#### Department of Veterans Affairs 

####  

#### ELECTRONIC PAYMENT OF THE VA FUNDING FEE 

#### Internet site: [www.va.gov/vas/loan/vaach.htm]{.underline}

## Appendix C Electronic Payment of the VA Funding Fee

#### Table of Contents

How and When to Remit the Funding Fee to VA C-1

Cost C-1

VA Lender ID Number C-2

How to Obtain a PIN Number C-2

Lost PIN Number C-3

Description of Terminal Entry Method and Equipment Needed C-3

Data Entry Procedures for Terminal Entry Method C-5

CPU to CPU Method C-11

Operator Assisted Telephone Method C-11

What to do if Incorrect Data Was Transmitted C-13

Refunds of Overpayments or Double Payments C-14

Funding Fee Receipts C-14

Lost or Missing Receipts C-15

Late Fees and Interest C-16

How to Change Bank Account and Other Information C-16

How to Change the Lender's PIN Number and/or ID Number Set-up C-17

Funding Fee Tables C-17

Application C-19

Change/Special Request C-20

#### 

## Electronic Payment of the VA Funding Fee

+------------+---------------------------------------------------------+
| ##### How  | Lenders must remit the funding fee to VA electronically |
|  and When  | within **15 calendar days** of the loan closing. This   |
| to Remit t | can be accomplished using a computer with a modem, or   |
| he Funding | just a telephone (see 3 methods below), once the lender |
|  Fee to VA | is set up with a personal identification number (PIN).  |
|            |                                                         |
|            | > Payments transmitted prior to 9:30 p.m. Eastern       |
|            | > Standard Time are transferred from the lender's bank  |
|            | > account to VA at the opening of business the next     |
|            | > banking day. Therefore, the lender must ensure it has |
|            | > sufficient funds in its account to cover funding fee  |
|            | > transactions **at the time** it transmits them. VA    |
|            | > does **not** require that the bank account be used    |
|            | > only to pay VA funding fees. Multi-purpose bank       |
|            | > accounts are acceptable.                              |
|            | >                                                       |
|            | > Receipts evidencing payment of the funding fee are    |
|            | > sent to the lender by mail.                           |
|            | >                                                       |
|            | > **[3 Methods]{.underline}**                           |
|            | >                                                       |
|            | > VA uses Mellon Bank's Automated Clearing House (ACH)  |
|            | > services to process funding fee payments. The are 3   |
|            | > methods for paying the funding fee through ACH:       |
|            | >                                                       |
|            | > **1. Terminal entry method**                          |
|            |                                                         |
|            | -   This is the most commonly used method               |
|            |                                                         |
|            | -   Requires a computer with a modem                    |
|            |                                                         |
|            | > **2. CPU/CPU method**                                 |
|            |                                                         |
|            | -   Requires a mainframe computer to computer           |
|            |     transmission (used mostly by lenders with many      |
|            |     *transactions*).                                    |
|            |                                                         |
|            | > **3. Operator assisted telephone method**             |
|            |                                                         |
|            | -   Requires only the use of a telephone - dialing      |
|            |     toll-free number:\                                  |
|            |     (800) 944-1400.                                     |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### Cost | > VA and Mellon Bank do **not** charge the lender for   |
|            | > getting a PIN or paying the VA funding fee. However,  |
|            | > your bank may charge a transaction fee.               |
+------------+---------------------------------------------------------+

## Electronic Payment of the VA Funding Fee

+------------+---------------------------------------------------------+
| #####      | > A lender must have an 11-digit VA lender ID number    |
|  VA Lender | > and a PIN in order to pay the VA funding fee through  |
|  ID Number | > ACH. If you do not have a VA lender ID number,        |
|            | > contact the VA office with jurisdiction over your     |
|            | > home office.                                          |
|            | >                                                       |
|            | > The VA lender ID number is used to identify the       |
|            | > lender for **all** transactions involving             |
|            | > VA-guaranteed loans. The ID number is linked to the   |
|            | > mailing address provided by the lender to VA.         |
|            |                                                         |
|            | ##### [Lender option to get sep                         |
|            | arate lender ID numbers for branch offices]{.underline} |
|            |                                                         |
|            | > Funding fee receipts are mailed to the address        |
|            | > associated with the **lender ID number** used to      |
|            | > transmit the funding fee. Therefore:                  |
|            |                                                         |
|            | -   The lender may choose to have all receipts sent to  |
|            |     its home office by using its home office ID number  |
|            |     for all funding fee transmissions                   |
|            |                                                         |
|            | > **OR**                                                |
|            |                                                         |
|            | -   The lender may choose to have funding fee receipts  |
|            |     sent to branch offices by obtaining separate lender |
|            |     ID numbers for those offices and using those ID     |
|            |     numbers for funding fee transmissions.              |
|            |                                                         |
|            | > To request an ID number for a branch office, contact  |
|            | > the VA office with jurisdiction over the branch       |
|            | > office location.                                      |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > Complete a copy of the APPLICATION on page B-18 and   |
|  How to Ob | > fax or mail it to VA, or provide VA with equivalent   |
| tain a PIN | > information. (The fax number and address are          |
|            | > indicated on the application.)                        |
|            |                                                         |
|            | -   **Delays result** when banking information is       |
|            |     incorrect. Please have the bank verify the transit  |
|            |     routing number and account number **before**        |
|            |     submitting your information to VA.                  |
|            |                                                         |
|            | -   The lender should receive a 4 to 6-digit PIN from   |
|            |     Mellon Bank by mail\                                |
|            |     If no PIN is received within 2 weeks after the      |
|            |     lending submits its information to VA, call the VA  |
|            |     Funding Fee Coordinator at\                         |
|            |     (202) 273-7375.                                     |
|            |                                                         |
|            | -   The lender may begin transmitting funding fees      |
|            |     **immediately,** once it receives a PIN number.     |
+------------+---------------------------------------------------------+

