Change Date

September 15, 2004, Change 4

·   This section has been changed to create subsection lettering.

·   Subsection a has been changed to add the approval of Chase’s automated underwriting system Zippy.

·   Subsections e and f have been changed to delete references to CRV.  This is now an obsolete form.

a. General

VA has approved Freddie Mac’s Loan Prospector, Fannie Mae’s DU (and the pmiAura System for VA), CLUES (for loans originated by Countrywide) and Zippy (for loans originated by Chase) automated underwriting systems (AUS) for use in connection with VA guaranteed home loans.  These systems incorporate VA’s credit standards and processing requirements. 

Lenders may use certain reduced documentation requirements on cases processed with approved AUSs.  The level of reduced documentation depends on the risk classification assigned.  The systems use slightly different terminology such as Approve or Accept.  The tables in this section give a general description of documentation waivers.  Please note that the documentation requirements are the same for these cases as for non-AUS cases, except for any differences cited in the tables.

Data Integrity

It is imperative that the data entered into the automated underwriting system be accurately verified. The data utilized by the system must be supported by source documentation obtained by the lender.  Inaccurate or unverified data will result in invalidation of the risk classification. Under certain circumstances it could also result in a finding of material misrepresentation, which could affect the validity of the guaranty.