VA Issues Circular with Guidance for Lenders on Coronavirus Pandemic

On May 19, 2020, the VA issued Circular 20-26-19 providing additional guidance for lenders regarding processing loans during the COVID-19 pandemic.

The Circular states that:

• VA guidelines do not require a lender to obtain IRS Form 4506-T, though investors or lenders may themselves require the form.
• Lenders are reminded to submit timely annual renewal applications by email, without relying on VA reminder notices.
• Deadlines for applications, renewals, and fees are automatically extended for 60 days between 3/13/2020 and 6/13/2020.
• Lenders are reminded that loans from non-supervised automatic lenders should not be underwritten by an underwriter not registered with VA or one whose approval still lists a previous employer.  The VA notes that such loans are subject to indemnification for the life of the loan.