VA Form 26-8736 Application for Authority to Close Loans on an Automatic

APPLICATION FOR AUTHORITY TO CLOSE LOANS ON AN AUTOMATIC
BASIS - NON-SUPERVISED LENDERS
INFORMATION
No approval for non-supervised 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 the following, completed VA Forms:
1.
2.
3.
4.

26-8736, Application for Authority to Close Loans on an Automatic Basis Non-Supervised Lenders
26-8736a, Non-Supervised Lender's Nomination and Recommendation of Credit Underwriter
26-8736c, Request for Agent Recognition (if applicable)
26-8812, VA Equal Opportunity Lender Certification

INSTRUCTIONS
Part I. Checklist of Application Requirements: Lender-applicant to complete checklist to ensure all necessary
VA Forms, documentation and application fees are completed and submitted.
Part II. Application Information: Self Explanatory. Lender-applicant to complete information and provide
supporting documentation.
Part III. Lender Point of Contact (POC) Information: Self Explanatory. If additional space is required, use
separate sheet.
Part IV. Lender Certifications & Acknowledgments: Check the appropriate box next to each certification and
acknowledgment and sign and date.

VA FORM
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26-8736

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

APPLICATION FOR AUTHORITY TO CLOSE LOANS ON AN AUTOMATIC
BASIS NON-SUPERVISED 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 OF LENDER (Include any DBA name and supporting documentation)

2. MAILING ADDRESS (Street, suite (if applicable), city, state, ZIP Code)

3. TELEPHONE NUMBER (Home office) 4. WEB ADDRESS

5. HOME ADDRESS (Home office)

PART I: CHECKLIST OF APPLICATION REQUIREMENTS (These must be submitted by the lender.)
VA Form 26-8736, Application for Authority to Close Loans on an Automatic Basis Non-Supervised Lenders (Attach additional sheets as necessary.)
FINANCIAL STATEMENTS (Most recent Profit and Loss Statements and Balance Sheet)
Financial statements should show sufficient working capital or adjusted net worth: VA requires a minimum of $50,000 of working capital or minimum of $250,000
in adjusted net worth. The statements should be:
A. AUDITED AND CERTIFIED BY A CPA
B. DATED WITHIN 6 MONTHS OF THE APPLICATION DATE (If the date of the financial statement precedes that of the application by more than 6 months, a
copy of the latest internal financial statement should also be included.)
RESUME OF EACH PRINCIPAL OFFICER
Resumes should include details pertaining to the officer's experience in VA lending in a managerial capacity.
A. RESUMES FOR PRESIDENT AND VICE PRESIDENT
B. OTHER OFFICERS (If the Secretary, Treasurer, or other officer participates in management of the mortgage operations or credit underwriting, they are also
considered principal officers for the purposes of this form.)
LENDER-APPLICANT EXPERIENCE (Experience must be met by one of the following):
A. COMPANY EXPERIENCE - Lender-applicant actively engaged in originating VA loans for at least two years and firm originated and closed a minimum of 10
VA loans (excluding IRRRLs); or firm actively originating and closing VA loans for less than 2 years and firm originated and closed at least 25 VA loans
(excluding IRRRLs).
B. PRINCIPAL OFFICER EXPERIENCE - Each principal officer who is actively engaged in managing VA origination functions must have at least 2 recent
years management experience in the most recent 5 years.
C. EXPERIENCE - Lender-applicant actively operating as a VA approved agent for an automatic lender (sponsor) for 2 years and originated a minimum of 10
VA loans; or firm actively operating as a VA approved agent for an automatic lender (sponsor) for less than 2 years and originated a minimum of 25 VA
loans each year and verifying the quality and compliance of the loans with VA requirements and procedures.
DOCUMENTATION OF REQUIRED LINE(S) OF UNRESTRICTED CREDIT (AT LEAST $1 MILLION)
Written documentation from creditor(s) must include:
A. POINT OF CONTACT FOR EACH CREDITOR INCLUDING NAME(S), ADDRESS, TELEPHONE NUMBER, AND E-MAIL; AND,
B. AMOUNT AND UNRESTRICTED NATURE OF THE LINE OF CREDIT
DOCUMENTATION OF PERMANANENT INVESTORS (AT LEAST 2)
Written documentation must include:
A. POINT OF CONTACT FOR EACH INVESTOR INCLUDING NAME(S), ADDRESS, TELEPHONE NUMBER, AND E-MAIL; AND,
B. VERIFICATION OF EFFECTIVE DATES OF SERVICING CONTRACTS.
VA FORM(S) 26-8736A AND RESUME FOR EACH NOMINATED UNDERWRITER
At least one underwriter nomination is required. Nominated underwriters must have a minimum of 3 years experience in processing, pre-underwriting, or
underwriting, with at least 1 recent year making underwriting decisions on VA loans. Alternatively, underwriters may meet the experience requirement if they are
a Certified Residential Underwriter (CRU) or Accredited Residential Underwriter (ARU) by the Mortgage Bankers Association.
QUALITY CONTROL PLAN (QC) THAT MEETS VA REQUIREMENTS
The QC plan must meet VA requirements as specified in VA Pamphlet M26-7, VA Lenders Handbook Chapter 1.
COMPLETED VA FORM 8812
APPLICATION FEE: $500 made payable to the Department of Veterans Affairs
VA FORM
XXXX

