Veterans Benefits Administration
Department of Veterans Affairs
Washington, DC 2042
Circular 26-02-8
June 7, 2002


ACE (AUTOMATED CERTIFICATE OF ELIGIBILITY)


  1. Purpose: This circular announces a new VA Internet applications, ACE.

    1. ACE allows lenders to input data about their potential veteran-borrower and obtain
      an eligiibility determination on most cases in a matter of seconds. If eligibility is
      established, the lender prints out the certificate to submit with their guaranty package.
      This eliminates completing a paper application (VA Form 26-1880, Request for a
      Certificate of Eligibility), mailing it to an eligibility center and waiting for a reply by mail.
      If eligibility cannot be established, a refer message will instruct the lender to sumit a
      completed VA Form 26-1880 to VA for processing.


    2. The Online Loan Status Inquiry is an added function of ACE that permits lenders to
      input a VA case number and check the status of the loan (guaranteed, suspended, etc.)
      versus telephoning a VBA regional office to obtain the status of a loan. Currently, lenders
      can input up to three cases at one time (the complete 12-digit VA case number must be
      input). The application will check VA records and display the status of the loan; i.e.,
      guaranteed, suspended, etc. If a particular loan record cannot be located, a message will
      display advising lenders to contact the appropriate VA office of jurisdiction for
      information.

  2. Effective Date: Lenders may begin using both functions of ACE immediately.

  3. Access: Lenders can access ACE by going to the TAS URL at
    http://tas.vba.va.gov/TAS/index.html and clicking on the ACE link. Once the ACE link is
    accessed, lenders will see a brief paragraph about ACE. There will be a link from that
    paragraph to the atual ACE log-in page. Lenders may choose to bookmark that site.
    Once lenders log-in, they click on Requestors and select which function of ACE they wish
    to use. ACE will generally be available 23 hours a day (excluding "downtime" for
    unanticipated maintenances, etc.). At this time, access to ACE is limited to VA
    recognized lenders, or their recognized agent(s), with a valid, VA
    assigned lender identification number.

  4. Scope

    1. ACE will not make all determinations. ACE will be most helpful in cases
      where the veteran is a first time user of the program. Some types of cases cannot
      be processed through ACE at this time. They are:

      • Persons whose service was or is in the Reserves/National Guard
      • Persons who may have had prior VA loan(s) that went to foreclosure
      • Persons who did not serve the minimum required length of service and were
        not discharged for an authorized exception
      • Persons who were discharged under conditions other than honorable
      • Persons for which VA has insufficient data to make the determination
      • Persons seeking restoration of previously used entitlement
      • Unmarried surviving spouses


    2. ACE will never deny eligibility. If eligibility cannot be established, the lender
      will get a refer message saying the determination cannot be made. A refer message only
      means that ACE cannot make the determination and that further development is necessary.
      It does not necessarily mean the veteran is ineligible.


  5. Transferring COEs: ACE generated COEs cannot be transferred to another lender.
    Guaranty requests containing an ACE generated COE issued to someone other than the
    lender or its agent will be returned. Lenders will then need to obtain an eligibility
    determination themselves before returning the package for guaranty. It's important that
    lenders be sure to properly complete agent information on VA Form 26-1820, Report and
    Certification of Loan disbursement, and VA Form 26-0286, VA Loan Summary Sheet.

  6. Privacy/Legal Issues: The ACE application is intended for use by lenders who have
    the veteran's permission to obtain an eligibility determination for them. The use of the
    system will be monitored for security and administrative purposes and accessing the
    system constitutes consent to such monitoring.

  7. Questions: For additional information or questions e-mail our Loan Production
    department at NH_LP@vba.va.gov.


  8. RESCISSION: This circular is rescinded July 1, 2003.

    By Direction of the Under Secretary for Benefits



    Keith Pedigo, Director
    Loan Guaranty Service



    Distribution: CO: RPC 2021