Department of Veterans Affairs
Puerto Rico Lender Training
ST Petersburg Regional Loan Center
888-611-5916
PRESENTED BY
REGIONAL LOAN CENTER
ST. PETERSBURG, FLORIDA
Sharon Glanton-Davis, LPO
Monica Collins, ALPO
Steven Roberts, ALPO
Objective
To provide program participants a better understanding of how to
process and underwrite VA Loans.
AND
How to navigate the VA Portal and utilize its resources to make the VA
Home loan process easier.
VA Regional Loan Center
QUESTIONS CONTACT THE VA
Go to WWW.BENEFITS.VA.GOV/HOMELOANS/
Lender’s Handbook
CALL 1-888-611-5916, or email fl/homeloan@vba.va.gov
The Lender’s Handbook is referenced throughout this presentation
Refer to Websites information on handouts
Where we are Today
 Find
 Go
A Home
to a lender
 Close 14-21 Days
Register in the VA Portal
 Go
to WWW.BENEFITS.VA.GOV/HOMELOANS/
 Access VA Portal and Register
 Must have a VA Lender ID
 See handout for registration process
WHY A VA LOAN?
 No
Down Payment for loans less than $417,000
 No
Mortgage Insurance Premium
 Limitation
 No
on Buyer’s Closing Cost
prepayment penalty
 Servicing is
available through the VA to avoid foreclosures. Check Portal
for VALERI updates. Borrowers should contact lender first.
Obtain A Certificate of Eligibility
Complete VA Form 26-1880
Access WEBLGY to get electronic COE (through the VA Portal) at
WWW.BENEFITS.VA.GOV/HOMELOANS/, or WWW.VIP.VBA.VA.GOV
Upload supporting documents , Forms 26-1880, DD214 (member 4) and Statement of Service.
Satisfaction of Mortgages, Recorded Deeds and HUD 1 will support restorations of
entitlement
Mail the Certificate of Eligibility application to:
Atlanta Regional Loan Center Attn: COE (262)
PO BOX 100034
Decatur, GA 30031 Toll Free 888-768-2132
EMAIL:HTTPS//IRIS.VA.GOV
ACE-Automated COE
 Access
Internet based application through the VA Portal
WWW.VIP.VBA.VA.GOV
 See
Applications select WEBLGY, proceed to Eligibility, and Create a Record.
Input information according to military service records data, i.e. Form DD214 . To
avoid electronic errors, documents must be uploaded into (WEBLGY). See pg 15
handout
 Maximum
guaranty amount is now $104,250 or 25% of conforming loan limit for
purchase up to $417,000
See Handout Pgs 15-21
Surviving Spouse COE
applying for the first time submit form 26-1817 to:
Atlanta Regional Loan Center
Attn: COE (262)
PO BOX 100034 Decatur, GA
30031
 Only paper applications accepted by mail. This process may be
lengthy. Please submit immediately.
 If
Chapter 2.3, M26-7
Restoration of Entitlement

When entitlement is used, it must be restored to obtain a 25% guaranty.

Complete VA Form 26-1880 and provide proof of service (upload all documents into WEBLGY)
AND

Provide proof of loan payoff and disposal of property, ie;
HUD 1
Recorded Satisfaction of Mortgage
Recorded copy of Deed
Release of Deed of Trust (Cancellation)
Chapter 2-3, M26-7
Formula for Entitlement
Basic Entitlement

A Veteran’s basic entitlement is $36,000

Loans greater than $144,000 the Maximum
Guaranty amount is 25% of the loan
amount, up to $104,250
See Handout Pg 33
Bonus Entitlement
Loan amount
$417,000 X .25%= 104,250
Max Entitlement
104,250-36000= 68,250
Bonus Entitlement
New Loan Amount
$273,000
68,250 X 4= $ 273,000
Verification of Benefits

The Veteran’s Exempt Status is now verified on the Certificate of Eligibility. Please refer
to circular 26-11-11. See Handout

Since FF status is shown on the COE, lenders in most cases will no longer be required
to fax VA Form 26-8937 to VA for processing.

Do not send the form if the veteran does not indicate they receive service-connected
disability benefits from VA.
Circular 26-11-11
See Handout Pgs 21-23-24
ORIGINATION PROCESS
Once you determine the borrower is an
eligible Veteran and have obtained a
COE/ACE, begin the application
process.
Please Obtain COE/ACE and Verification
of Benefits early-not the day of closing.
Eligible Loan Purposes



Purchase or construct a home
Refinance
IRRRL (streamline or rollover)
Cash-Out Refinance-(up to 100%
existing property value, must
occupy)
Install Energy-related features
True or false- A vet may use their benefit to purchase land only?
Chapter 3 Pgs. 3-5
Chapters 6-7
Loan Processing










COE/ACE IS OBTAINED PROCEED TO:
Complete all required forms (CH 5)
Verify credit is satisfactory (CH 4)
Obtain appraisal & Notice of Value NOV (CH 13)
Obtain VOE’S and AUS-if used (CH 4)
Asset verification if needed (CH 4)
Obtain Veteran’s (if exempt) Status (COE)
Seller Concessions and allowable closing fees (CH 8) See Handout
Calculate funding fee (CH 8) (Circular26-11-15 )
Close the loan
VA Required Documentation





CAIVRS
AUS (Automated underwriting Print
out, Data Integrity).
Debts and obligations (Credit reports)
NOV Notice of Value/Appraisal
Loan Application URLA
Verified, available income, 2 years
minimum
 Occupancy
 Assets
 Adverse Data
(Credit)
 Form 26-6393 Loan Analysis

Chapter 4, M26-7
Occupancy Requirement
 The
veteran borrower must intend to occupy the home as his/her
primary residence
 This
must be indicated on VA Form 26-1820 at closing
spouse is the “only” other person that can satisfy the occupancy
requirement
 The
Chapter 3, M26-7
Debts and Obligations

Significant Debts must be deducted from effective income to determine repayment
ability. Form 26-6393

1 full month of paystubs may reveal additional unreported debts such as alimony,
garnishment, etc.

