Veteran’s Statement/Lender’s Certification – IRRRL Job Aid

This job aid includes a representation of the Veteran's Statement/Lender's Certification ? Interest Rate Reduction Refinance Loan (IRRRL) on page 1 and explanation of the fields on the pages that follow.

Original Issue Date: 04/10/2018 Last Revision Date: 03/22/2022 Last Reviewed Date: 03/22/2022

Completing the Veteran's Statement Lender's Certification For Wholesale Customers Only

Page 1 of 7

Field Name

Date

Citizens Loan Number Veteran Spouse Lender Property Unpaid Principal Balance of Current VA Loan

Instructions Initial disclosure: The document should be dated the same date as the initial Loan Estimate (LE).

Final disclosure at closing: The document should be dated the date the document was completed. Enter the Citizens loan number. Enter the veteran's name. Enter the spouse's name, if applicable. Enter the lender's name. Enter the full, physical address for the subject property.

Enter the unpaid principal balance of the new loan.

Monthly Savings: Old Loan vs. New Loan

Field Name VA Loan Number Month & Year Originated

Instructions Old Loan:

? Enter the VA loan number for the existing loan. ? This information may be located on the existing note, payoff statement, monthly

mortgage statement, or VA IRRRL Case Assignment "Original LIN" (from WebLGY).

New Loan:

? Enter the VA loan number for the new loan. ? This information is located on the VA IRRRL Case Assignment under "New IRRRL LIN"

(from WebLGY). Old Loan:

? Enter the month and year the existing loan was originated. ? This information may be found on the existing note or credit report.

Interest Rate

New Loan: Enter the month and year the new loan will be originated. Old Loan:

? Enter the interest rate on the existing loan. ? This information may be found on the existing Note or the IRRRL Case Assignment

printout (from WebLGY).

New Loan:

? Enter the interest rate on the new loan. ? This information should match the URLA (Uniform Residential Loan Application) and

MyFAMC (or Citizens' loan registration/lock for Brokers).

Note: The interest rate on the new loan must be at least 0.50% lower than the interest rate on the old loan unless the old loan is an ARM and the new loan is a fixed rate.

Original Issue Date: 04/10/2018 Last Revision Date: 03/22/2022 Last Reviewed Date: 03/22/2022

Completing the Veteran's Statement Lender's Certification For Wholesale Customers Only

Page 2 of 7

Field Name Loan Term

Fixed Rate or ARM

Original Loan Amount (Including Funding Fee)

Principal & Interest Payment Estimated Monthly Savings

Instructions

Old Loan:

? Enter the original loan term in years on the existing loan. ? This information may be found on the existing Note, credit report, or IRRRL Case

Assignment printout (from WebLGY).

New Loan:

? Enter the loan term in years on the new loan. ? This information should match the URLA and MyFAMC (or Citizens' loan

registration/lock for Brokers).

Note: The maximum loan term is the original term of the old loan plus 10 years, with the maximum maturity date being 30 years and 32 days from the closing date.

Old Loan:

? Click the drop-down and choose "Fixed" or "ARM" for the existing loan. ? This information may be found on the existing Note or the IRRRL Case Assignment

printout (from WebLGY).

New Loan:

? Click the drop-down and choose "Fixed" or "ARM" for the new loan. ? This information should match the URLA and MyFAMC (or Citizens' loan

registration/lock for Brokers). Old Loan:

? Enter the original loan amount (including funding fee) for the existing loan. ? This information may be found on the existing Note, Closing Disclosure (CD) for the

existing loan, or credit report.

New Loan:

? Enter the loan amount (including funding fee) for the new loan. ? This information should match the URLA and MyFAMC (or Citizens' loan

registration/lock for Brokers).

Old Loan:

? Enter the principal and interest (P&I) payment on the existing loan. ? If the current VA loan is an ARM, use the current P&I payment. Do not use the P&I

payment from the original ARM note if the current loan has had an interest rate adjustment. ? This information may be found on the note or monthly mortgage statement.

New Loan:

? Enter the P&I payment on the new loan. This information should match the "New" P&I payment on the URLA and in MyFAMC (or Citizens' loan registration/lock for Brokers).

This field auto-calculates the difference between the "Old Loan ? Principal & Interest Payment" and the "New Loan ? Principal & Interest Payment."

Original Issue Date: 04/10/2018 Last Revision Date: 03/22/2022 Last Reviewed Date: 03/22/2022

Completing the Veteran's Statement Lender's Certification For Wholesale Customers Only

Page 3 of 7

Total Costs for the New Loan

Field Name Closing Costs and Prepaid Expenses

Discount Points

Instructions Enter all closing costs and prepaid expenses associated with the transaction (Includes all financed closing costs, closing costs POC, and any closing costs paid by the lender; Enter all fees and expenses from the LE or CD).

? Initial disclosure: This information should match the LE.

? Final disclosure at closing: This information should match the final CD as outlined below.

Enter percentage of discount points being charged.

? Initial disclosure: This information should match the LE.

? Final disclosure at closing: This information should match the final CD as outlined below.

Funding Fee

Enter the funding fee for the new loan. ? Initial disclosure: This information should match the LE.