Continued on next page

## Electronic Payment of the VA Funding Fee

+------------+---------------------------------------------------------+
| ##### H    | **[For branch offices that will be transmitting Funding |
| ow to Obta | Fees]{.underline}**                                     |
| in a PIN ( |                                                         |
| continued) | If the lender wants all branch offices to use the home  |
|            | office ID number, submit only **one application** with  |
|            | the home office ID number.                              |
|            |                                                         |
|            | -   All funding fee receipts will be sent to the home   |
|            |     office.                                             |
|            |                                                         |
|            | -   All branches will use the home office PIN.          |
|            |                                                         |
|            | If the lender wants each branch office to use its       |
|            | individual ID number, submit a **separate application** |
|            | for each branch office.                                 |
|            |                                                         |
|            | -   Funding fee receipts will be sent to the branch     |
|            |     office as long as it uses its individual ID number  |
|            |     for the funding fee transmission.                   |
|            |                                                         |
|            | -   Only one PIN will be assigned to the lender for use |
|            |     by its home office **and** all branch offices       |
|            |                                                         |
|            |     **UNLESS**                                          |
|            |                                                         |
|            | > The lender attaches a request for separate PIN        |
|            | > Numbers for each branch office.                       |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > A lender who cannot find its PIN number should        |
| #### Lost  | > contact Mellon at (412)                               |
| PIN Number | >                                                       |
|            | > 234-2314 or (412) 234-2315. For security reasons**,   |
|            | > VA never knows a lender's PIN number.**               |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ###        | > Most lenders find the terminal entry method easiest.  |
| ## Descrip | > A lender uses a personal computer (PC) with a modem   |
| tion of Te | > to pay the funding fee. An employee of the lender     |
| rminal Ent | > key-enters data on each loan for which a funding fee  |
| ry Method  | > is owed and transmits this information to Mellon      |
| and Equipm | > Bank. Mellon Bank, acting on behalf of VA, transfers  |
| ent Needed | > the appropriate funds from the lender's account to VA |
|            | > for payment of the funding fee.                       |
|            | >                                                       |
|            | > **[Equipment Needed]{.underline}**                    |
|            |                                                         |
|            | -   A terminal and/or IBM compatible PC                 |
|            |                                                         |
|            | -   Hayes compatible modem                              |
|            |                                                         |
|            | -   Communication software package. VA cannot recommend |
|            |     specific brands or products. However, most          |
|            |     retailers can and will recommend brands that will   |
|            |     work with most personal computers. The Mellon       |
|            |     Telecash Hotline can provide set-up assistance if   |
|            |     Crosstalk, Smartcom or Procom is used.              |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   The Mellon Hotline number is (800) 468-5047         |
|            |     (outside PA) or (800) 982- 9277 (inside PA)         |
|            |     or (412) 234-6816 (Pittsburgh area).                |
+------------+---------------------------------------------------------+

Continued on next page

## Electronic Payment of the VA Funding Fee

+----------+-----------------------------------------------------------+
| ###      | > Most personal computers can be set up to perform as a   |
| ## Descr | > terminal. Although some models come equipped for use as |
| iption o | > a "dumb" terminal, most require at least some of the    |
| f Termin | > following additional equipment:                         |
| al Entry |                                                           |
|  Method  | -   **Communication Hardware**                            |
| and Equi |                                                           |
| pment Ne | ```{=html}                                                |
| eded (co | <!-- -->                                                  |
| ntinued) | ```                                                       |
|          | -   The primary piece of equipment is a modem, a device   |
|          |     that converts the electronic signals form used in the |
|          |     computer to frequencies that can travel over          |
|          |     telephone lines, or vice versa. The most commonly     |
|          |     used cable is the RS-232, which plugs into the PC     |
|          |     through an Asynchronous Communications adapter.       |
|          |                                                           |
|          | -   The Asynchronous Communications adapter is a          |
|          |     component that sometimes comes with the PC, or may be |
|          |     purchased separately. It acts as the go-between from  |
|          |     the modem to the microprocessing boards. Normally     |
|          |     this adapter snaps onto the back of the PC in one of  |
|          |     the expansion slots.                                  |
|          |                                                           |
|          | ```{=html}                                                |
|          | <!-- -->                                                  |
|          | ```                                                       |
|          | -   **Communication Software**                            |
|          |                                                           |
|          | ```{=html}                                                |
|          | <!-- -->                                                  |
|          | ```                                                       |
|          | -   To access the Telecash system, the PC and modem must  |
|          |     conform to certain requirements of the Mellon System. |
|          |     In order to accomplish this, communications software  |
|          |     must be installed. Such software is available from a  |
|          |     wide variety of manufacturers at a relatively low     |
|          |     price.                                                |
|          |                                                           |
|          | ```{=html}                                                |
|          | <!-- -->                                                  |
|          | ```                                                       |
|          | -   **Settings**                                          |
|          |                                                           |
|          | ```{=html}                                                |
|          | <!-- -->                                                  |
|          | ```                                                       |
|          | -   All software packages require establishment of        |
|          |     parameters. The software package that you are working |
|          |     with will determine the system parameters. Your       |
|          |     technical personnel should work with the Mellon       |
|          |     Telecash Hotline to obtain assistance. The Mellon     |
|          |     Telecash Hotline may be reached as (800) 468-5047     |
|          |     (outside PA) or (800) 982-9277 (inside PA) or (412)   |
|          |     234-6816 (Pittsburgh area).                           |
|          |                                                           |
|          |     [Use of the ECHO system]{.underline}                  |
|          |                                                           |
|          | -   The basic communication program available through     |
|          |     ECHO can be used to transmit VA funding fees.         |
|          |     HOWEVER, unlike HUD/FHA, VA does not participate in   |
|          |     the ECHO program which provides electronic receipts.  |
|          |                                                           |
|          | -   VA mails all funding fee receipts.\                   |
|          |     \                                                     |
|          |     Contact your ECHO representative directly for further |
|          |     information.                                          |
+----------+-----------------------------------------------------------+

## Electronic Payment of the VA Funding Fee

+------------+---------------------------------------------------------+
| ###        | > Obtain a local access number for Sprint or Compuserve |
| ## Data En | > by contacting the Telecash Hotline at (800) 468-5047  |
| try Proced | > (outside PA), (800) 982-9277 (inside PA), or (412)    |
| ures for T | > 234-6816 (Pittsburgh area). The lender does not need  |
| erminal En | > to be a Sprint or Compuserve subscriber to use these  |
| try Method | > numbers. Record the local access number here:         |
|            | > \_                                                    |
|            | \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. |
|            | > Dial that number to begin. Logon is different         |
|            | > depending upon whether access is through Sprint or    |
|            | > Compuserve.                                           |
+------------+---------------------------------------------------------+

+-----------------------------------------------------------------------+
| > To logon through Sprint:                                            |
+-----------------------------------------------------------------------+

+----------------------------------+-----------------------------------+
| Screen                           | Lender Action                     |
+----------------------------------+-----------------------------------+
| **CONNECT 9600/ARQ/V32/LAPM**    | While holding down the            |
|                                  | '**shift**' key, press the        |
| *(**Note***: *9600 is the baud   | '**2**' key. Then press           |
| rate. If using a different speed | '**enter**' or '**return**'       |
| modem, the appropriate baud rate |                                   |
| will appear in the sequence      |                                   |
| above instead of 9600)*          |                                   |
+----------------------------------+-----------------------------------+
| **TELENET**                      | Press '**enter**' or '**return**' |
|                                  |                                   |
| **412 3901.22**                  |                                   |
|                                  |                                   |
| **TERMINAL=**                    |                                   |
+----------------------------------+-----------------------------------+
| **@**                            | Enter '**c 41249**' Then press    |
|                                  | '**enter**' or '**return**'       |
+----------------------------------+-----------------------------------+
| **412 49 CONNECTED**             | Press '**enter**'or '**return**'  |
+----------------------------------+-----------------------------------+

+-----------------------------------------------------------------------+
| > *Proceed to instructions for both Sprint and Compuserve*.           |
+-----------------------------------------------------------------------+

+-----------------------------------------------------------------------+
| > To logon through Compuserve:                                        |
+-----------------------------------------------------------------------+

+----------------------------------+-----------------------------------+
| Screen                           | Lender Action                     |
+----------------------------------+-----------------------------------+
| **CONNECT 9600/ARQ/V32/LAPM**    | Press '**enter**' or '**return**' |
|                                  |                                   |
| *(**Note***: *9600 is the baud   |                                   |
| rate. If using a different speed |                                   |
| modem, the appropriate baud rate |                                   |
| will appear in the sequence      |                                   |
| above instead of 9600)*          |                                   |
+----------------------------------+-----------------------------------+
| **0035PJG**                      | Enter '**MELLON**' Then press     |
|                                  | '**enter**' or '**return**'       |
| **Host Name:**                   |                                   |
+----------------------------------+-----------------------------------+
| **Connected to 0041 MB**         | Press '**enter**' or '**return**' |
+----------------------------------+-----------------------------------+

