditional Certificates of Commitment, Table 4, has been updated to remove the conditional commitment condition for loans to be made to a Veteran and fiancé(e) who intend to marry prior to closing and who will hold title as Veteran and spouse

VA_Guidelines.txt

98bd73c1-2124-4671-a253-991d3d6ccbc6

. · Previous section k, How to Report Loan Closing and Request Guaranty, which previously provided the stacking order for reporting a closed prior approval loan, has been updated to refer lenders to the updated stacking orders provided in Appendix B

VA_Guidelines.txt

04fd08aa-9ed3-4a64-a403-aecfd0bb0a0c

. · Previous section k, How to Report Loan Closing and Request Guaranty, has been updated with additional information related to the late reporting certification required if the loan is not reported in a timely manner. · Minor grammatical changes were also made throughout the topic. a.

VA_Guidelines.txt

c2b66a30-6c94-4b09-906e-1c2138726eec

Loans to be Submitted for Prior Approval Lenders without automatic authority are strongly encouraged to enter into a sponsor/agent relationship with a VA-approved automatic lender to expedite VA loan processing and underwriting. If a lender does not have a sponsor, then they must submit an application to VA for prior approval lending.

VA_Guidelines.txt

fdb973e0-82d1-4a5a-8c6a-8879c279ad1b

Those without sponsors or automatic authority must upload all loans into WebLGY for prior approval, except IRRRLs made to refinance loans that are not delinquent (see Chapter 1 of this handbook). Continued on next page 5-7 VA Lenders Handbook 26-7 Chapter 5: How to Process VA Loans and Submit them to VA Topic 3: Prior Approval Loan Procedures, continued a.

VA_Guidelines.txt

f157636c-7359-44a9-b606-2529a51e3c18

Loans to be Submitted for Prior Approval, continued Lenders must upload all prior approval documents into WebLGY, for VA review prior to closing the loan (see Appendix B Topic 2 for the prior approval stacking order). The loan may not close until VA issues a Certificate of Commitment.

VA_Guidelines.txt

d1f43863-e15a-43eb-b551-144adf3fb11e

All lenders, whether or not they have automatic authority, must submit the following types of loans to VA for prior approval: · Joint loans, to a Veteran and one or more non-spouse, non-Veterans (see Chapter 7) · Joint loans, to a Veteran and one or more non-spouse Veterans who will not be using entitlement (see Chapter 7) · Loans to Veterans in receipt of VA non-service-connected pension.

VA_Guidelines.txt

46a8a1ef-3abc-442b-b3f8-8dfa33258938

This is not the same as VA service-connected disability compensation

VA_Guidelines.txt

558a6c6a-bc33-4475-a2a1-08d40b580110

. · IRRRLs made to refinance delinquent loans (See Chapter 6 of this handbook) · Manufactured home loans (home is not titled as real-estate) · Unsecured loans or loans not secured by a first lien; and · Supplemental loans Note: COEs may indicate required submission of VA Form 26-8937, Verification of VA Benefits, if VA is unable to issue the COE with appropriate conditions.

VA_Guidelines.txt

392eadb5-2d76-4cc7-ac96-2165a16c5862

In these cases, the form should be submitted prior to close as it may indicate the loan requires prior approval. Lenders are not required to obtain prior approval for a loan where the application was taken for a Veteran and fiancé(e) who will marry prior to loan closing and who will hold title jointly as Veteran and spouse.

VA_Guidelines.txt

86a57774-8c81-47d6-a44f-0df7b4167b2b

A copy of the borrowers’ marriage certificate or other proof of marriage showing the marriage preceded loan closing must be retained in the loan file. A marriage license is inadequate. Prior approval is required if the marriage will not take place prior to loan closing.

VA_Guidelines.txt

a72d545c-95f3-4915-b2fd-f5c8367ed4b9

Lenders with automatic authority may also elect to submit a loan (of a type not on the above list) to VA for prior approval when issues or circumstances cannot be resolved by the lender’s own underwriting staff. This provision may not be used to shift the burden of loan denial to VA.

