VA Lender Handbook M26-7 Chapter 8 — Borrower Fees and Charges and the VA Funding Fee

va-m26-7-ch08

VA Pamphlet 26-7 Chapter 8 governs borrower fees, charges, and the VA Funding Fee.

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source:
  type: regulation
  id: va-m26-7-ch08
  authority: VA Lender Handbook M26-7 Chapter 8 — Borrower Fees and Charges and the VA Funding Fee
  description: |
    VA Pamphlet 26-7 Chapter 8 governs borrower fees, charges, and the
    VA Funding Fee.
  effective_date: '2012-11-08'
obligations:
  - id: va-m26-7-ch08-borrower-fees-strict-limits
    canonical_id: va-m26-7-ch08-borrower-fees-strict-limits
    section: VA M26-7 Ch. 8 — Limitations on Borrower-Paid Fees and Charges
    description: |
      [CLOSER] must strictly adhere to the limitations on borrower-paid
      fees and charges when making VA loans.
    type: do
    audit_question: For every VA loan closed, can [CLOSER] evidence that the borrower-paid fees and charges fall strictly within the limitations set forth in M26-7 Chapter 8 (no impermissible borrower-paid charges; itemized closing costs within allowable categories and amounts)?
    program_review: Does the program ensure borrower-paid fees and charges stay strictly within the M26-7 Ch. 8 limitations (no impermissible borrower-paid charges; itemized closing costs within allowable categories and amounts)?
    file_review: Spot-check the borrower-charge population; confirm each charge maps to an allowable category within limits. The officer judges whether each charged item is a permissible borrower charge.
    judgment: true
    feeds: []
    workflow_phase: closing
    owner_role: closer
    secondary_owner_role: compliance_officer
    cadence: per_loan
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - va
      - m26-7
      - ch08
      - borrower-fees
      - allowable-charges
      - promoted
    primary_source:
      tier: 1
      authority: VA Lender Handbook M26-7 Chapter 8 — Borrower Fees and Charges and the VA Funding Fee
      source_class: va-handbook-m26-7
      source_url: https://benefits.va.gov/WARMS/M26_7.asp
      snapshot_id: 8f28fe2bcf1f2e28
      fetched_at: '2026-05-23T01:50:00Z'
      content_hash: sha256:44aecfeb4beae872a5dbb59f87b324e1fc8730143eaf4185b6cb0d71698e60f3
      paragraph_quote: Lenders must strictly adhere to the limitations on borrower-paid fees and charges when making VA loans.
      drafter_attestation: Copied verbatim from VA Handbook snapshot 8f28fe2bcf1f2e28 (M26-7 Ch. 8 — Borrower fee limits) at 2026-05-23. Source PDF retrieved via Wayback Machine.
      quote_healed: true
      effective_date: '2012-11-08'
      effective_date_source: va-change-date-preceding
    promoted_at: '2026-05-23T02:06:53+00:00'
    promoted_from: va-m26-7-ch08-roundb-v1.yaml
  - id: va-m26-7-ch08-verify-funding-fee-exempt-status
    canonical_id: va-m26-7-ch08-verify-funding-fee-exempt-status
    section: VA M26-7 Ch. 8, Topic 8, Subsection c — Verify Funding-Fee Exempt Status
    description: |
      [CLOSER] must verify Veteran funding-fee exempt status by obtaining
      one of: a properly completed and signed VA Form 26-8937, Verification
      of VA Benefits, indicating the borrower's exempt status; for a
      Veteran who elected service retirement pay instead of VA
      compensation, a copy of the original VA notification of disability
      rating plus documentation of the Veteran's service retirement income;
      or indications on the Certificate of Eligibility that the borrower is
      entitled as an unmarried surviving spouse.
    type: do
    audit_question: For every VA loan in which the borrower is claimed funding-fee exempt, can [CLOSER] evidence retention of one of the three permissible verification documents (signed VA Form 26-8937 indicating exempt status, OR original VA disability-rating notification plus service-retirement-income documentation for retirement-pay electors, OR COE entitlement as unmarried surviving spouse)?
    program_review: Does the program account for the funding-fee exemption verification — one of the three permitted proofs (signed VA Form 26-8937; original VA disability-rating notification plus service-retirement-income documentation for retirement-pay electors; or COE unmarried-surviving-spouse entitlement)?
    file_review: Spot-check files claiming funding-fee exemption; confirm one of the three permitted verification documents is retained.
    judgment: false
    feeds: []
    workflow_phase: closing
    owner_role: closer
    secondary_owner_role: compliance_officer
    cadence: per_loan
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - va
      - m26-7
      - ch08
      - funding-fee-exempt
      - promoted
    primary_source:
      tier: 1
      authority: VA Lender Handbook M26-7 Chapter 8 — Borrower Fees and Charges and the VA Funding Fee
      source_class: va-handbook-m26-7
      source_url: https://benefits.va.gov/WARMS/M26_7.asp
      snapshot_id: 8f28fe2bcf1f2e28
      fetched_at: '2026-05-23T01:50:00Z'
      content_hash: sha256:44aecfeb4beae872a5dbb59f87b324e1fc8730143eaf4185b6cb0d71698e60f3
      paragraph_quote: 'The lender must verify exempt status by obtaining one of the following: '
      drafter_attestation: Copied verbatim from VA Handbook snapshot 8f28fe2bcf1f2e28 (M26-7 Ch. 8, Topic 8c — Verify exempt status) at 2026-05-23. Source PDF retrieved via Wayback Machine.
      effective_date: '2012-11-08'
      effective_date_source: va-change-date-preceding
    promoted_at: '2026-05-23T02:06:53+00:00'
    promoted_from: va-m26-7-ch08-roundb-v1.yaml
  - id: va-m26-7-ch08-remit-funding-fee-15-days
    canonical_id: va-m26-7-ch08-remit-funding-fee-15-days
    section: VA M26-7 Ch. 8 — Funding Fee Remittance via FFPS within 15 Days
    description: |
      [CLOSER] must remit the VA funding fee via the VA Funding Fee
      Payment System (FFPS) within 15 calendar days of loan closing.
      Lenders paying the fee more than 15 days after loan closing will
      automatically be assessed a four percent late fee, and fees paid
      more than 30 days late will automatically be assessed an interest
      charge in addition to the late fee.
    type: do
    audit_question: For every VA loan closed, can [CLOSER] evidence remittance of the VA funding fee via FFPS within 15 calendar days of loan closing, and — if remittance was late — can [CLOSER] account for the four-percent late fee and any interest charge incurred?
    program_review: Does the program track the funding-fee clock so the fee is remitted via FFPS within 15 calendar days of closing, and account for the automatic 4% late fee (and interest if 30+ days late)?
    file_review: Spot-check closings; confirm FFPS remittance within 15 days, accounting for any late fee/interest where late.
    judgment: false
    feeds: []
    workflow_phase: closing
    owner_role: closer
    secondary_owner_role: compliance_officer
    cadence: per_loan
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - va
      - m26-7
      - ch08
      - funding-fee
      - ffps
      - 15-day-remittance
      - promoted
    primary_source:
      tier: 1
      authority: VA Lender Handbook M26-7 Chapter 8 — Borrower Fees and Charges and the VA Funding Fee
      source_class: va-handbook-m26-7
      source_url: https://benefits.va.gov/WARMS/M26_7.asp
      snapshot_id: 8f28fe2bcf1f2e28
      fetched_at: '2026-05-23T01:50:00Z'
      content_hash: sha256:44aecfeb4beae872a5dbb59f87b324e1fc8730143eaf4185b6cb0d71698e60f3
      paragraph_quote: Lenders must remit the VA funding fee via the VA FFPS; within 15 calendar days of loan closing.
      drafter_attestation: Copied verbatim from VA Handbook snapshot 8f28fe2bcf1f2e28 (M26-7 Ch. 8 — FFPS 15-day remittance) at 2026-05-23. Source PDF retrieved via Wayback Machine.
      quote_healed: true
      effective_date: '2012-11-08'
      effective_date_source: va-change-date-preceding
    promoted_at: '2026-05-23T02:06:53+00:00'
    promoted_from: va-m26-7-ch08-roundb-v1.yaml
_promotion_history:
  - promoted_at: '2026-05-23T02:06:53+00:00'
    candidate_path: obligations\_remediation\_round_b_drafts\va-m26-7-ch08-roundb-v1.yaml
    candidates_promoted: 3
    candidates_skipped_existing: 0