Analyzing Credit, Adverse data, supporting documents are required
Chapter 4, M26-7
APPRAISALS
 Order
appraisals through VA Portal at
HTTP://WWW.VIP/VBA/VA/GOV/PORTAL/
Webgly, Go into Loan- Request appraisal. Select Lapp for Automatic
Lenders or IND if Prior approval. Indicate LGI if liquidation appraisals and
Submit.
 Select
 Complete
application with correct information and submit. The system will
generate a VA request for determination of reasonable value (form 26-1805) See
Handout
Chapter 12-13, M26-7
Appraisal Requirements

Sales contract , must
provide a complete
copy to appraiser,
failure to provide will
hold assignment.

Title Study and Legal
Description, lender
must provide complete
legal on the 1805

Burglar Bars – VA no
longer offering waivers.
Release on at least
one window per room
or rapid egress

Wood destroying Insect
info not required unless
part of the property
constructed of Wood
See C & V Manual
REFINANCING
Refer
to chapter 6
Check occupancy rules
Verify active VA Loan
Cash Out–up to 100% value, credit, appraisal and occupancy
required.
IRRRL- No credit, No Appraisal required.
Chapter 6 M26-7
Submitting Loan Package

WEBLGY is programmed to mark every
10th case for full review/audit as required in
MP26-1

Provide full package to the RLC when
WEBLGY shows “YES” in the top right
corner (shows once the loan has been
guaranteed)

If submitting package to VA for LGC
(Loan Guaranty Certificate), provide
documents required per Modified
Submission Packages

IRRRL or Cash Out Refinance-refer to
Chapter 6 and provide required documents
Chapter 5, M26-7 Pgs 1-23
Submitting loan package

Cash out refinance loans must have entitlement restored prior to obtaining LGC
for the new loan. Only VA has the authority and ability to restore entitlement.

Entitlement needs to be restored in order to obtain 25% guaranty.
Chapter 5 M26-7 Pgs. 1-23
Allowable Fees and Charges
 Pay
VA Funding Fee (unless exempt). Circular 26-11-15
 1%
flat charge from lender
 See
Chart, Handout pg. 35
Chapter 8 M26-7
See Handout Pgs. 27-30
VA Funding Fee


The basic funding fee for a first-time user is 1.40% of the loan amount as of November
18, 2011 (See Circular 26-11-15 for changes)
The funding fee for Reserves/Guard is 1.65%
(Effective November 18, 2011)

For subsequent use, except for IRRRLS the funding fee is 2.8%

The funding fee for an IRRRL or an assumption is .50%
See Circular 26-11-15
Handout Pgs. 28-30
Funding Fee System

The funding fee is paid electronically by the lender within 15 days of closing. FFPS
requires a password to access. FFPS can be accessed at https://va.pay.gov.

The lender must obtain a Vendor ID number. Call Funding Fee Helpline at 1-800624-1373, or email pay.gov.clev@clev.frb.org

All VA loans, including exempt cases must show a funding fee record in order to
obtain a Guaranty.
See Handout Pg. 31
To Issue Automatic Guaranty LGC
A
Loan Guaranty Certificate ( LGC) is obtained by automatic lenders thru the
WEBLGY System.
into VA Portal www.benefits.va.gov/homeloans/. Select Weblgy. Go into Loan,
enter New Loan, select the Automatic option and submit all information required as
per loan closing documents.
 Log
 All
data must coincide with Certificate of Eligibility, Property information and
funding fee system. Next submit. Loan Guaranty Certificate will be generated in
seconds.
See Handout Pg. 32
LENDER MAINTENANCE

Lenders and agents must be
approved by VA

Yearly corporate company financial
statements are required

Mergers and acquisitions are
submitted to VA Central Office

Online training required for underwriters

Information, forms may be obtained on VA
website www.benefits.va.gov/homeloans/

Payment of fees is to defray costs
See Handout Pgs. 36-43
Chapter 1 M26-7


Supervised lenders require VA
approval. However they are supervised
by entities other than VA. Examples
are Banks and Credit Unions.
VA Agents require a VA Lender ID
number. Agents must be approved by
a sponsor with Supervised or Non
Supervised Automatic Authority. For
Applications call 1-888-611-5916
VA LENDERS
o
o
Prior Approval lenders also require a VA
Lender ID Number. All packages must be
submitted to VA for processing prior to
closing the loan.
Chapter 1, Lenders Handbook
Notary Fees Puerto Rico



Refer to Serial letter 317-26-1 issued July 17, 2010.
Puerto Rico Notarial Act Law 43 of July 23, 2009. Letter sets the
maximum Abogado-Notary fees payable by veterans at closing of home
purchases in Puerto Rico, Vieques and Culebra.
See handout or call 1-888-611-5916.
Thank You
 Questions
 Discussion