We have added default behavior to VA Form 26-8937, Verification of VA Benefits (Cx3952) following the release of from the Veterans Benefits Administration of VA Circular 26-19-17, Funding Fee Guidance to Lenders and Servicers, dated June 28, 2019, which directs lenders and servicers to take the following action:
Funding Fee Exemption Determination. Ensuring that the funding fee exemption information is up to date at the time of closing is essential to avoid incorrect charges to exempt Veterans. Lenders must not advise Veterans who believe they are exempt from paying the funding fee to close on a loan without first establishing their funding fee exemption status.
The funding fee exemption status is certified by the veteran via the answers provided by the answers to questions 7 and 8 of the form. Question 7 on VA Form 26-8937 (Cx3952) states:
- I HEREBY CERTIFY THAT I ◻ DO ◻ DO NOT have a VA benefit-related indebtedness to my knowledge. I authorize VA to furnish the information listed below.
The checkboxes for question 7 can be filled based on the data sent to Docutech for field 46126, “Have VA Benefit-Related Indebtedness?”.
Question 8 on VA Form 26-8937 states:
- I HEREBY CERTIFY THAT I ◻ HAVE ◻ HAVE NOT filed a claim for VA disability benefits prior to discharge from active duty service (I am presently still on active duty.)
The checkboxes for question 8 can be filled based on the data sent to Docutech for field 46127, “Borrower 1 Have Filed VA Disability Claim?”.
To ensure that the funding fee exemption information is completed, if data is not sent to populate the appropriate checkbox(es), the boxes will be made available for selection during the eSign process.
This document change will be in effect on July 23, 2019. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
DR 295728