q. Procedures for Automatic Processing of IRRRLs (continued)

Order

Document

6

Statement signed by the veteran acknowledging the effect of the refinancing loan on the veteran’s loan payments and interest rate.

·  The statement must show the interest rate and monthly payments for the new loan versus that for the old loan. 

·  The statement must also indicate how long it will take to recoup ALL closing costs (both those included in the loan and those paid outside of closing).

·  If applicable, the veteran’s statement may be combined with the lender’s certification that the veteran qualifies for the new monthly payment which exceeds the previous payment by 20 percent or more.

7

VA Form 26-8923, Interest Rate Reduction Refinancing Loan Worksheet.

8

VA Form 26-1820, Report and Certification of Loan Disbursement.

9

VA Form 26-8937, Verification of VA Benefit-Related Indebtedness (if applicable).

10

HUD-1, settlement statement.

11

VA Form 26-0503, Federal Collection Policy Notice.

12

Lender’s certification that the prior loan was current (not 30 days or more past due) at the time of loan closing.

13

If loan is submitted more than 60 days after loan closing, a statement signed by a corporate officer of the lender which identifies the loan, provides the specific reasons for late reporting and certifies that the loan is current. This statement must be submitted with any late request for issuance of a Loan Guaranty Certificate.

14

Documentation of the cost of energy efficiency improvements included in the loan.  For cash reimbursement of the veteran, the improvements must have been completed within the 90 days immediately preceding the date of the loan.

Reference:  See section 3 of chapter 7.

15

Any other necessary documents (see section 6 of chapter 5).