January 24, 2022

Bulletin 2022-014 VA Underwriting Guide Updates

VA Underwriting Guide Updates

Newrez Approved Correspondent Clients: Newrez has removed or revised numerous VA underwriting guidelines outlined below. These changes are effective immediately.

 

VA Guideline Updates

Topic

Current Guideline

New Guideline

VA Joint Loans
Chapter 2A Eligibility

The following loans must receive final approval from the VA before closing:

  • Joint loan to Veteran and one (1) or more non-Veterans (not spouse); or
  • Joint loan to Veteran and one (1) or more Veterans (not spouse) not using their home loan entitlement.

Final approval from the VA before closing is not required for joint loans of two (2) or more unmarried Veterans using their home loan entitlement.

The following loans must receive prior approval from the VA before closing:

  • Joint loan to Veteran and one (1) or more non-Veterans (not spouse); or
  • Joint loan to Veteran and one (1) or more Veterans (not spouse) not using their home loan entitlement.

Prior approval from the VA before closing is not required for joint loans of two (2) or more married or unmarried Veterans using their home loan entitlement, however, a modified Post-Closing Prior Approval submission must be performed.

Condominiums
Chapter 3D Property Types

Silent

All condominium projects must be approved by VA.

Reconsideration of Value
Chapter 3J Appraisal

Silent

After the appraisal has been completed and a Notice of Value (NOV) has been issued to the Veteran, the Veteran may request a reconsideration of value. Within five (5) business days, VA staff will review the appraisal report, any additional data submitted with the request, as well as the market data available through VA’s Appraisal Management System. If VA staff concludes that an increase in the estimated reasonable value is supported by the market, VA will issue an amended NOV.