How To Use This Chapter

This chapter describes the steps needed to obtain and maintain VA approved lender status.  Specific documentation requirements exist when applying for lender status.  These documents may be sent to the Regional Offices or Loan Centers via electronic media or by traditional mail, as long as all the documents are adequately completed with the appropriate required signatures when necessary.

In this Chapter

This chapter contains the following topics.

Topic

Topic

See Page

1

Definitions and Authorities

1-2

2

Before a Lender Starts Making VA Loans

1-6

3

Lenders That are Considered Supervised

1-8

4

How a Nonsupervised Lender Applies for Automatic Authority

1-11

5

Certifications a Nonsupervised Automatic Lender Must Comply With

1-17

6

How a Nonsupervised Automatic Lender Requests Underwriter Approval or Approval to Close Loans Involving an Affiliate

1-20

7

How a Supervised or Nonsupervised Automatic Lender Requests VA Recognition of an Agent

1-22

8

Mergers and Acquisitions Involving Supervised or Nonsupervised Automatic Lenders

1-27

9

Withdrawal of Automatic Authority from Supervised or Nonsupervised Automatic Lenders

1-32

10

Participation Fees for Supervised and Nonsupervised Automatic Lenders

1-35

11

Maintenance of Loan Records

1-39

12

Lender ID Numbers

1-40

13

Lender Access to Training and Information

1-42

14

Calculation of Adjusted Net Worth, Figure 1-A 

1-44

15

Elements of a Quality Control Plan, Figure 1-B 

1-46

16

Application for Authority to Close Loans on an Automatic Basis Checklist, Figure 1-C

1-50