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VA Home Loans

 

Loan Guaranty Monitoring Unit

Mission Statement

The mission of the Loan Guaranty Monitoring Unit (MU) is to protect the interests of the Government and the Veterans we serve by ensuring that program participants process and close VA home loans in accordance with the law, regulations, and program directives.

The VA Loan Guaranty Monitoring Unit was created in 1989 to perform oversight of VA lender operations through a program of performance audits. Lender audits are performed both onsite at lenders' offices and virtually at the MU's office in Nashville, Tennessee. The audits include an operational review of the lender's policies and procedures, as well as, reviews of loans to determine that the lender met VA requirements in the appraisal and valuation of property as well as the processing, underwriting, and closing of the home loan. More specifically, the MU audits include, but are not limited to:

  • Reviewing the lender's Quality Control (QC) plan.
  • Reviewing the lender's Lender Appraisal Processing Program (LAPP) QC Plan.
  • Obtaining refunds to Veterans for unallowed charges and overcharges.
  • Ensuring that the homes which are security for loans meet VA minimum property requirements.
  • Protecting the taxpayer against loss by obtaining indemnification for loan processing that clearly does not meet program requirements.
  • Recovering losses suffered on loan defaults that result from poorly processed loans that should not have been made.
  • Educating lenders about program requirements to improve the quality of loans.
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