VA Issues Guidance on Construction/Permanent Home Loans (Circular 26-18-7). The Department of Veterans Affairs has issued revised guidance designed to encourage lenders to process and originate more home construction loans for veterans. The agency has long offered a program for new home construction but the lack of detailed guidance has inhibited many VA lenders from offering the product. Construction loans are closed before the start of construction. Proceeds are disbursed to cover building costs, the cost of the land, or balance owed on the land. The remaining balance, referred to as a loan-in-process account or a draw account, is held in escrow and disbursed to the builder during construction. The revised guidance requires the lender to obtain a written approval from the borrower before each disbursement or draw payment to the builder. VA construction/permanent home loans are ...
There are some in the industry who believe the entire subservicing sector is far behind in technology and customer service – and is ripe for a technology disruption of a major kind.
The Department of Veterans Affairs has withdrawn a recent directive to provide lender-certification disclosures as part of early disclosure requirements for Interest Rate Reduction Refinance Loans (IRRRLs).
The Department of Veterans Affairs is close to issuing a final anti-churning rule to better protect veterans from predatory lending practices as well as developing an end-to-end system to monitor loan performance from origination to servicing.
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