1. (a) All application materials required by the board will be distributed by the administrator to all participating lending institutions. Veterans wishing to participate in the program must first contact a participating lending institution which will acquaint the veteran with the program and determine if the veteran qualifies for the participating lending institution's portion of the loan. If the veteran is approved by the participating lending institution, it will assist the veteran in completing the application forms for the program. The institution will collect a $25 application fee from the veteran and forward it with the completed application forms to the commission.

2. (b) The board will provide by interagency contract with the commission for the commission's fee for certifying the veteran's eligibility, the manner by which this fee shall be paid, and how the $25 application fee is to be forwarded to the board. The commission shall review the application and eligibility documentation of the veteran and either approve or disapprove the application.

   1. (1) The commission shall provide the chairman a list of all applicants which shows the commission's approval or disapproval of each application.
   2. (2) If the commission disapproves an application, the commission shall also notify the participating lending institution which submitted the application. The participating lending institution shall notify the veteran applicant of the disapproval of the application.
3. (c) For each application approved by the commission, the board's staff will determine if the veteran has previously participated in either the Veterans Land Program or the Veterans Housing Assistance Program. If the veteran has no previous participation, the chairman will notify the administrator of its approval of the board's portion of the loan. As previously provided by these rules, the board may, in its discretion, waive the requirement that the veteran has not previously participated in the Veterans Land Program or the Veterans Housing Assistance Program.
4. (d) Upon receipt of notice of the board's approval, the administrator will notify both the veteran and the participating lending institution of the approval of the veteran's loan, and state the period of time for which funds are reserved for the veteran.
5. (e) The participating lending institution will then complete complete its processing of the loan and will close and fund it. The mortgage loan will be submitted to the administrator for review. As these loans are approved by the administrator, they will be purchased on a monthly basis by the board, and the participating lending institution will be reimbursed.

Source Note:The provisions of this §177.6 adopted to be effective May 4, 1984, 9 TexReg 2263.