Now that the nonsupervised lender can close loans automatically, they must also follow a set of guidelines to prevent losing their automatic status. If these guidelines are not followed, the VA could revoke the lender’s automatic approval status.
One: No Closing for Others
Firstly, a nonsupervised lender should never close loans for others. A certified copy of the VA Form 26-8736 by the president or principal officer must be sent to the VA. Lenders cannot close loans as a courtesy to another mortgage lender. They may not close for builders or anyone else they are hoping to receive financial gain from, which includes companies that are owned by or affiliated with the lender in any way. The only connection between the lender and the builder must be a construction loan to close automatically.
Two: Changes Must Be Submitted
The second thing a lender must do is inform the VA of any major changes, including a merger or acquisition. The lender can use VA Form 26-8736 to inform the VA office of any changes in its corporate structure, operations, or financial condition. A change in ownership of the lender always means that the lender will lose its automatic authority.
In the case that a lender can no longer meet the requirements for automatic authority, the lender must submit a plan of correction to the VA Office of Jurisdiction.
Three: Review from an Underwriter
Any and all VA loans must first be reviewed by a VA-approved underwriter. The underwriter will then approve or reject the loan. It is the job of the president or principal officer to assure this is done.
Four: Submit Your Annual Finances
A CPA must certify all financial statements sent to the VA. These statements should be sent to the Regional Loan Center in the location of the lender’s home office.
The financial states must meet one of the following requirements:
- A minimum of $50,000 working capital
- A minimum of $250,000 in adjusted net worth
The lender is also required to send a list of VA-recognized agent relationships that the lender wishes to renew, which is only required of the lender uses agents for making VA loans. The lender must also submit any annual fees.
Call for VA Loan Eligibility
Veterans can purchase a home with $0 down. Call VA Home Loan Centers at 888-573-4496 to start you VA home loan application. Or call to learn more about VA home loan lenders.