source:
  type: regulation
  id: va-m26-7-ch17
  authority: VA Lender Handbook M26-7 Chapter 17 — VA Sanctions Against Program Participants
  description: 'VA Pamphlet 26-7 Chapter 17 governs VA sanctions and exclusion screening.

    '
obligations:
- id: va-m26-7-ch17-17-01
  canonical_id: va-m26-7-ch17-17-01
  section: VA Lender Handbook M26-7 Chapter 17 § 17.01
  description: "Program Participants: 17.01 Program Participants \n \nAny person or entity conducting\
    \ business related to the VA loan guaranty \nprogram is considered a program participant. This includes,\
    \ but is not limited \nto \n \n• lenders \n• employees of lenders \n• loan holders \n• loan servicers\
    \ \n• builders \n• real estate brokers or agen…"
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - va
  - m26
  - '7'
  - ch17
  primary_source:
    tier: 1
    authority: VA Lender Handbook M26-7 Chapter 17 — VA Sanctions Against Program Participants
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: a62b7e4e05493a4b
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:45490324790faa98a94f14a1764e88fd3d5ed195f6da17cd0203624905998554
    paragraph_quote: "17.01 Program Participants \n \nAny person or entity conducting business related\
      \ to the VA loan guaranty \nprogram is considered a program participant. This includes, but is not\
      \ limited \nto \n \n• lenders \n• employees of lenders \n• loan holders \n• loan servicers \n• builders\
      \ \n• real estate brokers or agents \n• management brokers \n• repair contractors \n• compliance\
      \ inspectors \n• fee appraisers \n• salespersons, and \n• manufactured home manufacturers, dealers\
      \ or park operators. \n \nNote: A person is not considered a program participant just because he\
      \ or she \nobtains a VA loan. \n \nParticipant \nAlso A Veteran \nVA may impose sanctions against\
      \ a program participant who is also a veteran \neligible for loan guaranty benefits. This does not\
      \ preclude the veteran from \nusing his or her entitlement to obtain a VA-guaranteed loan. \n \n\
      \n \n \n \n \nFull Exclusion \nA participant who is fully excluded may not \n \n• conduct any type\
      \ of VA loan guaranty business, or \n• have another party conduct such business on his or her behalf.\
      \ \n \nPartial \nPartial exclusion may involve limitations on \n \n• the role the participant may\
      \ play, or \n• how the participant conducts VA loan guaranty business. \n \nand Excluded \nProgram\
      \ participants may not \n \n• do VA business with an excluded party if the type of transaction involved\
      \ is \nprohibited by the terms of the party’s exclusion, or \n• allow an employed excluded party\
      \ to perform prohibited duties. \n \nViolation of the above restrictions may result in VA sanctions\
      \ against the \nprogram participant doing business with (or employing) the excluded party. \n \n\
      Identifying \nExcluded \nParticipants may check the List of Parties Excluded From Federal \nProcurement\
      \ and Nonprocurement Programs published by the U.S. General \nServices Administration (GSA). \n\
      \ \nThe list can be obtained \n \n• in hard copy by subscription through the Superintendent of Documents,\
      \ \nU.S. Government Printing Office, Washington, DC 20402, and \n• electronically, via the Internet\
      \ at www.epls.arnet@gsa/gov. \n \nNote: Contact GSA at (202)501-4740, or, online at epls.support@gsa.gov\
      \ for \ndetails. \n \n\n \n \n \nNature of \nSome of the parties on this list may be excluded from\
      \ \n \n• participation in the programs of all Federal agencies, including VA, or \n• a specific\
      \ program of a specific Federal agency. \n \nCause and \nTreatment \nCodes \nThe cause and treatment\
      \ codes provide information on the nature of the \nexclusion. These codes are described in the document\
      \ and at the GSA \nwebsite, above. \n \nObtaining \nInformation on \nExcluded Party \nCall the contact\
      \ person for the agency that placed the excluded party on the \nlist if \n \n• more detail is necessary\
      \ to confirm the identity of a party on the list, or \n• to clarify the nature or length of the\
      \ sanction. \n \nNonprocurement \nList \nFor parties placed on the non-procurement list by VA (indicated\