VA_Guidelines.txt

9ec4b108-21f3-4c43-92a9-31ad2f8bf37f

Additionally, VA cannot address overlays established by a company or investor and the loan should not be submitted as a prior approval for the lender to overcome any company or investor requirements. Before submitting such a loan, the underwriter must first attempt to contact VA to discuss the circumstances with a Loan Specialist.

VA_Guidelines.txt

05b84c0e-6d4c-4531-929e-5422bd6b5b6c

While VA cannot make the final underwriting determination without reviewing the loan, VA can discuss VA guidelines to assist the underwriter in making a determination. If, after contacting VA, the underwriter is unable to make a determination, the loan may be submitted for prior approval.

VA_Guidelines.txt

31ab195c-4f5a-4b80-bee4-4423877cf8b2

The submission must include a cover letter from the underwriter that states the reason(s) for the prior approval submission, explains the unique circumstances, and provides the underwriter’s phone number and e-mail address. Continued on next page 5-8 VA Lenders Handbook 26-7 Chapter 5: How to Process VA Loans and Submit them to VA Topic 3: Prior Approval Loan Procedures, continued b.

VA_Guidelines.txt

2cf5e49d-1169-437d-ad77-ae7c8e31c9e4

Before Requesting Prior Approval The lender must perform the following steps prior to submitting a loan package for prior approval: · obtain a COE, and, if the Veteran is an active-duty Service member who indicates they have a pre-discharge claim pending, complete and submit VA Form 26-8937, Verification of VA Benefits, (see Topic 1, section f), · establish the reasonable value of the property

VA_Guidelines.txt

e2015792-6991-40bb-9912-3e789901f7ef

· establish the reasonable value of the property with the issuance of an NOV, · underwrite the loan and complete VA Form 26-6393, Loan Analysis, and · ensure Service members receive counseling using VA Form 26-0592, Counseling Checklist for Military Homebuyers

VA_Guidelines.txt

9db57799-6bc4-486e-9c55-68d4bcee105a

.

VA_Guidelines.txt

184dff12-6861-42cf-847e-f9162d8ccbd2

The prior approval loan review will be suspended and processing will be delayed if all documents are not submitted with the original upload. c. How to Request Prior Approval The stacking order for requesting prior approval and reporting loan closing are provided in Appendix B, Topic 2.

VA_Guidelines.txt

24333e73-2b33-4fe3-89a6-37b04bc999b7

The files should be uploaded as a single-file Portable Document Format (PDF) into VA’s electronic loan system (WebLGY or subsequent system) to the correspondence section of the loan record as a ‘Prior Approval Loan Package’. If the file size exceeds VA’s limit, it is permissible to split the file, but it should still follow the stacking order.

VA_Guidelines.txt

3fca8b91-6bc6-4aad-a7d8-14cb0b3e79e6

Failure to provide necessary documents or conditions may result in delays in issuing the Certificate of Commitment. A user’s guide for uploading prior approval loans is available online at: https://www.benefits.va.gov/HOMELOANS/documents/docs/prior_approval_LP_lenders.pdf d.

VA_Guidelines.txt

073b0eb5-0ac7-45b0-9ff5-c744757926e9

Prior Approval on IRRRLs An IRRRL made to refinance a loan that will be 30 or more days past due as of the date of closing, must be submitted for prior approval. The lender must first obtain sufficient information and perform sufficient analysis to determine that: · the cause of the delinquency has been resolved, and · the Veteran is able to make the proposed loan payments.

VA_Guidelines.txt

8df4e54e-8064-4ea3-b74a-4d90c40ee7e0

The stacking order for requesting prior approval and reporting loan closing are provided in Appendix B, Topic 2. Continued on next page 5-9 VA Lenders Handbook 26-7 Chapter 5: How to Process VA Loans and Submit them to VA Topic 3: Prior Approval Loan Procedures, continued e.