? Final disclosure at closing: This information should match the final CD as outlined below.

Enter the lender credit for the new loan.

Less Lender Credit toward allowable closing cost

? Initial disclosure: This information should match the LE.

? Final disclosure at closing: This information should match the final CD as outlined below.

Estimated Total Costs for This field auto-calculates the total of the closing costs, prepaid items, discount points and

the New Loan

funding fee, less the amount of any lender credit.

Veteran's Certification & Statement of Understanding

All numerical fields in this section are auto-calculated.

Field Name Total Closing Costs

Instructions

This field is auto completed with the data from the Estimated Total Costs for the New Loan field.

Total Monthly Savings

This field is auto completed with the data from the Estimated Monthly Savings field.

Number of Months

This field is auto calculated to determine the number of months it will take to recoup the total cost of the new loan by dividing the Estimated Total Costs for the New Loan by the Estimated Monthly Savings.

? All loans with a reduction in the P&I payment require a maximum 36-month recoupment period. The recoupment must be on or before the date that is 36 months after the note date of the new loan.

? Note: If the P&I payment is increasing, this field will default to "N/A" since there is no recoupment required.

Original Issue Date: 04/10/2018 Last Revision Date: 03/22/2022 Last Reviewed Date: 03/22/2022

Completing the Veteran's Statement Lender's Certification For Wholesale Customers Only

Page 4 of 7

Field Name Number of Years

Veteran Certification

Comparison Statement Certification

Veteran Signature Spouse Signature (If applicable)

Lender's Certification

Field Name Lender's Certification

Lender's Certification (20% increase in PITI)

Lender's Signature and Date

Instructions

This field is auto calculated to determine the number of years it will take to recoup the total cost of the new loan by dividing the number of months in the prior calculation by 12.

The correct occupancy certification needs to be completed. (This must match the information on the URLA and in MyFAMC or Citizens' loan registration/lock for Brokers).

Final Disclosure: The dates the initial and final copies of the Comparison Statement were delivered to the veteran must be completed. Initial Comparison Statement Received (within 3 days of initial application):

? The date the initial comparison statement was received by the veteran must be completed.

? A warning message will be received stating "Date Borrower received initial Comparison Statement must be entered above" until the initial comparison statement date is completed.

Final Comparison Statement Received: ? The date the final comparison statement was received by the veteran must be completed. ? Once the initial comparison statement date has been entered, a new warning appears which states "Date Borrower received final Comparison Statement must be entered above".

The veteran must sign and date the document.

The spouse (if applicable) must sign and date the document.

Instructions Initial Disclosure: This does not need to be checked.

Final Disclosure: The underwriter must check the box to certify that the loan meets all statutory, regulatory, and loan guaranty requirements. Initial Disclosure: This does not need to be completed.

Final version of the disclosure at closing: ? If the new principal, interest, taxes, and insurance (PITI) payment is 20% or more higher than the current PITI payment, the underwriter is responsible for completing, signing, and dating this certification. ? If the new PITI payment does not exceed the current PITI payment by 20% or more, this certification does not need to be completed, signed, or dated by the underwriter.

Initial Disclosure: This does not need to be signed & dated.

Final Disclosure: The underwriter must sign & date the final version at closing.

Original Issue Date: 04/10/2018 Last Revision Date: 03/22/2022 Last Reviewed Date: 03/22/2022

Completing the Veteran's Statement Lender's Certification For Wholesale Customers Only

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Calculating Total Costs for the New Loan from the CD

The sections of the CD referenced in the following chart are shown in the screenshot below.

Note: This section is for use by Citizens staff and EMB Lenders who draw their own documents.

Field Name

Instructions

Closing Costs and Prepaid Expenses

(Includes all financed closing costs, closing costs POC, and any closing costs paid by the lender.)

Complete the following calculation:

Section D + any items POC in Section B + Section I + Costs Paid by The Lender (do not include lender paid compensation) ? Discount ? Section F ? Section G ? VA Funding Fee (if shown)

Discount Points

VA Funding Fee

Less Lender Credit Toward Allowable Closing Costs Estimated Total Costs for the New Loan

If a discount is displayed in Section B, input the percentage amount. If a funding fee is displayed in Section B, input the amount. If the loan is funding fee exempt, it will not display. Under Section J, use the Lender Credits amount.

This field will auto-calculate.

Original Issue Date: 04/10/2018 Last Revision Date: 03/22/2022 Last Reviewed Date: 03/22/2022

Completing the Veteran's Statement Lender's Certification For Wholesale Customers Only

Page 6 of 7

Equal Housing Lender. Mortgages are offered and originated by Citizens Bank, N.A. Citizens is a brand name of Citizens Bank, N.A. (NMLS ID #433960). For mortgage banking professionals only; not authorized for distribution to consumers or third-parties. ?2021 Citizens Financial Group, Inc. All rights reserved.

Original Issue Date: 04/10/2018 Last Revision Date: 03/22/2022 Last Reviewed Date: 03/22/2022

Completing the Veteran's Statement Lender's Certification For Wholesale Customers Only

Page 7 of 7

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