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Topic 6. Lender Use of Inspection Reports
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July 14, 2003
Receipt of Inspection Reports
If construction is acceptable and there are no deviations or substitutions, the compliance inspector will submit the inspection report (VA Form 26-1839) in the following manner:
If the lender is known:
- Provide the lender with a copy,
- Provide the builder with a copy, and
- Keep a copy for his/her file.
If the lender is not known:
- Provide the builder with two copies, one of which the builder will forward to the lender when known, and
Keep a copy for his/her file.
Use of Inspection Reports
Considering the requirements to obtain VA loan guaranty, before the loan is closed, the lender should ensure that
all VA value notice requirements regarding inspections are met
any deviations and/or noncompliance items listed on the third-stage inspection report are resolved to VA’s satisfaction
any appliances or floor coverings installed under Section 14.05 are the same as those described in Section 1 of the third-stage inspection report, and the third stage inspection report includes all of the information required for a final inspection.
Retention of Inspection Reports
The lender must retain all inspection-related material in their loan origination file.