VA Underwriting

This 8-hour course provides all the skills to process and underwrite VA loans.  We will discuss everything from the characteristics of VA loans all the way to post guaranty issues.  Calculation worksheets and case scenarios are also used to provide hands-on interactions for the attendees.

 

The Story of VA Lending 

VA lending started with the Serviceman's Readjustment Act of 1944, more commonly known as the G.I. Bill.  It has been considered one of the most significant pieces of legislation ever produced by the Federal government and impacted the United States socially, economically and politically. The G.I. Bill was designed to help Veterans assimilate and become productive more quickly, ultimately impacting their success and that of the United States economy.  At the conclusion of World War II, soldiers were coming back to the United States and these veterans would have significant challenges with becoming integrated back into society and becoming productive members in the workforce and in their communities. The bill not only offered the loan guarantee for homes, farms or businesses, but also provided funding for college education and training, and even unemployment pay.

The bill was controversial and heavily debated. Representative John Gibson of Georgia ultimately cast the tie-breaking vote. After Senate approval, President Franklin D. Roosevelt signed it into law June 22, 1944. Since then, the VA mortgage has become a significant piece of our national mortgage marketplace.  VA loans have seen more rapid growth over the past several years and the Veterans Administration has done much to optimize the systems in the loan process. Recently, the VA added over 2000 appraisers to the rosters, automated the appraisal management system, created a national work queue for certificates of eligibility, showing how competitive the product is in the marketplace.  As a result of all these efforts, veteran homeownership stands around 80%.

Even though the program offers zero-down financing, it is still consistently the best performing loan product. Should we credit this to the fact that this loan program has remained relatively unchanged instead of guidelines being relaxed and then tightened and vice versa? Or is it because VA lending relied on concepts like residual income and ability-to-repay far before it was required on QM loans? Or perhaps the strong performance of these loans is based on the fact that Veterans of our Armed Forces are just simply productive citizens and dependable borrowers. The truth of the matter is, it's probably a combination of all of these. 

VA loans also represent a significant opportunity for lenders. The guarantee that stands behind the loan makes it very safe. The VA has very specific rules and processes that must be followed exactly in order to produce high-quality VA loans.  One of the most common defects with VA loans is the lack of complete documentation of borderline files.  Loans that do not meet the guidelines or are not properly documented can be very costly.

 
Why Choose Diehl for VA Training?

Diehl has been trusted by lenders, large and small, ranging from community banks and credit unions to independent mortgage bankers, to some of the largest regional and national banks. The average expertise of our trainers is in excess of 27 years with one senior trainer highly experienced in all phases of the VA loan process. We will synergize with your team in order to provide everything from basic VA training to advanced levels including audit specific training.