+-----------------------------------------------------------------------+
| > *Proceed to instructions for both Sprint and Compuserve*.           |
+-----------------------------------------------------------------------+

## Electronic Payment of the VA Funding Fee

+------------+---------------------------------------------------------+
| #####      | To continue logon and data entry for both Sprint and    |
|  Data Entr | Compuserve, use the following instructions.             |
| y Procedur |                                                         |
| es for Ter | > The instructions show each prompt provided by the     |
| minal Entr | > Telecash system, and what to enter in response. Never |
| y Method ( | > enter commas or decimals. When entering a dollar      |
| continued) | > amount, include the 2 digits indicating cents.        |
|            |                                                         |
|            | -   Example: \$1,500.00 should be entered as 150000.    |
|            |                                                         |
|            | > Enter "STOP" at any time to end the session or enter  |
|            | > additional transactions.                              |
+------------+---------------------------------------------------------+

+-------------------+-------------------------+-----------------------+
| **Telecash Screen | **Lender Entry**        | **Help Column**       |
| Display**         |                         |                       |
|                   | (Enter exactly as       |                       |
|                   | shown, unless labeled   |                       |
|                   | "Example." Hit return   |                       |
|                   | key after finishing     |                       |
|                   | each screen.)           |                       |
+-------------------+-------------------------+-----------------------+
| \*\*\***ENTER     | **logon k03434**        |                       |
| LOGON**           |                         |                       |
+-------------------+-------------------------+-----------------------+
| **ENTER           | **veterans**            | For                   |
| PASSWORD**        |                         | [failed]{.underline}  |
|                   |                         | [logon]{.underline}   |
|                   |                         | attempts:             |
|                   |                         |                       |
|                   |                         | -   Verify proper     |
|                   |                         |     settings and      |
+-------------------+-------------------------+-----------------------+
| **WELCOME TO      | **MPS**                 | connections on all    |
| TELECASH**        |                         | equipment             |
|                   |                         |                       |
| **ENTER MODULE**  |                         | -   Repeat logon      |
|                   |                         |     process, ensuring |
| **OPTION OR       |                         |                       |
| 'HELP'**          |                         |     correct data is   |
|                   |                         |     input             |
| **FOR MODULE      |                         |                       |
| LIST**            |                         | -   If logon still    |
|                   |                         |     fails, call the   |
|                   |                         |     Mellon Telecash   |
|                   |                         |     Hotline at:       |
|                   |                         |                       |
|                   |                         |     800-468-5047      |
|                   |                         |     (outside PA)      |
|                   |                         |                       |
|                   |                         |     800-982-9277      |
|                   |                         |     (inside PA)       |
|                   |                         |                       |
|                   |                         |     412-234-6816      |
|                   |                         |     (Pittsburgh)      |
+-------------------+-------------------------+-----------------------+
| **ENTER 'HELP'    | **2**                   |                       |
| FOR REQUEST       |                         |                       |
| LIST**            |                         |                       |
+-------------------+-------------------------+-----------------------+

Continued on next page

## Electronic Payment of the VA Funding Fee

  -----------------------------------------------------------------------
  Data Entry Procedures for Terminal Entry Method (continued)

  -----------------------------------------------------------------------

+-------------------+-------------------------+-----------------------+
| **Telecash Screen | **Lender Entry**        | **Help Column**       |
| Display**         |                         |                       |
|                   | (Enter exactly as       |                       |
|                   | shown, unless labeled   |                       |
|                   | "Example." Hit return   |                       |
|                   | key after finishing     |                       |
|                   | each screen.)           |                       |
+-------------------+-------------------------+-----------------------+
| **ENTER COMPANY   | **131**                 | See previous page for |
| NUMBER 'XXXXX'**  |                         | instructions on       |
|                   |                         | failed logon          |
|                   |                         | attempts.             |
+-------------------+-------------------------+-----------------------+
| **ENTER PIN;      | **Example:**            | Enter the lender's    |
| LOCATION NUMBER** |                         | 4-6 digit PIN number, |
|                   | **9999:99999999999**    | a semi-colon and the  |
| **ENTER 'STOP' TO |                         | lender's 11 digit ID  |
| END**             |                         | number.               |
+-------------------+-------------------------+-----------------------+
| **ENTER LOCATION  | Example using a         | Enter the lender's    |
| NUMBER; AMOUNT:** | \$1,500.00              | 11-digit ID           |
|                   |                         |                       |
| **ENTER STOP TO   | payment:                | number, a semi-colon, |
| END**             |                         | and the               |
|                   | **99999999999;**150000  |                       |
|                   |                         | amount of funding fee |
|                   |                         | being paid.           |
|                   |                         |                       |
|                   |                         | -   Use the following |
|                   |                         |     format:\          |
|                   |                         |     ####              |
|                   |                         | #########;\$\$\$\$¢¢\ |
|                   |                         |     No commas or      |
|                   |                         |     decimal points    |
+-------------------+-------------------------+-----------------------+
| **ENTER           |                         | See next page for     |
| SUPPLEMENTAL      |                         | data entry            |
| AMOUNT "9999"     |                         | procedures.           |
| OR**              |                         |                       |
|                   |                         |                       |
| **SUPPLEMENTAL    |                         |                       |
| DATA 'XXXXX' FOR  |                         |                       |
| OTHER DATA        |                         |                       |
| TYPES**           |                         |                       |
+-------------------+-------------------------+-----------------------+

Continued on next page

## Electronic Payment of the VA Funding Fee

  -----------------------------------------------------------------------
  Data Entry Procedures for Terminal Entry Method (continued)