26-8736

EXISTING STOCKS OF VA FORM 26-8736, JUL 2020,
WILL NOT BE USED.

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PART II: APPLICATION INFORMATION
6. SUPERVISION: Is the lender-applicant periodically reviewed, audited, or under the 7. VA LENDER ID: Has the Lender-applicant previously been approved as a VA
authority of any other government agency - state or Federal agency (Check one)
Lender or Agent? (Check one)
NO

YES (Specify):

NO

YES (Provide VA-ID Number):

8. LENDER WAS FOUNDED AS: (Check one)
A CORPORATION UNDER THE LAWS OF: (Specify)
A PARTNERSHIP REGISTERED: (Specify)

9. DATE FOUNDED

INDIVIDUAL PROPRIETORSHIP
10. FEDERAL TAX IDENTIFICATION NUMBER 11. DATE FISCAL YEAR BEGINS 12. UNIQUE ENTITY IDENTIFIER (UEI)

14. BUILDER RELATIONSHIP: Is the lender-applicant affiliated with a builder? (Check one)
NO

YES (Specify):

Builder name:

15. GNMA/FNMA (Date approved as
FNMA/GNMA Seller/Servicer):

Tax ID:

16A. PRINCIPAL OWNERS: Names of all owners (Attach resumes)

17A. PRINCIPAL OFFICERS AND DIRECTORS

13. FHA MORTGAGEE NUMBER
(If applicable)

16B. PERCENTAGE OF OWNERSHIP

17B. TITLE

17C. AREA(S) OF RESPONSIBILITY

Name:
Telephone Number:
Email:
Name:
Telephone Number:
Email:
Name:
Telephone Number:
Email:
Name:
Telephone Number:
Email:
18. OTHER BUSINESSES: Names and functions of any other business(es) conducted by or affiliated with the firm or any executive personnel (include mailing
address if different), telephone number, and e-mail address.

19. OPERATIONS: A description of the firm's operation(s), including, when applicable, the servicing operation and capability to make personal contacts with borrowers
in default.

20. STATES WHERE VA LOANS WILL BE ORIGINATED

21. LINES OF CREDIT: Amount of warehouse lines of credit, indicating amount of each line (Attach supporting documentation):
VA FORM 26-8736, XXXX

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PART II: APPLICATION INFORMATION (Continued)
22. NAME OF TWO PERMANENT INVESTORS (Attach documentation):

23. HAS THE FIRM OR ANY OF ITS DIRECTORS OR 24. WERE ANY OF ITS DIRECTORS OR OFFICERS
A DIRECTOR OR OFFICER FOR ANY OTHER
OFFICERS EVER BEEN SUSPENDED BY HUD
FIRM THAT WAS SUSPENDED WHILE UNDER
OR VA?
THE EMPLOYMENT OF THAT FIRM?
NO

YES (If "Yes," attach a complete
statement of the facts)

26A. NUMBER OF VA LOANS CLOSED

NUMBER OF OTHER
LOANS CLOSED
(FHA, Conventional, etc.)

