Written By: Bonnie Wilt-Hild, Op-Ed Writer
I was recently asked if I had a checklist that would assist processors newer to the government processing arena that covered information pertinent to processing mortgages guaranteed by The Department of Veterans Affairs. Needless to say, I didn’t, which is why I thought this week would be a good time to invent such a checklist. It should be understood that a lot of the investors in the secondary market have their own submission format and that this should be followed whenever possible but for those of you that are working with investors with no particular preference, this is the best format from an underwriting standpoint. I also have included disclosure information for those of you who are still a little unsure of the compliance piece.
The following is a document order from top to bottom which would be acceptable in most cases and covers for documentation credit qualifying cases. Needless to say, the IRRRL’s require significantly less documentation so just modify this as needed.
- Assignment Letter/Submission Cover Letter
- VA Loan Analysis (Should be complete)
- Final Typed 1003 and 26-1802a (addendum to the application)
- Initial 1003 and 26-1802a (signed and dated where appropriate by borrowers)
- Patriot Act information
- VA Case number assignment
- Clear CAIVRS Information
- Certificate of Eligibility
- Veterans DD214
- Verification of VA Benefits if veteran is exempt from the VAFF
- Credit report
- Supporting credit information such as BK papers, explanations etc.
- Verification of Employment (Verbal is OK)
- Paystubs Documenting one full month of earnings
- W-2 Wage statements for the most recent two tax years.
- 2 years most recent tax returns with all schedules for self employed borrowers
- Year to Date profit and loss
- Copies of tax transcript information for the most recent two tax years.
- Any required explanations regarding employment or income
- Cancelled Earnest money deposit check
- Copies of Bank statements for the most recent 60 day indicating sufficient funds to close.
- VOD supported by 30 days of bank statements if one was obtained.
- Gift letter and evidence of the transfer of the gift.
- Explanations pertaining to assets if required.
- Contract of Sale including VA amendatory language.
- Notice of Value from LAPP approved lender or Dept of VA Affairs signed by SAR
- Appraisal supporting Notice of Value
- Good Faith Estimate of Settlement Charges & Truth in Lending disclosure
- Servicing Transfer Disclosure
- VA Interest Rate Disclosure
- Federal collection policy disclosure
- VA Assumption policy disclosure
- VA counseling Checklist
- VA for 26-1880 signed by the borrower
- All other state and federal disclosures as required by law
This is a pretty comprehensive checklist where required documentation is concerned but keep in mind there may be instances where additional documentation is concerned such as divorce decrees in the case of child support and child care letters in the event that the borrowers have minor children and are employed out of the home. If you have these documents place them in the file where appropriate such as in the income area or possibly behind the credit report. Hoping this helps and as always, happy processing.
About The Author
Bonnie Wilt-Hild - As an op-ed writer, Bonnie has held many mortgage underwriting positions, including Senior FHA DE Underwriter for a major lending institution. With over 25+ years of senior-level FHA/VA Government underwriting experience, Bonnie is considered the "Queen of FHA Loans".