source:
  type: regulation
  id: va-m26-7-ch02
  authority: "VA Lender Handbook M26-7 Chapter 2 — Veteran's Eligibility and Entitlement"
  description: 'VA Pamphlet 26-7 Chapter 2 governs Veteran eligibility and

    entitlement for VA-guaranteed loans.

    '
obligations:
- id: va-m26-7-ch02-establish-eligibility-before-appraisal
  canonical_id: va-m26-7-ch02-establish-eligibility-before-appraisal
  section: "VA M26-7 Ch. 2, Topic 1, Subsection b — The Lender's Role"
  description: '[LENDER] must ensure the applicant is an eligible Veteran before an

    appraisal is ordered, and the loan cannot be processed or closed

    until eligibility is established. VA cannot guarantee a loan for an

    ineligible Veteran.

    '
  type: do
  audit_question: For every VA loan application, can [LENDER] evidence that the applicant was confirmed as an eligible Veteran (via a Certificate of Eligibility from WebLGY) BEFORE the appraisal was ordered and BEFORE the loan was processed or closed?
  workflow_phase: origination
  owner_role: loan_officer
  secondary_owner_role: underwriter
  cadence: per_loan
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - va
  - m26-7
  - ch02
  - eligibility
  - coe
  - promoted
  primary_source:
    tier: 1
    authority: "VA Lender Handbook M26-7 Chapter 2 — Veteran's Eligibility and Entitlement"
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: 488cf6b152dfffb7
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:b9f2259ef4bf182c8700374d01f483bbad8bde952afea193cdbca84386d635e6
    paragraph_quote: 'The lender must ensure the applicant is an eligible Veteran before an appraisal '
    drafter_attestation: "Copied verbatim from VA Handbook snapshot 488cf6b152dfffb7 (M26-7 Ch. 2, Topic 1b — The Lender's Role) at 2026-05-23. Source PDF retrieved via Wayback Machine."
  promoted_at: '2026-05-23T01:59:41+00:00'
  promoted_from: va-m26-7-ch02-roundb-v1.yaml
  program_review: Does the workflow ensure Veteran eligibility (via COE from WebLGY) is established BEFORE the appraisal is ordered and before the loan is processed or closed?
  file_review: Pull a sample; confirm a valid COE preceded the appraisal order and loan processing/closing.
  judgment: false
- id: va-m26-7-ch02-comply-coe-conditions
  canonical_id: va-m26-7-ch02-comply-coe-conditions
  section: "VA M26-7 Ch. 2, Topic 2 — What the Certificate of Eligibility Tells the Lender"
  description: '[LENDER] must be sure to comply with all "conditions" appearing near

    the middle portion of the Certificate of Eligibility, including

    funding-fee exempt or non-exempt status and any other conditions the

    COE places on the guaranty.

    '
  type: do
  audit_question: For every VA loan, can [LENDER] evidence that the conditions appearing on the COE (funding-fee status, ADSM continuous-active-duty certification, etc.) were identified and complied with prior to closing, and that documentation supporting compliance is retained?
  workflow_phase: origination
  owner_role: loan_officer
  secondary_owner_role: closer
  cadence: per_loan
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - va
  - m26-7
  - ch02
  - coe-conditions
  - funding-fee
  - promoted
  primary_source:
    tier: 1
    authority: "VA Lender Handbook M26-7 Chapter 2 — Veteran's Eligibility and Entitlement"
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: 488cf6b152dfffb7
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:b9f2259ef4bf182c8700374d01f483bbad8bde952afea193cdbca84386d635e6
    paragraph_quote: "Lenders must be sure to comply with all “conditions” appearing near the "
    drafter_attestation: "Copied verbatim from VA Handbook snapshot 488cf6b152dfffb7 (M26-7 Ch. 2, Topic 2 — COE conditions) at 2026-05-23. Source PDF retrieved via Wayback Machine."
  promoted_at: '2026-05-23T01:59:41+00:00'
  promoted_from: va-m26-7-ch02-roundb-v1.yaml
  program_review: Does the program ensure the conditions on the COE (funding-fee status, ADSM continuous-active-duty certification, other guaranty conditions) are identified and complied with before closing, with supporting documentation retained?
  file_review: Pull a sample; confirm each COE condition was identified, complied with, and documented before closing.
  judgment: false
- id: va-m26-7-ch02-coe-ace-first
  canonical_id: va-m26-7-ch02-coe-ace-first
  section: "VA M26-7 Ch. 2, Topic 3 — How to Apply for a Certificate of Eligibility"
  description: '[LENDER] must first attempt to obtain a COE through the Automatic

    Certificate of Eligibility (ACE) application, which can be accessed

    through the VIP. If a COE cannot be obtained immediately, the lender

    submits an electronic application via the WebLGY link.

    '
  type: do
  audit_question: For every VA loan, can [LENDER] evidence it first attempted to obtain the COE through the ACE application via VIP, and that any subsequent electronic application via WebLGY is documented if ACE did not return a COE immediately?
  workflow_phase: origination
  owner_role: loan_officer
  secondary_owner_role: ''
  cadence: per_loan
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - va
  - m26-7
  - ch02
  - ace
  - weblgy
  - promoted
  primary_source:
    tier: 1
    authority: "VA Lender Handbook M26-7 Chapter 2 — Veteran's Eligibility and Entitlement"
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: 488cf6b152dfffb7
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:b9f2259ef4bf182c8700374d01f483bbad8bde952afea193cdbca84386d635e6
    paragraph_quote: 'Lenders must first attempt to obtain a COE through the ACE application, '
    drafter_attestation: "Copied verbatim from VA Handbook snapshot 488cf6b152dfffb7 (M26-7 Ch. 2, Topic 3 — How to Apply for a COE) at 2026-05-23. Source PDF retrieved via Wayback Machine."
  promoted_at: '2026-05-23T01:59:41+00:00'
  promoted_from: va-m26-7-ch02-roundb-v1.yaml
  program_review: Does the workflow ensure the COE is first attempted through ACE via VIP, with a documented WebLGY electronic application only where ACE does not return a COE immediately?
  file_review: Spot-check files; confirm the ACE-first attempt and any documented WebLGY fallback.
  judgment: false
_promotion_history:
- promoted_at: '2026-05-23T01:59:41+00:00'
  candidate_path: obligations\_remediation\_round_b_drafts\va-m26-7-ch02-roundb-v1.yaml
  candidates_promoted: 3
  candidates_skipped_existing: 0
