source:
  type: guide
  id: va-m26-7-ch01-t08
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 1, Topic 8 — Mergers
    and Acquisitions Involving Supervised or Non-
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 1, Topic 8 — Mergers
    and Acquisitions Involving Supervised or Non-.
  coverage_tier: operative
obligations:
- id: va-m26-7-ch01-t08-full
  canonical_id: va-m26-7-ch01-t08-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 1, Topic 8 — Mergers and
    Acquisitions Involving Supervised or Non-
  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 8 — Mergers
      and Acquisitions Involving Supervised or Non-
    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: '8. Mergers and Acquisitions Involving Supervised or Non- supervised
      Automatic Lenders Change Date February 1, 2019 • This chapter has been revised
      in its entirety. a. The Issue Changes in ownership or corporate structure of
      a lender may impact its continued qualifications for automatic authority. Lenders
      must notify VA whenever a merger, acquisition, or change in the ownership of
      the lender occurs, so that VA can evaluate any impact on the lender’s participation
      in the VA Home Loan program. Although only the terms “merger” and “acquisition”
      and “selling,” “acquiring” or “surviving” entities are used in this paragraph,
      the concepts and procedures in this paragraph apply to every type of restructuring
      that has a significant impact on an organization’s ownership, structure, or
      assets, and so on. Continued on next page VA Pamphlet 26-7, Revised Chapter
      1: Lender Approval Guidelines 1-26 8. Mergers and Acquisitions Involving Supervised
      or Non- supervised Automatic Lenders, continued b. Required Submissions Whenever
      a supervised or non-supervised lender with automatic authority is involved in
      a merger or acquisition, it must submit a $100 processing fee along with the
      following information to the RLC with jurisdiction over its home office: • the
      names of the acquiring and selling entities, and the surviving entity. • the
      information listed in Topic 2, Subsection a, of this chapter for the surviving
      entity. • a general description of the assets being acquired in the merger or
      acquisition. • the addresses of all branch offices and their current VA ID numbers
      that are involved in VA mortgage lending, and whether they will continue to
      operate or be closed. • a list of agents and their VA ID numbers that will be
      used by the surviving entity and have already been recognized by VA as agents
      of the selling or acquiring entities. Requests for recognition of new agents
      may accompany the submission along with appropriate fees and corporate resolutions.
      See Topic 7 of this chapter for more information. Note: Any of these items that
      remain unchanged do not have to be resubmitted; simply indicate that they are
      unchanged. Questions about merger or acquisition transactions should be sent
      to the RLC of jurisdiction. Since each merger or acquisition is unique, VA may
      discover that it needs to request additional information from the lender during
      its review. Lenders with questions may send an e-mail to LoanPolicy.VBAVACO@va.gov.
      Continued on next page VA Pamphlet 26-7, Revised Chapter 1: Lender Approval
      Guidelines 1-27 8. Mergers and Acquisitions Involving Supervised or Non- supervised
      Automatic Lenders, continued c. Additional Submissions for Non- supervised Automatic
      Lenders Non-supervised automatic lenders must also provide: • a resume for each
      new owner or principal officer (president plus any officers involved in managing
      loan origination functions) of the surviving entity showing mortgage lending
      experience, and • a list of underwriters to be employed by the surviving entity
      who had already been approved by VA as underwriters for the selling or acquiring
      entities. Requests for approval of new underwriters may accompany the submission
      along with appropriate fees and application materials. d. Additional Submissions
      for the Lender Appraising Processing Program (LAPP) LAPP lenders must also provide
      a list of LAPP Staff Appraisal Reviewers (SAR) to be employed by the surviving
      entity that had already been approved by VA as SARs for the selling or acquiring
      entities. Include their SAR ID numbers and a copy of any VA letter(s) which
      state that these SARs have met the VA training and case review requirements.
      An additional submission is required for any of these SARs if the entity that
      employed them when they were approved by VA bore a different company name than
      the surviving entity. For each such SAR, submit a newly executed SAR application
      and lender certifications by the surviving entity, in the prescribed order.
      (See Chapter 15 of this handbook.) Exception: If the entity that previously
      employed the SAR was a wholly owned subsidiary of the surviving entity, this
      additional submission may not be required. Also provide a list of the LAPP SARs
      (and their ID numbers) of the selling or acquiring entities that will no longer
      be employed by the surviving entity. Requests for approval of new SARs may accompany
      the submission along with appropriate fees and application materials. Reference:
      See Chapter 15 of this handbook. Continued on next page VA Pamphlet 26-7, Revised
      Chapter 1: Lender Approval Guidelines 1-28 8. Mergers and Acquisitions Involving
      Supervised or Non- supervised Automatic Lenders, continued e. Immediate Impact
      While VA Reviews Submission A change in the ownership of a non-supervised automatic
      lender always extinguishes the automatic authority (and therefore the LAPP authority)
      of the lender unless the new entity is supervised. Whenever a supervised lender
      undergoes merger or acquisition, apply the standards detailed in Topic 4 of
      this chapter, to determine whether the surviving entity is supervised. The following
      table lists some of the scenarios that can emerge from a merger or acquisition
      and provides whether the surviving entity can exercise automatic authority while
      VA is reviewing its merger/acquisition submission, and any additional submissions
      the entity must send to VA. Note: These are in addition to the required submissions
      detailed in the preceding material in this section. Prior Status of Restructured
      Entity(ies) Status of Surviving Entity Appears to be Additional Submissions
      Needed Authority of Surviving Entity while Awaiting VA Review Supervised and/or
      Non-supervised Automatic Supervised by a Federal entity listed in Topic 3 of
      this chapter. None Automatic authority continues. Continued on next page VA
      Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 1-29 8. Mergers
      and Acquisitions Involving Supervised or Non- supervised Automatic Lenders,
      continued e. Immediate Impact While VA Reviews Submission, continued Prior Status
      of Restructured Entity(ies) Status of Surviving Entity Appears to be Additional
      Submissions Needed Authority of Surviving Entity while Awaiting VA Review At
      least one of the entities was supervised Supervised, but status is not clear.
      VA recognition as supervised is required under section 3 of this chapter. Request
      for recognition as supervised and information specified in section 3 of this
      chapter. If the nature and source of supervision of the surviving entity is
      the same as for the prior supervised entity, automatic authority continues.
      If supervision has changed, submit all loans for prior approval until VA makes
      a determination. Non-supervised Automatic only Supervised, but status is not
      clear. VA recognition as supervised is required under section 3 of this chapter.
      Request for recognition as supervised and information specified in section 3
      of this chapter. Submit all loans for prior approval until VA makes a determination.
      Continued on next page VA Pamphlet 26-7, Revised Chapter 1: Lender Approval
      Guidelines 1-30 8. Mergers and Acquisitions Involving Supervised or Non- supervised
      Automatic Lenders, continued e. Immediate Impact While VA Reviews Submission,
      continued Prior Status of Restructured Entity(ies) Status of Surviving Entity
      Appears to be Additional Submissions Needed Authority of Surviving Entity while
      Awaiting VA Review Non- supervised automatic with different ownership than surviving
      entity and/or a supervised lender Non-supervised lender If the surviving entity
      wishes to have automatic authority, it must submit a complete new application
      for automatic authority with the appropriate fee (see section 5 of this chapter).
      Automatic authority is extinguished. Submit all loans for prior approval until
      VA makes a determination on the application for automatic authority. Non- supervised
      automatic with same ownership as surviving entity Non-supervised lender None
      Automatic authority continues if lender retains its VA- approved underwriter(s).
      VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines 1-31'
  judgment: false
