source:
  type: regulation
  id: va-m26-7-ch16
  authority: "VA Lender Handbook M26-7 Chapter 16 — Common Interest Communities, Condominiums and Planned Unit Developments"
  description: 'VA Pamphlet 26-7 Chapter 16 governs VA loans in CIC, condos, and PUDs.

    '
obligations:
- id: va-m26-7-ch16-condo-va-approved-before-guaranty
  canonical_id: va-m26-7-ch16-condo-va-approved-before-guaranty
  section: "VA M26-7 Ch. 16 — Basic VA Requirements; Condominium VA-Approval Prerequisite"
  description: 'Condominiums (but not PUDs) must be approved by VA before any lots

    or units in the project are eligible for VA loan guaranty.

    [UNDERWRITER] must confirm VA project approval for the specific

    condominium before issuing the Notice of Value or requesting

    guaranty.

    '
  type: do
  audit_question: For every VA loan secured by a condominium unit, can [UNDERWRITER] evidence that the condominium project itself was VA-approved before the unit was treated as eligible for VA loan guaranty?
  workflow_phase: origination
  owner_role: compliance_officer
  secondary_owner_role: underwriter
  cadence: per_loan
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - va
  - m26-7
  - ch16
  - condominium-approval
  - promoted
  primary_source:
    tier: 1
    authority: "VA Lender Handbook M26-7 Chapter 16 — Common Interest Communities, Condominiums and Planned Unit Developments"
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: fa6bc474102677f3
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:94d5d69fd84d66a208d2f9f76ceac8b3879dde5fbf0e75e36e00ce879ee16f21
    paragraph_quote: 'condominium. Also, condominiums (but not PUDs) must be approved by VA before any '
    drafter_attestation: "Copied verbatim from VA Handbook snapshot fa6bc474102677f3 (M26-7 Ch. 16 — Condominium VA-approval prerequisite) at 2026-05-23. Source PDF retrieved via Wayback Machine."
  promoted_at: '2026-05-23T02:16:49+00:00'
  promoted_from: va-m26-7-ch16-roundb-v1.yaml
  program_review: Does the program ensure a condominium project (but not a PUD) is VA-approved before any unit is treated as eligible for guaranty, with confirmation before NOV issuance / guaranty request?
  file_review: Spot-check condo loans; confirm VA project approval preceded treating the unit as guaranty-eligible.
  judgment: false
- id: va-m26-7-ch16-hoa-assessment-subordinate
  canonical_id: va-m26-7-ch16-hoa-assessment-subordinate
  section: "VA M26-7 Ch. 16-A.01 — HOA Assessment Subordinate to VA Mortgage"
  description: 'When a property is located in a condominium or planned unit

    development, [UNDERWRITER] must ensure that any mandatory homeowner

    association assessment is subordinate to the VA-guaranteed mortgage

    (38 CFR 36.4351 / 38 CFR 36.4352).

    '
  type: do
  audit_question: For every VA loan secured by a property in a condominium or PUD, can [UNDERWRITER] evidence that any mandatory HOA assessment is subordinate to the VA-guaranteed mortgage (consistent with 38 CFR 36.4351 / 36.4352), with corresponding documentation in the organizational documents or HOA declaration?
  workflow_phase: origination
  owner_role: compliance_officer
  secondary_owner_role: closer
  cadence: per_loan
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - va
  - m26-7
  - ch16
  - hoa-subordinate
  - 38cfr-36.4351
  - promoted
  primary_source:
    tier: 1
    authority: "VA Lender Handbook M26-7 Chapter 16 — Common Interest Communities, Condominiums and Planned Unit Developments"
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: fa6bc474102677f3
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:94d5d69fd84d66a208d2f9f76ceac8b3879dde5fbf0e75e36e00ce879ee16f21
    paragraph_quote: 'When a property is located in a condominium or planned unit development, the lender must '
    drafter_attestation: "Copied verbatim from VA Handbook snapshot fa6bc474102677f3 (M26-7 Ch. 16-A.01 — HOA subordinate) at 2026-05-23. Source PDF retrieved via Wayback Machine."
  promoted_at: '2026-05-23T02:16:49+00:00'
  promoted_from: va-m26-7-ch16-roundb-v1.yaml
  program_review: Does the program ensure any mandatory HOA assessment on a condo/PUD property is subordinate to the VA-guaranteed mortgage (38 CFR 36.4351/36.4352), with supporting organizational-document/declaration evidence?
  file_review: Spot-check condo/PUD loans; confirm the HOA-assessment-subordination evidence in the organizational documents/declaration.
  judgment: false
- id: va-m26-7-ch16-condo-org-documents-reviewed
  canonical_id: va-m26-7-ch16-condo-org-documents-reviewed
  section: "VA M26-7 Ch. 16-A.03 — Condominium Organizational Document Review"
  description: 'Condominium organizational documents must be reviewed for compliance

    with VA regulations, and approved by VA before any lots or units in

    the project are eligible for VA loan guaranty. [UNDERWRITER] must

    obtain and review approval evidence before proceeding to guaranty.

    '
  type: do
  audit_question: For every VA loan secured by a condominium unit, can [UNDERWRITER] evidence VA's review and approval of the project's organizational documents for compliance with VA regulations prior to treating any unit as eligible for VA loan guaranty?
  workflow_phase: origination
  owner_role: compliance_officer
  secondary_owner_role: underwriter
  cadence: per_loan
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - va
  - m26-7
  - ch16
  - condo-org-docs
  - va-review
  - promoted
  primary_source:
    tier: 1
    authority: "VA Lender Handbook M26-7 Chapter 16 — Common Interest Communities, Condominiums and Planned Unit Developments"
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: fa6bc474102677f3
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:94d5d69fd84d66a208d2f9f76ceac8b3879dde5fbf0e75e36e00ce879ee16f21
    paragraph_quote: 'Note: These documents must be reviewed for compliance with VA regulations, and approved '
    drafter_attestation: "Copied verbatim from VA Handbook snapshot fa6bc474102677f3 (M26-7 Ch. 16-A.03 — Org docs review) at 2026-05-23. Source PDF retrieved via Wayback Machine."
  promoted_at: '2026-05-23T02:16:49+00:00'
  promoted_from: va-m26-7-ch16-roundb-v1.yaml
  program_review: Does the program ensure condominium organizational documents were reviewed for VA-regulation compliance and VA-approved before any unit is treated as guaranty-eligible?
  file_review: Spot-check condo loans; confirm evidence of VA review/approval of the project's organizational documents preceded guaranty eligibility.
  judgment: false
_promotion_history:
- promoted_at: '2026-05-23T02:16:49+00:00'
  candidate_path: obligations\_remediation\_round_b_drafts\va-m26-7-ch16-roundb-v1.yaml
  candidates_promoted: 3
  candidates_skipped_existing: 0