      \ by the code \n“VA”), obtain any necessary clarifying information from the local VA office \nwith\
      \ jurisdiction over the city and state listed in the excluded party’s address. \n \nParties Not\
      \ on \nGSA List \nSome of the VA sanctioned parties may not appear on the GSA list. \nInformation\
      \ on such parties can be obtained by contacting the local VA \noffice. \n \n\n \n \n \n \nLender\
      \ Check \nOn Excluded \nLenders and other parties may want to check whether a program participant\
      \ \nhas been excluded prior to \n \n• employing the program participant, or \n• participating in\
      \ a VA loan guaranty-related transaction, if the program \nparticipant is also a party to the transaction.\
      \ \n \nNote: This does not refer to a veteran using entitlement to obtain a VA loan. \n \nReasons\
      \ For \nLender Check \nThe following illustrates some of the reasons why a lender/other party would\
      \ \nwant to check on a participant’s exclusion. \n \n• A lender hiring an underwriter for its VA\
      \ lending activities may want to \nverify that the underwriter is not an excluded party. \n• A lender\
      \ making a loan to a veteran for new construction is told by another \nlender that the builder has\
      \ had problems with some of its HUD/FHA \ntransactions. The lender may want to verify that the builder\
      \ is not an \nexcluded party. \n• A management broker establishing a panel of contractors to do\
      \ repairs to \nVA-owned properties must ensure that none of the panel members are \nexcluded parties."
    drafter_attestation: Verbatim §17.01 from snapshot a62b7e4e05493a4b via deletion-only reading projection
      (repeated headers/footers + page numbers stripped, line-wrap hyphens joined); substring-verified
      against the projection.
  judgment: false
- id: va-m26-7-ch17-17-02
  canonical_id: va-m26-7-ch17-17-02
  section: VA Lender Handbook M26-7 Chapter 17 § 17.02
  description: "False Lender Certification: 17.02 False Lender Certification \n \nLender \nA lender must\
    \ submit a signed certification with each loan submission \nindicating that in processing and underwriting\
    \ the loan, the lender has \ncomplied with \n \n• VA requirements \n• regulations, and \n• the law.\
    \ \n \nThe specific language required in the cert…"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - va
  - m26
  - '7'
  - ch17
  primary_source:
    tier: 1
    authority: VA Lender Handbook M26-7 Chapter 17 — VA Sanctions Against Program Participants
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: a62b7e4e05493a4b
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:45490324790faa98a94f14a1764e88fd3d5ed195f6da17cd0203624905998554
    paragraph_quote: "17.02 False Lender Certification \n \nLender \nA lender must submit a signed certification\
      \ with each loan submission \nindicating that in processing and underwriting the loan, the lender\
      \ has \ncomplied with \n \n• VA requirements \n• regulations, and \n• the law. \n \nThe specific\
      \ language required in the certification is found in Step 7 of \n“Lender Procedures” in Section\
      \ 4.01. \n \nFalse Lender \nAny lender who knowingly and willfully makes a false certification may\
      \ be \nsubject to civil money penalties equal to the greater of \n \n• two times the amount of the\
      \ Government’s loss on the loan involved, or \n• another appropriate amount, not to exceed $10,000.\
      \ \n \nIn addition to monetary penalties, VA may impose other sanctions including, \nbut not limited\
      \ to \n \n• debarment and suspension, and \n• loss of automatic authority. \n \nLenders \nAssessed\
      \ \nMonetary \nPenalty \nLenders assessed civil money penalties for a false certification do not\
      \ appear \nin GSA’s List of Parties Excluded From Federal Procurement and \nNonprocurement Programs.\
      \ Other program participants may still transact \nVA business with these lenders. \n \nimposed against\
      \ them in conjunction with the civil money penalty. In such \ncases, other program participants\
      \ may be prohibited from transacting business \nwith them."
    drafter_attestation: Verbatim §17.02 from snapshot a62b7e4e05493a4b via deletion-only reading projection
      (repeated headers/footers + page numbers stripped, line-wrap hyphens joined); substring-verified
      against the projection.