  -----------------------------------------------------------------------

+-------------------+----------------------+--------------------------+
| **Telecash Screen | **Lender Entry**     | Help Column              |
| Display**         |                      |                          |
|                   | (Enter exactly as    |                          |
|                   | shown, unless        |                          |
|                   | labeled "Example."   |                          |
|                   | Hit return key after |                          |
|                   | finishing each       |                          |
|                   | screen.)             |                          |
+-------------------+----------------------+--------------------------+
| **FIELD 1: VA     | **Example:**         | Enter the 12-digit VA    |
| LOAN NUMBER**     |                      | loan                     |
|                   | **353568888888**     |                          |
| **FIELD 2: OJ     |                      | identification number    |
| CODE**            | **Example:**         | (LIN). The first two     |
|                   |                      | digits should be the     |
| **FIELD 3:        | **35**               | same as the second two   |
| CLOSING DATE**    |                      | digits.                  |
|                   | **February 2, 1998   |                          |
| **FIELD 4: LOAN   | Example:**           | -   If the LIN has only  |
| AMOUNT**          |                      |     10 digits, repeat    |
|                   | **020298**           |     the first two digits |
| **FIELD 5:        |                      |     at the               |
| S-SHORT,**        | **Example using a    |                          |
|                   | \$120,000.00**       |  [beginning]{.underline} |
| **L-LATE,**       |                      |     of the number.       |
|                   | **loan: 12000000**   |                          |
| **I-INTEREST**    |                      | -   If the LIN has less  |
|                   | **Example:**         |     than 10 digits,      |
|                   |                      |     check the loan       |
|                   | **L**                |     documents for the    |
|                   |                      |     complete LIN         |
|                   |                      |     assigned by VA.      |
|                   |                      |                          |
|                   |                      | Enter the first 2-digits |
|                   |                      | of the 12-digit VA LIN.  |
|                   |                      |                          |
|                   |                      | Enter date loan was      |
|                   |                      | closed using a 6 digit   |
|                   |                      | format: MMDDYY           |
|                   |                      |                          |
|                   |                      | Enter the total loan     |
|                   |                      | amount,                  |
|                   |                      |                          |
|                   |                      | including the funding    |
|                   |                      | fee if financed in the   |
|                   |                      | loan.                    |
|                   |                      |                          |
|                   |                      | Leave blank for a        |
|                   |                      | regular funding fee      |
|                   |                      | payment. Use S for a     |
|                   |                      | shortage payment, L for  |
|                   |                      | late fee, and I for      |
|                   |                      | interest or for late fee |
|                   |                      | plus interest.           |
|                   |                      |                          |
|                   |                      | -   If funding fee is    |
|                   |                      |     being paid late,     |
|                   |                      |     just pay the regular |
|                   |                      |     funding fee. Pay     |
|                   |                      |     late fees only after |
|                   |                      |     notification from    |
|                   |                      |     VA.                  |
|                   |                      |                          |
|                   |                      | -   If lender needs to   |
|                   |                      |     pay both a late fee  |
|                   |                      |     and shortage, this   |
|                   |                      |     must be done as 2    |
|                   |                      |     separate             |
|                   |                      |     transactions.        |
+-------------------+----------------------+--------------------------+

Continued on next page

## Electronic Payment of the VA Funding Fee

  -----------------------------------------------------------------------
  Data Entry Procedures for Terminal Entry Method (continued)

  -----------------------------------------------------------------------

+-------------------+----------------------+--------------------------+
| **Telecash Screen | **Lender Entry**     | **Help Column**          |
| Display**         |                      |                          |
|                   | (Enter exactly as    |                          |
|                   | shown, unless        |                          |
|                   | labeled "Example."   |                          |
|                   | Hit return key after |                          |
|                   | finishing each       |                          |
|                   | screen.)             |                          |
+-------------------+----------------------+--------------------------+
| **FIELD 6:        | Example:             | Enter last name, then    |
| VETERAN NAME**    |                      | first name, and          |
|                   | **Doe John Q**       |                          |
| **FIELD 7: LOAN   |                      | middle initial if used.  |
| TYPE**            | Example:             | Do not insert comma.     |
|                   |                      |                          |
| **(O A I M C)**   | **O**                | Enter the type of loan.  |
|                   |                      |                          |
| **FIELD 8: SALE   | Example using        | -   O - Origination      |
| AMOUNT:**         | \$120,000.00         |     (purchase or         |
|                   |                      |     construction loan    |
| **FIELD 9:        | sales price:         |     which is not a       |
| DOWNPAYMENT:**    |                      |     refinancing loan)    |
|                   | **12000000**         |                          |
| **FIELD 10:       |                      | ```{=html}               |
| RESERVIST+**      | Example using        | <!-- -->                 |
|                   | \$5,000.00           | ```                      |
|                   |                      | -   A - Assumption       |
|                   | sales price:         |                          |
|                   |                      | ```{=html}               |
|                   | **500000**           | <!-- -->                 |
|                   |                      | ```                      |
|                   | Example:             | -   I - Interest Rate    |
|                   |                      |     Reduction            |
|                   | **N**                |     Refinancing (known   |
|                   |                      |     as IRRRL, rollover   |
|                   |                      |     or streamline)       |
|                   |                      |                          |
|                   |                      | ```{=html}               |
|                   |                      | <!-- -->                 |
|                   |                      | ```                      |
|                   |                      | -   M - Manufactured     |
|                   |                      |     Home                 |
|                   |                      |                          |
|                   |                      | -   C - Cash-Out         |
|                   |                      |     Refinancing          |
|                   |                      |                          |
|                   |                      |     Enter purchase price |
|                   |                      |     or, if a             |
|                   |                      |                          |
|                   |                      |     refinancing loan,    |
|                   |                      |     leave blank          |
|                   |                      |                          |
|                   |                      |     Enter the amount of  |
|                   |                      |     any down payment.    |
|                   |                      |     Leave blank for no   |
|                   |                      |     down payment loans.  |
|                   |                      |                          |
|                   |                      |     Enter "Y" if the     |
|                   |                      |     veteran is eligible  |
|                   |                      |     for VA loans as a    |
|                   |                      |     reservist "N" if     |
|                   |                      |     regular military.    |
+-------------------+----------------------+--------------------------+

Continued on next page

## Electronic Payment of the VA Funding Fee

  -----------------------------------------------------------------------
  Data Entry Procedures for Terminal Entry Method (continued)

  -----------------------------------------------------------------------

+------------------------+--------------------+------------------------+
| **Telecash Screen      | **Lender Entry**   | **Help Column**        |
| Display**              |                    |                        |
|                        | (Enter exactly as  |                        |
|                        | shown, unless      |                        |
|                        | labeled "Example." |                        |
|                        | Hit return key     |                        |
|                        | after finishing    |                        |
|                        | each screen.)      |                        |
+------------------------+--------------------+------------------------+
| **FIELD 11: SUBSEQUENT | Example:           | -   Enter "Y" if the   |
| USE**                  |                    |     veteran has        |
|                        | **N**              |     previously used VA |
|                        |                    |     entitlement to get |
|                        |                    |     a VA loan          |
|                        |                    |                        |
|                        |                    |   [EXCEPT]{.underline} |
|                        |                    |     if the current     |
|                        |                    |     loan is an IRRRL   |
|                        |                    |                        |
|                        |                    | (streamline/rollover), |
|                        |                    |     an assumption, or  |
|                        |                    |     manufactured home  |
|                        |                    |     loan, enter 'N'.   |
|                        |                    |                        |
|                        |                    | -   In                 |
|                        |                    |     [all]{.underline}  |
|                        |                    |     other cases, enter |
|                        |                    |     'N'.               |
+------------------------+--------------------+------------------------+
| **ENTER 'RELEASE';     | Example:           | Enter LIST TO PRINT:   |
| 'CORRECT' OR 'LIST TO  |                    |                        |
| PRINT'**               | **RELEASE**        | -   To display and     |
|                        |                    |     print the data     |
|                        |                    |     that has just been |
|                        |                    |     entered.           |
|                        |                    |                        |
|                        |                    | Enter CORRECT:         |
|                        |                    |                        |
|                        |                    | -   To make            |
|                        |                    |     corrections to the |
|                        |                    |     data. Enter        |
|                        |                    |     RELEASE:           |
|                        |                    |                        |
|                        |                    | -   To complete the    |
|                        |                    |     transaction if all |
|                        |                    |     data entries are   |
|                        |                    |     correct.           |
|                        |                    |                        |
|                        |                    | -   This will initiate |
|                        |                    |     payment of the     |
|                        |                    |     funding fee and    |
|                        |                    |     generate a 4-digit |
|                        |                    |     verification code, |
|                        |                    |     along with the     |
|                        |                    |     date and amount    |
|                        |                    |     paid. The lender   |
|                        |                    |     should retain this |
|                        |                    |     information for    |
|                        |                    |     its records.       |
|                        |                    |     HOWEVER, this      |
|                        |                    |     cannot serve as    |
|                        |                    |     proof of           |
|                        |                    |     payment/receipt.   |
+------------------------+--------------------+------------------------+
| **ENTER NEXT COMPANY   | Example:           | Enter 131 to make      |
| NUMBER, REQUEST        |                    | another funding fee    |
| NUMBER, MODULE OPTION, | **131**            | payment.               |
| 'HELP' FOR REQUEST     |                    |                        |
| LIST, 'END', OR 'XX'   |                    | Enter END to end the   |
| TO RETURN TO MAIN      |                    | session.               |
| LIST**                 |                    |                        |
+------------------------+--------------------+------------------------+

