VA Form 26-8736b: Automatic Closing Authority Checklist – VA Form 26-8736b is the official Checklist/Request for Authority to Close Loans on an Automatic Basis for nonsupervised lenders. It plays a key role in the VA home loan program, helping mortgage lenders gain or maintain the ability to close VA-guaranteed loans without prior VA approval for each transaction.
This article explains the form, its purpose, requirements, and the application process for lenders seeking automatic closing authority. It draws from official VA sources and the Lender’s Handbook.
What Is VA Form 26-8736b?
VA Form 26-8736b serves as a checklist and internal VA review tool for nonsupervised lenders applying for or renewing authority to close VA loans automatically. Nonsupervised lenders (those not regulated by federal or state banking agencies like banks or credit unions) must apply for this authority under 38 U.S.C. 3702.
Supervised lenders generally receive automatic authority by statute, but nonsupervised lenders must demonstrate compliance with VA standards for financial stability, experience, underwriting capability, and loan quality.
The form (revised March 2014) includes sections on VA requirements, station summary (VA reviewer notes), and remarks. It evaluates the lender’s readiness and past performance.
Why Do Lenders Need Automatic Closing Authority?
Automatic authority allows approved lenders to underwrite and close eligible VA loans efficiently without submitting each file for VA prior approval. This speeds up the homebuying process for veterans and reduces administrative burden.
Without it, lenders must use the prior approval process, which takes longer and can delay closings. Gaining this authority signals to veterans, real estate agents, and partners that the lender is a trusted VA loan provider.
Key Requirements for Nonsupervised Lenders
To qualify, lenders must meet several criteria outlined in VA regulations and the Lender’s Handbook. VA Form 26-8736b helps verify these:
- Financial Stability — Audited financial statements certified by a CPA (current within 6 months), minimum working capital or adjusted net worth, and a line of credit of at least $1 million.
- Experience — Active engagement in originating and servicing VA loans (typically 2–3 years) or equivalent experience for principal officers.
- Underwriting — Nomination of qualified full-time underwriters via VA Form 26-8736a with required VA loan underwriting experience.
- Compliance History — No suspensions by VA or FHA; good quality of prior loan submissions.
- Other — Designation of a liaison officer, permanent investors, and documentation of HUD/FNMA/GNMA approvals where applicable.
Lenders must also submit related forms like VA Form 26-8736 (main application) and others as part of a complete package.
How to Complete and Submit VA Form 26-8736b?
- Download the latest form from the official VA website.
- Fill out lender details (name, home office address).
- Complete Section I by answering yes/no and providing supporting documentation for each requirement.
- Submit the full application package to the appropriate VA Regional Loan Center.
Download VA Form 26-8736b here: Download VA Form 26-8736b (PDF)
Always pair it with the current VA Form 26-8736 application and supporting exhibits. Recent updates (e.g., Circular 26-23-14) introduced enhancements and a related agent form (26-8736c).
The Application Process for Automatic Authority
Lenders submit the package including:
- Completed VA Form 26-8736 and 26-8736b.
- Financial statements, resumes, underwriter nominations, and other exhibits.
- Application fee (if applicable, historically around $500 for related forms).
VA reviews the submission, often involving a station summary on Form 26-8736b assessing loan quality, servicing, and compliance. Approval is not guaranteed and depends on meeting all minimum standards.
For extensions, underwriter approvals, or affiliate loans, additional requests may be needed.
Benefits for Lenders and Veterans
- For Lenders — Faster closings, competitive edge in the VA loan market, and streamlined operations.
- For Veterans — Quicker access to home loans with the VA guaranty, no down payment, and competitive rates from experienced lenders.
Maintaining authority requires ongoing compliance, including annual audited financials, quality control plans, and adherence to the VA Lender’s Handbook.
Common Questions About VA Lender Authority
Who needs this form? Primarily nonsupervised mortgage companies seeking automatic processing privileges.
Is the form still current? Yes, the March 2014 version remains the referenced form on VA.gov. Check for any newer revisions via official channels.
Where to get help? Contact your VA Regional Loan Center or consult the full VA Lender’s Handbook (VA Pamphlet 26-7).
Stay Compliant and Up-to-Date
VA requirements can evolve. Lenders should regularly review official resources, participate in VA training, and maintain strong quality control. For the most accurate guidance, visit VA.gov or consult compliance professionals.
Official Download Link: VA Form 26-8736b PDF