  judgment: false
- id: va-m26-7-ch17-17-03
  canonical_id: va-m26-7-ch17-17-03
  section: VA Lender Handbook M26-7 Chapter 17 § 17.03
  description: "Withdrawal of Automatic Authority: 17.03 Withdrawal of Automatic Authority \n \nFor Proper\
    \ \nCause \nVA can withdraw a lender’s automatic authority for proper cause, after giving \nthe lender\
    \ 30 days’ notice. This applies to both \n \n• supervised, and \n• nonsupervised lenders. \n \nSubmitting\
    \ \nLoans for Prior \nApproval \nThe lender may contin…"
  type: reference
  tags:
  - regulator-direct
  - section-complete
  - va
  - m26
  - '7'
  - ch17
  primary_source:
    tier: 1
    authority: VA Lender Handbook M26-7 Chapter 17 — VA Sanctions Against Program Participants
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: a62b7e4e05493a4b
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:45490324790faa98a94f14a1764e88fd3d5ed195f6da17cd0203624905998554
    paragraph_quote: "17.03 Withdrawal of Automatic Authority \n \nFor Proper \nCause \nVA can withdraw\
      \ a lender’s automatic authority for proper cause, after giving \nthe lender 30 days’ notice. This\
      \ applies to both \n \n• supervised, and \n• nonsupervised lenders. \n \nSubmitting \nLoans for\
      \ Prior \nApproval \nThe lender may continue processing loans on a prior approval basis after \n\
      automatic authority has been withdrawn. \n \nNote: It is the lender’s responsibility to submit all\
      \ loans for prior approval as \nlong as automatic authority is withdrawn. \n \nVA Business \nWith\
      \ Other \nLenders with their automatic authority withdrawn do not appear in GSA’s \nList of Parties\
      \ Excluded From Federal Procurement and Nonprocurement \nPrograms. Other program participants may\
      \ still transact VA business with \nthese lenders. \n \nimposed against them. In such cases, other\
      \ program participants may be \nprohibited from transacting business with them. \n \nWithdrawal\
      \ for \nan Indefinite \nWithdrawal for an indefinite period can be based on \n \n• failure to continue\
      \ meeting basic qualifying criteria \n- for supervised lenders this includes loss of status as an\
      \ entity subject to \nexamination and supervision by a Federal or state regulatory agency \n- for\
      \ nonsupervised lenders this includes no approved underwriter, failure \nto maintain $50,000 working\
      \ capital, and/or failure to file the required \nfinancial statements \n• any of the causes for\
      \ debarment set forth in 38 CFR 44.305, or \n• poor underwriting or consistently careless processing\
      \ during the \nprobationary period for newly-approved nonsupervised automatic lenders. \n \n \n\n\
      \ \n \n \nTime Periods \nRefer to the following table for information on withdrawal time periods.\
      \ \n \nPeriod: 60 \nDays \nA withdrawal period of 60 days can be based on any of the following \n\
      situations: \n \n• Loan submissions show deficiencies in credit underwriting after repeatedly \n\
      being called to the lender's attention. \n• Use of unstable sources of income to qualify borrower\
      \ or ignoring \nsignificant adverse credit items affecting applicant’s creditworthiness. \n• Employment\
      \ or deposit verifications are hand-carried by applicants or \notherwise improperly permitted to\
      \ pass through the hands of a third party. \n• Loan submissions are consistently incomplete after\
      \ repeatedly being called \nto the lender's attention \n• There are continued instances of disregard\
      \ of VA requirements after \nrepeatedly being called to the lender's attention. \n \n\n \n \n \n\
      \ \nPeriod: 180 \nDays \nA withdrawal period of 180 days can be based on any of the following \n\
      situations: \n \n• Loans conflict with VA credit standards and would not have been made by \na lender\