##  

## Electronic Payment of the VA Funding Fee

+------------+---------------------------------------------------------+
| #####      | Funding fees may be transmitted by a CPU/CPU data       |
| CPU to CPU | transmission. The lender's computer transmits the data  |
|  Method {# | directly to Mellon Bank's computer.                     |
| cpu-to-cpu |                                                         |
| -method .u | To use this method, a lender must write a computer      |
| nnumbered} | program to download data from the lender's database,    |
|            | using a specified format. The lender must transmit the  |
|            | data using an IBM Standard 2780/3780 bisynchronous      |
|            | protocol. Mellon Bank utilizes standardized record      |
|            | formats and will supply the lender with the necessary   |
|            | specifications.                                         |
|            |                                                         |
|            | > Any of the following pairs of transmission line       |
|            | > speeds and modems will work:                          |
+------------+---------------------------------------------------------+

  ----------------------------------- -----------------------------------
  Baud Rate                           Modem

  2400 BAUD                           Bell 201c

  4800 BAUD                           Bell 208B

  9600 BAUD                           V.32
  ----------------------------------- -----------------------------------

+-----------------------------------------------------------------------+
| > For more information on CPU/CPU transmission, check the designated  |
| > box on the application on page B-18 or submit a request to VA.      |
| > Mellon Bank will send the procedures, recommendations, contacts and |
| > necessary input/record layouts.                                     |
+-----------------------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### Oper | > Lenders who do not have or wish to use a computer,    |
| ator Assis | > may pay the funding fee by calling Mellon's Operator  |
| ted Teleph | > Unit via a toll-free number, 24 hours a day, 7 days a |
| one Method | > week. The Mellon operator will enter the information  |
|  {#operato | > into the ACH system for the lender. All phone calls   |
| r-assisted | > are recorded and kept on file for 45 days.            |
| -telephone |                                                         |
| -method .u | > When giving information to the operator, **omit all   |
| nnumbered} | > punctuation and decimals**. For numbers, **read each  |
|            | > digit**.                                              |
|            |                                                         |
|            | -   [Example]{.underline}: \$10,369.10 would be         |
|            |     reported as "One, zero, three, six, nine, one,      |
|            |     zero".                                              |
|            |                                                         |
|            |     > See pages B-7 through B-10 of the "Data Entry     |
|            |     > Procedures for Terminal Entry Method" for details |
|            |     > on how to present the requested data.             |
|            |                                                         |
|            |     > The following are procedures for using the        |
|            |     > operator-assisted telephone method.               |
+------------+---------------------------------------------------------+

Continued on next page

## Electronic Payment of the VA Funding Fee

  -----------------------------------------------------------------------
  Operator Assisted Telephone Method (continued)

  -----------------------------------------------------------------------

+--------+-------------------------------------------------------------+
| Step   | Action                                                      |
+--------+-------------------------------------------------------------+
| 1      | Call the Mellon Operator at (800) 944-1400                  |
+--------+-------------------------------------------------------------+
| 2      | Tell the Operator that your Company Number is 131 and you   |
|        | have a supplemental deposit to report.                      |
+--------+-------------------------------------------------------------+
| 3      | Give the Operator the following information (see pages B-7  |
|        | through B-10 for further details):                          |
|        |                                                             |
|        | -   Lender ID Number is (11 digit lender ID number)         |
|        |                                                             |
|        | -   Dollar amount of funding fee is (state each digit, omit |
|        |     commas and decimal points)                              |
|        |                                                             |
|        | -   PIN Number is (4 to 6-digit number)                     |
|        |                                                             |
|        | -   Field One is (12-digit VA Loan Number)                  |
|        |                                                             |
|        | -   Field Two is (OJ number, which is first 2 digits of the |
|        |     loan number)                                            |
|        |                                                             |
|        | -   Field Three is (Closing Date: MMDDYY)                   |
|        |                                                             |
|        | -   Field Four is (Loan Amount)                             |
|        |                                                             |
|        | -   Field Five is ("S" if shortage; "L" if late fee; "I" if |
|        |     late fee plus interest. In all other cases, "blank")    |
|        |                                                             |
|        | -   Field Six is (Veteran's last name, then first name)     |
|        |                                                             |
|        | -   Field Seven is (Loan Type "O" if origination; "A" if    |
|        |     assumption; "I" if Interest Rate Reduction Refinancing  |
|        |     Loan; "M" if manufactured home loan, "C" if cash-out    |
|        |     refinancing loan)                                       |
|        |                                                             |
|        | -   Field Eight is (Sales amount)                           |
|        |                                                             |
|        | -   Field Nine is (Down payment amount)                     |
|        |                                                             |
|        | -   Field Ten is ("Y" if Reservist; "N" if regular          |
|        |     military)                                               |
|        |                                                             |
|        | -   Field Eleven is ("Y" if 2^nd^ or subsequent use of the  |
|        |     veteran's entitlement. Always "N" if Interest Rate      |
|        |     Reduction Refinancing or manufactured home loan or      |
|        |     assumption. "N" in all other cases.                     |
+--------+-------------------------------------------------------------+
| 4      | The Mellon Operator will repeat back the above information. |
|        | Either:                                                     |
|        |                                                             |
|        | -   State "Yes" to agree                                    |
|        |                                                             |
|        | **OR**                                                      |
|        |                                                             |
|        | -   Provide corrected information                           |
|        |                                                             |
|        | -   The operator will re-verify the corrected information.  |
+--------+-------------------------------------------------------------+

Continued on next page

## Electronic Payment of the VA Funding Fee

  -----------------------------------------------------------------------
  Operator Assisted Telephone Method (continued)

  -----------------------------------------------------------------------

+--------+-------------------------------------------------------------+
| **     | **Action**                                                  |
| Step** |                                                             |
+--------+-------------------------------------------------------------+
| 5      | Once you verify that the information is correct, the Mellon |
|        | Operator will acknowledge that the amount and PIN Number    |
|        | have been accepted and will assign a 4-digit Verification   |
|        | Number.                                                     |
|        |                                                             |
|        | -   Keep a record of the Verification Number.               |
+--------+-------------------------------------------------------------+
| 6      | To report another transaction, return to Step 2.            |
|        |                                                             |
|        | If finished, end the conversation.                          |
+--------+-------------------------------------------------------------+

