WBK Industry News - Federal Regulatory Developments

VA Notifies Mortgage Industry of New Loan Guaranty Service (LGY) API

In Circular 26-21-15, the VA announced a new Loan Guaranty Service (LGY) application programing interface (API). According to the Circular, “[o]nce deployed, this API will allow a lender’s loan origination system (LOS) to electronically submit information necessary to report a loan to VA for purposes of requesting evidence of guaranty (i.e., the Loan Guaranty Certificate or (LGC)), including the payment of the VA funding fee, via an automated capability and without human intervention.”

The new API, known as the Guaranty Remittance API, is under development and will begin testing in January of 2022.  Deployment of the Guaranty Remittance API could be as early as October 1, 2022.  The VA also advises lenders that consideration should be given to the impact of these anticipated technology changes on company operations, policies, and procedures.  The Circular identifies where the Guaranty Remittance technical specifications and modernization documentation are located.