VA Form 26-8736b: Automatic Loan Authority Checklist

VA Form 26-8736b: Automatic Loan Authority Checklist – VA Form 26-8736b, officially titled the Checklist/Request for Authority to Close Loans on an Automatic Basis—Nonsupervised Lenders, is a key Department of Veterans Affairs document used in the VA Home Loan program. Revised in March 2014, this form helps nonsupervised lenders demonstrate compliance with VA requirements when seeking permission to close VA-guaranteed loans without prior VA approval for each individual loan.

Automatic authority allows qualified lenders to process and close most VA loans more efficiently, reducing processing times for eligible Veterans, service members, and surviving spouses across the United States. While the primary application form is now VA Form 26-8736 (updated in 2023 to include its own checklist), Form 26-8736b remains available as a related checklist tool supporting the overall approval process.

Download the official form here: VA Form 26-8736b PDF.

What Is VA Form 26-8736b?

VA Form 26-8736b serves as a structured checklist and request document for nonsupervised lenders applying for or documenting authority to close VA loans on an automatic basis. Nonsupervised lenders are those not subject to mandatory examination by a federal or state supervisory agency (unlike banks or credit unions that qualify as supervised lenders).

According to the official VA forms page, the form name is “Checklist/Request for Authority to Close Loans on an Automatic Basis—Nonsupervised Lenders,” with a revision date of March 2014. It includes sections for confirming VA requirements, station summary information, and remarks related to loan quality and servicing.

The form is part of the broader framework governed by 38 U.S.C. § 3702 and related regulations in 38 CFR Part 36. Lenders with automatic authority can close most VA-guaranteed loans without submitting each case for prior VA approval, improving efficiency while maintaining protections for Veterans.

Official source: VA.gov Form 26-8736b page.

Who Needs to Use VA Form 26-8736b or Related Checklists?

This form and related checklists primarily apply to nonsupervised lenders seeking automatic authority. Supervised lenders (such as those examined by the FDIC, OCC, or state banking regulators) generally receive automatic authority by statute. Nonsupervised lenders must apply and meet specific criteria.

Typical users include:

  • Mortgage companies and non-bank lenders originating VA loans
  • Lenders expanding their VA loan volume who want to move from prior-approval processing to automatic closing
  • Principal officers and compliance staff preparing applications for VA Regional Loan Centers or through the Program Participant Management (PPM) system

Note that since 2023, VA has revised the main application (VA Form 26-8736) to incorporate a checklist of requirements and points of contact. Lenders should use the current versions available on VA.gov and consult the VA Lenders Handbook (VA Pamphlet 26-7), Chapter 1, for the latest procedures. Form 26-8736b may still be referenced for internal review or historical compliance documentation.

Learn more about lender classifications: Become a Lender of VA Home Loans.

Key Requirements Checked on VA Form 26-8736b

The form’s Section I lists VA requirements that the lender must meet. Based on the official PDF, these include (among others):

  • Financial statements audited and certified by a CPA, current to within 6 months of the application date
  • Sufficient working capital (current assets minus current liabilities), with VA standards requiring a minimum of $50,000 in working capital or $250,000 in adjusted net worth
  • Resumes for all principal officers
  • Experience: The lender has been actively engaged in originating and servicing VA loans for at least the immediately preceding 3 years, or each principal officer actively involved in managing origination functions has 3 years combined experience in VA mortgages in managerial roles (note: current handbook criteria have been updated in some respects; always verify the latest standards)
  • No prior suspension of the firm, directors, or officers by VA or FHA; no servicing contract suspended for cause
  • Underwriters nominated on properly completed VA Form 26-8736a, meeting experience standards (typically 2–3 years relevant underwriting experience or equivalent designations)
  • Required unrestricted line(s) of credit of at least $1 million
  • Designation of a liaison officer
  • At least two permanent investors (if the lender sells loans), with supporting details on contracts and contacts
  • Information regarding HUD, Fannie Mae (FNMA), and Ginnie Mae (GNMA) approvals, if applicable

Section II covers the station (VA office) summary, and Section III allows remarks on loan submission quality, termination frequency, servicing quality, and completeness of submissions. The form concludes with approval action recommendations.

Current financial and experience standards are detailed in the VA Lenders Handbook and 38 CFR § 36.4352 / related sections. Always cross-reference the latest official guidance.

Source for form content: Official VA Form 26-8736b PDF.

How the Application Process Works for Automatic Authority?

Nonsupervised lenders seeking automatic authority generally follow these steps (current process emphasizes the updated VA Form 26-8736 and the PPM system):

  1. Register and maintain a profile in VA’s Program Participant Management (PPM) system.
  2. Complete the current Application for Authority to Close Loans on an Automatic Basis—Non-Supervised Lenders (VA Form 26-8736), which includes a checklist of required documents and fees.
  3. Submit supporting documentation: resumes, audited financial statements, underwriter nominations (VA Form 26-8736a), investor lists, lines of credit evidence, and any applicable agent recognition requests (VA Form 26-8736c).
  4. Pay the required application fee (historically around $500; confirm current amount).
  5. Submit to the VA Regional Loan Center with jurisdiction over the lender’s home office or via the PPM system as directed.
  6. VA reviews for compliance with experience, capital, underwriting, and other criteria. Approval grants automatic authority, often subject to a probationary period.

Lenders must also comply with ongoing certifications, annual recertification where required, and quality standards. Automatic authority can be withdrawn for deficiencies in underwriting, failure to maintain capital requirements, lack of approved underwriters, or other issues under 38 CFR § 36.4353.

Detailed criteria and procedures appear in VA Pamphlet 26-7 (Lenders Handbook), Chapter 1. Access the handbook via official VA resources or the KnowVA portal.

Related circular on form updates: VA Circular 26-23-14 (Updates to VA Lender Forms).

Benefits of Automatic Authority for Lenders and Veterans

For lenders, automatic authority streamlines operations by eliminating the need for prior VA approval on most loans, allowing faster closings and competitive service in the VA loan market. For Veterans and eligible borrowers, it supports quicker access to the advantages of VA-guaranteed loans, including no down payment (in many cases), no private mortgage insurance, competitive interest rates, and limited closing costs.

The VA Home Loan program has helped millions of Veterans achieve homeownership. Maintaining high standards through forms like 26-8736b and the current application package protects the program’s integrity and the interests of Veterans and taxpayers.

Where to Download VA Form 26-8736b and Related Resources?

Always obtain forms from official VA sources to ensure you have the current version:

For questions about the application process, lenders can contact their VA Regional Loan Center or use VA’s ServiceNow support portal as directed on the official lender pages.

Important Notes and Best Practices

Form versions and requirements can be updated. The 26-8736b revision dates to March 2014; the primary application form was substantially revised in 2023 to include an integrated checklist and electronic processing options. Some information collections have transitioned to electronic formats through the PPM system.

Lenders should:

  • Verify all criteria against the current VA Lenders Handbook (VA Pamphlet 26-7) and applicable regulations
  • Maintain accurate records of experience, financials, and underwriter qualifications
  • Ensure underwriters meet VA standards and are properly nominated
  • Monitor for any notices of withdrawal of authority or quality control findings
  • Stay subscribed to VA lender updates

This article is for informational purposes only and does not constitute legal, regulatory, or lending advice. Always consult official VA publications and, if needed, qualified compliance professionals for application-specific guidance.

By understanding and properly using checklists such as VA Form 26-8736b and the current application forms, nonsupervised lenders can successfully obtain and maintain automatic authority, supporting efficient delivery of VA home loan benefits to America’s Veterans.