Changes to the VA loan process are on the way, part of a widespread national push to bring more transparency and openness to the home-buying process.
There are new Good Faith Estimate regulations for VA lenders under the Real Estate Settlement Procedures Act, more commonly known as RESPA. Lenders have to disclose origination fees in one lump, but the Department of Veterans Affairs is offering lenders two ways to do it.
The VA has limits on origination fees for military homebuyers, keeping them to just 1 percent. But there are a few allowable, additional fees.
When origination fees are greater than 1 percent, lenders can itemize the charges in the 800 lines of the HUD-1 Settlement Statement. Lenders who find there isn’t enough space there are required to create a new, separate origination statement, then have it signed and dated by the borrower.
The other method is for lenders to simply skip the itemizing and create a full separate origination statement.
VA officials also recently notified lenders that they don’t need to use an Interest Rate and Disclosure Statement when using the new procedures.
The new disclosure regulations don’t take effect officially until May 1. But VA officials are suggesting that lenders adopt the new measures as soon as possible to help make the transition easier.
But the RESPA changes aren’t the only ones affecting VA lenders. Many smaller and mid-sized mortgage companies are grappling with new licensing and certification hurdles because of the SAFE Act.
This sweeping piece of legislation also aims to increase consumer protections. Now, mortgage originators must take classes, pass tests and go through background checks. Companies are required to post surety bonds in the states they operate.
Some smaller companies are struggling to keep pace with the changes and costs of new regulation. But legislators and some industry officials hope the bottom line is a more open and transparent process that maximizes consumer safety and minimizes abuses and fraud.
We are not the FHA, VA, USDA, HUD or any other government organization. The content on this blog is intended for information purposes only. 
My daughter is divorced from her ex Military spouse. They had a VA loan for their house. She has been given the house in the divorce settlement and wants to assume the loan/mortgage. She has been told she can no longer do this as all the rules changed in April 2010. Where can I find the info she needs ref this change?
Many thanks.
6. Divorce cases. In certain instances, a veteran may seek release from personal
liability when his or her former spouse acquires the property as the outcome of divorce
proceedings and the ex-spouse was jointly liable on the loan with the veteran prior to the
divorce. In other cases, the veteran may be awarded the property and the ex-spouse may
seek release of liability.
a. Veteran transfers home to former spouse. Servicers may process requests for release
of liability from divorced veterans using the same general procedures outlined in
paragraph 5. When processing a release of liability in divorce cases in which the
veteran’s former spouse receives the property, the servicer is authorized to charge the
normal processing fee to complete the credit underwriting. However, no funding fee
may be assessed. Prior to processing such requests, the following requirements must be
met:
7
Circular 26-08-3 February 7, 2008
(1) The divorce is final and absolute, and it is determined that no appeal will be taken;
and
(2) The entire estate encumbered for the VA-guaranteed loan has become vested in the
name of the veteran’s former spouse; and
(3) There is no knowledge of any property settlement that would make the veteran
liable between the parties to pay the guaranteed loan.
b. Veteran retains home. Requests for release of liability from an ex-spouse in cases
where the veteran retains the property should be referred to the appropriate VA Regional
Loan Center. In such cases, the servicer may only charge a fee of $50 for amending its
records to reflect the change in ownership.
look on the VA website- call them
I am assuming divorce is final and ex-he is requiring he get off the loan?? The VA is not as loose as they once were on assumptions