NO

25. DID THE LENDER-APPLICANT EVER HAVE A
SERVICING CONTRACT WITH AN INVESTOR
TERMINATED FOR CAUSE (e.g. serious
misconduct related to employment)?
NO

YES (If "Yes," attach a complete
statement of the facts)

26B. LOANS CLOSED IN THE PAST YEAR

YES (If "Yes," attach a complete
statement of the facts)

26C. LOANS CLOSED IN THE PAST 5 YEARS

PURCHASE

REFINANCE

IRRRL

PURCHASE

REFINANCE

IRRRL

PURCHASE

REFINANCE

STREAMLINE
REFINANCE

PURCHASE

REFINANCE

STREAMLINE
REFINANCE

27A. UNDERWRITER(S): Name(s) of designated VA Underwriter(s) (Attach VA Form 26-8736a for each nominated
underwriter)

27B. UNDERWRITER/SAR ID:

PART III: LENDER POINT OF CONTACT (POC) INFORMATION
28A. PRIMARY POC
(For application processing)

Name:
Telephone Number:
Email:

28B. LENDER ADMINISTRATION CONTACT
(Agent approvals and/or yearly billing)

Name:
Telephone Number:
Email:

28C. MANAGEMENT LIAISON

Name:
Telephone Number:
Email:

28D. LOAN/QUALITY REVIEW CONTACT

Name:
Telephone Number:
Email:

28E. STAFF APPRAISAL REVIEWER (SAR) CONTACT

Name:
Telephone Number:
Email:

28F. UNDERWRITER CONTACT

Name:
Telephone Number:
Email:

VA FORM 26-8736, XXXX

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28G. SAR QUALITY REVIEW CONTACT

Name:
Telephone Number:
Email:

28H. EARLY DEFAULT/FILE CONTACT

Name:
Telephone Number:
Email:

28I. QUALITY REVIEW FILE REQUEST

Name:
Telephone Number:
Email:

