source:
  type: guide
  id: va-m26-7-ch01-t04
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 1, Topic 4 — How a Non-supervised
    Lender Applies for Automatic
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 1, Topic 4 — How a
    Non-supervised Lender Applies for Automatic.
  coverage_tier: operative
obligations:
- id: va-m26-7-ch01-t04-full
  canonical_id: va-m26-7-ch01-t04-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 1, Topic 4 — How a Non-supervised
    Lender Applies for Automatic
  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 4 — How a
      Non-supervised Lender Applies for Automatic
    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: '4. How a Non-supervised Lender Applies for Automatic Authority
      Change Date February 1, 2019 • This chapter has been revised in its entirety.
      a. Procedures and Criteria for Qualification Submit a completed VA Form 26-8736,
      Application for Authority to Close Loans on an Automatic Basis-Non-supervised
      Lenders, to the VA office with jurisdiction over the lender’s home office, along
      with: • The documentation specified in the tables in this subsection, • The
      appropriate fee(s), (see Topic 10 of this chapter), and • The information specified
      in Topic 2 of this chapter, if not already submitted, or any updates to that
      information (including a current list of branch offices involved in VA mortgage
      lending). The tables in this section describe the criteria that must be met
      to qualify for automatic authority, and the documentation the lender must submit
      with its application to meet each criterion. Continued on next page VA Pamphlet
      26-7, Revised Chapter 1: Lender Approval Guidelines 1-11 4. How a Non-supervised
      Lender Applies for Automatic Authority, continued a. Procedures and Criteria
      for Qualification, continued Criteria Required Documentation Lender Experience
      (38 C.F.R. §36.4352(b)) Either: • the lender must have at least 2 years active
      VA origination experience and have originated and closed at least ten VA loans
      (properly documented and submitted) within the past 2 years, or • the lender
      (with less than 2 years active VA origination experience) must have originated
      and closed at least 25 VA loans (properly documented and submitted), or • a
      principal officer who is actively involved in managing VA origination functions
      must have at least two years management experience in the most recent 5 years,
      or • the lender, acting as an agent for an automatic lender(s), must have originated
      at least 10 VA loans over the past 2 years or 25 VA loans (if less than 2 years).
      Note: For purposes of determining whether the experience criteria are met, IRRRLs
      do not count as VA loans originated, since no underwriting is involved. For
      all lenders: • Completed VA Form 26-8736, Application for Authority to Close
      Loans on an Automatic Basis-Non-supervised Lenders, • VA ID number, and • Resume
      for each principal officer (president plus any officers involved in managing
      loan origination functions) showing mortgage lending experience. • The VA underwriter
      certificate of completion for mandatory training must be provided to VA within
      90 days of underwriter approval. Additional documentation for lenders qualifying
      based on experience as agent: • copy of the VA letter(s) recognizing the lender
      as an agent for the sponsoring lender(s), • copy of the corporate resolution
      sent to VA by the sponsoring lender describing the functions the agent was to
      perform, and • a letter from a senior officer of the sponsoring lender(s) indicating
      the number of VA loans submitted by the agent each year, and the loans have
      been documented and submitted in compliance with VA requirements and procedures.
      Continued on next page VA Pamphlet 26-7, Revised Chapter 1: Lender Approval
      Guidelines 1-12 4. How a Non-supervised Lender Applies for Automatic Authority,
      continued a. Procedures and Criteria for Qualification, continued Criteria Required
      Documentation Qualified Underwriter(s) (38 C.F.R. §36.4352(b)(2)) A senior officer
      of the lender must nominate at least one full-time qualified employee to act
      as an underwriter who has either: • at least 3 years experience in processing,
      pre-underwriting or underwriting mortgage loans, and • at least 1 year of the
      most recent 3 years must have included making underwriting decisions on VA loans,
      • a current AMP (Accredited Mortgage Professional) designation from the Mortgage
      Bankers Association (MBA), or • a current CRU (Certified Residential Underwriter)
      designation from MBA. All VA-approved underwriters must be familiar with VA’s
      credit underwriting standards and this VA Lender’s Handbook. For all underwriters
      VA Form 26-8736a, Non-supervised Lender’s Nomination and Recommendation of Credit
      Underwriter, completed by a senior officer if the underwriter is not located
      in the lender’s corporate office, a senior officer’s certification that the
      underwriter reports to and is supervised by an individual who is not a branch
      manager or other person with production responsibilities. Additional documentation
      for underwriters qualifying based on 3 years of experience Underwriter’s resume,
      outlining the underwriter’s specific experience with VA loans. (Note: For purposes
      of determining whether the experience criteria are met, IRRRLs do not count
      as processing, pre-underwriting, or underwriting.) Additional documentation
      for underwriters qualifying based on AMP/CRU designation Evidence that he or
      she is a current AMP/CRU as designated by the MBA. See “Underwriter Approval”
      in Topic 6 of this chapter for mandatory training requirements for newly approved
      underwriters and underwriters who have not underwritten VA loans in the past
      24 months. Continued on next page VA Pamphlet 26-7, Revised Chapter 1: Lender
      Approval Guidelines 1-13 4. How a Non-supervised Lender Applies for Automatic
      Authority, continued a. Procedures and Criteria for Qualification, continued
      Criteria Required Documentation Sanctions For Prior Acts There must be no factors
      indicating the lender would not exercise the necessary care and diligence. A
      statement of facts is required in any case where: • the lender, or any director
      or principal officer was ever debarred or suspended or otherwise formally sanctioned
      by the Government, or • any director or officer was ever a director or officer
      of a debarred or suspended firm, or • the lender had a servicing contract with
      an investor terminated for cause. b. Application Checklist The application checklist
      provides a quick-reference checklist for application materials and requirements.
      Please see Topic 15 of this chapter for more information. c. Nationwide Authority
      All lenders who have been approved by VA for automatic authority may use this
      authority on a nationwide basis. d. Notification of VA Decision The VA office
      of jurisdiction reviews the application materials submitted, and makes a determination
      regarding the lender’s qualifications. The office then sends the lender written
      notice of its decision and, if approved, any conditions attached to its automatic
      authority. Lenders are expected to use their automatic authority to the maximum
      extent possible. Loans uploaded for prior approval that are not required to
      be submitted for prior approval must include a written explanation from the
      underwriter. See Chapter 5, Topic 4 of this handbook for more information. Continued
      on the page VA Pamphlet 26-7, Revised Chapter 1: Lender Approval Guidelines
      1-14 4. How a Non-supervised Lender Applies for Automatic Authority, continued
      e. Probationary Period The lender will be subject to a probationary period of
      1 year or longer, during which the VA offices to which it submits loans will
      carefully review the quality of the lender’s underwriting, completeness of loan
      submissions, compliance with VA requirements and procedures, and delinquency
      and foreclosure rates. VA must perform a complete review including underwriting
      analysis for a minimum of the first 15 loans closed and guaranteed, and fifty
      percent (50%) of the next 50 loans closed automatically. VA may withdraw automatic
      authority at any time during the probationary period based on poor underwriting
      and/or consistently careless processing. At the expiration of the probationary
      period, VA sends the lender written notice of its decision to terminate the
      probationary period, extend it, or revoke automatic authority. VA Pamphlet 26-7,
      Revised Chapter 1: Lender Approval Guidelines 1-15'
  judgment: false
