AC-017 Important VA Credit Updates
FLCBank would like to inform all customers about several credit policy updates announced by the Department of Veterans Affairs via 4 Circulars that are effective immediately.
New Procedures for VA loans where the Veteran has a VA appointed Fiduciary – Circular 26-22-09
The circular denotes that VA is now allowing approved lenders with authority to close loans on an automatic basis (commonly referred to as automatic authority) to close a VA-guaranteed loan made to a Veteran who has been rated incompetent/unable to manage financial affairs (that is, one for whom VA has appointed a fiduciary). No other changes to VA’s prior approval apply. Also, VA no longer requires prior approval for lenders to close a VA loan made to two or more Veterans who are “all using their entitlement”. As a reminder, FLCBank does not offer financing to mortgages with two or more veterans (joint VA loan).
United States Space Force (USSF) – Branch of Service Eligibility Update – Circular 26-22-10
The National Defense Authorization Act of 2020 established the United States Space Force (USSF) as the newest branch of the United States Armed Forces, with this circular VA announces Certificate of Eligibility (COE) enhancements to include the United States Space Force (USSF) as a branch of service also referred to as “Guardians”. Because the USSF is a distinct branch of service, Loan Originators/Lenders are to select “Space Force” as the branch of service on the military service section when requesting COEs on the electronic application.