VALoans.com belongs to the Mortgage Research Center, LLC, ("MRC") Network. MRC is a private company that provides mortgage information and connects homebuyers with lenders. Neither VALoans.com nor MRC are endorsed by, sponsored by or affiliated with the United States Department of Veterans Affairs or any other government agency. MRC receives compensation for providing marketing services to a select group of companies involved in helping consumers find, buy or refinance homes. If you submit your information on this site, one or more of these companies will contact you with additional information regarding your request. For a full list of these companies click here. By submitting your information you agree MRC can provide your information to one of these companies, who will then contact you. MRC does not guarantee that you will be eligible for a loan through the VA loan program. VALoans.com will not charge, seek or accept fees of any kind from you. VALoans.com does not offer mortgage products and if you are connected to a lender through VALoans.com, specific terms and conditions from that lender will apply.
The passage of Public Law 112-154, the Honoring America's Veterans and Caring for Camp Lejeune Families Act of 2012, meant a great many changes to the VA loans program in 2012. One of those changes includes expanding the criteria for VA loan funding fee exemptions, and as a result, the Department of Veterans Affairs has changed the way it evaluates applications for those funding fee waivers.
The VA states:
"VA already had the authority to waive the funding fee for active duty service members who close a loan based on a pre-discharge examination and rating. The law now permits a waiver based on a pre-discharge review of existing medical evidence (for example, service medical and treatment records), that results in issuance of a memorandum rating by VA."
How do veterans benefit from these changes? According to VA Circular 26-12-9, "This accommodates those service members who, for whatever reason, cannot undergo a full examination, but for whom existing medical records demonstrate they will be entitled to VA compensation upon discharge from active duty."
This is important factor for some veterans who deserve a VA loan funding fee waiver, but under the old way of doing business, could not get their waiver in time to close the loan.
The VA goes a bit further with these changes, stating "Lenders are reminded to ask any active duty loan applicant early in the loan process if he/she filed a claim for VA compensation while on active duty. If the response is `yes,’ the lender must send VA Form 26-8937, Verification of Benefits, to VA for review. VA will then request a memorandum rating to determine if the service member will receive compensation upon discharge. Once that determination has been made, VA Form 26- 8937 will be returned to the lender, noting the service member is exempt from the funding fee."
Borrowers should know VA loan funding fee exemption data for veterans who are already discharged and receiving VA benefits can be found "on the Certificate of Eligibility, or in the case of IRRRLs, the information received when ordering a case number. This provision of the law took effect on August 6, 2012."