source:
  type: regulation
  id: va-m26-7-ch09
  authority: VA Lender Handbook M26-7 Chapter 9 — Legal Instruments, Liens, Escrows, and Related Issues
  description: 'VA Pamphlet 26-7 Chapter 9 governs legal instruments, liens, escrows

    and related closing issues on VA loans.

    '
obligations:
- id: va-m26-7-ch09-security-instrument-required-clauses
  canonical_id: va-m26-7-ch09-security-instrument-required-clauses
  section: VA M26-7 Ch. 9 — Security Instrument Required Clauses
  description: '[CLOSER] must ensure that the security instruments used on VA loans

    establish the required lien, comply with the laws and regulations

    governing VA''s home loan program, comply with applicable state laws,

    and contain the required VA clauses (assumption approval,

    acceleration, funding fee, processing charge, and indemnity

    liability assumption).

    '
  type: do
  audit_question: For every VA loan closed, can [CLOSER] evidence that the security instrument (i) establishes the required lien, (ii) complies with VA home-loan laws and regulations, (iii) complies with applicable state law, and (iv) contains all five required VA clauses (assumption approval, acceleration, funding fee, processing charge, indemnity liability assumption)?
  workflow_phase: closing
  owner_role: closer
  secondary_owner_role: compliance_officer
  cadence: per_loan
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - va
  - m26-7
  - ch09
  - security-instrument
  - va-clauses
  - promoted
  primary_source:
    tier: 1
    authority: VA Lender Handbook M26-7 Chapter 9 — Legal Instruments, Liens, Escrows, and Related Issues
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: 23782f6842a5daf5
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:b7c7fcb001b1097e51e4479c70f74c0d981cc1a7a38109e8cd455e205071d9e8
    paragraph_quote: 'Lenders must ensure that the security instruments they use: '
    drafter_attestation: Copied verbatim from VA Handbook snapshot 23782f6842a5daf5 (M26-7 Ch. 9 — Security instrument clauses) at 2026-05-23. Source PDF retrieved via Wayback Machine.
  promoted_at: '2026-05-23T02:07:57+00:00'
  promoted_from: va-m26-7-ch09-roundb-v1.yaml
  program_review: Does the program ensure the security instrument establishes the required lien, complies with VA home-loan laws/regulations and applicable state law, and contains all five required VA clauses (assumption approval, acceleration, funding fee, processing charge, indemnity liability assumption)?
  file_review: Spot-check closed loans; confirm the security instrument contains the required lien and all five VA clauses, and conforms to state law.
  judgment: false
- id: va-m26-7-ch09-verify-veteran-alive-not-mia
  canonical_id: va-m26-7-ch09-verify-veteran-alive-not-mia
  section: VA M26-7 Ch. 9 — Veteran Alive / Not MIA Verification at Closing
  description: '[CLOSER] must always verify that the Veteran is alive at the time of

    loan closing, whether or not the Veteran is an Active Duty Service

    Member (ADSM). If on active military duty, the Veteran must not be

    missing in action (MIA). [CLOSER] must also make the prescribed

    written certification at the time of loan closing.

    '
  type: do
  audit_question: For every VA loan closed, can [CLOSER] evidence (i) verification that the Veteran was alive at the time of closing and not MIA if on active duty, with supporting correspondence from the Veteran or a commanding officer's statement, and (ii) the prescribed lender certification of alive-and-not-MIA status executed at closing?
  workflow_phase: closing
  owner_role: closer
  secondary_owner_role: compliance_officer
  cadence: per_loan
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - va
  - m26-7
  - ch09
  - veteran-alive
  - mia
  - closing-certification
  - promoted
  primary_source:
    tier: 1
    authority: VA Lender Handbook M26-7 Chapter 9 — Legal Instruments, Liens, Escrows, and Related Issues
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: 23782f6842a5daf5
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:b7c7fcb001b1097e51e4479c70f74c0d981cc1a7a38109e8cd455e205071d9e8
    paragraph_quote: 'The lender must always verify that the Veteran is alive at the time of loan '
    drafter_attestation: Copied verbatim from VA Handbook snapshot 23782f6842a5daf5 (M26-7 Ch. 9 — Veteran alive/MIA) at 2026-05-23. Source PDF retrieved via Wayback Machine.
  promoted_at: '2026-05-23T02:07:57+00:00'
  promoted_from: va-m26-7-ch09-roundb-v1.yaml
  program_review: Does the program ensure the Veteran is verified alive at closing (and not MIA if on active duty), with supporting correspondence, and that the prescribed alive-and-not-MIA certification is executed at closing?
  file_review: Spot-check closed loans; confirm the alive/not-MIA verification (Veteran or commanding-officer correspondence) and the executed certification.
  judgment: false
- id: va-m26-7-ch09-determine-insurance-coverage
  canonical_id: va-m26-7-ch09-determine-insurance-coverage
  section: VA M26-7 Ch. 9 — Hazard/Flood Insurance Minimum Coverage Determination
  description: '[CLOSER] must determine the minimum insurance coverage needed to

    meet the requirements of 38 CFR 36.4329 for a specific VA loan.

    Provided the required coverage is maintained (and there has been

    no change in the nature, value, or use of the security requiring

    new or additional coverage), no future guaranty claim can be reduced

    due to inadequate coverage.

    '
  type: do
  audit_question: For every VA loan, can [CLOSER] evidence its determination of the minimum hazard/flood insurance coverage required to satisfy 38 CFR 36.4329 for that specific loan, and confirmation that the determined coverage was in force at and after closing?
  workflow_phase: closing
  owner_role: closer
  secondary_owner_role: compliance_officer
  cadence: per_loan
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - va
  - m26-7
  - ch09
  - hazard-insurance
  - flood-insurance
  - 38cfr-36.4329
  - promoted
  primary_source:
    tier: 1
    authority: VA Lender Handbook M26-7 Chapter 9 — Legal Instruments, Liens, Escrows, and Related Issues
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: 23782f6842a5daf5
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:b7c7fcb001b1097e51e4479c70f74c0d981cc1a7a38109e8cd455e205071d9e8
    paragraph_quote: 'losses (unless a waiver has been granted). The lender must determine the '
    drafter_attestation: Copied verbatim from VA Handbook snapshot 23782f6842a5daf5 (M26-7 Ch. 9 — Insurance coverage determination) at 2026-05-23. Source PDF retrieved via Wayback Machine.
  promoted_at: '2026-05-23T02:07:57+00:00'
  promoted_from: va-m26-7-ch09-roundb-v1.yaml
  program_review: Does the program ensure the minimum hazard/flood coverage required by 38 CFR 36.4329 is determined for each loan and confirmed in force at and after closing?
  file_review: Spot-check files; confirm the §36.4329 minimum-coverage determination and that the determined coverage was in force at closing. The officer judges whether the determined coverage level adequately meets §36.4329 for the property.
  judgment: true
_promotion_history:
- promoted_at: '2026-05-23T02:07:57+00:00'
  candidate_path: obligations\_remediation\_round_b_drafts\va-m26-7-ch09-roundb-v1.yaml
  candidates_promoted: 3
  candidates_skipped_existing: 0