      \ acting prudently. \n• Failure to disclose to VA significant obligations or other information which\
      \ \naffects the veteran’s ability to repay the loan, and which results in undue \nrisk to the Government.\
      \ \n• Employment or deposit verifications are handcarried by the applicant or \notherwise mishandled,\
      \ resulting in submission of significant misinformation \nto VA. \n• Substantiated complaints are\
      \ received that the lender misrepresented VA \nrequirements to veterans to the detriment of their\
      \ interests. \n \nExample \nThe veteran was dissuaded from seeking a lower interest rate based on\
      \ the \nlender's incorrect advice that such options were excluded by VA \nrequirements. \n \n• Closing\
      \ documents show instances of improper charges to veteran after the \nimpropriety of such charges\
      \ are called to lender’s attention by VA, or the \nlender refuses to refund such charges after notification\
      \ by VA. \n• Deliberate delays in scheduling loan closings. \n \n\n \n \n \nPeriod: 1-3 \nYears\
      \ \nA withdrawal period of 1-3 years can be based on any of the situations \ndescribed in the table\
      \ below. \n \nSituation \nExample \nFailure to properly disburse loans \nLoan disbursement checks\
      \ are \nreturned due to insufficient funds. \nInvolvement by the lender in the \nimproper use of\
      \ a veteran's \nentitlement \nKnowingly permitting the veteran to \nviolate occupancy requirements,\
      \ or \nlender involvement in the veteran’s \nsale of entitlement to a third party. \n \nLender makes\
      \ the loan with the \nknowledge that the veteran is not \npurchasing the property to be his or \n\
      her home. Instead, the veteran \nintends to transfer title to a third \nparty who assumes the loan\
      \ shortly \nafter closing."
    drafter_attestation: Verbatim §17.03 from snapshot a62b7e4e05493a4b via deletion-only reading projection
      (repeated headers/footers + page numbers stripped, line-wrap hyphens joined); substring-verified
      against the projection.
  judgment: false
- id: va-m26-7-ch17-17-04
  canonical_id: va-m26-7-ch17-17-04
  section: VA Lender Handbook M26-7 Chapter 17 § 17.04
  description: "Withdrawal of LAPP Authority: 17.04 Withdrawal of LAPP Authority \n \nLAPP is a \nPrivilege\
    \ \nThe authority to determine value under LAPP is a privilege delegated to \nlenders at VA’s discretion.\
    \ Lenders maintain this privilege by complying \nwith all applicable LAPP-related VA requirements.\
    \ \n \nWithdrawal or \nAmendment for \nProper Cau…"
  type: reference
  tags:
  - regulator-direct
  - section-complete
  - va
  - m26
  - '7'
  - ch17
  primary_source:
    tier: 1
    authority: VA Lender Handbook M26-7 Chapter 17 — VA Sanctions Against Program Participants
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: a62b7e4e05493a4b
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:45490324790faa98a94f14a1764e88fd3d5ed195f6da17cd0203624905998554
    paragraph_quote: "17.04 Withdrawal of LAPP Authority \n \nLAPP is a \nPrivilege \nThe authority to\
      \ determine value under LAPP is a privilege delegated to \nlenders at VA’s discretion. Lenders maintain\
      \ this privilege by complying \nwith all applicable LAPP-related VA requirements. \n \nWithdrawal\
      \ or \nAmendment for \nProper Cause \nVA can amend or withdraw the special privilege of LAPP authority\
      \ from a \nlender for proper cause. This applies to both supervised and nonsupervised \nlenders\
      \ with automatic authority that have been granted LAPP authority. \n \nLAPP authority can be withdrawn\
      \ for a specific or indefinite period of time. \n \n\n \n \n \nExamples of \nWithdrawal for \nProper\
      \ Cause \nThe following is a non-inclusive list of examples of proper cause that can \nform a basis\
      \ for withdrawal of LAPP authority. \n \nTechnical incompetence \nConduct demonstrating insufficient\
