source:
  type: guide
  id: va-m26-7-ch01-t03
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 1, Topic 3 — Lenders
    That are Considered Supervised
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 1, Topic 3 — Lenders
    That are Considered Supervised.
  coverage_tier: operative
obligations:
- id: va-m26-7-ch01-t03-full
  canonical_id: va-m26-7-ch01-t03-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 1, Topic 3 — Lenders That
    are Considered Supervised
  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 3 — Lenders
      That are Considered Supervised
    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: '3. Lenders That are Considered Supervised Change Date February
      1, 2019 • This chapter has been revised in its entirety. a. Supervision by Certain
      Federal Entities VA considers any lender subject to mandatory periodic examination
      and supervision by any of the following Federal entities to be supervised: •
      The Board of Governors of the Federal Reserve System • The Federal Deposit Insurance
      Corporation • The Comptroller of the Currency • The National Credit Union Administration
      • The Farm Credit Administration Lenders supervised by these Federal entities
      are not required to request recognition from VA. Indicate which of the above
      Federal entities supervises the lender in the initial information package submitted
      to VA. If VA needs clarification of the lender’s status, VA will request appropriate
      documentation from the lender. b. Circumstances under which VA Recognition as
      Supervised is Needed These instructions apply to a lender that wishes to be
      recognized as a supervised lender by VA, but is not directly supervised by one
      of the Federal entities listed in Topic 3, Subsection a, of this chapter. In
      such cases, the lender must request that VA specifically recognize it as supervised
      and must be a wholly owned subsidiary or affiliate of a VA recognized supervised
      lender. The relationship between a wholly-owned subsidiary or affiliate of a
      VA- recognized supervised lender and that supervised lender is to be the basis
      for recognition as supervised, documentation of the structure, capitalization,
      and ownership of the subsidiary or affiliate and its legal/financial relationship
      to the supervised lender must be submitted to the VA office with jurisdiction
      over the lender’s home office. VA will inform the lender of its decision by
      letter. Continued on next page VA Pamphlet 26-7, Revised Chapter 1: Lender Approval
      Guidelines 1-9 3. Lenders That are Considered Supervised, continued d. If a
      Lender is Supervised A supervised lender has the authority to close VA-guaranteed
      loans on an automatic basis (without the prior approval of VA) except for certain
      types of loans that must be submitted to VA for prior approval by all lenders.
      These loan types are listed in Topic 1 of this chapter under “Prior Approval.”
      The supervised lender must obtain VA recognition of agents it uses to make VA
      loans. See Topic 7 of this chapter for more information. If the lender uses
      an agent, it must submit the following to the VA office with jurisdiction over
      its home office by January 31 of each year: • a list of the VA-recognized agency
      relationships it wishes to renew, • the annual renewal fee (see Topic 10 of
      this chapter) for each lender agent that acts for the lender and had been recognized
      by VA as the lender’s agent as of September 30 (120 days before payment is due),
      and • 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 the information and
      appropriate fees. Failure to pay annual renewal fees could result in loss of
      a lender’s automatic processing authority. VA Pamphlet 26-7, Revised Chapter
      1: Lender Approval Guidelines 1-10'
  judgment: false
