As previously announced, VA Circ. 26-20-13, Change 1 adds the following to VA Circ. 26-20-13 (a Circular providing guidance on valuation practices during the COVID-19 pandemic):
“d. Water System Acceptability. Well water testing for refinance transactions where the home is already encumbered by a VA loan will be waived. In areas where testing is suspended due to COVID-19, the Veteran will need to sign an acknowledgment stating they are aware that testing cannot be done for purchase and refinance transactions where the home is not already encumbered by a VA-guaranteed loan. The lender is responsible to have a test completed within 180 days. Prior to loan closing, the Veteran must acknowledge they accept responsibility to install a filtration system at their own cost to correct the issue should the water test fail. VA staff and/or the Staff Appraisal Reviewer (SAR) must annotate the Veteran acknowledgement and 180-day requirement in NOV Condition #16, Other Conditions, on the NOV.”
We are now providing Cx24007 for this (temporary) requirement. The document is formatted as an acknowledgment, under which the undersigned states his/her/their understanding of certain facts and takes responsibility to install a filtration system should the eventual well water testing fail.
Because this document may or may not apply depending on whether or not the subject property is located in an area where testing is suspended due to the COVID-19 pandemic (which can change rapidly), we are unable to configure it to print on this condition. We will, however, configure it to print broadly based upon the following conditions:
- Base Type = VA
- Document Package Type = Initial Disclosure
- Private Well = Yes
- VA Interest Rate Reduction Refinancing Loan (IRRRL) = No
These conditions may cause the document to print in packages in which it is not applicable (i.e., well testing has not been suspended in the area in which the subject property is located), but clients can deselect it from these packages (or may customize the print conditions).
This document will be available on production starting May 27, 2020. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.