      \ knowledge of industry-accepted appraisal \nprinciples, techniques and practices and/or the inability\
      \ to adequately apply \nthem in reviewing appraisal reports and making value determinations for\
      \ VA \npurposes. \n \nSubstantive or repetitive errors \nA substantive error is one which significantly\
      \ involves the value \ndetermination or condition of the property. In the aggregate, nonsubstantive\
      \ \nerrors which are frequently repeated may also indicate that LAPP case \nreviews are being performed\
      \ in a careless or negligent manner. \n \nDisregard for VA requirements \nContinued disregard for\
      \ the VA requirements and procedures outlined in VA \nregulations, guidelines, instructions or applicable\
      \ laws, after the problem has \nbeen brought to the lender's attention. \n \nFailure to meet qualification\
      \ requirements \nThe lender or the lender’s staff appraisal reviewer (SAR) no longer meets the \n\
      basic LAPP qualification requirements (see Chapter 15). \n \nCivil judgments and convictions \n\
      \ \n\n \n \n \n \nNotice of \nSanction \nGenerally, VA will provide written notice at least 30 days\
      \ prior to imposition \nof the sanction to \n \n• the lender’s staff appraisal reviewer (SAR) \n\
      • the lending officer responsible for the quality of the SAR’s work, and \n• any other appropriate\
      \ official(s). \n \nNote: VA’s notice provides the basis for the sanction and information on \n\
      how to exercise appeal rights. \n \nGovernment at \nImmediate Risk \nVA is not required to give\
      \ 30 days’ notice if the Government’s interests are \nexposed to immediate risk from the lender’s\
      \ activities. The withdrawal is \neffective immediately in such cases. \n \nDetermining \nReasonable\
      \ \nValue and \nIssuing CRVs \nOnce LAPP authority is withdrawn, VA must \n \n• make all determinations\
      \ of reasonable value for the lender, and \n• issue the Certificates of Reasonable Value (CRVs).\
      \ \n \nNote: For any withdrawal longer than 90 days, the lender must reapply to VA \nto participate\
      \ in LAPP. \n \nImposition of \nProbationary \nAs an alternative, VA may impose a probationary period\
      \ for a specified \nperiod to further evaluate LAPP-related performance. During that period, the\
      \ \nVA office, at its discretion, may require \n \n• VA review of appraisal reports and lender notices\
      \ of value \n• VA staff issuance of the lender’s VA value notices \n• increased VA quality control\
      \ review of the lender's LAPP cases, or \n• other measures designed to monitor and improve performance.\
      \ \n \n\n \n \n \nOther \nSanctions \nWithdrawal or amendment of a lender’s LAPP authority does\
      \ not preclude \nVA from \n \n• also withdrawing automatic processing authority, or \n• taking debarment\
      \ or suspension action against the lender for the same \ncause. \n \nRelationship \nWith Other \n\
      Lenders with their LAPP authority withdrawn do not appear in GSA’s List of \nParties Excluded From\
      \ Federal Procurement and Nonprocurement \nPrograms. \n \nOther program participants may still transact\
      \ VA business with these lenders. \n \nimposed against them. In such cases, other program participants\
      \ may be \nprohibited from transacting business with them. \n \nResponsbilities \nof Lender \nAs\
      \ long as LAPP authority is withdrawn, it is the lender’s responsibility to \nensure that VA, and\
      \ not the lender \n \n• makes all determinations of reasonable value, and \n• issues CRVs on its\
      \ loans."
    drafter_attestation: Verbatim §17.04 from snapshot a62b7e4e05493a4b via deletion-only reading projection
      (repeated headers/footers + page numbers stripped, line-wrap hyphens joined); substring-verified
      against the projection.
