Mortgage lenders that make government-guaranteed loans to current and previous members of the military will soon be subject to new submission requirements.
Mortgage lenders can currently submit home loans for review by the Department of Veterans Affairs Loan Guaranty Service in two forms.
Reviews are conducted each month on randomly selected loan files, as well as on loans with certain characteristics, as part of VA’s quality control system in order to ensure lenders are complying with regulations and policies.
One of the currently acceptable forms of submission for VA lenders is by delivering a hard copy of the mortgage loan file.
The second acceptable form is by uploading the file electronically.
However, the department will no longer accept hard-copy submissions.
According to a Federal Register filing Monday, VA said that all loan files will be required to be electronically uploaded.
“To further take advantage of this technology and create a process for targeted reviews that will streamline the loan review process, LGY is implementing a new policy with regard to lender submission of loan files,” the public filing stated.
The new requirement goes into effect on Jan. 1, 2014.
