c. Lender Responsibility

Lenders are responsible for

·   developing all credit information

·   properly obtaining all required verifications and the credit report

·   ensuring the accuracy of all information on which the loan decision is based

·   complying with the law and regulations governing VA’s underwriting standards, and with VA’s underwriting policies, procedures, and guidelines, and

·   certifying as to compliance with all of the above.

d. Lender Procedures

Section 2 of chapter 5 provides an overview of all procedures which must be completed when making a VA loan.  The procedures below address only the credit underwriting of the loan.

Step

Action

1

Initiate the VA and CAIVRS inquiries described in section 6 of this chapter in this chapter.

2

Obtain all necessary verifications. 

·   The applicant’s authorization can be obtained for each verification needed, or on 1 blanket authorization form (attach a copy of the blanket authorization to each verification requested, including VA Form 26-8937, Verification of VA Benefit-Related Indebtedness, if applicable).

·   The credit report and verifications can be ordered by the lender or its agent or a party designated by the lender to perform that function.  However, these documents must always be delivered by the credit reporting agency or verifying party directly to the lender or its agent, and never to another party.  That is, while a lender may delegate authority for a builder, realtor, or other person to order the report for the lender, the report may not be delivered to such builder, realtor, and so on, and may not pass through the hands of any such party or the applicant.

3

Compare similar information received from different sources.  For example:

-   The number of dependents provided on the URLA, tax returns, credit report, and so on, should be the same.

-   The status of debts provided on the URLA and credit report should be the same.

Resolve any discrepancies.