  judgment: false
- id: va-m26-7-ch17-17-05
  canonical_id: va-m26-7-ch17-17-05
  section: VA Lender Handbook M26-7 Chapter 17 § 17.05
  description: "Debarment and Suspension, Continued: 17.05 Debarment and Suspension, Continued \n \nGeographic\
    \ \nScope of \nThe debarred or suspended participant is excluded from targeted activities in \nall\
    \ locations. \n \nDebarred Loan \nGuaranty \nAll loan guaranty program participants debarred by VA\
    \ are listed in GSA’s \nList of Parties Excluded From Federa…"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - va
  - m26
  - '7'
  - ch17
  primary_source:
    tier: 1
    authority: VA Lender Handbook M26-7 Chapter 17 — VA Sanctions Against Program Participants
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: a62b7e4e05493a4b
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:45490324790faa98a94f14a1764e88fd3d5ed195f6da17cd0203624905998554
    paragraph_quote: "17.05 Debarment and Suspension, Continued \n \nGeographic \nScope of \nThe debarred\
      \ or suspended participant is excluded from targeted activities in \nall locations. \n \nDebarred\
      \ Loan \nGuaranty \nAll loan guaranty program participants debarred by VA are listed in GSA’s \n\
      List of Parties Excluded From Federal Nonprocurement Programs. Most of \nthese debarments are Government-wide.\
      \ \n \nThe GSA list contains government-wide debarments of parties who cannot \nparticipate in the\
      \ nonprocurement programs of any Federal agency. \n \nParticipant is \nan Entity \nAny program participant\
      \ (individual or entity) and/or affiliate can be debarred \nor suspended. If the participant is\
      \ an entity, the sanction can be imposed \nagainst the \n \n• entire organization \n• a certain\
      \ part of the organization, or \n• only certain individuals. \n \nVA Regulations VA can impose debarments\
      \ or suspensions based on any of a multitude of \ncauses outlined in VA regulations \n \n• 38 CFR\
      \ 44.305, and \n• 38 CFR.44.405. \n[38 CFR 44.405]"
    drafter_attestation: Verbatim §17.05 from snapshot a62b7e4e05493a4b via deletion-only reading projection
      (repeated headers/footers + page numbers stripped, line-wrap hyphens joined); substring-verified
      against the projection.
  judgment: false
- id: va-m26-7-ch17-17-06
  canonical_id: va-m26-7-ch17-17-06
  section: VA Lender Handbook M26-7 Chapter 17 § 17.06
  description: "Limited Denial of Participation (LDP), Continued: 17.06 Limited Denial of Participation\
    \ (LDP), Continued \n \nCauses for LDP VA can impose LDPs based on any of a multitude of causes outlined\
    \ in VA \nregulations 38 CFR 44.705. These causes include, but are not limited to \n \n• irregularities\
    \ in a participant’s or contractor’s performance in the VA loan …"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - va
  - m26
  - '7'
  - ch17
  primary_source:
    tier: 1
    authority: VA Lender Handbook M26-7 Chapter 17 — VA Sanctions Against Program Participants
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: a62b7e4e05493a4b
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:45490324790faa98a94f14a1764e88fd3d5ed195f6da17cd0203624905998554
    paragraph_quote: "17.06 Limited Denial of Participation (LDP), Continued \n \nCauses for LDP VA can\
      \ impose LDPs based on any of a multitude of causes outlined in VA \nregulations 38 CFR 44.705.\
      \ These causes include, but are not limited to \n \n• irregularities in a participant’s or contractor’s\
      \ performance in the VA loan \nguaranty program \n• failure to satisfy contractual obligations or\
      \ to proceed in accordance with \ncontract specifications \n• construction deficiencies deemed by\
      \ VA to be the participant’s \nresponsibility, and \n• failure to proceed in accordance with VA\
      \ requirements or to comply with \nVA regulations. \n[38 CFR 44.705] \n \nLDP as \nReciprocal \n\
      Action \nA local VA office may also impose an LDP as a reciprocal action because an \nLDP or other\
      \ sanction was imposed upon the participant by \n \n• another VA office, or \n• an office of another\
      \ Federal agency, such as HUD or USDA. \n \nA VA office may also notify local offices of another\
      \ Federal agency that the \nLDP action has been taken. \n \nJurisdiction \nRestrictions \nThe participant\
      \ is excluded from targeted activities only within the \njurisdiction of the VA office imposing\
      \ the sanction. If other VA offices \nimpose a reciprocal LDP, the exclusion applies within their\
      \ jurisdictions also."
    drafter_attestation: Verbatim §17.06 from snapshot a62b7e4e05493a4b via deletion-only reading projection
      (repeated headers/footers + page numbers stripped, line-wrap hyphens joined); substring-verified
      against the projection.