+------------+---------------------------------------------------------+
| **What to  | > These procedures apply if an error is discovered      |
| do if      | > after data has been transmitted by **any** of the     |
| Incorrect  | > three methods.                                        |
| Data Was   | >                                                       |
| Tra        | > If the error is discovered the **same day** as it was |
| nsmitted** | > transmitted, contact Mellon Bank at (800) 944-1400    |
|            | > before 5:00 p.m. Eastern Time. Provide the lender ID  |
|            | > number used, the dollar value of the transaction, and |
|            | > the verification code. Mellon will cancel the         |
|            | > transaction if possible. The lender may then          |
|            | > retransmit the transaction, using corrected data.     |
|            | >                                                       |
|            | > If the error is discovered **after** the day of       |
|            | > transmission, the transaction **cannot** be canceled  |
|            | > or corrected. The receipt will reflect the incorrect  |
|            | > data. (If the error resulted in an underpayment of    |
|            | > the funding fee, transmit the shortage amount to VA   |
|            | > as soon as the lender becomes aware of the shortage.) |
|            |                                                         |
|            | -   Wait for the receipt (or, if a shortage or late fee |
|            |     or interest is involved, wait for **all** related   |
|            |     receipts) before submitting the closed loan package |
|            |     to VA for guaranty. Include **all** receipt(s) and  |
|            |     an explanation of the error.                        |
|            |                                                         |
|            | -   As long as the **total amount paid**, as reflected  |
|            |     on the receipts, matches the **actual amount due**  |
|            |     (correctly calculated funding fee amount plus any   |
|            |     late charge and/or interest due), evidence of       |
|            |     guaranty will not be withheld based on other        |
|            |     incorrect data on the receipts.                     |
|            |                                                         |
|            | -   If the lender overpaid, request a refund of the     |
|            |     overpayment (see below).                            |
+------------+---------------------------------------------------------+

## Electronic Payment of the VA Funding Fee

+------------+---------------------------------------------------------+
| ##### Re   | > All requests for refunds must be submitted to the VA  |
| funds of O | > office to which the loan was or will be submitted for |
| verpayment | > guaranty. Provide all pertinent facts, including the  |
| s or Doubl | > reason for the request and how the lender calculated  |
| e Payments | > the amount to be refunded. Include **all** applicable |
|            | > funding fee receipts. (If the funding fee was         |
|            | > inadvertently paid more than one time, include the    |
|            | > funding fee receipt for each time.)                   |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > Receipts evidencing any payments made are sent to the |
| Funding Fe | > lender **by mail.**                                   |
| e Receipts | >                                                       |
|            | > The lender should receive a receipt from the VA       |
|            | > approximately **6 to 10 days** after transmitting a   |
|            | > payment.                                              |
|            | >                                                       |
|            | > If the funding fee is adequate for the purchase       |
|            | > price, down payment, and loan amount, VA sends VA     |
|            | > Form 26-8998, Acknowledgment of Receipt of Funding    |
|            | > Fee from Mortgagee, to the lender.                    |
|            | >                                                       |
|            | > If the funding fee is less than required, VA sends VA |
|            | > Form 26-0500, Notification to Mortgagee of Funding    |
|            | > Fee Shortage, to the lender. After payment of the     |
|            | > shortage, VA sends VA Form 26-8999, Acknowledgment of |
|            | > Receipt of Funding Fee Shortage, to the lender.       |
|            | >                                                       |
|            | > If a late charge and/or interest is due, VA sends VA  |
|            | > Form 26-0546, Assessment of Late Fee, or VA Form      |
|            | > 26-0547, Assessment of Late Fee and Interest, to the  |
|            | > lender. After payment of the late charge and/or       |
|            | > interest, VA sends VA Form 26-0548, Receipt of Late   |
|            | > Fee and Accrued Interest, to the lender.              |
|            | >                                                       |
|            | > Include **[ALL]{.underline}** receipts related to a   |
|            | > particular loan when submitting the closed loan       |
|            | > package to VA for guaranty.                           |
+------------+---------------------------------------------------------+

## Electronic Payment of the VA Funding Fee

+------------+---------------------------------------------------------+
| ##### Lost | > A receipt that is not received by the lender within   |
|  or Missin | > 14 days of a transmission is presumed lost. **There   |
| g Receipts | > is no way to get a duplicate**.                       |
|            | >                                                       |
|            | > **Alternative proof of payment must be included with  |
|            | > the loan package** submitted for guaranty. Either of  |
|            | > the following will fulfill this requirement:          |
|            |                                                         |
|            | -   Confirmation of the payment from the VA office of   |
|            |     jurisdiction based on checking records in VA's      |
|            |     database.                                           |
|            |                                                         |
|            | -   Ask the VA office to annotate the file or send you  |
|            |     a copy of the report screen evidencing the payment  |
|            |                                                         |
|            | > **OR**                                                |
|            |                                                         |
|            | -   A copy of the lender's bank statement showing a     |
|            |     debit to the amount of the payment **plus** a copy  |
|            |     of the loan data that the lender transmitted        |
|            |                                                         |
|            | > ***Note***: A copy of the loan data transmitted with  |
|            | > the verification code assigned at the time of         |
|            | > transmittal is **not,** by itself, sufficient proof   |
|            | > of payment.                                           |
|            | >                                                       |
|            | > If the lender has a **general, recurring problem**    |
|            | > with missing receipts, determine:                     |
|            |                                                         |
|            | -   Whether the funds are actually being withdrawn from |
|            |     the lender's bank account                           |
|            |                                                         |
|            | -   Whether the person transmitting the payments is     |
|            |     using the proper lender ID number for the home or   |
|            |     branch office that is missing its receipts          |
|            |                                                         |
|            | -   Whether the lender ID number is tied to the correct |
|            |     address of the home or branch office that is        |
|            |     missing its receipts (confirm this by contacting    |
|            |     the VA office with jurisdiction over that           |
|            |     particular office of the lender)                    |
|            |                                                         |
|            | -   Whether the lender's internal mail routing system   |
|            |     is delivering the receipts to the proper party      |
|            |                                                         |
|            | > If the problem still cannot be resolved, discuss the  |
|            | > problem with the VA Funding Fee Coordinator at (202)  |
|            | > 273-7375.                                             |
+------------+---------------------------------------------------------+

