Presentation on theme: "Department of Veterans Affairs Puerto Rico Lender Training ST Petersburg Regional Loan Center 888-611-5916."— Presentation transcript:
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 QUESTIONS CONTACT THE VA Go to WWW.BENEFITS.VA.GOV/HOMELOANS/ WWW.BENEFITS.VA.GOV Lender’s Handbook CALL 1-888-611-5916, or email email@example.com The Lender’s Handbook is referenced throughout this presentation Refer to Websites information on handouts
Where we are Today Find A Home Go to a lender Close 14-21 Days
Register in the VA Portal Go to WWW.BENEFITS.VA.GOV/HOMELOANS/ 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 on Buyer’s Closing Cost No 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 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 If 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. 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 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 Satisfaction of Mortgage Recorded copy of Deed Recorded copy of Deed Release of Deed of Trust (Cancellation) Release of Deed of Trust (Cancellation) Chapter 2-3, M26-7 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 68,250 X 4= $ 273,000 New Loan Amount $273,000
Verification of Benefits Exempt Status The Veteran’s Exempt Status is now verified on the Certificate of Eligibility. Please refer to circular 26-11- 11. See Handout lenders will no longer be required to fax 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 The spouse is the “only” other person that can satisfy the occupancy requirement 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/ HTTP://WWW.VIP/VBA/VA/GOV/PORTAL/ Select Select Webgly, Go into Loan- Request appraisal. Select Lapp for Automatic Lenders or IND if Prior approval. Indicate LGI if liquidation appraisals and Submit. 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. complete legal 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 10 th 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 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) (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. https://va.pay.gov The lender must obtain a Vendor ID number. Call Funding Fee Helpline at 1-800-624-1373, or email firstname.lastname@example.org email@example.com All VA loans, including exempt cases must show a funding fee record in order to obtain a Guaranty 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. VA Portal Log 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.www.benefits.va.gov/homeloans/ 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 Mergers and acquisitions are submitted to VA Central Office Payment of fees is to defray costs Yearly corporate company financial statements are required Online training required for underwriters Information, forms may be obtained on VA website www.benefits.va.gov/homelo ans/ www.benefits.va.gov/homelo ans/ 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 Prior Approval lenders also require a VA Lender ID Number. All packages must be submitted to VA for processing prior to closing the loan. o 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.