p. Prior Approval Procedures (continued)

A lender may choose to submit an IRRRL for prior approval, even if the existing loan is not 30 days or more past due.  In such cases, submit only items 1 through 10 (and 17, if applicable) of the information listed under “Prior Approval Submission.” Also include an explanation of why the loan is being submitted for prior approval.

Submit documents on closed prior approval IRRRLs in accordance with the instructions under section 2, subsection c of this chapter.

Note: Prior approval for IRRRLs is not required for veteran’s in receipt of nonservice-connected pension or for veterans rated incompetent by VA when these veterans meet the requirements of this section.

q. Procedures for Automatic Processing of IRRRLs

An IRRRL can be closed on an automatic basis by any lender (such as, a lender with or without automatic authority to close other types of loans on an automatic basis) in any geographic location.

Exception:  For IRRRLs to refinance existing VA loans 30 days or more past due, VA prior approval is needed.  See section 2 of this chapter.

A loan must be reported (such as, all documentation submitted) to VA within 60 days of closing.  A lender that fails to meet this time limit must provide a written explanation (document #13 below).

To report a loan, submit the following documents to VA in the order listed.

Order

Document

1

Lender’s cover or transmittal letter (if used).

2

VA Form 26-0285, VA Transmittal List.

3

VA Form 26-0286, VA Loan Summary Sheet.

4

VA Form 26-8320 (or 26-8320a), Certificate of Eligibility, or a request for a duplicate certificate on VA Form 26-1880, Request for a Certificate of Eligibility.

5

Funding fee receipt. [ ]

Reference:  See section 8 of chapter 8 for information on exemptions.