VA Issues Guidance on Implementing Amendments Under Blue Water Navy Vietnam Veterans Act of 2019

Weiner Brodsky Kider PC
Contact

Weiner Brodsky Kider PC

The Department of Veterans Affairs (VA) published interim guidance related to the implementation of the Blue Water Navy Vietnam Veterans Act of 2019 (the Act) in their Circular Letter 26-19-23.  The provisions of the Act that amend loan limits and loan fees will apply to all loans closed on or after January 1, 2020; however, the Circular Letter clarifies that all loans closed before January 1, 2020, must follow the current requirements, regardless of when the loan is disbursed or when the Loan Guaranty Certificate is issued. 

Among other changes, the Act, which was signed into law on June 25, 2019, expands the maximum guaranty amounts for purchase, construction, and cash-out refinance loans greater than the Freddie Mac conforming loan limit (CLL) in certain circumstances which are detailed in the Circular Letter.  According to the Circular Letter, the Act, “…does not change the maximum amount of guaranty entitlement available to Veterans for loans equal to or less than $144,000 regardless of the Freddie Mac CLL.”

The Act replaces the loan fee/funding fee table for the most common types of loans for all veterans for loans closed on or after January 1, 2020, and before January 1, 2022.  Additionally, the Act adds a waiver of the VA funding fees for members of the Armed Forces who are serving on active duty and who can provide, on or before the date of loan closing, a certificate of military orders awarding the Purple Heart. 

The Act also authorizes VA to establish policies enabling VA-designated appraisers to rely on third-parties for information related to appraisals; however, appraisers are not authorized to use third-party information before such policies are established by VA. 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Weiner Brodsky Kider PC | Attorney Advertising

Written by:

Weiner Brodsky Kider PC
Contact
more
less

Weiner Brodsky Kider PC on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.