j. Limitations 

of ACE

ACE cannot make all determinations.  Some types of cases that cannot be processed through ACE include:

26.       ·  Persons whose service was or is in the Reserves/National Guard

27.       ·  Persons who may have had prior VA loan(s) that went to foreclosure

28.       ·  Persons who did not serve the minimum required length of service and were not discharged for an authorized exception

29.       ·  Persons who were discharged under conditions other than honorable

30.       ·  Persons for which VA has insufficient data to make the determination

31.       ·  Persons seeking restoration of previously used entitlement

32.       ·  Unmarried surviving spouses

k. Transfer of ACE Generated Certificates of Eligibility

ACE generated COEs cannot be transferred to another lender. 

Loan guaranty requests containing an ACE generated COE issued to someone other than the lender or their authorized agent will be returned.

It’s important that lenders submitting the loan for guaranty properly complete agent information on VA Form 26-1820, Report and Certification of Loan Disbursement, and VA Form 26-0286, VA Loan Summary Sheet.  These documents will be reviewed prior to the return of the loan package.

Lenders who intend to submit a package for guaranty with an ACE generated COE obtained by a third party who is not an agent, the lender, or an affiliate, will then need to obtain an eligibility determination through ACE or conventional means before submitting the package for guaranty.