b. The Lender’s Role (continued)

Although this chapter discusses some of the basic eligibility criteria, it is not intended to provide a lender with all the knowledge necessary to make an eligibility determination; consequently, all the various exceptions and nuances of eligibility are not included. Exhibit 2-A at the end of this chapter provides a quick reference and overview of basic eligibility criteria. 

The final eligibility decision is always made by VA.

In all cases in which the applicant does not already have a COE, the applicant, the lender, or an authorized representative acting on the applicant’s behalf, should submit a properly completed VA Form 26-1880, Request for a Certificate of Eligibility to VA, even if it appears the applicant is not eligible. Additionally, lenders should utilize the Automated Certificate of Eligibility (ACE) system (See section 3 of this chapter) whenever possible.

10.                 

It is important to allow VA to make a formal determination and, if the applicant is ineligible, to notify the applicant of his or her appeal rights.

c. Certificate of Eligibility for IRRRLs

VA has developed an alternate procedure for lenders to use when closing an Interest Rate Reduction Refinancing Loan (IRRRL).  Lenders can access the  automated system at: http://www.vba-roanoke.com/rlc/GILoans.asp

This system provides an automated e-mail response to lenders.  Lenders MUST print this response and provide it with the guarantee package for issuance of the Loan Guaranty Certificate. 

Note: The printed response can ONLY be used in lieu of a COE for IRRRLs.