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Topic 2. False Lender Certification
Lender Certification
A lender must submit a signed certification with each loan submission indicating that in processing and underwriting the loan, the lender has complied with
VA requirements
regulations, and
the law.
The specific language required in the certification is found in Step 7 of “Lender Procedures” in Section 4.01.
False Lender Certification
Any lender who knowingly and willfully makes a false certification may be subject to civil money penalties equal to the greater of
two times the amount of the Government’s loss on the loan involved, or
another appropriate amount, not to exceed $10,000.
In addition to monetary penalties, VA may impose other sanctions including, but not limited to
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debarment and suspension, and
loss of automatic authority.
Lenders Assessed Monetary Penalty
Lenders assessed civil money penalties for a false certification do not appear in GSA’s List of Parties Excluded From Federal Procurement and Nonprocurement Programs. Other program participants may still transact VA business with these lenders.
Exception: Lenders may appear on the GSA list if another sanction is imposed against them in conjunction with the civil money penalty. In such cases, other program participants may be prohibited from transacting business with them.