Form VA Form 26-8736 VA Form 26-8736 APPLICATION FOR AUTHORITY TO CLOSE LOANS ON AN AUTOMATIC

APPLICATION FOR AUTHORITY TO CLOSE LOANS ON AN AUTOMATIC
BASIS-NONSUPERVISED LENDERS
INFORMATION
No approval for nonsupervised lenders to close loans automatically may be made unless a completed
application form has been received (38 U.S.C. 3702 and 3710).
In every case the lender-applicant must submit VA Form 26-8736a, Nonsupervised Lender's Nomination and
Recommendation of Credit Underwriter, in addition to the following supporting exhibits to the application:
(1) Exhibit A: A resume of each principal officer's
experience in the mortgage lending field which details all experience in VA lending in a managerial capacity.
Presidents or vice presidents are always principal officers. If the secretary and/or treasurer participated in the
management of the mortgage operation or credit underwriting, they are also considered principal officers for
the purposes of this form.
(2) Exhibits B and C: Latest financial statements (profit and loss statements and balance sheets) audited and
certified by a CPA. If the date of the financial statement precedes that of the application by more than 6
months, a copy of the latest internal quarterly report must also be attached. (A minimum of $50,000 of
working capital or a minimum of $250,000 in adjusted net worth.)
(3) Exhibit D: A list of all permanent investors, including government agencies, to which the firm sells or for
which the firm services mortgages. Show effective dates of servicing contracts and provide addresses,
telephone numbers, and names of persons to contact. (If the lender-applicant customarily sells loans it
originates, it must have a minimum of 2 permanent investors.)

INSTRUCTIONS
Item 1. Enter legal name of lender-applicant
including street address and telephone number of
main office.

Item 10. List all lines of credit and the amount of
each. Lender-applicant must have one or more lines
of credit aggregating at least $1 million.

Item 2A and 2B. Self-explanatory.

Items 11A, B, C & D. Self-explanatory. If
additional space is required, use separate sheet.
Refer to Item number for each statement.

Item 3. Give date fiscal year begins for accounting
purposes.
Item 4. Applicants must have been actively engaged
in originating VA mortgages for at least 3 recent
years. Alternatively, the resume of each principal
officer of the firm who is actively involved in
managing origination and/or servicing functions
must show a minimum of 3 recent years total
managerial experience in the field of VA mortgages
in the present company or in previous employment.
There must must be no factors present which
indicate that the company would not exercise the
care and diligence required of a lender processing
automatically.
Item 7. If the owners of the company are not
involved in the daily operation, the business
affiliation or employer of the owner will be
indicated.

VA FORM
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26-8736

Item 12 and 13. Self-explanatory.
Item 14. The lender-applicant must designate at
least one qualified employee and an alternate to act
as liaison on its behalf with the VA Regional Offices
or Centers with which it does business.
Items 15, 16 & 17. Self-explanatory.

OMB Approved No. 2900-0252
Respondent Burden: 25 Minutes
Expiration Date: XXXXXXXX

APPLICATION FOR AUTHORITY TO CLOSE LOANS ON AN AUTOMATIC
BASIS NONSUPERVISED LENDERS
IMPORTANT - READ THE INFORMATION AND INSTRUCTIONS CAREFULLY BEFORE COMPLETING THIS FORM.
PRIVACY ACT INFORMATION: Non-supervised lenders cannot be approved to process loans on the automatic basis unless a completed application form
has been received (38 U.S.C. 3702 and 3710). VA will not disclose information collected on this form to any source other than what has been authorized
under the Privacy Act of 1974 or Title 38, Code of Federal Regulations 1.576 for routine uses (for example: authorize release of information to Congress when
requested on behalf of a lender) as identified in the VA system of records, 55VA26 , Loan Guaranty Home, Condominium and Manufactured Home Loan Applicant
Records, Specially Adapted Housing Applicant Records, and Vendee Loan Applicant Records - VA, published in the Federal Register.
RESPONDENT BURDEN: We need this information to help determine the qualifications of the lender to process loans on the automatic basis. Title 38, U.S.C.,
section 3702 and 3710 authorizes collection of this information. We estimate that you will need an average of 25 minutes to review the instructions, find the
information, and complete this form. VA cannot conduct or sponsor a collection of information unless a valid OMB control number is displayed. You are not
required to respond to a collection of information if this number is not displayed. Valid OMB control numbers can be located on the OMB Internet Page at
http://www.reginfo.gov/public/do/PRAMain. If desired, you can call 1-800-827-1000 to obtain information on where to send comments or suggestions about this form.
1. NAME AND ADDRESS OF LENDER-APPLICANT (Include telephone number of main office)

2A. APPLICANT WAS FOUNDED AS (Check one)
A CORPORATION, UNDER THE
LAWS OF: (specify)

