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Topic 15. Application Checklist for Authority to Close Loans on an Automatic Basis
February 1, 2019
This chapter has been revised in its entirety.
a. Checklist
1) Experience
Your firm must meet one of the following experience requirements:
Company Experience
Firm actively engaged in originating VA loans for at least 2 years, and firm has originated and closed a minimum of ten VA loans (excluding IRRRLs); or,
Firm actively originating and closing VA loans for less than 2 years, and firm has originated and closed at least 25 VA loans (excluding IRRRLs).
Principal Officer Experience
Documentation
Resumes for each principal officer (president plus any officers involved in managing loan origination functions) showing mortgage lending experience.
Experience Requirement
A principal officer who is actively engaged in managing VA origination functions must have at least 2 recent years management experience in the most recent 5 years.
Agent Experience
Documentation
A copy of the VA letter approving the firm as an agent for the sponsoring lender;
a letter from a senior officer of the lender indicating the number of VA loans submitted and compliance with VA requirements and procedures; and
a copy of the corporate resolution.
Experience requirement
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Firm actively operating as an agent for an automatic lender for 2 years, and originated a minimum of ten VA loans; or,
Firm actively operating as an agent for an automatic lender for less than 2 years, and originated a minimum of 25 VA loans.
2) Underwriter(s)
Documentation
VA Form 26-8736a completed by a senior officer outlining the underwriter’s specific experience with VA loans. If the underwriter is not located in the home office, provide certification from a senior officer that the underwriter is supervised by an individual other than a branch manager or other person with production responsibilities must be provided.
Experience Requirement
Minimum 3 years of experience in processing, pre-underwriting or underwriting mortgage loans, and at least 1 recent year of this experience making underwriting decisions on VA loans (recent = within the past three years); or,
Accredited Residential Underwriter (ARU) by the Mortgage Bankers Association.
3) Working Capital or Net Worth
A minimum of $50,000 in working capital must be demonstrated; or
Lender has $250,000 net worth and reported by CPA in annual financial statements (see Topic 14 of this chapter).
4) Financial Statements audited and certified by a CPA and current to within 6 months of the application date.
5) Line of Credit of at Least $1 Million Dollars
6) Two Permanent Investors with addresses, telephone numbers and name(s) of contact person(s)
7) Quality Control Plan That Meets VA Requirements (see Topic 14 of this chapter)
8) Designated Liaison Officer
9) Corporate Resolutions and Delinquency Data for Affiliates
10) List of Branch Offices or Corporate Resolutions for Agents
11) Application Fee Submitted
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Article ID: 554400000314629 VA Pamphlet VAP26-7 Chapter 02 Veteran's Eligibility and Entitlement