  judgment: false
- id: va-m26-7-ch17-17-07
  canonical_id: va-m26-7-ch17-17-07
  section: VA Lender Handbook M26-7 Chapter 17 § 17.07
  description: "Unfair Contract Provisions or Marketing Practices,: 17.07 Unfair Contract Provisions or\
    \ Marketing Practices, \nContinued \n \nUnfair \nMarketing \nPractices \nUnfair marketing practices\
    \ include, but are not limited to \n \n• enforcement of unfair contractual provisions \n• requiring\
    \ purchasers to execute so-called “contracts” which legally bind the \npurchaser…"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - va
  - m26
  - '7'
  - ch17
  primary_source:
    tier: 1
    authority: VA Lender Handbook M26-7 Chapter 17 — VA Sanctions Against Program Participants
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: a62b7e4e05493a4b
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:45490324790faa98a94f14a1764e88fd3d5ed195f6da17cd0203624905998554
    paragraph_quote: "17.07 Unfair Contract Provisions or Marketing Practices, \nContinued \n \nUnfair\
      \ \nMarketing \nPractices \nUnfair marketing practices include, but are not limited to \n \n• enforcement\
      \ of unfair contractual provisions \n• requiring purchasers to execute so-called “contracts” which\
      \ legally bind the \npurchasers but do not bind the seller to deliver the property when completed\
      \ \nto the purchasers \n \nExample: limiting a seller’s liability to the refund of the earnest money\
      \ \ndeposit \n \n• advertising that a property or project is “VA guaranteed” or “VA approved” \n\
      or “VA inspected” in such a way as to lead veterans to believe that VA \nguarantees the construction\
      \ and workmanship \nNote: “VA financing available,” “Eligible for VA financing,” or similar \nadvertising\
      \ is acceptable. \n \n• delaying tactics on the part of the builder to postpone completion of the\
      \ \nproperty or the closing of the sale after completion in an effort to induce the \nveteran to\
      \ agree to a modification of a firm contract such as \n- the substitution of inferior materials\
      \ \n- the omission of appliances, or \n- an increase in price. \n \n• failure of the seller or agent\
      \ of the seller of proposed or newly constructed \nproperty to place deposits or downpayments received\
      \ from veteranpurchasers in a special trust account , as required by 38 U.S.C. 3706 \n- failure\
      \ to place downpayments or earnest money deposits in a trust fund \nor in escrow when required by\
      \ law or by local practice on existing \nproperties, or \n- failure or inability of the seller to\
      \ return the deposit when and if required \nunder the contract when it is not required or not customary\
      \ for these \ndeposits to be “isolated,” and \n[38 U.S.C. 3706] \n \n• failure of the seller of\
      \ proposed or newly constructed property to state in the \nsales agreement, when applicable, that\
      \ the property was or will be \nconstructed under FHA compliance inspection procedures pursuant\
      \ to \nsection 203(i) or 221(d)(2) of the National Housing Act."
    drafter_attestation: Verbatim §17.07 from snapshot a62b7e4e05493a4b via deletion-only reading projection
      (repeated headers/footers + page numbers stripped, line-wrap hyphens joined); substring-verified
      against the projection.
  judgment: false
- id: va-m26-7-ch17-17-08
  canonical_id: va-m26-7-ch17-17-08
  section: VA Lender Handbook M26-7 Chapter 17 § 17.08
  description: "Violations of Equal Housing Opportunity Laws, Continued: 17.08 Violations of Equal Housing\
    \ Opportunity Laws, Continued \n \nEqual Housing \nThis regulation requires a certification by builders\
    \ or other parties requesting \nthe following types of VA appraisals \n \n• a Master Certificate of\
    \ Reasonable Value on proposed or existing housing, \nor \n• an individual a…"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - va
  - m26
  - '7'
  - ch17
  primary_source:
    tier: 1
    authority: VA Lender Handbook M26-7 Chapter 17 — VA Sanctions Against Program Participants