## Electronic Payment of the VA Funding Fee

+------------+---------------------------------------------------------+
| ##### La   | > A **4 percent late charge** is due on payments made   |
| te Fees an | > **more than 15 calendar days after the closing        |
| d Interest | > date.** In addition, an **interest** penalty begins   |
|            | > to accrue on payments overdue by **30 days or more**. |
|            | > Lenders that remit late funding fee payments will     |
|            | > receive a bill from VA for any late charge or         |
|            | > interest due.                                         |
|            | >                                                       |
|            | > **DO NOT CALCULATE THE LATE FEE AND/OR INTEREST       |
|            | > DUE.** VA will do all calculations on late payments.  |
|            | >                                                       |
|            | > Even if you are aware that a funding fee payment is   |
|            | > being made late, remit **only** the amount of the     |
|            | > funding fee, **without** any late charge or interest. |
|            | > Wait to receive VA Form 26-0546, Assessment of Late   |
|            | > Fee, or VA Form 26-0547, Assessment of Late Fee and   |
|            | > Interest, before remitting the additional funds.      |
|            |                                                         |
|            | -   Include the assessment form and VA Form 26-0548,    |
|            |     Receipt of Late Fee and Accrued Interest, with the  |
|            |     closed loan package sent to VA.                     |
|            |                                                         |
|            | > Data entry errors or other factors may cause errors   |
|            | > in the billing of the late charge and/or interest on  |
|            | > a loan. Contact the VA Funding Fee Coordinator at     |
|            | > (202) 273-7375 if the proper late charge and/or       |
|            | > interest must be calculated or other assistance is    |
|            | > needed.                                               |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > Submit a CHANGE/SPECIAL REQUEST (page B-19), **or     |
|  How to Ch | > equivalent** information, to VA if there is or will   |
| ange Bank  | > be a change to the transit routing number and/or the  |
| Account an | > account number.                                       |
| d Other In |                                                         |
| formation  | -   The change is normally processed within 10 days of  |
|            |     VA's receipt of the request.                        |
|            |                                                         |
|            | -   After at least 6 business days from the date the    |
|            |     request was submitted to VA, the lender may call    |
|            |     Customer Service at Mellon Bank at (412) 234-2314   |
|            |     or (412) 234-2315 to inquire about the effective    |
|            |     date of the change.                                 |
|            |                                                         |
|            | -   VA does not require that the bank account be used   |
|            |     only to pay VA funding fees. Multi-purpose bank     |
|            |     accounts are acceptable.                            |
|            |                                                         |
|            | > You may also use the CHANGE/SPECIAL REQUEST (page     |
|            | > B-19) to report a change to the lender's company name |
|            | > or a change to the lender's VA ID number              |
|            | >                                                       |
|            | > For address changes, contact the VA office of         |
|            | > jurisdiction.                                         |
+------------+---------------------------------------------------------+

## Electronic Payment of the VA Funding Fee

+------------+---------------------------------------------------------+
| ####       | > A lender that needs changes to the existing PIN       |
| # How to C | > number/lender ID number configuration of its home and |
| hange the  | > branch offices should submit a CHANGE/ SPECIAL        |
| Lender's P | > REQUEST (page B-19), or equivalent information, if no |
| IN and/or  | > new PIN is needed.                                    |
| Lender ID  |                                                         |
| Number Con | -   Thoroughly explain the configuration desired.       |
| figuration |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   [Example]{.underline}: Previously, branch offices A |
|            |     and B each used their own ID numbers and PIN        |
|            |     numbers. The lender now wants branch offices A and  |
|            |     B to use the PIN of the home office, but still use  |
|            |     their individual lender ID numbers so that receipts |
|            |     will go directly to the branch offices. The lender  |
|            |     must explain this arrangement and provide all ID    |
|            |     numbers involved in the change.                     |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   See the "VA Lender ID Number" and "How to Obtain a  |
|            |     PIN" sections for possible configurations.          |
|            |                                                         |
|            | > ***Note***: Any time a lender wants a new             |
|            | > configuration that involves having a new PIN number   |
|            | > issued, provide an APPLICATION (page B-18) or         |
|            | > equivalent information.                               |
+------------+---------------------------------------------------------+

+------------+---+------------+----------------------+--------+----------+
| ####       | > |            |                      |        |          |
| # Funding  |   |            |                      |        |          |
| Fee Tables | * |            |                      |        |          |
|            | * |            |                      |        |          |
|            | P |            |                      |        |          |
|            | U |            |                      |        |          |
|            | R |            |                      |        |          |
|            | C |            |                      |        |          |
|            | H |            |                      |        |          |
|            | A |            |                      |        |          |
|            | S |            |                      |        |          |
|            | E |            |                      |        |          |
|            | > |            |                      |        |          |
|            |   |            |                      |        |          |
|            | A |            |                      |        |          |
|            | N |            |                      |        |          |
|            | D |            |                      |        |          |
|            | > |            |                      |        |          |
|            |   |            |                      |        |          |
|            | C |            |                      |        |          |
|            | O |            |                      |        |          |
|            | N |            |                      |        |          |
|            | S |            |                      |        |          |
|            | T |            |                      |        |          |
|            | R |            |                      |        |          |
|            | U |            |                      |        |          |
|            | C |            |                      |        |          |
|            | T |            |                      |        |          |
|            | I |            |                      |        |          |
|            | O |            |                      |        |          |
|            | N |            |                      |        |          |
|            | > |            |                      |        |          |
|            |   |            |                      |        |          |
|            | L |            |                      |        |          |
|            | O |            |                      |        |          |
|            | A |            |                      |        |          |
|            | N |            |                      |        |          |
|            | S |            |                      |        |          |
|            | * |            |                      |        |          |
|            | * |            |                      |        |          |
+------------+---+------------+----------------------+--------+----------+
|            |   | Type of    | Down Payment         | Perc   | Pe       |
|            |   | Veteran    |                      | entage | rcentage |
|            |   |            |                      | for    | for      |
|            |   |            |                      | First  | Su       |
|            |   |            |                      | Time   | bsequent |
|            |   |            |                      | Use    | Use      |
+------------+---+------------+----------------------+--------+----------+
|            |   | Regular    | None                 | 2.00%  | 3.00% \* |
|            |   | Military   |                      |        |          |
|            |   |            | 5% or more (up to    | 1.50%  | 1.50%    |
|            |   |            | 10%)                 |        |          |
|            |   |            |                      | 1.25%  | 1.25%    |
|            |   |            | 10% or more          |        |          |
+------------+---+------------+----------------------+--------+----------+
|            |   | Reserves/  | None                 | 2.75%  | 3.00% \* |
|            |   |            |                      |        |          |
|            |   | National   | 5% or more (up to    | 2.25%  | 2.25%    |
|            |   | Guard      | 10%)                 |        |          |
|            |   |            |                      | 2.00%  | 2.00%    |
|            |   |            | 10% or more          |        |          |
+------------+---+------------+----------------------+--------+----------+

+---+-------------------------+---------------------+--------------------+---+
| > |                         |                     |                    |   |
|   |                         |                     |                    |   |
| * |                         |                     |                    |   |
| * |                         |                     |                    |   |
| C |                         |                     |                    |   |
| A |                         |                     |                    |   |
| S |                         |                     |                    |   |
| H |                         |                     |                    |   |
| - |                         |                     |                    |   |
| O |                         |                     |                    |   |
| U |                         |                     |                    |   |
| T |                         |                     |                    |   |
| > |                         |                     |                    |   |
|   |                         |                     |                    |   |
| R |                         |                     |                    |   |
| E |                         |                     |                    |   |
| F |                         |                     |                    |   |
| I |                         |                     |                    |   |
| N |                         |                     |                    |   |
| A |                         |                     |                    |   |
| N |                         |                     |                    |   |
| C |                         |                     |                    |   |
| I |                         |                     |                    |   |
| N |                         |                     |                    |   |
| G |                         |                     |                    |   |
| > |                         |                     |                    |   |
|   |                         |                     |                    |   |
| L |                         |                     |                    |   |
| O |                         |                     |                    |   |
| A |                         |                     |                    |   |
| N |                         |                     |                    |   |
| S |                         |                     |                    |   |
| * |                         |                     |                    |   |
| * |                         |                     |                    |   |
+---+-------------------------+---------------------+--------------------+---+
|   | Type of Veteran         | Percentage for      | Percentage for     |   |
|   |                         | First Time Use      | Subsequent Use     |   |
+---+-------------------------+---------------------+--------------------+---+
|   | Regular Military        | 2.00%               | 3.00% \*           |   |
+---+-------------------------+---------------------+--------------------+---+
|   | Reserves/National Guard | 2.75%               | 3.00% \*           |   |
+---+-------------------------+---------------------+--------------------+---+

