VA issued Circular 26-22-12 (Circular), introducing a new Certificate of Eligibility (COE) funding fee status for active-duty service members with pending pre-discharge claims. Per the Circular, the funding fee status will reflect Non-Exempt – In Development if the service member is eligible for the home loan benefit and the service member has a pre-discharge claim pending that has not been adjudicated. The new funding fee status is designed to inform lenders that VA Form 26- 8937 has been received and that the pre-discharge or memorandum rating request is in process. The changes announced in the Circular went into effect June 23, 2022.
Click to view the VA Circular 26-22-12: https://www.tenaco.com/wp-content/uploads/2022/06/VA-Circular-26-22-12-06-23-22.pdf