PART IV: LENDER CERTIFICATIONS AND ACKNOWLEDGEMENTS
IF THIS APPLICATION IS APPROVED, THE UNDERSIGNED AGREES AND CERTIFIES THAT:
29. I CERTIFY I AM A CORPORATE OFFICER AND/OR PRINCIPAL OWNER OF THE ABOVE-NAMED LENDER-APPLICANT WITH THE AUTHORITY TO
LEGALLY BIND THE LENDER-APPLICANT TO EXECUTE THESE CERTIFICATIONS AND ACKNOWLEDGMENTS ON BEHALF OF THE APPLICANT.
30. I CERTIFY THE LENDER-APPLICANT IS NOT SUBJECT TO ANY ASSESSMENTS OF CONTINGENT LIABILITIES NOT DISCOLOSED IN ITS FINANCIAL
STATEMENTS.
31. THE LENDER-APPLICANT'S PRIMARY ACTIVITY WILL BE THE ORIGINATION, PURCHASING, AND SERVICING OF REAL ESTATE MORTGAGES.
32. THE LENDER-APPLICANT WILL COMPLY WITH THE PROVISIONS OF TITLE 38 U.S.C., VA REGULATIONS, AND OTHER DIRECTIVES ISSUED BY VA.
33. IF SUBSEQUENTLY THE LENDER-APPLICANT FAILS TO MEET ANY REQUIREMENT OF 38 CFR 36.4352, IT WILL IMMEDIATELY REPORT TO VA THE
CIRCUMSTANCES AND THE REMEDIAL ACTION PLAN TO CURE IT.
34. THE LENDER-APPLICANT WILL NOTIFY VA 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.
35. THE LENDER-APPLICANT WILL NOTIFY VA UPON A MERGER OR ACQUISITION OF THE APPROVED LENDER-APPLICANT.
36. THE LENDER-APPLICANT WILL NOTIFY VA OF ANY CHANGES OF EMPLOYMENT AS TO THE PRINCIPAL OFFICER, DIRECTORS, UNDERWRITER,
AND STAFF APPRAISER REVIEWERS (SAR).
37. THE LENDER-APPLICANT WILL SUBMIT ANNUAL FINANCIAL STATEMENTS AUDITED AND CERTIFIED BY A CPA WITH 120 DAYS FOLLOWING THE END
OF ITS FISCAL YEAR.
38. THE LENDER-APPLICANT WILL SUBMIT YEARLY THE ANNUAL RENEWAL FEE(S).
39. THE LENDER-APPLICANT WILL MAINTAIN A MINMUM OF $50,000 OF WORKING CAPITAL OR MINIMUM OF $250,000 IN ADJUSTED NET WORTH.
40. THE LENDER-APPLICANT WILL SUBMIT, AT ANY TIME, TO SUCH EXAMINATION OF ITS RECORDS AND ACCOUNTS AS THE SECRETARY OF
VETERANS AFFAIRS MAY REQUIRE.
41. THE LENDER-APPLICANT WILL PROMPTLY FURNISH VA ANY REQUESTED INFORMATION AND DOCUMENTION.
42. THE LENDER-APPLICANT WILL FURNISH UPON REQUEST OF VA, A COPY OF ITS MONTHLY DELINQUENCY REPORTS PERTAINING TO VA
GUARANTEED LOANS BEING SERVICED.
43. ALL PROSPECTIVE VA LOANS CLOSED ON AN AUTOMATIC BASIS WILL BE REVIEWED AND EITHER APPROVED OR REJECTED BY A VA-APPROVED
UNDERWRITER.
44. THE LENDER-APPLICANT 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
AFFILIATED WITH OR HAS A FINANCIAL INTEREST IN, WITHOUT THE EXPRESS WRITTEN APPROVAL FROM VA.
45. THE LENDER-APPLICANT WILL NOT PROCESS LOANS IT DOES NOT ITSELF INTEND TO MAKE.
46. THE LENDER-APPLICANT WILL TAKE RESPONSIBILITY FOR ALL CREDIT INFORMATION, I.E., CREDIT REPORT, VERIFICATIONS OF EMPLOYMENT
AND DEPOSITS, AND DISCLOSE THE SOURCES OF SUCH INFORMATION.
47. THE LENDER-APPLICANT WILL USE ITS AUTOMATIC AUTHORITY TO THE MAXIMUM EXTENT POSSIBLE, IF NOT USED, IT WILL SUBMIT AN
EXPLANATION FROM AN APPROVED VA UNDERWRITER AS TO WHY A LOAN WAS NOT PROCESSED UNDER ITS AUTOMATIC AUTHORITY.
48. THE LENDER-APPLICANT WILL NOT USE ANY PUBLICITY, ADVERTISING PLAQUES, OR OTHER DEVICES WHICH IMPLY A SPECIAL RELATIONSHIP
WITH THE DEPARTMENT OF VETERANS AFFAIRS.
49. I HEREBY CERTIFY THAT ALL OF THE INFORMATION I HAVE PROVIDED ON THIS FORM AND ANY ACCOMPANYING DOCUMENTATION IS TRUE
AND ACCURATE TO THE BEST OF MY KNOWLEDGE AND BELIEF. I ACKNOWLEDGE THAT IF I KNOWINGLY HAVE MADE ANY FALSE, FICTITIOUS, OR
FRAUDULENT STATEMENT, REPRESENTATION, OR CERTIFICATION ON THIS FORM ON ANY ACCOMPANYING DOCUMENTS, I AS WELL AS THE
APPLICANT MAY BE SUBJECT TO ADMINISTRATIVE ACTIONS, AS WELL AS CIVIL AND CRIMINAL PENALTIES, INCLUDING FINES AND/OR
IMPRISONMENT, UNDER APPLICABLE FEDER LAW, INCLUDING BUT NOT LIMITED TO 18 U.S.C. 1001, 1010, AND 1012, AND 31 U.S.C. 3729 AND 3802.
50. SIGNATURE OF PRESIDENT OR PRINCIPAL OFFICER

VA FORM 26-8736, XXXX

51. DATE SIGNED

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