Veterans Benefits Administration
Department of Veterans Affairs
Washington, DC 2042
Circular 26-02-6
April 30, 2002
VA FUNDING FEE PAYMENT SYSTEM
- PURPOSE. The purpose of this circular is to announce our new web-based Funding Fee
Payment System (FFPS). FFPS is a fully automated system accessible via the Internet.
- BACKGROUND FFPS is part of the pay.gov initiative by the Department of the
Treasury. The new FFPS system will replace the current terminal method of paying funding fee
via communication software with Mellon Bank. No special software is needed to use the new
system, however, since it is a web-based application, Internet access is required. Note: FFPS is
not compatible with Netscape browsers.
- SYSTEM FEATURES. Some of the benefits of the new system include:
- Self-registration for lenders (no need to submit applications to VA).
- Fees are automatically calculated (including late fees and interest if owed).
- In most cases online receipts will be available for printing the day after the funding
fee is paid.
- Refunds can be requested and processed online.
- Lenders can view payment data up to 2 years after payment was made.
- WEBSITE ADDRESS. FFPS can be accessed at https://www.pay.gov/va
- USER'S GUIDE. This guide, which provides step-by-step instructions, can be viewed
and/or downloaded at www.homeloans.va.gov/new.htm.
- ADDITIONAL FIELDS. Input of the following additional fields will be required in the
new system:
- Veteran's full name
- Veteran's social security number.
- Property state.
- Property county.
Also, the loan amount entered under this system will be the base loan amount (the loan amount
before the funding fee is added). This differes from the current system which asks for the total
loan amount (including the funding fee).
- PARAGRAPH 3
- PARAGRAPH 4
- PARAGRAPH 5
- PARAGRAPH 6
- REGISTRATION. All lenders will be required to self-register online, even if they are
already registered on the Mellon funding fee payment system. Instructions on how to self-
register are on page 6 of the user's guide. When you access the system, the registration screen
will have the address pre-filled with information currently on file with VA. If the address is
incorrect and VA needs to update your lender information, please contact your Regional Loan
Center (RLC) before continuing the registration process. RLC phone nubers are provided on
page 29 of the user's guide. If the address is correct, but you want the pin number to be mailed to
a different address, contact customer service at 1-877-837-4135. Also if you have any problems
registering, contact customer service.
- BLOCKED ACCOUNTS. Payments made through the new system will create debits to
your bank account originating from transit routing numbers 042736028 or 04273602 (Federal
Reserve) with a company ID of 3600120001 (Veterans Affairs). Some lenders may have internal
controls on their bank accounts that block transactions from unapproved transit routing and
company indentification numbers. Lenders need to check with their bank to ensure that there
is no block, or if there is, that these numbers will be authorized.
- EFFECTIVE DATE. Payments can be made using the new system starting April 24, 2002.
The old system will be available until June 30, 2002, to allow time for the transition. After that
date, payments will no longer be accepted and the new FFPS must be used.
- RESCISSION. This circular is rescinded October 1, 2003.
By Direction of the Under Secretary for Benefits
Keith Pedigo
Loan Guaranty Service
Distribution: CO: RPC 2025