Top 10 Things LPOs Want Lenders to Know

1. Top 10 Things LPOs Want Lenders to Know

2. Dani Terrell, Denver Jennifer Tillery, Atlanta Laura Rodriguez, Houston

3. Top 10 Things LPOs Want Lenders to Know 1. The VA guaranteed home loan is a benefit program, earned through service to our country.

4. Top 10 Things LPOs Want Lenders to Know 2. Certificate of Eligibility (COE) • COEs do not expire • Electronic application • Complete all fields • National Guard & Reserve documentation • Not always DD-214 • NGB-22 and NGB-23 • Points statement and discharge certificate • Use “correct COE” link for updates • Includes refresh date

5. 2. COE continued $0 “basic entitlement” doesn’t always mean zero entitlement available! In this case, the Veteran would have enough entitlement to give the lender a 25% guaranty on a loan amount between $144,001 and $309,100.* *More entitlement available in high cost counties.

6. Top 10 Things LPOs Want Lenders to Know 3. Verification of VA Benefits, VA Form 26-8937 • Do not submit to verify $$ amount reflected on COE • If COE states “Submit 8937” do not upload to the COE record • COE will be placed in pending status • Fax to appropriate RLC

7. Top 10 Things LPOs Want Lenders to Know 4. VA’s underwriting guidelines allow for common-sense and flexibility • Look to the Lenders Handbook for answers first • Chapter 4 • Loan Officers should speak to their underwriters about scenarios/concerns • If the underwriter is unsure, they may contact VA • It is not the job of VA loan specialists to “settle disputes” between lender employees

8. Top 10 Things LPOs Want Lenders to Know 5. Prior approval loans • Required submission for: Joint loans, Veterans unable to manage funds, non-service-connected pension • Electronic submission required per Circular 26-17-01 • Link to quick reference document • Full documentation required (AUS does not apply) • Cover sheet required • Who? What? Why? Contact info?

9. 5. Prior Approval Loans continued • Joint Vet/Vet loan • Add second Vet at the time of prior approval input Do this for every Veteran using entitlement! • Joint Vet/Non-Vet loan • Guaranty is limited to the Veteran’s portion of the loan • Investor may require down payment for the non-Veteran’s portion

10. 5. Prior Approval Loans continued • Submission should be made by sponsoring lender • Chapter 5, section 4b • Investor overlays vs. VA requirements • VA has 10 business days to process • Does not include review time by Fiduciary Hub or Pension Management Center • Upload closing package per Chapter 5, section 4j • Notify VA of upload

11. Top 10 Things LPOs Want Lenders to Know 6. Funding fees • Pay attention to the COE! • Too many refund requests are being made because COE conditions are not being followed.

12. 6. Funding Fees continued • Check your entry • Veteran info used in FFPS must match the COE • Pay the funding fee on time • After 15 days, a late fee is charged • After 30 days, interest accrues • When should the funding fee be paid prior to closing?

13. Never! Never! Never!

14. Top 10 Things LPOs Want Lenders to Know 7. Lender Resources • Veterans Information Portal (aka: Portal, VIP) • Access deactivated after 90 days of inactivity • PIN used for registration • Obtain from administrator • Every Portal user must have their own ID. • Sharing access is a violation of VA policy

15. 7. Lender Resources continued • Lender resource page • www.benefits.va.gov/homeloans/lenders.asp • Circulars • Loan volume report • State fees and charges deviations • Regional Loan Center contact information • Each section has their own email address • Lenders Handbook • Contains “answers in writing!”

16. Top 10 Things LPOs Want Lenders to Know 8. Data integrity is critical Eligibility Certificate Appraisal Order Loan Guaranty Certificate

17. Top 10 Things LPOs Want Lenders to Know • Lender Renewals • Supervised lenders • Agent renewals due every January • $100 each • Notify VA when relationships have ended • Non-supervised lenders • Due 120 days from end of fiscal year • $200 renewal fee • $100 per agent renewal fee • Audited financials

18. Top 10 Things LPOs Want Lenders to Know 10. National Phone System • Wait times decreased • Fewer transfers • Volume is still high • Have you checked the Lenders Handbook? • Please do not call about COE status before 5 days has elapsed • Applications are worked in the order received • One Veteran is not more special than another • They are all special!

19. 10. National Phone System • Select the correct option: • If you know the extension • Loan Production • COE, underwriting • Loan Administration • Servicing • Specially Adapted Housing • Construction & Valuation • Appraisals, builder ID • Other VA benefits

20. Best Lender Practices

21. Best Lender Practices Prior approval uploads vs. Upload may be up to 30MB

22. Best Lender Practices • VA Form 26-8937, Verification of Benefits • Fully completed and signed • Legible forms help avoid delays

23. Best Lender Practices Conservative underwriting • Common-sense • Flexibility • Good judgment • Integrity • Don’t set Veteran up to fail

24. Best Lender Practices COE Pro

25. Best Lender Practices Provide evidence of principal reduction after funding fee refund

26. Best Lender Practices Promoting the VA Home Loan Program!