1. VA Benefits Briefing This document contains U.S. Department of Veterans Affairs proprietary business information and may not be reproduced without permission. VA Guaranteed Home Loan Briefing January 2016

2. VA Benefits Briefing Loan Guaranty (LGY): Mission, Vision, and Strategic Plan 2 LGY Strategic Goal: Maximize Veteran and Servicemember opportunity to obtain, retain, and adapt homes. LGY Vision: To empower Veterans with information and access to innovative products and services by providing a Veteran-focused experience, strengthening our partnerships, driving continuous performance improvements, and never forgetting who we serve. In order to support VBA’s strategic plan and achieve LGY’s vision for Veterans, Servicemembers, and their families, LGY will:  Serve as the leading voice related to housing for Veterans.  Attract and retain a workforce with the skills, knowledge, and commitment necessary to serve Veterans.  Create and sustain a culture of innovation that ensures the VA home loan is the product of choice.  Deliver a quality customer experience through consistent, timely, and accurate benefits and services that meet their needs.

3. VA Benefits Briefing Serving Veterans since 1944  VA Guaranteed Home Loan program established in 1944  This row house in Washington DC was the first home purchased by a Veteran with a VA Guaranteed Loan  Since inception, VA has guaranteed over 21.6M loans totaling over $1.69T  In FY15, VA guaranteed a record 631,147 loans, totaling over $153B – a 44% increase from FY14 3

4. VA Benefits Briefing Regional Loan Centers 5 Denver Phoenix Houston St. Paul St. Petersburg Atlanta Roanoke Cleveland Honolulu

5. VA Benefits Briefing Service to Veterans provided by Regional Loan Centers  Loan Production - Serving Veterans who are purchasing or refinancing a home and conducting oversight of mortgage lenders on a nationwide basis  Construction and Valuation – Serving Veterans through oversight of VA appraisals and appraisal-related work  Specially Adapted Housing – Serving Veterans who are obtaining a Specially Adapted Housing grant to construct, purchase or remodel their home  Loan Administration - Serving Veterans who are seeking alternatives to foreclosure on a nationwide basis 5

6. VA Benefits Briefing Advantages of a VA Guaranteed Loan 6  No down payment home loans are available to eligible Veterans  Interest rates are negotiable  Closing costs paid by the Veteran are limited  No mortgage insurance premium  No prepayment penalty  Mortgages are assumable  VA assists Veteran borrowers in default on a VA-guaranteed loan who are experiencing a temporary financial hardship

7. VA Benefits Briefing Seven Steps to a VA Guaranteed Loan 1.Veteran may apply for a Certificate of Eligibility (COE) through eBenefits or have lender apply online in WebLGY 2.Sign a purchase agreement conditioned on approval of VA guaranteed loan 3.Complete a loan application with lender of Veteran’s choice 4.Lender will request an appraisal online and a licensed appraiser will estimate the market value of the property 5.After reviewing income and credit, the lender will make a decision on the loan 6.Veteran signs loan paperwork at the closing 7.Lender will obtain a loan guaranty certificate from VA online 7

8. VA Benefits Briefing How can banks participate?  Detailed information found in Chapter 1, VA Pamphlet 26-7, Lenders Handbook  Submit required documents to Regional Loan Center with jurisdiction  Automatic Authority: Authority to close VA loans without prior approval of VA  Supervised lenders: A lender that is subject to mandatory periodic examination and supervision by an agency of the United States or of any State or territory, including the District of Columbia (State banks, private banks, federal savings banks, etc.) 8

9. VA Benefits Briefing Additional Information and Contact Information  Complete information about VA Guaranteed Loans is available online at VA.gov Please click “Home Loans” in the center of the page  Regional Loan Center contact information: http://www.benefits.va.gov/homeloans/contact_rlc_info.asp  Mark Connors, Lender Liaison mark.connors@va.gov 9