source:
  type: guide
  id: va-m26-7-ch01-t05
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 1, Topic 5 — Certifications
    a Non-supervised Automatic Lender Must
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 1, Topic 5 — Certifications
    a Non-supervised Automatic Lender Must.
  coverage_tier: operative
obligations:
- id: va-m26-7-ch01-t05-full
  canonical_id: va-m26-7-ch01-t05-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 1, Topic 5 — Certifications
    a Non-supervised Automatic Lender Must
  type: do
  tags:
  - regulator-direct
  - va
  - va-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 1, Topic 5 — Certifications
      a Non-supervised Automatic Lender Must
    source_class: va-handbook
    source_url: https://www.benefits.va.gov/warms/pam26_7.asp
    snapshot_id: b4bc25cdd49513a7
    fetched_at: '2026-05-23T01:53:52Z'
    content_hash: sha256:2516e061c3a90ce65e72b43ae4022a97e784d65ec7580998c523b5dc69ba6520
    paragraph_quote: '5. Certifications a Non-supervised Automatic Lender Must Comply
      With Change Date February 1, 2019 • This chapter has been revised in its entirety.
      a. Do Not Close Loans for Others The president or principal officer must certify
      on VA Form 26-8736, Application for Authority to Close Loans on an Automatic
      Basis-Non- supervised Lenders, that the lender will not close loans on an automatic
      basis for the following: • 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. This does not prevent the lender from closing loans
      based on documents prepared by an authorized agent. • For any builder or other
      entity in which the lender has a financial interest or which it owns, is owned
      by, or with which it is affiliated, without the express approval of the VA.
      • See “Approval to Close Loans Involving an Affiliate” in Topic 6 of this chapter,
      for details. • If the only connection between the lender and the builder is
      a construction loan, the lender may close the permanent mortgage on an automatic
      basis without VA approval. b. Notify VA of Significant Changes including Merger
      or Acquisition The president or principal officer must certify on VA Form 26-8736,
      Application for Authority to Close Loans on an Automatic Basis-Non- supervised
      Lenders, that the lender will notify the VA office with jurisdiction over its
      home office of any changes in its corporate structure, operations, or financial
      condition which may have a bearing on the lender’s continued qualifications
      for authority to close loans automatically. If the lender no longer meets the
      qualifications for automatic authority, but no change in ownership has occurred
      (that is, working capital becomes inadequate), submit a plan of correction to
      the VA office of jurisdiction. Continue to close loans on the automatic basis
      until the lender receives a determination from VA, except if the lender no longer
      has a VA-approved underwriter, it may no longer close loans on the automatic
      basis. Continued on next page VA Pamphlet 26-7, Revised Chapter 1: Lender Approval
      Guidelines 1-16 5. Certifications a Non-supervised Automatic Lender Must Comply
      With, continued b. Notify VA of Significant Changes including Merger or Acquisition,
      continued Notification of change of ownership and/or name change of the non-supervised
      automatic lender should be made through the RLC of the surviving entity. All
      mergers and acquisitions always extinguish automatic authority of the lender
      unless the new entity is supervised. See Topic 8 of this chapter for requirements
      in the case of a merger, acquisition, or change in ownership and consequences
      to the lender. c. All Loans Must be Reviewed by a VA-Approved Underwriter The
      president or principal officer must certify that all prospective VA loans to
      be closed on an automatic basis will be reviewed and decided by a VA-approved
      underwriter. All VA-approved underwriters must be familiar with the VA Lender’s
      Handbook, specifically Chapter 4: Credit Underwriting. d. Submit Annual Financial
      Statements The president or principal officer must certify that the lender will
      submit annual financial statements audited and certified by a Certified Public
      Accountant (CPA) to VA within 120 days of the end of its fiscal year. The financial
      statements must be sent to the RLC with jurisdiction over the lender’s home
      office. The statements must show either: • a minimum of $50,000 working capital.
      Either the balance sheet must be classified to distinguish between current and
      fixed assets and between current and long-term liabilities or the information
      must be provided in a footnote to the statement, or • a minimum of $250,000
      in adjusted net worth. Adjusted net worth must be calculated by a CPA in accordance
      with the requirements in Topic 13 of this chapter. Continued on next page VA
      Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 1-17 5. Certifications
      a Non-supervised Automatic Lender Must Comply With, continued d. Submit Annual
      Financial Statements, continued When submitting the financial statements to
      the RLC of jurisdiction, the lender must also submit the following: • a list
      of VA-recognized agent relationships the lender wants to renew, if the lender
      uses agents for making VA loans, and • the annual fees specified in Topic 10
      of this chapter. Any other information requested by VA. Although VA offices
      may issue an annual reminder notice to lenders that the above information is
      due, lenders bear the ultimate responsibility for timely submission of this
      information. e. Other Certifications When the president or principal officer
      signs VA Form 26-8736, Application for Authority to Close Loans on an Automatic
      Basis - Non-supervised Lenders, he or she certifies that the lender will comply
      with a number of other requirements. These include: • complying with VA regulations,
      directives, and law, • submitting at any time to VA examination of its records
      and accounts, • furnishing VA any requested information, • maintaining $50,000
      working capital or $250,000 adjusted net worth, and • using its automatic authority
      to the maximum extent possible; if not used, submitting an explanation as to
      why a loan was processed prior approval. VA Pamphlet 26-7, Revised Chapter 1:
      Lender Approval Guidelines 1-18'
  judgment: false
