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Participation in Origination of CalVet Loans

Veterans now have the option to originate their CalVet loans through mortgage brokers certified by CalVet. CalVet launched a program in 1999 to allow mortgage brokers to originate CalVet loans as a means to provide greater access for veterans to use this valuable loan benefit. The brokers responded and helped CalVet make over five thousand new loans in 1999 and 2000 -- a loan volume among the highest in the past two decades. Mortgage brokers originated over 50% of these new loans.

With the huge loan volumes and the newness of the broker participation, it became clear that CalVet needed to formalize the training and certification of mortgage brokers to assure proper quality control of loan submittals. A new program requiring that all participating loan officers and originating brokers be trained by CalVet and that mortgage companies be certified has been developed. Effective March 1, 2001, only certified mortgage brokers may receive the one-percent loan origination fee for originating a CalVet loan. Key points of the new program:

  • CalVet is not continuing the mortgage broker program as previously structured. After March 1, only certified brokers will be eligible to receive the loan origination fee as compensation.

  • CalVet will only certify mortgage broker companies, not individual loan officers. Companies must sign the CalVet Mortgage Broker Agreement and send loan officers to the CalVet training. The certification will be "conditional" -- the company must originate three completed CalVet loans within twenty-four months to finalize their certification.

  • Only loan officers who attend the CalVet training and work for a certified mortgage company may receive the 1% loan origination fee as compensation for originating a CalVet loan.

  • CalVet will be limiting the number of participating brokers, to improve the interaction with brokers, have better accountability, provide better service and improve quality control of loan submittals.

  • Individual mortgage brokers and loan officers who received CalVet training and individual certification must attend the new training, and their company become certified under the new program. Prior certification will not be valid for participation.

  • The training will be conducted in half-day seminars by experienced CalVet staff. Contact your local CalVet Office to arrange for training.

Purpose
The purpose of this change is to formalize the mortgage broker participation with CalVet, to improve the interaction and quality. Through training, brokers will have a better understanding of the program policies, procedures and requirements. The intended result is to receive better quality loan submittals that will streamline loan processing and reduce the processing time for veterans to receive their loans. CalVet will have a manageable list of participating brokers, allowing for proper feedback on performance and accountability. Brokers will be able to receive timely information and better service. The end result is to provide optimum service to veterans in receiving their loan benefit.

Seminars
The seminars will be conducted by each of the CalVet offices statewide. Mortgage brokers, loan officers or loan processors may attend the seminar. Attendees will receive a detailed CalVet Mortgage Broker Manual, Seminar Notebook and a Training Certificate. CalVet will provide periodic program updates and page revisions to the manuals for all who complete the training. Mortgage brokers interested in the training should contact the local CalVet office.

CalVet Mortgage Broker Manual

List of CalVet Certified Mortgage Brokers