source:
  type: regulation
  id: va-m26-7-ch03
  authority: "VA Lender Handbook M26-7 Chapter 3 — The VA Loan and Guaranty"
  description: 'VA Pamphlet 26-7 Chapter 3 governs the basic elements of a

    VA-guaranteed loan including occupancy, amortization, and records.

    '
obligations:
- id: va-m26-7-ch03-occupancy-reasonable-time
  canonical_id: va-m26-7-ch03-occupancy-reasonable-time
  section: "VA M26-7 Ch. 3, Topic 5, Subsection b — What is a \"Reasonable Time?\""
  description: '[LENDER] must apply VA''s "reasonable time" occupancy standard, which

    means within 60 days after the loan closing, when reviewing the

    Veteran''s occupancy certification. More than 60 days may be

    considered reasonable only if (i) the Veteran certifies a specific

    future occupancy date and (ii) a particular future event makes that

    occupancy possible. Occupancy beyond 12 months after loan closing

    generally cannot be considered reasonable by VA.

    '
  type: do
  audit_question: For every non-IRRRL VA loan, can [LENDER] evidence that the Veteran's occupancy certification was reviewed against the 60-day "reasonable time" standard, that any longer period is supported by a specific-future-date certification AND a particular future event, and that no certification beyond 12 months after loan closing was accepted as reasonable absent specific VA approval?
  workflow_phase: origination
  owner_role: loan_officer
  secondary_owner_role: underwriter
  cadence: per_loan
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - va
  - m26-7
  - ch03
  - occupancy
  - reasonable-time
  - promoted
  primary_source:
    tier: 1
    authority: "VA Lender Handbook M26-7 Chapter 3 — The VA Loan and Guaranty"
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: 73e5d344e2743889
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:b452379ce6dbdb528896ce1d9ac9ca8a9cf03b5fab6fa9af7766dc2dc17c2bbe
    paragraph_quote: 'closing. More than 60 days may be considered reasonable if both of the '
    drafter_attestation: "Copied verbatim from VA Handbook snapshot 73e5d344e2743889 (M26-7 Ch. 3, Topic 5b — Reasonable Time) at 2026-05-23. Source PDF retrieved via Wayback Machine."
  promoted_at: '2026-05-23T02:01:05+00:00'
  promoted_from: va-m26-7-ch03-roundb-v1.yaml
  program_review: Does the program account for the 'reasonable time' occupancy standard and its exceptions — generally 60 days after closing; longer only with a specific-future-date certification AND a particular enabling future event; and not beyond 12 months absent specific VA approval?
  file_review: Spot-check non-IRRRL files; confirm the occupancy certification meets the 60-day standard or a documented exception. The officer judges whether a longer-than-60-day certification is reasonable on the stated facts.
  judgment: true
- id: va-m26-7-ch03-amortization-final-installment
  canonical_id: va-m26-7-ch03-amortization-final-installment
  section: "VA M26-7 Ch. 3, Topic 1 — Basic Elements / Amortization Rules"
  description: 'For amortized VA loans, [LENDER] must ensure that payments are

    approximately equal, that principal is reduced at least once

    annually, and that the final installment does not exceed two times

    the average of the preceding installments (subject to specified

    exceptions for GPM, GEM, prior-approved alternative amortization,

    and construction loans).

    '
  type: do
  audit_question: For every amortized VA loan [LENDER] originated (excluding GPM, GEM, prior-approved alternative amortization, and construction loans), can [LENDER] evidence that scheduled payments are approximately equal, principal is reduced at least once annually, and the final installment does not exceed two times the average of the preceding installments?
  workflow_phase: origination
  owner_role: underwriter
  secondary_owner_role: closer
  cadence: per_loan
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - va
  - m26-7
  - ch03
  - amortization
  - payment-structure
  - promoted
  primary_source:
    tier: 1
    authority: "VA Lender Handbook M26-7 Chapter 3 — The VA Loan and Guaranty"
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: 73e5d344e2743889
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:b452379ce6dbdb528896ce1d9ac9ca8a9cf03b5fab6fa9af7766dc2dc17c2bbe
    paragraph_quote: "• the final installment must not exceed two times the average of the preceding "
    drafter_attestation: "Copied verbatim from VA Handbook snapshot 73e5d344e2743889 (M26-7 Ch. 3, Topic 1 — Amortization) at 2026-05-23. Source PDF retrieved via Wayback Machine."
  promoted_at: '2026-05-23T02:01:05+00:00'
  promoted_from: va-m26-7-ch03-roundb-v1.yaml
  program_review: Does the program ensure amortized VA loans (excluding GPM, GEM, prior-approved alternative amortization, and construction loans) have approximately equal payments, at least annual principal reduction, and a final installment within twice the average of preceding installments?
  file_review: Spot-check amortized files; confirm equal payments, annual principal reduction, and the final-installment cap.
  judgment: false
- id: va-m26-7-ch03-maintain-origination-records
  canonical_id: va-m26-7-ch03-maintain-origination-records
  section: "VA M26-7 Ch. 3 — Maintenance of Loan Records"
  description: '[LENDER] must maintain copies of all loan origination records on

    VA-guaranteed home loans for at least 2 years from the date of loan

    closing, and even if the loan is sold, the original lender must

    maintain these records (or legible copies) for the required period.

    '
  type: maintain
  audit_question: For every VA-guaranteed home loan [LENDER] originated, can [LENDER] evidence retention of complete loan origination records (loan application, verifications of employment and deposit, credit reports, sales contracts, appraisal and compliance inspection reports, closing papers, etc.) for at least 2 years from the date of loan closing, including for loans subsequently sold?
  workflow_phase: origination
  owner_role: compliance_officer
  secondary_owner_role: closer
  cadence: continuous
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - va
  - m26-7
  - ch03
  - recordkeeping
  - promoted
  primary_source:
    tier: 1
    authority: "VA Lender Handbook M26-7 Chapter 3 — The VA Loan and Guaranty"
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: 73e5d344e2743889
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:b452379ce6dbdb528896ce1d9ac9ca8a9cf03b5fab6fa9af7766dc2dc17c2bbe
    paragraph_quote: 'Lenders must maintain copies of all loan origination records on '
    drafter_attestation: "Copied verbatim from VA Handbook snapshot 73e5d344e2743889 (M26-7 Ch. 3 — Maintenance of Loan Records) at 2026-05-23. Source PDF retrieved via Wayback Machine."
  promoted_at: '2026-05-23T02:01:05+00:00'
  promoted_from: va-m26-7-ch03-roundb-v1.yaml
  program_review: Does the program retain copies of all loan-origination records (application, VOE/VOD, credit reports, sales contracts, appraisal and compliance inspection reports, closing papers) for at least 2 years from closing, including for loans subsequently sold?
  file_review: Spot-check originated (and sold) loans; confirm complete origination-record copies retained for the 2-year minimum.
  judgment: false
_promotion_history:
- promoted_at: '2026-05-23T02:01:05+00:00'
  candidate_path: obligations\_remediation\_round_b_drafts\va-m26-7-ch03-roundb-v1.yaml
  candidates_promoted: 3
  candidates_skipped_existing: 0