Continued on next page

## Electronic Payment of the VA Funding Fee

+------------+---+-----------------------+--------------------------------+
| #####      | > |                       |                                |
| Funding Fe |   |                       |                                |
| e Tables ( | * |                       |                                |
| continued) | * |                       |                                |
|            | O |                       |                                |
|            | T |                       |                                |
|            | H |                       |                                |
|            | E |                       |                                |
|            | R |                       |                                |
|            | > |                       |                                |
|            |   |                       |                                |
|            | T |                       |                                |
|            | Y |                       |                                |
|            | P |                       |                                |
|            | E |                       |                                |
|            | S |                       |                                |
|            | > |                       |                                |
|            |   |                       |                                |
|            | O |                       |                                |
|            | F |                       |                                |
|            | > |                       |                                |
|            |   |                       |                                |
|            | L |                       |                                |
|            | O |                       |                                |
|            | A |                       |                                |
|            | N |                       |                                |
|            | S |                       |                                |
|            | * |                       |                                |
|            | * |                       |                                |
+------------+---+-----------------------+--------------------------------+
|            |   | Type of Loan          | Percentage for Either Type of  |
|            |   |                       | Veteran Whether First Time or  |
|            |   |                       | Subsequent Use                 |
+------------+---+-----------------------+--------------------------------+
|            |   | Interest Rate         | .50%                           |
|            |   | Reduction Refinancing |                                |
|            |   | Loans                 |                                |
+------------+---+-----------------------+--------------------------------+
|            |   | Manufactured Home     | 1.00%                          |
|            |   | Loans                 |                                |
+------------+---+-----------------------+--------------------------------+
|            |   | Loan Assumptions      | .50%                           |
+------------+---+-----------------------+--------------------------------+

+-----------------------------------------------------------------------+
| > \*The higher subsequent use fee does not apply to these types of    |
| > loans if the veteran\'s **only** prior use of entitlement was for a |
| > manufactured home loan.                                             |
| >                                                                     |
| > See chapter 6, section II, of this handbook for further information |
| > on calculating the funding fee.                                     |
+-----------------------------------------------------------------------+

#### APPLICATION

**U.S. Department of Veterans Affairs (VA) Funding Fee Program**

**We recommend that you keep a copy of this blank page for future use.
Provide all requested information. Type or print clearly. You may want
to keep a copy of the information you provide for your records. Fax or
mail the information to VA.**

**FAX: 202-275-3523 MAIL: DEPT OF VETERANS AFFAIRS**

**ATTENTION: (264) LOAN GUARANTY SERVICE (264)**

**810 VERMONT AVE NW**

**WASHINGTON, DC 20420**

**Company Name**:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**Address**:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**Contact Person/Telephone Number**:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

o Check box ONLY if you want to use the CPU to CPU payment method.

+-----------------------------+----------------------------------------+
| **VA Lender ID**            | ****                                   |
|                             |                                        |
| **Number**                  |                                        |
+-----------------------------+----------------------------------------+
|                             | > Enter your 11-digit VA lender ID     |
|                             | > number in the empty boxes. Use this  |
|                             | > number to remit funding fee payments |
|                             | > after receipt of the PIN number.     |
+-----------------------------+----------------------------------------+

+-----------------------------+----------------------------------------+
| **Bank's 9-digit Transit**  | ****                                   |
|                             |                                        |
| **Routing Number**          |                                        |
+-----------------------------+----------------------------------------+
|                             | > Provide complete, accurate           |
|                             | > information on the account that      |
|                             | > funds will be withdrawn from. Above: |
|                             | > transit routing (ABA) \# for the     |
|                             | > bank.                                |
|                             | >                                      |
|                             | > Below: lender's bank account#.       |
+-----------------------------+----------------------------------------+

+--------------+-------------------------------------------------------+
| **Bank       | ****                                                  |
| Account**    |                                                       |
|              |                                                       |
| **Number**   |                                                       |
+--------------+-------------------------------------------------------+

Authorized by:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Signature and Title of Authorizing Official Date

**Please verify bank information before signing!**

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**VA USE ONLY - DO NOT COMPLETE ANYTHING BELOW THIS LINE**

ADD: [X]{.underline} EFFECTIVE DATE:
[\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline} OUTPUT TYPE:
[AD]{.underline}

COMPANY NUMBER [131]{.underline}

SECURITY PIN DATA: Is the lender to have its own unique PIN number?
Yes\_\_\_\_\_ No\_\_\_\_\_\_\_

If no, is the lender to be associated with an existing lender on the
system? Yes\_\_\_\_\_ No\_\_\_\_\_\_\_

Unit number of existing lender: 

**CHANGE/SPECIAL REQUEST FORM**

**U.S. Department of Veterans Affairs (VA) Funding Fee Program**

**We recommend that you keep a copy of this blank page for future use.
Provide all requested information. Type or print clearly. Check the box
at the end of the line for any item that is being changed. You may want
to keep a copy of the information you provide for your records. Fax or
mail the information to VA.**

**FAX: 202-275-3523 MAIL: DEPT OF VETERANS AFFAIRS**

**ATTENTION: (264) LOAN GUARANTY SERVICE (264)**

**810 VERMONT AVE NW**

**WASHINGTON, DC 20420**

**[CHANGE]{.underline}**

Company Name:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Address:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Contact Person/Telephone Number:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

+------------------------------+---------------------------------------+
| **VA Lender ID**             | ****                                  |
|                              |                                       |
| **Number**                   |                                       |
+------------------------------+---------------------------------------+
|                              | > Enter your 11-digit VA lender ID    |
|                              | > number in the empty boxes. Use this |
|                              | > ID number to remit funding fee      |
|                              | > payments.                           |
+------------------------------+---------------------------------------+

+------------------------------+---------------------------------------+
| **Bank's 9-digit Transit**   | ****                                  |
|                              |                                       |
| **Routing Number**           |                                       |
+------------------------------+---------------------------------------+
|                              | > Provide complete, accurate          |
|                              | > information on the account that     |
|                              | > funds will be withdrawn from.       |
|                              | > Above: transit routing (ABA) \# for |
|                              | > the bank.                           |
|                              | >                                     |
|                              | > Below: lender's bank account#.      |
+------------------------------+---------------------------------------+

+--------------+-------------------------------------------------------+
| **Bank       | ****                                                  |
| Account**    |                                                       |
|              |                                                       |
| **Number**   |                                                       |
+--------------+-------------------------------------------------------+

Authorized by:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Signature and Title of Authorizing Official Date

**Please verify bank information before signing!**

Briefly explain nature of change(s) or action(s) requested, if not
obvious from above information:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**VA USE ONLY - DO NOT COMPLETE ANYTHING BELOW THIS LINE**

CHANGE:\_\_\_\_\_\_\_\_\_ DELETE: \_\_\_\_\_\_\_\_ EFFECTIVE DATE:
[\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}

OUTPUT TYPE: [AD]{.underline} COMPANY NUMBER [131]{.underline}