VA Form 26-8736b: Automatic Closing Authority Checklist

VA Form 26-8736b: Automatic Closing Authority Checklist – Nonsupervised lenders seeking to streamline VA-guaranteed home loan processing in the United States often pursue automatic closing authority. VA Form 26-8736b serves as the key Checklist/Request for Authority to Close Loans on an Automatic Basis (for nonsupervised lenders). This form helps lenders demonstrate compliance with VA requirements and supports applications for the ability to underwrite, approve, and close VA loans without submitting each one for prior VA approval.

What Is VA Form 26-8736b and Its Role in VA Lending?

VA Form 26-8736b (revised March 2014) functions as a detailed checklist accompanying or supporting VA Form 26-8736 (Application for Authority to Close Loans on an Automatic Basis – Nonsupervised Lenders). It verifies that the lender meets VA standards in areas such as:

  • Audited financial statements certified by a CPA (current within 6 months).
  • Adequate working capital and adjusted net worth.
  • Experience of principal officers and underwriters.
  • No prior suspensions by VA or FHA.
  • Nomination of qualified underwriters via VA Form 26-8736a.
  • Lines of credit, investors, and other operational requirements.

The form includes sections for VA station summaries on loan quality, servicing, and other factors, plus reviewer recommendations.

Automatic authority allows approved nonsupervised lenders to process most VA loans independently, speeding up closings for veterans. Supervised lenders (e.g., banks, credit unions) generally receive this authority automatically, while nonsupervised lenders must apply.

Download the official form here:
Download VA Form 26-8736b (PDF)

Why Nonsupervised Lenders Need Automatic Authority?

Without automatic authority, nonsupervised lenders must submit loans for prior approval by the VA, which can delay closings and impact competitiveness in the VA loan market. Gaining approval via Forms 26-8736 and 26-8736b enables lenders to:

  • Make faster lending decisions.
  • Better serve veterans seeking no-down-payment, competitive-rate VA home loans.
  • Maintain compliance while scaling operations.

Recent updates (e.g., VA Circular 26-23-14) revised the main application form and introduced related forms like 26-8736c for agent recognition.

Key Requirements for Approval (Per VA Lender’s Handbook and Regulations)

To qualify, nonsupervised lenders typically must meet experience, financial, and operational criteria outlined in 38 CFR § 36.4352 and the VA Lender’s Handbook (VA Pamphlet 26-7, Chapter 1):

  1. Experience — Active origination of VA loans (e.g., minimum 10 properly submitted loans in the past 2 years, or more if newer).
  2. Underwriters — Nomination of full-time qualified credit underwriters with sufficient VA/mortgage experience.
  3. Financial Stability — Minimum working capital/net worth, lines of credit ($1M+), audited statements, and permanent investors.
  4. Quality Control — Written plans, compliance certifications, and no history of suspensions.
  5. Application Process — Submit via VA’s Program Participant Management (PPM) system, including fees (e.g., $500 for new applications), resumes, and supporting documents.

Lenders must also comply with ongoing requirements like annual recertification and quality submissions.

Step-by-Step Guide to Applying for Automatic Authority

  1. Review Resources — Study the VA Lender’s Handbook Chapter 1 and 38 CFR § 36.4352.
  2. Complete Forms — Fill out VA Form 26-8736 (main application), 26-8736b (checklist), 26-8736a (underwriter nomination), and others as needed.
  3. Gather Documentation — Financials, resumes, investor info, etc.
  4. Submit via PPM — Use VA’s online system for registration, applications, and fees.
  5. VA Review — Expect evaluation of loan history, quality, and compliance.
  6. Maintain Status — Adhere to certifications, reporting changes, and annual requirements.

For questions, contact a VA Loan Specialist at 1-877-827-3702.

Benefits for Lenders and Veterans

Automatic authority improves efficiency in the VA home loan program, helping lenders close loans faster while ensuring veterans receive high-quality service. Approved lenders must still follow all VA underwriting, appraisal, and servicing rules to protect the guaranty.

Note: Always use the most current forms from VA.gov. Previous versions may not be accepted.

Additional Resources

This article provides general information based on official VA sources as of 2026. Lenders should consult the VA directly or a compliance expert for personalized guidance, as requirements can be updated. Veterans looking for a VA loan should work with an approved automatic lender for the smoothest experience.