The Department of Veterans Affairs (“VA”) recently published Circular 26-22-16 (“Circular”) to inform lenders of new requirements when a loan is selected for Full File Loan Review (“FFLR”). Effective December 1, 2022, lenders must upload the Uniform Loan Application Dataset (“ULAD”) and Uniform Closing Dataset (“UCD”) into the VA’s automated loan tracking system (“WebLGY”). Additionally, the VA has provided an updated stacking order and list of loan origination documents that must be submitted for audit purposes.
When a loan is selected for FFLR, a lender must upload the complete loan file to VA’s automated system, WebLGY. The loan files must be submitted as a single PDF and follow the required stacking order. As of the December , 2022 effective date, the FFLR stacking order will require additional documents to be provided for auditing purposes, including: (1) the purchase agreement for purchase loans; (2) disclosures associated with implementation of the anti-predatory refinance provisions of 38 U.S.C. § 3709; and (3) separate uploads of the ULAD and UCD. The Circular includes Exhibit A which provides the new stacking order for purchases and cash-outs and Exhibit B which provides the stacking order for IRRRLs.
Earlier this year, the VA announced plans to move away from manual review processes through the improvement of information technologies. In addition to moving to industry standard datasets, the VA plans to introduce an application programming interface (“API”) for loan reviews which will allow lenders to automatically transmit FFLR documents to the VA.
In April 2022, the functionality in WebLGY was updated to allow lenders the option of uploading the UCD and ULAD loan files. Lenders who choose not to submit the datasets may continue to follow the standard procedures for submitting loan origination file to VA until the mandatory effective date.
The ULAD and UCD must be uploaded to the VA in “XML” format and conform to Version 3.3 of the Mortgage Industry Standards Maintenance Organization (“MISMO”) reference model. To view the VA guide with instructions on how to upload UCD and ULAD files in WebLGY, click here.
DocMagic is able to generate the XML files from any of our applications and has multiple options available for secure and efficient delivery of system-to-system, compliant UCD files. If you have any questions regarding this article, please contact DocMagic’s Compliance Department.
