source:
  type: regulation
  id: va-m26-7-ch08
  authority: "VA Lender Handbook M26-7 Chapter 8 — Borrower Fees and Charges and the VA Funding Fee"
  description: 'VA Pamphlet 26-7 Chapter 8 governs borrower fees, charges, and the

    VA Funding Fee.

    '
obligations:
- id: va-m26-7-ch08-borrower-fees-strict-limits
  canonical_id: va-m26-7-ch08-borrower-fees-strict-limits
  section: "VA M26-7 Ch. 8 — Limitations on Borrower-Paid Fees and Charges"
  description: '[CLOSER] must strictly adhere to the limitations on borrower-paid

    fees and charges when making VA loans.

    '
  type: do
  audit_question: For every VA loan closed, can [CLOSER] evidence that the borrower-paid fees and charges fall strictly within the limitations set forth in M26-7 Chapter 8 (no impermissible borrower-paid charges; itemized closing costs within allowable categories and amounts)?
  workflow_phase: closing
  owner_role: closer
  secondary_owner_role: compliance_officer
  cadence: per_loan
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - va
  - m26-7
  - ch08
  - borrower-fees
  - allowable-charges
  - promoted
  primary_source:
    tier: 1
    authority: "VA Lender Handbook M26-7 Chapter 8 — Borrower Fees and Charges and the VA Funding Fee"
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: 8f28fe2bcf1f2e28
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:44aecfeb4beae872a5dbb59f87b324e1fc8730143eaf4185b6cb0d71698e60f3
    paragraph_quote: 'Lenders must strictly adhere to the limitations on borrower-paid fees and '
    drafter_attestation: "Copied verbatim from VA Handbook snapshot 8f28fe2bcf1f2e28 (M26-7 Ch. 8 — Borrower fee limits) at 2026-05-23. Source PDF retrieved via Wayback Machine."
  promoted_at: '2026-05-23T02:06:53+00:00'
  promoted_from: va-m26-7-ch08-roundb-v1.yaml
  program_review: Does the program ensure borrower-paid fees and charges stay strictly within the M26-7 Ch. 8 limitations (no impermissible borrower-paid charges; itemized closing costs within allowable categories and amounts)?
  file_review: Spot-check the borrower-charge population; confirm each charge maps to an allowable category within limits. The officer judges whether each charged item is a permissible borrower charge.
  judgment: true
- id: va-m26-7-ch08-verify-funding-fee-exempt-status
  canonical_id: va-m26-7-ch08-verify-funding-fee-exempt-status
  section: "VA M26-7 Ch. 8, Topic 8, Subsection c — Verify Funding-Fee Exempt Status"
  description: '[CLOSER] must verify Veteran funding-fee exempt status by obtaining

    one of: a properly completed and signed VA Form 26-8937, Verification

    of VA Benefits, indicating the borrower''s exempt status; for a

    Veteran who elected service retirement pay instead of VA

    compensation, a copy of the original VA notification of disability

    rating plus documentation of the Veteran''s service retirement income;

    or indications on the Certificate of Eligibility that the borrower is

    entitled as an unmarried surviving spouse.

    '
  type: do
  audit_question: For every VA loan in which the borrower is claimed funding-fee exempt, can [CLOSER] evidence retention of one of the three permissible verification documents (signed VA Form 26-8937 indicating exempt status, OR original VA disability-rating notification plus service-retirement-income documentation for retirement-pay electors, OR COE entitlement as unmarried surviving spouse)?
  workflow_phase: closing
  owner_role: closer
  secondary_owner_role: compliance_officer
  cadence: per_loan
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - va
  - m26-7
  - ch08
  - funding-fee-exempt
  - promoted
  primary_source:
    tier: 1
    authority: "VA Lender Handbook M26-7 Chapter 8 — Borrower Fees and Charges and the VA Funding Fee"
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: 8f28fe2bcf1f2e28
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:44aecfeb4beae872a5dbb59f87b324e1fc8730143eaf4185b6cb0d71698e60f3
    paragraph_quote: 'The lender must verify exempt status by obtaining one of the following: '
    drafter_attestation: "Copied verbatim from VA Handbook snapshot 8f28fe2bcf1f2e28 (M26-7 Ch. 8, Topic 8c — Verify exempt status) at 2026-05-23. Source PDF retrieved via Wayback Machine."
  promoted_at: '2026-05-23T02:06:53+00:00'
  promoted_from: va-m26-7-ch08-roundb-v1.yaml
  program_review: Does the program account for the funding-fee exemption verification — one of the three permitted proofs (signed VA Form 26-8937; original VA disability-rating notification plus service-retirement-income documentation for retirement-pay electors; or COE unmarried-surviving-spouse entitlement)?
  file_review: Spot-check files claiming funding-fee exemption; confirm one of the three permitted verification documents is retained.
  judgment: false
- id: va-m26-7-ch08-remit-funding-fee-15-days
  canonical_id: va-m26-7-ch08-remit-funding-fee-15-days
  section: "VA M26-7 Ch. 8 — Funding Fee Remittance via FFPS within 15 Days"
  description: '[CLOSER] must remit the VA funding fee via the VA Funding Fee

    Payment System (FFPS) within 15 calendar days of loan closing.

    Lenders paying the fee more than 15 days after loan closing will

    automatically be assessed a four percent late fee, and fees paid

    more than 30 days late will automatically be assessed an interest

    charge in addition to the late fee.

    '
  type: do
  audit_question: "For every VA loan closed, can [CLOSER] evidence remittance of the VA funding fee via FFPS within 15 calendar days of loan closing, and — if remittance was late — can [CLOSER] account for the four-percent late fee and any interest charge incurred?"
  workflow_phase: closing
  owner_role: closer
  secondary_owner_role: compliance_officer
  cadence: per_loan
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - va
  - m26-7
  - ch08
  - funding-fee
  - ffps
  - 15-day-remittance
  - promoted
  primary_source:
    tier: 1
    authority: "VA Lender Handbook M26-7 Chapter 8 — Borrower Fees and Charges and the VA Funding Fee"
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: 8f28fe2bcf1f2e28
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:44aecfeb4beae872a5dbb59f87b324e1fc8730143eaf4185b6cb0d71698e60f3
    paragraph_quote: 'Lenders must remit the VA funding fee via the VA FFPS; within 15 calendar '
    drafter_attestation: "Copied verbatim from VA Handbook snapshot 8f28fe2bcf1f2e28 (M26-7 Ch. 8 — FFPS 15-day remittance) at 2026-05-23. Source PDF retrieved via Wayback Machine."
  promoted_at: '2026-05-23T02:06:53+00:00'
  promoted_from: va-m26-7-ch08-roundb-v1.yaml
  program_review: Does the program track the funding-fee clock so the fee is remitted via FFPS within 15 calendar days of closing, and account for the automatic 4% late fee (and interest if 30+ days late)?
  file_review: Spot-check closings; confirm FFPS remittance within 15 days, accounting for any late fee/interest where late.
  judgment: false
_promotion_history:
- promoted_at: '2026-05-23T02:06:53+00:00'
  candidate_path: obligations\_remediation\_round_b_drafts\va-m26-7-ch08-roundb-v1.yaml
  candidates_promoted: 3
  candidates_skipped_existing: 0
