California Code
ARTICLE 3.1 - Veterans Farm and Home Purchase Act of 1974
Section 987.59.

987.59. (a) When a veteran has been authorized by the department to select a farm or home, the veteran shall submit that selection for approval, as the department prescribes. The department shall have the sole responsibility for the underwriting and approval of all farm or home loans, subject to this article.

(b) In order to achieve efficient processing and approval of loans, the department shall do all of the following:

(1) The department shall establish all systems, procedures, technologies, and guidelines necessary to achieve efficient processing of farm or home loans submitted for approval by the department, with the intent of achieving loan delivery within the industry standard average number of days. These shall include, but may not be limited to, systems and technologies for the electronic transfer of loan funds and related fees.

(2) The department may ensure optimal participation of qualified mortgage brokers and other qualified financial institutions and shall review, standardize, and where possible simplify, the documentation required of mortgage brokers and other qualified financial institutions. The department shall provide adequate training of participating mortgage brokers and other qualified financial institutions.

(3) The department shall establish an outreach program to effectively disseminate program information to professional real estate and mortgage broker associations.

(4) The department, within the financial constraints of the program, shall offer broker compensation and fees sufficient to ensure optimal participation of the private sector in the loan origination process and consistent with the veteran borrower’s interest in efficient and economical loan processing.

(5) The department shall provide access over the internet to veteran applicants and their authorized agents to enable loan applications to be filed electronically.

(6) In cooperation with the Office of Administrative Law, the department shall maintain regulations necessary to implement the provisions of this section and Section 987.67.

(Amended by Stats. 2021, Ch. 549, Sec. 8. (SB 661) Effective January 1, 2022.)