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T4 VA High Confidence Guidance

VA Circular 26-25-11: Adoption of Planning Regions in Connecticut

FHFA adoption of Connecticut planning regions as county-equivalents for conforming loan limits effective January 1, 2026

LOW
Impact Level
Top: Compliance (2)

Advisory Assessment

Impact. VA lenders operating in Connecticut must now use planning regions rather than traditional counties when ordering appraisals through the WebLGY system, requiring updates to appraiser geographic coverage areas and internal processes for loan origination workflows.

Risk. Operations teams face the highest exposure from selecting incorrect geographic designations during appraisal ordering, which will trigger delays in loan processing and potentially impact closing timelines for VA borrowers in Connecticut.

Recommended Action. Operations should immediately audit current Connecticut loan files to confirm all appraisal orders since January 1st used the correct planning region designations, and update staff training materials to reflect the new county dropdown selections in WebLGY.

Watch. Monitor for any VA guidance clarifying boundary disputes or addressing operational issues that may have emerged during the initial months of implementation, particularly regarding appraiser availability across the new planning region structure.

Classification

Regulatory Program
VA Home Loan Program
Doc Type
Guidance
Effective Date
2026-01-01
Days to Action
-196
Comment Deadline
Published
2025-12-31

Urgency Basis

Effective date was January 1, 2026, which is over 180 days in the past from the reference date of May 15, 2026. This is now historical guidance.

Operational Context

Flags
Systems Change Required
Affected Functions
Operations Compliance
Institution Applicability
All

Impact by Category

Compliance
2
Operational
2
Data Governance
1
Model Risk
0
Reporting & Disclosure
0
Capital & Liquidity
0
Consumer Protection
0
Third-Party Risk
1

Key Requirements

- Use planning regions instead of counties when ordering appraisals in Connecticut through WebLGY system - Update appraiser geographic coverage areas to align with new planning region boundaries - Select correct planning region from county dropdown menu to avoid appraisal delays

Scoring Rationale

This is an administrative change affecting only Connecticut VA loan operations. The impact is limited to process adjustments for appraisal ordering and appraiser coverage areas. No new substantive obligations or consumer-facing changes. The effective date has already passed, making this historical guidance for current implementation.

Scored: 2026-05-16T00:39:58.927Z Model: claude-sonnet-4-20250514 Confidence: High Aggregate Score: 1.2
AI Analysis Disclosure — This record, including its scores, impact assessments, and Advisory Assessment (impact, risk, and recommended actions), was generated by an AI model and may contain errors or omissions. The Advisory Assessment is a starting point for analysis, not a substitute for professional judgment. Effective dates, applicability determinations, impact assessments, and any recommended actions should be independently verified against primary regulatory source documents and reviewed by qualified compliance or legal personnel before taking compliance action. This output does not constitute legal or compliance advice.