VA_Guidelines.txt

cade3fb3-d589-46d3-85f9-5e6a0649533b

VA Processing of a Prior Approval Application VA will review the documents submitted and complete one of the following: · suspend processing and request additional information from the lender, or · send a notice of denial to the lender and borrower, or · issue VA’s certificate of commitment to the lender, which is evidence of VA’s approval of the loan to close and willingness to guaranty the loan

VA_Guidelines.txt

5f040bd4-63be-4445-9fd4-5f53aa5e1c22

.

VA_Guidelines.txt

24e4e6e1-9785-4a1f-a519-07963a069876

Loans submitted on the prior approval basis have a 10-business day timeliness requirement by VA. The processing time may be extended for loans involving the receipt of VA pension income. The VA Pension Management Center may need to complete a review of a loan file in addition to the Loan Guaranty review. f.

VA_Guidelines.txt

2a1da6b5-2f4c-44db-a44c-227f219ed8f1

Certificate of Commitment VA’s certificate of commitment must be obtained prior to closing and is the lender’s evidence of VA’s willingness to guaranty the loan.

VA_Guidelines.txt

6f0be4ed-af83-4bb6-8f78-ddd8786fbe48

The lender is subsequently entitled to evidence of guaranty if: · The closed loan is identical in all respects to that submitted to VA on the URLA and described on the certificate of commitment (or, if not identical, any required VA approval of changes was obtained prior to closing), and · The lender has complied with all applicable provisions of the law and loan guaranty regulations in making

VA_Guidelines.txt

8b581f16-2060-4db7-88ca-ce639bf76ada

the law and loan guaranty regulations in making the loan

VA_Guidelines.txt

ced5bb79-134a-4f03-8213-5face9e26f09

.

VA_Guidelines.txt

a23d643c-ffc0-4bf2-a7ae-12a481513451

Additionally, all conditions of the certificate of commitment must be met. If, at any time prior to closing, the lender or VA has reason to doubt the continued qualification of the loan, the lender will delay closing until all facts are determined and reviewed again by VA.

VA_Guidelines.txt

92360ceb-1c81-49fe-8778-44c6f994250f

VA may cancel a commitment if the validity period of the certificate of commitment has expired (after 180 days), and there is no reasonable expectation that the loan will be reported for guaranty. A commitment may be extended under certain circumstances. Contact VA for a review of the prior approval commitment.

VA_Guidelines.txt

fb43f396-0701-47e3-9cc6-67f7c5a68336

Continued on next page 5-10 VA Lenders Handbook 26-7 Chapter 5: How to Process VA Loans and Submit them to VA Topic 3: Prior Approval Loan Procedures, continued g.

VA_Guidelines.txt

c9ab064f-b8fc-4e82-84b0-fe6afec5709e

Changes Occurring After Issuance of the Certificate of Commitment Table 1: Changes Occurring After Issuance of the Certificate of Commitment If… Then… An increase in the amount of down payment VA approval is not needed. decreases the loan amount (with or without Include an explanation of the change with a reduction in the term of the loan) and the closing package

VA_Guidelines.txt

ffecf230-a295-4546-af26-f6f7c95e0553

. there is no increase in the monthly mortgage payments, The maturity of the loan is extended, but VA approval is not needed. does not exceed the maximum of 30 years Include an explanation of the change with and 32 days or the remaining economic life the closing package

VA_Guidelines.txt

e6e63d09-4113-48dc-9103-20aed198eb95

. of the property as provided by the NOV, and there is no increase in the monthly mortgage payments, The maturity of the loan is decreased, and VA approval is needed. there is an increase in the monthly mortgage Upload a new Loan Estimate (LE), URLA payments, signed and dated by the applicant, and an updated VA Loan Analysis, to WebLGY.

VA_Guidelines.txt

69617442-21fc-4513-8433-10d8f0c69b97

The loan amount is increased to cover the VA approval is needed. cost of energy efficiency improvements up See Chapter 7 of the Lender’s Handbook for to $6,000, special underwriting requirements and documentation required with the updated prior approval package. A revised loan analysis must be provided to show the borrower still qualifies with the higher loan amount and payment.

VA_Guidelines.txt

f99b3cc9-a3f2-41b9-8aaa-20ad38e7c7ad

Any increase in the amount of discount VA approval is needed

VA_Guidelines.txt

0737b715-cccb-4e4f-bb36-13383cb93f80

. points to be paid by the applicant above the Include with the updated prior approval points indicated on the certificate of package: commitment, · An explanation of the change, · The URLA with changes initialed and dated by the applicant, and If previously verified assets are not sufficient to cover the additional points, verification of sufficient additional assets.

VA_Guidelines.txt

5c079072-77b2-4fb1-a96f-8442cfadd896

Continued on next page 5-11 5-11 VA Lenders Handbook 26-7 Chapter 5: How to Process VA Loans and Submit them to VA Topic 3: Prior Approval Loan Procedures, continued g.

VA_Guidelines.txt

b93259c9-2ec0-4dbb-9634-9d91af7b380f

Changes Occurring After Issuance of the Certificate of Commitment, continued Table 1: Changes Occurring After Issuance of the Certificate of Commitment, continued If… Then… The loan is to be closed at an interest rate VA approval is needed. more than 0

VA_Guidelines.txt

fb999833-219f-45ad-b637-d9645cce162c

. more than 0.25 percent greater than the rate Upload a new LE, URLA signed and dated indicated on the certificate of commitment, by the applicant, and an updated VA Loan Analysis, to WebLGY.

VA_Guidelines.txt

40bfa603-78ea-4ed4-9b71-09bb6a32c471

A borrower changes jobs or suffers a VA approval is needed. reduction in income.

VA_Guidelines.txt

8d153870-5d6d-4e58-8dda-99f62b09c9fa

Upload an updated VA Loan Analysis, income verification documentation, and an updated URLA to WebLGY There is an increase in liabilities that VA approval is needed. reduces the residual income by 5 percent or Upload an updated VA Loan Analysis, more, or increases the debt-to-income (DTI) credit documentation, and an updated ratio by 2 percent, or increases the DTI to a URLA to WebLGY

VA_Guidelines.txt

3d102790-7ddb-4127-8c49-affe708c8d7a

. percentage above 45%.

VA_Guidelines.txt

586c42c7-5d20-41e9-ae58-d376a8bb75b3

Continued on next page 5-12 VA Lenders Handbook 26-7 Chapter 5: How to Process VA Loans and Submit them to VA Topic 3: Prior Approval Loan Procedures, continued h. Conditional Certificates of Commitment There are circumstances when VA issues a prior approval commitment with special conditions.

VA_Guidelines.txt

f7a680f9-d364-48a0-a70f-3df27056146d

The table below lists circumstances and conditions that warrant special instructions and documentation before closing a loan that has been underwritten by VA.

VA_Guidelines.txt

4cc3509e-d5f7-4af6-8acb-0c86835c42bc

Table 2: Conditional Certificates of Commitment Case Condition/Notation on Certificate Loan is to the spouse of a Prior to closing the subject loan, the lender should obtain serviceperson missing in certification from the borrower that official notice of any action or prisoner of war change in the Service member’s status has not been (MIA/POW) received and that the applicant is still the spouse

VA_Guidelines.txt

401f6743-811d-44b7-b056-fa17677bd230

and that the applicant is still the spouse of the Service member

VA_Guidelines.txt

f0cd8ec2-ace1-4689-a56f-8996dfab6fc2

.

VA_Guidelines.txt

fd935e03-46a7-4b79-bc65-8a5a94e36241

See Chapter 2 for required documentation. Loan is to an eligible “Conditioned on certification of status as a surviving surviving spouse of a spouse.” deceased Veteran. What this means: Conditioned on the borrower’s certification that their status as an eligible surviving spouse has not changed since the COE was issued. See Chapter 2 for required documentation.

VA_Guidelines.txt

3c3d1758-ce35-4570-a3a3-6f5643b4d9c9

See Chapter 2 for required documentation. Loan is to an active-duty Certification of active-duty status as of date of note service person who has not required. been discharged and must To ensure compliance, the active-duty Service member certify to continuous active should check the active duty box in Section III, Veteran’s duty.

VA_Guidelines.txt

efa67ba9-bc9c-4559-8d24-004369e359d5

Certifications, on VA Form 26-1820, Report and Certification of Loan Disbursement. Ensure that the Veteran signs the form on the date of closing. Loan involves use of an “Conditioned on proof Veteran was alive and not MIA.” attorney-in-fact.

VA_Guidelines.txt

2f653fee-2050-4a5d-8006-421c11004e8d

What this means: No evidence of guaranty with respect to the loan to which this commitment relates will be issued by the Secretary unless the lender makes the certification specified by the Department of Veterans Affairs at the time the lender requests a certificate of guaranty to the effect that the Veteran was alive and, if the Veteran is on active military duty, not in a “missing in action”

VA_Guidelines.txt

c1b31ef0-9513-4424-8c35-0eedf22b6950

military duty, not in a “missing in action” status on the date the note and security instruments were executed on the Veteran’s behalf by the attorney-in-fact

VA_Guidelines.txt

53c093d4-7ea9-4630-8a95-e2fb180dcebd

.

VA_Guidelines.txt

a911792a-0da9-4191-8280-6a00a43931db

Continued on next page 5-13 VA Lenders Handbook 26-7 Chapter 5: How to Process VA Loans and Submit them to VA Topic 3: Prior Approval Loan Procedures, continued h. Conditional Certificates of Commitment There are circumstances when VA issues a prior approval commitment with special conditions.

VA_Guidelines.txt

f632f478-2cdd-401a-9797-69b1abd8cd14

The table below lists circumstances and conditions that warrant special instructions and documentation before closing a loan that has been underwritten by VA.

VA_Guidelines.txt

05c8e3f2-9416-400a-ad14-c304992adfa8

Table 2: Conditional Certificates of Commitment Case Condition/Notation on Certificate Loan is to the spouse of a Prior to closing the subject loan, the lender should obtain serviceperson missing in certification from the borrower that official notice of any action or prisoner of war change in the Service member’s status has not been (MIA/POW) received and that the applicant is still the spouse

VA_Guidelines.txt

a2b4acb2-7d2c-4e7e-89e2-974bdb138c9b

and that the applicant is still the spouse of the Service member

VA_Guidelines.txt

5b533f78-3e7d-4619-9ceb-fc9a27efc49b

.

VA_Guidelines.txt

d3e35a2e-b471-4425-a1e4-f257eac467ca

See Chapter 2 for required documentation. Loan is to an eligible “Conditioned on certification of status as a surviving surviving spouse of a spouse.” deceased Veteran. What this means: Conditioned on the borrower’s certification that their status as an eligible surviving spouse has not changed since the COE was issued. See Chapter 2 for required documentation.

VA_Guidelines.txt

3a64c81c-4f5c-42cf-99fa-95cd7d0c7a59

See Chapter 2 for required documentation. Loan is to an active-duty Certification of active-duty status as of date of note service person who has not required. been discharged and must To ensure compliance, the active-duty Service member certify to continuous active should check the active duty box in Section III, Veteran’s duty.

VA_Guidelines.txt

a234d358-4ab2-4ca1-bc13-d96b032ff5b5

Certifications, on VA Form 26-1820, Report and Certification of Loan Disbursement. Ensure that the Veteran signs the form on the date of closing. Loan involves use of an “Conditioned on proof Veteran was alive and not MIA.” attorney-in-fact.

VA_Guidelines.txt

066c904b-a256-4b14-be91-22f179d417b8

What this means: No evidence of guaranty with respect to the loan to which this commitment relates will be issued by the Secretary unless the lender makes the certification specified by the Department of Veterans Affairs at the time the lender requests a certificate of guaranty to the effect that the Veteran was alive and, if the Veteran is on active military duty, not in a “missing in action”

VA_Guidelines.txt

f2a144aa-a085-4884-a400-88d84e1da855

military duty, not in a “missing in action” status on the date the note and security instruments were executed on the Veteran’s behalf by the attorney-in-fact

VA_Guidelines.txt

4d7751f3-5ee6-494c-9853-e244d3d87526

.

VA_Guidelines.txt

1ed7cf84-027a-4a2c-bc52-767a3fdfc0c2

Continued on next page 5-13 VA Lenders Handbook 26-7 Chapter 5: How to Process VA Loans and Submit them to VA Topic 3: Prior Approval Loan Procedures, continued h.

VA_Guidelines.txt

976af1fb-dfb7-4774-b4c2-fb50a03db0d0

Conditional Certificates of Commitment, continued Table 2: Conditional Certificates of Commitment, continued Case Condition/Notation on Certificate Veteran intends to sell the “Conditioned on restoration of entitlement

VA_Guidelines.txt

f4db697f-fdba-452b-9564-ca93b53a93fc

.” property on which he/she has What this means: This commitment is conditioned upon an existing VA loan prior to submission of evidence of disposal of the property which closing on the new VA loan, the Veteran now owns and previously purchased using VA in order to have entitlement entitlement and evidence that the loan has been paid in full restored or that an eligible Veteran has substituted

VA_Guidelines.txt

9e36dfc6-12fe-4c3c-aeb2-282c0392370d

or that an eligible Veteran has substituted their entitlement for that used by the original Veteran

VA_Guidelines.txt

cb3c087d-c523-439d-98ba-41c561d94c8f

.

VA_Guidelines.txt

14065dfe-9b44-45b5-a486-60ca44d24b97

Veteran intends to sell “Commitment conditioned on disposal of the property.” property now owned in order What this means: This commitment is conditioned upon to have sufficient income, the completion of the sale of residential real property now eligibility and/or assets to owned by the Veteran, as proposed in the loan application

VA_Guidelines.txt

c74a0ae0-9389-41e3-9b03-aaf56d650dbc

. qualify for the loan Notice of Value (NOV) The commitment is conditioned upon the completion and conditions that were not all required NOV conditions. satisfied prior to the commitment Failure to document these conditions with the closing package can result in a delay of the guaranty, affect the percentage of guaranty, and/or affect the ability of VA to issue the Loan Guaranty Certificate (LGC)

VA_Guidelines.txt

a856d162-88d6-4393-ac24-2186bc10aaa9

. i.

VA_Guidelines.txt

3a4c631b-61f8-462b-8857-56ec49d6d153

Before Closing a Prior Approval Loan Complete all applicable procedures in Topics 1 and 2 of this chapter. j. How to Report Loan Closing and Request Guaranty A loan must be reported to VA within 60 calendar days of closing.

VA_Guidelines.txt

e990ccca-51a7-4ad6-a165-8507ec8b9ef6

A lender that fails to report the loan within 60 calendar days of closing must provide a written explanation signed by an officer of the company that includes the following: · The reason for the delay in reporting the loan for guaranty, and · Certification that the loan is not 30 or more days past due, and · Certification that the loan otherwise conforms with standards established under chapter

VA_Guidelines.txt

491d3724-81de-4e3a-a233-c7b4c816e983

conforms with standards established under chapter 37 of Title 38 U

VA_Guidelines.txt

77fff2c5-8a8c-4630-a42b-620f0e98eab8

.

VA_Guidelines.txt

9ef40185-e67e-4701-a17f-4678afbb5e3c

S. C. and 38 C. F. R. part 36. The stacking order for reporting loan closing is provided in Appendix B, Topic 2. The file should be uploaded as a single-file Portable Document Format (PDF) into VA’s electronic loan system (WebLGY or subsequent system) to the correspondence section of the loan record as a ‘Prior Approval Loan Package’.

