Find out why a top-ten mortgage lender with a proprietary loan origination system (LOS) needed to convert from a legacy document platform.
On February 14, 2023, the U.S. Department of Veterans Affairs (VA) announced scheduled changes to the VA funding fee rates in VA Circular 26-23-06. The VA funding fee is a one-time upfront cost that is paid by the veteran borrower for ongoing support of the VA home loan benefits program. Certain veterans and beneficiaries are eligible for an exemption from the funding fee requirement.
The funding fee is calculated as a percentage of the loan amount, depending on loan type and other factors. For most VA loan types, the funding fee percentage will be reduced once the new rates go into effect. The new funding fee rates for each applicable loan type are listed under 38 U.S.C. §3729(b)(2).
Lenders will be required to charge the new funding fee rates for all VA loans closed on or after April 7, 2023. All loans closed prior to April 7 should continue to charge the funding fee percentage currently in effect.
Links:
VA Circular 26-23-06
VA Circular Exhibit A
VA Circular Exhibit B
Find out why a top-ten mortgage lender with a proprietary loan origination system (LOS) needed to convert from a legacy document platform.
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