Document Updates: Updates to VA Forms 26-1820 (Cx52), 26-1820a (Cx20336), 26-0503 (Cx55) & 26-6393 (Cx5533)

On January 17, 2023, the VA published Circular 26-23-3 and Circular 26-23-4 regarding revisions to VA Form 26-1820 “Report and Certification of Loan Disbursement”, the discontinuation of VA Form 26-1802a “HUD/VA Addendum to the Uniform Residential Loan Application” and VA Form 26-0503 “Federal Collection Policy Notice”, and updates to VA Form 26-6393 “VA Loan Analysis”. Notably, Circular 26-23-03 states that the “…VA has consolidated VA Form 26-1802a and VA Form 26-0503, Federal Collection Policy Notice, into the new VA Form 26-1820.” These changes are to go into effect by February 1, 2023.

Pursuant to the information in these Circulars and on the new model forms, the following changes are being made to our Docutech forms:

 26-1820 (Cx52)

The model VA Form 26-1820, “Report and Certification of Loan Disbursement,” has been heavily revised. Our copy, Cx52, is being updated to match the format and content of the new model form. Significant changes include:

• • Removal of the Instructions to Lenders
  • Addition of name and Social Security number of any co-obligor in 6 and 6B
  • Complete reworking of the options for the “Purpose of Loan” section, prompting the creation of a new field, “FHA / VA Purpose of Loan 2023” (FI 173157)
  • Rearrangement and additions to the “Terms of Loan” section, including the addition of the Amortization Type, additions to the Vesting options (including new enumerations for field VA – Vesting, FI 2215), and the addition of Discount Points information
  • Specific provisions added addressing refinances (16 and 17), including a new field “Previous Loan Being Refinanced Was Modified” (FI 173158)
  • Inclusion of Energy Efficient Mortgage information
  • The addition of escrow holdback details (26 and 27)
  • Underwriter signature and details added to the Lender’s Certification
  • Inclusion of additional items for the Certificate of Eligibility (COE) Conditions
  • Many other smaller changes and formatting differences

Circular 26-23-03 notes that:

Use of the new VA Form 26-1820 is required for loans with application dates on or after February 1, 2023. VA Form 26-1802a and VA Form 26-0503 will no longer be required with use of the new VA Form 26-1820. Lenders may, and are encouraged to, use the new form for loan applications received prior to the effective date.

26-1802a (Cx20336)

As mentioned previously, VA Form 26-1802a “HUD/VA Addendum to the Uniform Residential Loan Application” will be discontinued. This means that our copy of joint VA Form 26-1802a and Form HUD-92900-A, Cx20336, will no longer print for VA loans. Clients with custom print configurations may wish to revisit their custom print configuration to remove Cx20336 from their VA loan packages, since it is no longer required.

26-0503 (Cx55)

Like Cx20336, VA Form 26-0503 is also being discontinued. As is our normal process, the document is being assigned to clients with custom print configurations to ensure that clients with custom configurations will have an opportunity to review their print configurations prior to removing the document from their loan packages. Cx55 will no longer generically print for standard VA loan packages.

26-6393 (Cx5533)

The model VA Form 26-6393, “VA Loan Analysis,” has changed, but not as significantly as Cx52. Our copy of the “VA Loan Analysis,” Cx5533, is being modified to reflect the new additions to the model form. These changes include:

• • The addition of a section about the Automated Underwriting System (AUS) used
  • Inclusion of Borrower credit and credit score information
  • Renumbering of subsequent sections
  • Removal of the CRV Data section (this section was only for VA use)
  • Removal of the “(Sign in ink)” notation on the signature boxes

Effective Date

These changes will be in effect on February 1, 2023. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.

DR-139330
DR-139390
LEG-706

UPDATE

The VA posted Circular 26-23-3 (Change 1) and Circular 26-23-4 (Change 1) today listing “PURPOSE:” postponing the effective date of these Circulars from February 1, 2023 to April 1, 2023.

The changes announced above will remain on ConformX Stage servers for testing, but will not be in effect on ConformX Production February 1, 2023.  Another Document Update announcement will be posted in March with a revised ConformX effective date.

The preceding is for informational purposes only and is not and may not be construed as legal advice. No third-party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third party should consult with an attorney prior to embarking upon any specific course of action.