Verbatim regulatory text (3)

Verbatim provisions from VA Lender Handbook M26-7 Chapter 8 — Borrower Fees and Charges and the VA Funding Fee — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

VA M26-7 Ch. 8 — Limitations on Borrower-Paid Fees and Charges

Effective 2012-11-08 · VA Change Date for this topic

Lenders must strictly adhere to the limitations on borrower-paid fees and charges when making VA loans.

Source: VA Lender Handbook M26-7 Chapter 8 — Borrower Fees and Charges and the VA Funding Fee · source URL · snapshot 8f28fe2bcf1f2e28

VA M26-7 Ch. 8, Topic 8, Subsection c — Verify Funding-Fee Exempt Status

Effective 2012-11-08 · VA Change Date for this topic

The lender must verify exempt status by obtaining one of the following:

Source: VA Lender Handbook M26-7 Chapter 8 — Borrower Fees and Charges and the VA Funding Fee · source URL · snapshot 8f28fe2bcf1f2e28

VA M26-7 Ch. 8 — Funding Fee Remittance via FFPS within 15 Days

Effective 2012-11-08 · VA Change Date for this topic

Lenders must remit the VA funding fee via the VA FFPS; within 15 calendar days of loan closing.

Source: VA Lender Handbook M26-7 Chapter 8 — Borrower Fees and Charges and the VA Funding Fee · source URL · snapshot 8f28fe2bcf1f2e28

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Operationalizing VA Lender Handbook M26-7 Chapter 8 — Borrower Fees and Charges and the VA Funding Fee

This is verbatim, source-snapshotted regulator text from the Claude for Compliance open corpus. To turn a rule like this into compliance work product: gap-analyze your policies and procedures (P&Ps) against these requirements to surface stale, conflicting, or missing provisions; operationalize any change with a ready-to-run update kit; and produce audit-ready evidence — every step grounded only in the regulator’s own words, never invented.

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Source of record: https://claudeforcompliance.com/regs/va-m26-7-ch08/ · register va-m26-7-ch08 · Claude for Compliance. Free to read and download; see regulatory updates and methodology.