VA issued Circular 26-22-09 (Circular), announcing new loan approval procedures for loans where the borrower has a VA-appointed fiduciary and for loans with 2 or more veterans who are all using entitlement (commonly called “joint loans”). Per the Circular, lenders with authority to close loans on an automatic basis (automatic authority) have VA’s prior approval to close a VA-guaranteed loan where the borrower has a VA-appointed fiduciary and prior approval to close a joint loan. A lender with automatic authority is no longer required to submit these types of loans to VA for a pre-closing review. VA also announced additional steps lenders with automatic authority should take after loan closing with respect to these types of loans. The changes announced in the Circular went into effect May 19, 2022.
Click to view the VA Circular 26-22-09: https://www.tenaco.com/wp-content/uploads/2022/05/VA-Circular-26-22-09-05-19-22.pdf
