Written By: Tracey Rumsey, Staff Writer, MortgageCurrentcy.com.
Big Changes were announced at the VA Lender Conference this year that relate to changes in the credit underwriting. If you do VA business this is a MUST read for your business!
The Veterans Administration (VA) held their 2018 lenders conference in April this year, and this yearís conference offered a bit more excitement than previous years. MortgageCurrentcy.com doesnít typically report on any agency policies until they are officially released in writing through Circulars, Mortgagee Letters, Selling Guide Bulletins, etc., but weíre making an exception in this case. This yearís conference had VA personnel announcing a number of changes, additions and clarifications to Chapter 4 (Credit Underwriting) of the Lenderís Handbook (Pamphlet 26-7) that are to be published in June 2018 (a more specific date was not provided). VA stated that all of the announced changes could be utilized immediately.
Quick backstory: Unfortunately, VA does not update their Lenderís Handbook very often. According to their ĎChangesí documentation on the Lenderís Handbook page, the last update took place in 2012. This requires both originators and underwriters to constantly refer to the Lenderís Handbook while subsequently checking all the VA Circulars for the last 6 years to be sure they arenít missing a policy change in there somewhere. In VAís defense, they rarely make significant underwriting policy changes.
Because of VAís lack of real-time updates, some of the updates to the Credit Underwriting chapter are not new. They are just finally adding guidance previously announced in Circulars.
They also announced edits happening with Chapter 10 (Property Eligibility and Appraisal Requests) of the Lenderís Handbook, but we didnít really see any of those as particularly impactful to the eligibility or approval process. Their improved customer service and attention to timeliness focus is noted in these changes, but they donít directly affect your borrowerís eligibility for a VA loan.
Rather than provide you with their 34-page Power Point presentation on the Credit Underwriting changes we decided to create a consolidated matrix of the changes that gives you the new and prior (if any) guidance on a topic. This gets you down to 7 pages of information that will make for great staff meeting fodder when carefully coupled with appropriate refreshments.
However, my originator/credit policy brain just has to cut to the chase and given you a few key bullet points in case you donít print out the matrix or attend the aforementioned refreshment-laden staff meeting:
NOTE: MortgageCurrentcy.com has provided their subscribers with a VA Matrix Reference Guide. In addition, they have a ton of other reference charts so you donít have to refer to the handbooks. Consider subscribing to this ezine to keep up to date on the latest rule updates.
Written By: Tracey Rumsey