VAFORMS.NET – VA Form 26-8736 – Application for Authority to Close Loans on an Automatic Basis—Nonsupervised Lenders – Do you know what VA Form 26-8736 is? If you’re not sure, here are some answers to your questions about this form. The VA Form 26-8736 is the Application for Authority to Close an Account. It’s used by Veterans who want to close their accounts and take advantage of a tax-free retirement. When you fill out this form, you’re applying to the Department of Veterans Affairs for the authority to close a bank account.
Download VA Form 26-8736 – Application for Authority to Close Loans on an Automatic Basis—Nonsupervised Lenders
|Form Number||VA Form 26-8736|
|Form Title||Application for Authority to Close Loans on an Automatic Basis—Nonsupervised Lenders|
|Edition Date||June 2022|
|File Size||841 KB|
What is a VA Form 26-8736?
VA Form 26-8736 is a form used by non-supervised lenders to request authority to close loans on an automatic basis. Lenders must submit this form to VA before closing IRRRL loans. It contains crucial information for lenders.
The purpose of this form is to determine whether lenders are following VA guidelines and regulations. VA will not issue a guarantee if lenders have not certified that they are in compliance with all federal regulations.
If VA determines that a lender has not complied with the rules, the lender is liable for damages. There are also federal statutes that provide severe penalties for intentional misrepresentation, fraud, and criminal conspiracy.
VA Form 26-8736a is a form for non-supervised lenders to request permission to close IRRRL loans on an automatic basis. It requires the signature of the principal officer of each Defendant lender.
As part of the application process, a lender is required to certify that all employees are properly trained and qualified. Also, the lender must certify that the HUD form is accurate. This form has a series of “lines” on which to disclose fees and costs.
For example, there is a section to indicate the amount of title examination fees. Another line lists attorney fees. These fees are added to the title examination fees to make them more than the 1% flat charge.
Where Can I Find a VA Form 26-8736?
VA Form 26-8736a is used by nonsupervised lenders to request authority to close IRRRL loans on an automatic non-supervised basis. This form is an essential document that lenders must submit to the Department of Veterans Affairs.
The lender must certify to the VA that the loan documentation is accurate and all employees are properly trained and qualified to perform their duties. Lenders also must certify that they are not charging unallowable fees. These certifications are an important “policing tool” for the VA.
In addition to charging illegal attorneys’ fees, defendant lenders charged other unallowable fees on IRRRL loans. They also concealed these fees from the VA.
Defendant lenders had a long history of violating the IRRRL program guidelines. Their betrayal of the trust of the government resulted in massive damages to taxpayers.
Tens of thousands of VA loans went into foreclosure. Lenders were able to make tens of millions of dollars off of these borrowers. But they also stole tens of millions of dollars off of taxpayers.
As a result of this massive fraud, the Government had to enact strict penalties. It would have been possible to save hundreds of millions of dollars had the lenders not falsified their certifications.
VA Form 26-8736 – Application for Authority to Close Loans on an Automatic Basis—Nonsupervised Lenders
VA Form 26-8736 – Application for Authority to Close Loans on an Automatic Basis—Nonsupervised Lenders is a crucial document. The Government relies on it to ensure that lenders comply with all regulations in the VA lending program. It is used by both supervised and non-supervised lenders. This form also functions as a key document to obtain a government guarantee.
Lenders are required to certify that the information on this form is accurate. Additionally, they must certify that all employees and underwriters are properly trained.
The purpose of the VA Form 26-8736 is to obtain authorization for a lender to close a loan automatically. Lenders submit the form with other closing documents when the borrower requests a VA guaranty. When the loan is closed, the lender sends a copy to the VA.
This form is required by 38 U.S.C. SSSS 3702 and 3710, which authorizes the VA to close loans on an automatic basis. Alternatively, a lender can receive a bonus for successfully closing a loan.
The form is a must for lenders seeking to participate in the VA IRRRL Loan Guaranty Program. This program has been plagued by fraudulent practices. Defendant lenders have been accused of charging veterans unallowable fees, including illegal attorneys’ fees. They have also hidden such charges on standard forms.
VA Form 26-8736 Example