VA_Guidelines.txt

fd30d35a-2aa3-4c44-acb2-e2d3d3a243ec

If the file size exceeds VA’s limit, it is permissible to split the file, but it should still follow the stacking order.

VA_Guidelines.txt

1c62f2ed-77f1-47c4-b105-a6d2b69ae1ef

Failure to provide any of the necessary documents or conditions can result in a delaying of issuing the LGC, affect the percentage of guaranty, and/or affect the ability to issue the LGC

VA_Guidelines.txt

0f77ccc1-170b-4509-830e-1ee7090ecba6

. 5-14 VA Lenders Handbook 26-7 Chapter 5: How to Process VA Loans and Submit them to VA Topic 4: Automatically Closed Loan Procedures Change Date: May 14, 2024 · This topic has been edited to make minor grammatical changes

VA_Guidelines.txt

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. · Section a, How to Request Guaranty, has been updated with additional information related to the late reporting certification required if the loan is not reported in a timely manner

VA_Guidelines.txt

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. · Section b, Documents Required if the Lender is Unable to Obtain an Electronic LGC, has been updated to remove the stacking order for manual guaranty requests and to direct the lender to the updated stacking order in Appendix B, Topic 1

VA_Guidelines.txt

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. · Section c, FFLR Procedures, has been updated to remove the stacking orders for VA FFLR requests and to direct the lender to the updated stacking orders in Appendix B. a.

VA_Guidelines.txt

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How to Request Guaranty The LGC is the lender's evidence that VA has guaranteed the loan. See Chapter 3 of this handbook for an explanation of what evidence of guaranty means to the lender.

VA_Guidelines.txt

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Loans must be reported to VA within 60 calendar days of closing¹ except construction and alteration/repair loans which must be reported within 60 calendar days of completion of the construction or improvements in accordance with the plans and specifications as evidenced by the post construction inspection report.

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A lender that fails to report the loan in a timely manner must provide a written explanation signed by an officer of the company that includes the following: · The reason for the delay in reporting the loan for guaranty, and · Certification that the loan is not 30 or more days past due, and · Certification that the loan otherwise conforms with standards established under chapter 37 of Title 38 U.

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S. C. and 38 C. F. R. part 36. Note: failure to report a loan for guaranty in a timely manner may result in the automatic selection of the loan for VA FFLR. Lenders must use WebLGY to obtain electronic LGCs for loans closed on the automatic basis.

VA_Guidelines.txt

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Exceptions to an automatically issued LGC in WebLGY include, but are not limited to: · Loans that were underwritten as a prior approval and VA issued a certificate of commitment in WebLGY, and · Veteran/Veteran joint loans where two or more Veterans are splitting entitlement. Continued on next page 1 38 C. F.

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Continued on next page 1 38 C. F. R. § 36.4303(a) 5-15 VA Lenders Handbook 26-7 Chapter 5: How to Process VA Loans and Submit them to VA Topic 4: Automatically Closed Loan Procedures, continued b.

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Documents Required if the Lender is Unable to Obtain an Electronic LGC If a lender is unable to obtain an electronic LGC, the lender may request VA’s assistance by uploading a manual guaranty package to the loan record in WebLGY. The stacking order for manual guaranty requests is provided in Appendix B, Topic 1.

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The file should be uploaded as a single-file PDF into VA’s electronic loan system (WebLGY or subsequent system) to the correspondence section of the loan record as a ‘Prior Approval Loan Package’. If the file size exceeds VA’s limit, it is permissible to split the file, but it should still follow the stacking order.

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VA will then issue the LGC or notify the lender of additional information needed for LGC issuance. c. FFLR Procedures VA requires lenders to maintain loan origination records and make them available to VA for oversight and audit purposes². Lenders will be notified, either immediately by WebLGY or in writing by VA offices, when a loan has been selected for FFLR.

VA_Guidelines.txt