VA loans

VA Changes Credit Report Fees Policy

December 5, 2014

VA Changes Credit Report Fees Policy

061-logo The Department of Veterans Affairs has modified its policies for credit report fees and Automated Underwriting System (AUS) fees.

VA Circular 26-14-36, dated November 18, 2014, announces changes designed to prevent VA borrowers from being overcharged in connection with credit report and AUS report fees. Under current VA policy, VA Lender’s Handbook Chapter 8 Section 2, “allows lenders to charge the Veteran for the credit report obtained by the lender. For AUS cases, the Veteran may pay the evaluation fee of $50 in lieu of the charge for the credit report. For ‘Refer’ cases, the Veteran may also pay the charge for the merged credit report, if required.”

The new VA policy, as announced in the VA circular, is as follows:

“The policy for both credit report charges and AUS charges require substantiated evidence with corresponding invoices. The combined total for all credit reports cannot exceed $100. The combined total for AUS submissions cannot exceed $100.”

Are there exceptions to this new policy? According to the VA circular, “the only time where both a credit report and an AUS can be charged to the Veteran is on AUS ‘Refer’ cases. A maximum total of $100 still applies for the combined total of the credit report and AUS charges.”

The VA further clarifies this new policy by stating, “credit reports charged to Veterans are limited to the actual invoice price charged to the lender” with a limit on the value of those reports set at $100. VA loan rules now require the invoice for the credit report to be “presented at the time of VA file audit. If invoices cannot substantiate the charge to the Veteran on the HUD-1, a refund will be due to the Veteran.”

When it comes to the AUS fees, the VA also clarifies its new policy in same manner as the credit report policy stated above. This new VA loan policy went into effect on November 13, 2014.

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