The high origination volume has caused VA processing centers to experience delays in approving the certificates of eligibility that servicemembers and veterans need to qualify for a VA loan, according to a Scotsman Guide report.
The VA notified lenders Sept. 2 that COEs could be delayed. The agency also advised lenders to avoid calling regional loan centers unless absolutely necessary, due to long hold times.
A VA spokesman told Scotsman Guide that about 65% of COEs can be granted electronically almost instantly.
For those COEs that cannot be processed automatically by the system and require manual intervention, our processing time is now an average of seven business days,” he said.
Attom Data Solutions found that VA loan originations spiked 35% in the second quarter, shooting up to a total of 136,248 originations in Q2 alone. That’s the highest level for any quarter in a decade, according to Scotsman Guide.
VA loans accounted for 8.7% of all originations in Q2 – also the highest level since 2006, Scotsman Guide reported.
Skyrocketing origination volumes have created a bottleneck at the Department of Veterans Affairs – meaning delays in the