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AGENT

AGENT. A VA “automatic” lender may designate any individual or entity as an agent to perform loan-related functions on its behalf or in its name. Onetime or Infrequent Use of an Agent. Lender may authorize agency relationship on loan-by-loan basis. Certification on VA Form 26-1820, Item 24J.

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AGENT

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  1. AGENT

  2. A VA “automatic” lender may designate any individual or entity as an agent to perform loan-related functions on its behalf or in its name.

  3. Onetime or Infrequent Use of an Agent • Lender may authorize agency relationship on loan-by-loan basis. • Certification on VA Form 26-1820, Item 24J. • Identify agent and its function. • No VA recognition of relationship needed.

  4. Report and Certification of Loan Disbursement

  5. When must the lender request VA recognition of a relationship with an agent? If the lender uses an agent more than FOUR times per year. This is considered an “ongoing” relationship.

  6. What does a lender need to submit to request VA recognition of an agent?* • Request Letter • Corporate Resolution • Fee ($100) *Requests must be sent to the VA Regional Loan Center with jurisdiction over the lender’s home office.

  7. Corporate Resolution • Must include: • Agent’s name, address, telephone and fax numbers, Tax ID number and e-mail address, • Agent’s functions, • Statement that lender takes full responsibility for all acts, errors and omissions of the agent, and • Lender will honor rate lock-in agreements entered into by agent (if a listed function)

  8. Lenders Using a Multitude of Agents • “Blanket” corporate resolution may be used • Must submit request letter for each new agent • $100 fee for each new agent

  9. Lender Notification VA will notify the lender on the approval in writing. Even with formal VA recognition, the lender must identify the agent and it’s function of VA Form 26-1820 for each loan involving an agent.

  10. What will the agent do on the lender’s behalf? Loan application? Interest rate lock-in agreement? Credit report? Hold settlement? Verifications of deposit? Verifications of employment? Note: The extent of the relationship between the lender and the agent is at the lender’s discretion.

  11. May agents close loans automatically? Yes. If specified in the Corporate Resolution. Note: If the sponsoring lender is a non-supervised automatic lender, all loans must be reviewed and approved by a VA-approved underwriter employed by the lender.

  12. Reminder! Lenders are fully responsible for agents who act on their behalf. Acts or omissions of the agent are treated as acts or omissions of the lender.

  13. Attention! • The lender’s use of an agent will not prevent VA from taking actions in appropriate cases such as: • denial of liability • claim adjustments • collection of the amount of any loss incurred due to irregularities, and • imposition of sanctions against both the lender and the agent.

  14. Reference: VA Lenders Handbook Chapter 1, section 7

  15. Thank you for your interest in the VA Home Loan Program!

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