2B. DATE FOUNDED

A PARTNERSHIP
REGISTERED: (specify)

INDIVIDUAL
PROPRIETORSHIP

3. DATE FISCAL YEAR
BEGINS

4. DATE APPLICANT WAS:
A. ACCEPTED AS VA LENDER

B. APPROVED AS FHA MORTGAGEE
(Furnish FHA number)

C. APPROVED AS FNMA/GNMA SELLER/SERVICER

5A. NAMES OF ALL PRINCIPAL OWNERS

6A. NAMES OF ALL DIRECTORS AND OFFICERS

5B. PERCENTAGE OF OWNERSHIP

6B. TITLE

6C. AREAS OF RESPONSIBILITY

7. NAMES AND FUNCTIONS OF ANY OTHER BUSINESS(ES) CONDUCTED BY OR AFFILIATED WITH THE FIRM OR ANY EXECUTIVE PERSONNEL

8. A DESCRIPTION OF THE FIRM'S OPERATION, INCLUDING, WHEN APPLICABLE, THE SERVICING OPERATION AND CAPABILITY TO MAKE PERSONAL
CONTACTS WITH BORROWERS IN DEFAULT

VA FORM
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26-8736

EXISTING STOCKS OF VA FORM 26-8736, SEP 2017,
WILL BE USED.

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9. LIST STATES WHERE VA LOANS ARE ORIGINATED

10. LIST WAREHOUSE LINES OF CREDIT, INDICATING AMOUNT OF EACH LINE

11A. WAS THE FIRM OR ANY OF ITS DIRECTORS
OR OFFICERS EVER SUSPENDED BY HUD OR
VA?
YES

NO

(If "YES," complete Item 11D)

11B. WERE ANY OF ITS DIRECTORS OR OFFICERS
A DIRECTOR OR OFFICER OF ANY OTHER
FIRM THAT WAS SUSPENDED WHILE UNDER
THE EMPLOYMENT OF THAT FIRM?
YES

NO

(If "YES," complete Item 11D)

11C. DID THE LENDER-APPLICANT EVER HAVE
A SERVICING CONTRACT WITH AN
INVESTOR TERMINATED FOR CAUSE, (e.g.
serious misconduct related to employment?)
YES

NO

(If "YES," complete Item 11D)

11D. COMPLETE STATEMENT OF FACTS

CLOSED IN PAST CALENDAR YEAR

CLOSED IN PAST 5 CALENDAR YEARS

12. NUMBER OF VA LOANS

13. NUMBER OF OTHER LOANS
(FHA or conventional)
14. NAME OF LIAISON OFFICER AND ALTERNATE TO ACT AS LIAISON ON THE FIRM'S
BEHALF WITH VA REGIONAL OFFICES AND CENTERS

15. NAME OF DESIGNATED UNDERWRITER(S)

CERTIFICATIONS
If this application is approved, the undersigned agrees and certifies that:
(1) It will comply with the provisions of title 38 USC, VA regulations and other directives issued by VA;
(2) It will notify the Secretary of Veterans Affairs and the Director of the Regional Office or Center in the area in which its main or branch office(s) is (or are)
located of any change in its corporate structure, operations, or financial condition which may have a bearing on its continued qualifications for authority to
close loans automatically;
(3) It will submit at any time to such examination of its records and accounts as the Secretary of Veterans Affairs may require;
(4) Its principal activity will be the originating, purchasing and servicing of real estate mortgages;
(5) It will promptly furnish VA any requested information;
(6) It will submit annual financial statements audited and certified by a CPA within 120 days following the end of its fiscal year;
(7) It will maintain a minimum of $50,000 of working capital or a minimum of $250,000 in adjusted net worth;
(8) It will not close loans on an automatic basis as a courtesy or accommodation for other mortgage lenders regardless of whether or not such lenders are
approved themselves to close on an automatic basis, nor will it close loans on the automatic basis for any builder, real estate brokerage firm or other entity
which it owns, is owned by, is affiliated with or has a financial interest in, without the express approval of the Department of Veteran Affairs;
(9) It will not process loans it does not itself intend to make;
(10) All prospective VA loans to be closed on an automatic basis will be reviewed and either approved or rejected by an approved underwriter;
(11) It will take responsibility for all credit information; i.e., credit report, verifications of employment and deposit, and disclose the sources of such
information;
(12) It will furnish upon request of the appropriate VA field station, a copy of its monthly delinquency reports pertaining to VA guaranteed loans being
serviced;
(13) It will use its automatic lending authority to the maximum extent possible; if not used, it will submit an explanation as to why a loan was processed
prior-approval;
(14) The foregoing is true to the best of my knowledge and belief and verification may be obtained from any source named herein.

16. SIGNATURE OF PRESIDENT OR PRINCIPAL OFFICER (Sign in ink)

VA FORM 26-8736, XXXX

17. DATE SIGNED

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