The VA has implemented changes to ensure Veterans’ funding fee exemption information is up-to-date at the time of closing to avoid incorrect charges to exempt Veterans. Lenders may not advise Veteran borrowers who believe they are exempt from paying the funding fee to close on a loan without first establishing the borrower’s funding fee exemption status.
Effective immediately, a Certificate of Eligibility (COE) will be required for all VA IRRRLs to determine whether the Veteran borrower has a funding fee exemption.
For all loans (Full Doc and IRRRL) where the COE does not show the Veteran is exempt from paying the funding fee, the Veteran must answer the following questions:
The CMS VA Disability Questionnaire has been updated to include these questions. The Veteran is not required to use the CMS form; however, the Veteran must provide either a completed CMS VA Disability Questionnaire or the Lender’s version of the Disability Questionnaire in a substantially similar format prior-to-docs (PTD).
If the Veteran has a claim for compensation pending with VA, an updated COE must be obtained within three (3) days of the note date using the COE “Correct” function in WebLGY.
If an Active Duty Servicemember has a pre-discharge claim pending, the Lender must contact the Regional Loan Center (RLC) immediately to request assistance in obtaining a proposed or memorandum rating in the event the Servicemember may be exempt from paying the funding fee as noted above. If a proposed or memorandum rating is not obtained and loan closing takes place, the Servicemember is not eligible for funding fee exemption.
Please contact CorrespondentRM@carringtonms.com with any questions.
Carrington thanks you for your business.
An Equal Housing Opportunity Lender. Copyright 2007 - 2024 . Carrington Mortgage Services, LLC headquartered at 1600 South Douglass Road, Suites 110 & 200-A, Anaheim, CA 92806. NMLS ID # 2600. Toll Free # 800-561-4567. All rights reserved. Restrictions may apply. All loans are subject to credit, underwriting and property approval guidelines. Nationwide Mortgage Licensing System (NMLS) Consumer Access Web Site: www.nmlsconsumeraccess.com.
The content of this website is intended for licensed third-party originators or brokers only and may not be duplicated or disseminated to the public. Carrington Mortgage Services is one of the leading wholesale mortgage lenders.
Government Agency Approval | FHA Non-Supervised Mortgage Approval #: 24751-0000-5 | VA Automatic Lender Approval #: 902324-00-00