Lender loses VA loan authority due to systems glitch

In the United States, on March 27, 2025, The Mortgage Collaborative (TMC) successfully assisted lenders in overcoming a significant issue affecting VA loan processing. This issue began on March 13 when Max Leaman, CEO of LoanPeople, communicated with TMC Member Benefits Advocate Sarah Wood regarding a problematic transition to the VA's new PPM system. This transition had unintentionally stripped multiple lenders, including LoanPeople, of their automatic authority and SAR designations. The sudden loss threatened to hinder thousands of veteran home purchases, encompassing three loans that were in immediate jeopardy. Leaman shared his frustrations about the unexpected revocation of their VA underwriting authority, emphasizing that he had spent over 30 hours on calls during a two-week span without any resolution. Seeking practical help, he reached out to Wood, whose quick response marked the beginning of a collaborative effort to restore the lenders' designations urgently. Through Wood's engagement with TMC's member network, she enlisted the expertise of renowned VA lenders, including Khash Sagahafi, Michelle Massucci, Kim Mason, and Teresa Rose, who provided invaluable insight and assistance. Their collective guidance included identifying solutions and sharing critical contacts. The situation escalated during the conference held in Dallas from March 16 to 18. Throughout this event, Wood and TMC's Director of Membership Growth, Toni Bramley, worked diligently behind the scenes, utilizing direct connections to the VA to coordinate effective strategies aimed at resolving the issues affecting lenders. Their persistence proved fruitful as the professional network mobilized in unison to restore the VA automatic authority and SAR designations for the lenders by March 20. This moment marked a turnaround in the situation, safeguarding veteran home purchases and reinstating lenders' valuable capabilities. Sarah Wood expressed immense pride in the collaboration that unfolded, underscoring the essence of TMC’s operational philosophy which is rooted in collective support. TMC's CEO and President, Jodi Hall, echoed these sentiments, highlighting the relentless dedication shown by Wood and Bramley as paramount to achieving significant outcomes for member lenders. The strength of their relationship-driven network emphasizes how crucial collaboration is in times of crisis, ultimately enabling an environment where member success is prioritized and served effectively.