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: a62b7e4e05493a4b
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:45490324790faa98a94f14a1764e88fd3d5ed195f6da17cd0203624905998554
    paragraph_quote: "17.08 Violations of Equal Housing Opportunity Laws, Continued \n \nEqual Housing\
      \ \nThis regulation requires a certification by builders or other parties requesting \nthe following\
      \ types of VA appraisals \n \n• a Master Certificate of Reasonable Value on proposed or existing\
      \ housing, \nor \n• an individual appraisal of existing housing that was not previously \noccupied.\
      \ \n \nThe certification provides that the builder or other party will not decline to \nsell the\
      \ appraised property to a prospective purchaser because of his or her \n \n• race \n• color \n•\
      \ religion \n• sex, or \n• national origin. \n \nNote: This requirement is satisfied by completion\
      \ of VA Form 26-8791, VA \nAffirmative Marketing Certification. \n \nVeteran Equal \nHousing \n\
      Any veteran obtaining a VA-guaranteed loan is also required to certify that he \nor she will not\
      \ decline to sell the home in the future based on these \ndiscriminatory factors. The certification\
      \ is found in the Veteran’s \nCertifications on VA Form 26-1820, Report and Certification of Loan\
      \ \nDisbursement. \n \n\n \n \n \n \nAmend or Withdraw the Special Privilege of \nLAPP Authority,\
      \ 17-11 \nAppeal Rights to all Program Participants, \nCause and Treatment Codes, 17-4 \nCauses\
      \ for LDP, 17-19 \nDebarment, 17-15 \nDebarment or Suspension Causes, 17-17 \nDebarred Loan Guaranty\
      \ Participants, 17-16 \nDetermining Reasonable Value and Issuing \nCRVs, 17-13 \nDisregard for VA\
      \ Requirements - Example, \nEqual Housing Certification, 17-24 \nExcluded Party, 17-4 \nFailure\
      \ to Meet Qualification Requirements \n- Example, 17-12 \nFalse Lender Certification, 17-6 \nFull\
      \ Exclusion, 17-3 \nGovernment at Risk, 17-13 \nGSA List, 17-4 \nIdentifying Excluded Parties Internet\
      \ \nAddress, 17-3 \nJurisdiction Restrictions, 17-19 \nLAPP Privilege, 17-11 \nLDP as Reciprocal\
      \ Action, 17-19 \nLDP Exceptions, 17-18 \nLDP Party Information, 17-20 \nLDP Time Period, 17-20\
      \ \nLimited Denial of Participation (LDP), 17Monetary Penalty, 17-6 \nNature of Exclusion, 17-4\
      \ \nNon Procurement List, 17-4 \nNotice of Sanction, 17-13 \nOther Program Participants, 17-14 \n\
      Partial Exclusion, 17-3 \nParticipant Also A Veteran, 17-2 \nParticipant is an Entity, 17-16, 17-18\
      \ \nParticipants who Violate Statutory \nProvisions and Regulations, 17-23 \nProbationary Period,\
      \ 17-13 \nProgram Participants, 17-2 \nReasons For Lender Check, 17-5 \nResponsbilities of Lender,\
      \ 17-14 \nSanctions, 17-1 \nScope of Exclusion, 17-16 \nSubmitting Loans, 17-7 \nSubstantive or\
      \ Repetitive Errors - Example, \nSuspension, 17-15 \nTechnical Incompetence - Withdrawal \nExample,\
      \ 17-12 \nType of Participant, 17-1 \nUnfair Contract Provisions or Marketing \nPractices, 17-21\
      \ \nUnfair Marketing Practices, 17-22 \nUnresolved Deficiencies, 17-20 \nVA Business With Other\
      \ Participants, 17-7 \nVA Loan Guaranty Program, 17-1 \nVA May Impose Sanctions, 17-21 \nVA Regulations\
      \ on Debarments or \nSuspensions, 17-16 \nVA’s Policy on Unfair Marketing Practices, \nVerifying\
      \ Excluded Parties, 17-5 \nVeteran Equal Housing Certification, 17-24 \nViolations of Equal Housing\
      \ Opportunity \nLaws, 17-23 \nWithdrawal for an Indefinite Period, 17-7 \nWithdrawal For Proper\
      \ Cause, 17-7 \nWithdrawal Period: 1-3 Years, 17-10 \nWithdrawal Period: 180 Days, 17-9 \nWithdrawal\
      \ Period: 60 Days, 17-8 \nWithdrawal Time Periods, 17-8"
    drafter_attestation: Verbatim §17.08 from snapshot a62b7e4e05493a4b via deletion-only reading projection
      (repeated headers/footers + page numbers stripped, line-wrap hyphens joined); substring-verified
      against the projection.
  judgment: false
