Automatic lender. A lender that may process a loan or assumption without submitting the credit package to the Department of Veterans Affairs for underwriting review. Pursuant to 38 U.S.C. 3702 there are two categories of lenders who may process loans automatically:
(1) Entities such as banks, savings and loan associations, and mortgage and loan companies that are subject to examination by an agency of the United States or any State and
(2) Lenders approved by the Department of Veterans Affairs pursuant to standards established by the Department of Veterans Affairs.
38 CFR § 36.4301
Whenever used in 38 U.S.C. chapter 37 or subpart F of this part, unless the context otherwise requires, the terms defined in this section shall have the following meaning: