Mitchell6024/quickb · Datasets at Hugging Face

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8886c02c-6375-4ef6-ba32-7a072225a71f	Otherwise the Veteran must pay the difference of price over value from his or her own funds without borrowing. HAPs often require buyers to occupy the property for a specified period of time. The lender must, at closing, obtain the borrower’s acknowledgement of this requirement, and provide a copy of the signed acknowledgement if VA requests the loan file for review. c.	VA_Guidelines.txt
f9a9ac4b-8575-4ea6-8c6d-df7543608406	HAP Fees Chapter 8 of this handbook lists closing charges that Veteran-borrowers are not allowed to pay when a one-percent loan origination fee is charged.	VA_Guidelines.txt
b718cf33-b914-4e8a-92b1-7ab868c2f6f9	Since HAPs are designed to assist low to moderate income buyers, lenders may not charge Veteran-borrowers unallowable fees and use HAP funds to offset these charges since this practice dilutes the assistance that the HAP was intended to provide. 9-23 Chapter 10 Appraisal Process Overview In this This chapter contains the following topics.	VA_Guidelines.txt
74fdd93a-4147-48d8-914c-ccfc831ebf06	Chapter Topic Topic Name See Page 1 Appraisal Process Summary 10-3 2 Ordering an Appraisal 10-4 3 Sales Contract 10-6 4 Duplicate Appraisal Requests 10-8 5 Canceling Appraisal Requests 10-9 6 Customer Service Expectations 10-10 7 Appraisal Timeliness 10-12 8 Market Data Submitted During the Appraisal Process 10-13 9 Properties Eligible for an Appraisal 10-15 10 Properties Not Eligible for an	VA_Guidelines.txt
8d48e383-5a1c-4c52-b88a-824578a33d71	Appraisal 10-15 10 Properties Not Eligible for an Appraisal 10-19 11 Builder Identification Numbers 10-21 12 Proposed Construction Appraisal from Plans and 10-22 Specifications 13 Proposed Construction Appraisal from a Model Home 10-23 14 Construction Inspections 10-25 15 Warranty Requirements for New Construction 10-26 16 Warranty Requirements for Proposed Construction 10-27 17 Post Construction	VA_Guidelines.txt
acef8477-d0ff-4009-9dad-330feceb15d4	Proposed Construction 10-27 17 Post Construction Inspection by an Appraiser 10-28 18 Veteran Building His/Her Own Home 10-29 Continued on next page VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process Overview, continued In this Chapter, Topic Topic Name See continued Page 19 Special Exception for a Veteran Purchasing a New 10-30 Construction Property without a Warranty 20 New Construction	VA_Guidelines.txt
88376595-c3ec-479e-b1c8-7cd03e5f1677	Property without a Warranty 20 New Construction Sold by the Lender 10-31 21 Completed Appraisal Uploaded to WebLGY 10-32 22 Reconsideration of Value 10-33 23 Repair Inspections 10-34 24 Appraisal and Repair Inspection Fees 10-36 25 Appraisal Fee Collection Issues 10-38 26 Request from the Veteran to Change Lenders 10-39 27 Natural Disaster during the Appraisal Process 10-40 28 Title Limitations	VA_Guidelines.txt
3df1aae4-e715-4e3e-93e6-d4836fd5987f	the Appraisal Process 10-40 28 Title Limitations 10-41 App	VA_Guidelines.txt
9e84eeb1-abf5-42ba-9588-966e8db5ef14	.	VA_Guidelines.txt
eca7dd55-d14c-466f-b044-36b4dc89277b	Steps for Requesting an Appraisal 10-42 1 10-2 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 1. Appraisal Process Summary Change Date March 11, 2019 • This chapter has been revised in its entirety. a. Purpose Appraisals are performed to protect the interests of Veterans, lenders, servicers and VA. b.	VA_Guidelines.txt
35a85652-100d-4fb4-b16c-3e8b7807325f	Appraisals Authorized requesters may order appraisals online in WebLGY only after a Requested Certificate of Eligibility (COE) has been requested. In most cases, VA will Online automatically assign an appraiser on VA’s fee appraiser panel to perform the appraisal. c.	VA_Guidelines.txt
4a0fe878-9718-4187-be8d-1dcf1c13113b	Appraisal The fee appraiser will estimate the market value of the property in accordance Guidelines with the Uniform Standards of Professional Appraisal Practice (USPAP) and VA appraisal guidelines. The appraiser will note any readily apparent repairs needed for the property to meet VA’s Minimum Property Requirements (MPRs). d.	VA_Guidelines.txt
54bd7851-0fb7-473b-ada7-9d40622def8b	Appraisal The completed appraisal report will be uploaded into WebLGY and Review electronically scored by VA’s Appraisal Management System (AMS). A Staff Appraisal Reviewer (SAR) employed by a lender or servicer, or VA staff, will review the appraisal and issue a Notice of Value (NOV) to the Veteran. e.	VA_Guidelines.txt
a3bd395f-6682-48f0-8ea9-8e2b06e01273	Oversight VA staff performs oversight by conducting desk and field reviews of completed appraisals and NOVs. 10-3 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 2. Ordering an Appraisal Change Date March 11, 2019 • This chapter has been revised in its entirety. a.	VA_Guidelines.txt
da60a40c-13a0-4955-a17f-6597c476df6e	Appraisals Lenders and servicers, as well as their authorized agents, may request Requested in appraisals in WebLGY, through the Veterans Information Portal (VIP). WebLGY Detailed steps for placing an appraisal order are listed in Exhibit 1 at the end of this chapter. Lenders must ensure that agents requesting appraisals on their behalf are familiar with the requirements in this chapter. b.	VA_Guidelines.txt
7a914243-4a6e-4109-b328-81dac311f9ca	Access to Requesters must obtain a “User Name” and “Password” for VIP at: WebLGY https://vip.vba.va.gov. Users who are already registered may use the “Lost User Name” and “Lost Password” links on this page. Users must never share their password. c. Privacy and All users of VIP must protect the sensitive information contained in this Security system from unauthorized access.	VA_Guidelines.txt
8ae881ff-1eb8-45c2-9fb1-3e2fc918dbe8	All VIP users must abide by the Privacy Procedures and Security procedures listed at: https://vip.vba.va.gov/portal/userprofiling/html/registration/privacy_security. html. d.	VA_Guidelines.txt
d91c1d04-6750-4e01-9c89-5063ca60ffcb	Appraisal When an appraisal is ordered, the requester must certify that: On receipt of Fee Payment "Notice of Value" or upon advice from the Department of Veterans Certification Affairs that a "Notice of Value" will not be issued, we agree to forward to the appraiser the approved fee which we are holding for this purpose.	VA_Guidelines.txt
bfafa0d1-51d0-45a8-b6c5-d9c11d372fdb	Continued on next page 10-4 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 2. Ordering an Appraisal, continued e. Legal For all appraisal types, if the legal description is lengthy and does not fit in Description the legal description block on the appraisal request, a copy of the complete legal description should be uploaded into WebLGY the same day the request is made.	VA_Guidelines.txt
c831827c-2a71-4da8-9bda-923779da1930	In order to avoid delays on appraisals, the appraiser may determine if sufficient information is provided to identify the property and proceed with the appraisal. f. Sales If the Veteran is purchasing a home, the requester must upload a copy of the Contract and executed sales contract into WebLGY (see Topic 3 of this chapter).	VA_Guidelines.txt
d688a395-4af9-43c3-8452-796795089143	In Exhibits addition, for proposed and under construction properties, construction exhibits must also be uploaded into WebLGY. These documents should be uploaded the same day the request is made. If these exhibits are of a size that is too large for uploading, the exhibits must be sent to the appraiser by overnight delivery. g.	VA_Guidelines.txt
f2b06e3e-7072-40bd-ad6f-d8551cfb99e6	Appraiser For questions related to the assignment of a fee appraiser, the Regional Loan Assignment Center (RLC) of jurisdiction should be contacted. RLC contact information is Questions available at http://www.benefits.va.gov/HOMELOANS/contact_rlc_info.asp or http://www.benefits.va.gov/HOMELOANS/contact_cv.asp. h.	VA_Guidelines.txt
47c2efc3-93d8-44be-b22f-1310c9dc4c47	Technical For technical questions concerning VIP or WebLGY, the VIP Help Desk may Questions be contacted by email at vip@vba.va.gov. 10-5 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 3. Sales Contract Change Date March 11, 2019 • This chapter has been revised in its entirety. a.	VA_Guidelines.txt
76fdaa94-b709-403e-8a87-b24419f6d614	Upload of If the Veteran is purchasing a property, the requester must upload a copy of Sales Contract the executed sales contract into WebLGY the same day the request is made. into WebLGY If the requester does not upload the sales contract, the appraiser must place the appraisal assignment on hold, notify the requester, and document the delay in WebLGY notes. b.	VA_Guidelines.txt
962329d5-eb64-46ef-94da-6ca30ae6596b	Appraiser’s The appraiser must analyze all sales contracts, options, or listings of the Analysis of the subject property as of the effective date of the appraisal, if such information is Contract available to the appraiser in the normal course of business.	VA_Guidelines.txt
969ac419-927e-4520-87b0-34db147e40d0	The appraiser will analyze the sales contract in estimating the reasonable value of the property and will also consider any effect on VA MPR repairs. c. Appraiser’s The appraiser must have access to the sales contract in order to consider Access to the financing data, sales concessions or other information included in the contract Contract when estimating the reasonable value of the property. d.	VA_Guidelines.txt
1f888b51-bf25-45ff-990c-8a32dabf4566	If the sales contract is amended during the appraisal process (prior to the Amendment effective date of the appraisal), the lender must provide the updated contract to the to the appraiser to ensure the appraiser considers the potential impact on value Contract of any changes. before the Appraisal is Completed Continued on next page 10-6 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 3.	VA_Guidelines.txt
95ac6723-2001-47c2-a3c1-ad44e42eefa2	Sales Contract, continued e. Amendment If the sales contract is amended after the effective date of the appraisal, but to the Sales prior to loan closing, the lender must use due diligence to determine whether Contract after the amendment(s) could reasonably be thought to affect the estimated value of the Appraisal the property.	VA_Guidelines.txt
d45210db-9531-4151-a26f-1020a6116f3c	If so, the lender must forward the amended sales contract to the is Completed VA fee appraiser for consideration. The appraiser will be responsible for determining the impact of the amended sales contract and compliance with all provisions of USPAP in developing and reporting credible assignment results.	VA_Guidelines.txt
70d0aa71-10ca-496a-95fc-b472ef936c29	Depending on the extent of any change to the originally considered sales contract, the appraiser may consider the change to constitute a new assignment under USPAP, warranting an additional fee, chargeable to the Veteran, up to the full amount of a new appraisal. f.	VA_Guidelines.txt
d95ca30d-b77b-4b70-96ce-bbfd3d9634e7	Due If the lender fails to perform due diligence in reviewing any subsequent Diligence contract amendment(s), and/or fails to forward the contract amendment appropriately, the loan may be subject to review for indemnification, or any claim against the guaranty may be subject to adjustment. 10-7 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 4.	VA_Guidelines.txt
be7fcdc2-1adb-4b3d-aee9-71bfef8635cb	Duplicate Appraisal Requests Change Date March 11, 2019 • This chapter has been revised in its entirety. a. Cancelation Once an appraisal has been requested, no duplicate appraisal requests are of a Duplicate authorized.	VA_Guidelines.txt
6af81ed4-1a22-4296-af97-5830ecd3696f	If a lender requests more than one appraisal for the same Veteran Request on the same property, the lender must immediately cancel the additional request(s), following the procedures in Topic 5 of this chapter. b.	VA_Guidelines.txt
ce32194b-e5c2-4293-8c77-44d02fcc4978	Fees for If a lender fails to cancel duplicate appraisal requests and multiple appraisals Duplicate are completed for the same Veteran on the same property, the lender will be Appraisals responsible for the fees for all duplicate appraisals. The NOV will be issued based on the first appraisal requested. c.	VA_Guidelines.txt
cb48bf19-e02d-4a8b-a637-ff1b621286cb	No After the NOV has been issued, no duplicate appraisals may be requested for Duplicates the same Veteran on the same property during the validity period of the NOV. during the NOV Validity Period 10-8 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 5. Canceling Appraisal Requests Change Date March 11, 2019 • This chapter has been revised in its entirety. a.	VA_Guidelines.txt
717e1887-7ccf-4945-a950-1a35bc2971a2	Cancelation An appraisal request may be canceled before the appraisal is completed for a Before the valid reason, for example, if the lender finds that the borrower will not qualify Appraisal is for the loan. The following steps must be followed to cancel an appraisal: Completed • Immediately notify the appraiser of the cancellation.	VA_Guidelines.txt
5ca603d6-cc46-4d41-8e7f-2e3178f650e6	The appraiser may charge a fee for any work performed prior to this notification which is chargeable to the Veteran. • E-mail a request to the RLC to cancel the appraisal in WebLGY. The request should include the VA case number, the property address, the reason for the cancellation and confirmation that the appraisal fee, if charged for any work performed, will be paid. b.	VA_Guidelines.txt
0cad825f-85ea-4783-97ca-ddb7836850fa	Cancelation A case may be canceled after the appraisal has been completed, but before the After the NOV is issued for a valid reason, for example, if the sale falls through, by Appraisal is following the same steps.	VA_Guidelines.txt
3d9bbcc2-f50c-4c45-8d26-859a5f3ea1f3	In this situation, the lender is not required to issue Completed the NOV and upon cancellation, the case will be removed from the lender’s list of appraisals pending review in WebLGY. c. No An appraisal request may not be cancelled after the NOV has been issued. Cancelations After the NOV is Issued 10-9 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 6.	VA_Guidelines.txt
8880d689-b34a-47fd-9afe-2daba963fdc5	Customer Service Expectations Change Date March 11, 2019 • This chapter has been revised in its entirety. a. Appraiser Appraisers who are appointed to VA’s fee appraiser panel are well qualified, Expectations experienced appraisers. Fee panel appraisers are entrusted with the responsibility of performing accurate and timely appraisals for VA’s Home Loan Guaranty program.	VA_Guidelines.txt
877da5b4-8559-47bf-a4fa-93086f331b78	While VA fee panel appraisers are not VA employees, they are among the most visible participants in VA’s Home Loan Guaranty program. Appraisers serving on VA’s fee appraiser panel are expected to serve Veterans and their mortgage lenders in a professional manner at all times. VA is committed to providing the highest level of customer service to all Veterans. b.	VA_Guidelines.txt
011185ca-39d6-4b58-a35a-8c0b88fb24d1	If the VA fee appraiser finds that the appraisal request must be reassigned due Reassignments to a conflict of interest or other valid reason, the appraiser must immediately without Delay notify the RLC to assign another appraiser. c. Appraisal Fee appraisers may be contacted by lender and servicer employees other than Status SARs inquiring about the status of the appraisal.	VA_Guidelines.txt
d29ff0d3-6aea-4539-b5ab-a1333b661e7e	Fee appraisers are expected to respond promptly, by the next business day at the latest, providing an update on when the appraisal report is expected to be completed. d. Email When communicating by email, place the VA Loan Identification Number Subject Line (LIN) in the subject line. Do not include any other information such as the Timesaver borrower’s name or address due to privacy concerns.	VA_Guidelines.txt
4aae6e0f-d199-44a5-85d6-4f60a0b6213e	Also state the reason for the request. e. Appraiser’s When preparing an origination appraisal for a purchase, if the estimated Notification to market value appears to be below the sales price, the appraiser must notify the a Lender lender regarding additional market data (see Topic 8 of this chapter). Continued on next page 10-10 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 6.	VA_Guidelines.txt
364adbbd-ae51-4bb6-bd2a-759679007769	Customer Service Expectations, continued f. Appraisal The appraiser may be contacted by the appraisal reviewer, either a lender’s or Clarifications servicer’s SAR or VA staff, to discuss the appraisal report. Appraisers are required to respond by the next business day.	VA_Guidelines.txt
d11d86ca-8191-42f7-8ef8-268ee59fc19b	If a correction or clarification is needed on the appraisal report, a complete, revised appraisal report must be uploaded into WebLGY. g. Oversight The work of each fee appraiser is subject to quality review. Every appraisal report is desk reviewed by a SAR or VA staff.	VA_Guidelines.txt
167c766d-7738-41bf-bfe7-6825f48ccf79	VA takes appropriate action, up to removal from VA’s fee appraiser panel, when appraisers fail to meet VA’s expectations for customer service, accuracy, and timeliness. 10-11 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 6. Customer Service Expectations, continued f.	VA_Guidelines.txt
f40c3a8f-554b-4273-a277-6a101faa58b5	Customer Service Expectations, continued f. Appraisal The appraiser may be contacted by the appraisal reviewer, either a lender’s or Clarifications servicer’s SAR or VA staff, to discuss the appraisal report. Appraisers are required to respond by the next business day.	VA_Guidelines.txt
cd679a62-ef3a-4f68-8b7b-c36dd90e090e	If a correction or clarification is needed on the appraisal report, a complete, revised appraisal report must be uploaded into WebLGY. g. Oversight The work of each fee appraiser is subject to quality review. Every appraisal report is desk reviewed by a SAR or VA staff.	VA_Guidelines.txt
dcccc995-72d2-4f1b-9d4b-705fc0cfab11	VA takes appropriate action, up to removal from VA’s fee appraiser panel, when appraisers fail to meet VA’s expectations for customer service, accuracy, and timeliness. 10-11 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 7. Appraisal Timeliness Change Date March 11, 2019 • This chapter has been revised in its entirety. a.	VA_Guidelines.txt
203618dd-d35a-40d8-a843-623349acf8aa	Timeliness VA establishes appraisal timeliness requirements based on customary Expectations timeframes for comparable conventional appraisals in the geographic area. VA monitors timeliness closely in order to provide service to Veterans that is as fast as or faster than conventional appraisals. b.	VA_Guidelines.txt
bec4ce11-02a1-4b6f-be07-2fe8e14fa4c6	Access to When ordering appraisals, lenders should provide contact information for the Property individual who will provide the appraiser with access to the property without having to make any additional calls. c. Website for Timeliness standards are developed by reviewing appraisal completion times Timeliness in the market area for similar conventional appraisal products.	VA_Guidelines.txt
69622edf-24e6-4c53-a8d0-d1364ac70155	Timeliness Standards standards are available at http://www.benefits.va.gov/HOMELOANS/appraiser_fee_schedule.asp d.	VA_Guidelines.txt
4855cdcf-0c25-49e9-947d-76ea58907a48	Prompt Appraisers must make contact to schedule an appointment within two Scheduling of business days of receiving an assignment, documenting the activity in Appointment WebLGY to help ensure that a mutually convenient appointment is scheduled and the appraisal is completed on time. e.	VA_Guidelines.txt
e7c9ee0a-b69d-418b-afe9-fcbe78d09e34	Any Delays The appraiser must place notes in WebLGY to inform the lender of any delays Noted in beyond the appraiser’s control in obtaining access to view the interior of the WebLGY property. A timeliness exception may be allowed when valid extenuating circumstances are documented in WebLGY. Lenders should check WebLGY for updates before contacting appraisers. f.	VA_Guidelines.txt
7aa229f0-463a-4f4a-81d9-b7df455fcf30	Appraisal If a delay noted in WebLGY extends the completion of the appraisal beyond Report the timeliness standard, the appraisal report must be uploaded no later than 3 Completion business day after the appointment. g.	VA_Guidelines.txt
474373ba-49a6-4e2b-a079-2ab6d3205f64	Additions to RLCs will add appraisers to the fee panel in areas where it frequently takes Fee Panel longer to obtain a VA appraisal versus a comparable conventional appraisal. 10-12 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 8. Market Data Submitted During the Appraisal Process Change Date March 11, 2019 • This chapter has been revised in its entirety. a.	VA_Guidelines.txt
74041432-4551-467f-a23e-f88b758453e4	Notification During the appraisal process, fee appraisers are required to notify the from the requester before completing the appraisal when it appears that the estimated Appraiser market value will be below the sales price.	VA_Guidelines.txt
6d56ef22-50be-484a-8866-6b3218f09008	The appraiser will allow 2-business days for the requester, or any parties to the transaction contacted by the requester, to submit any additional sales data that they wish to have considered. This process is known as the “Tidewater Procedure” as VA first piloted this procedure in the Tidewater area of Virginia. b.	VA_Guidelines.txt
b7ff88d5-80c8-4a1a-a24b-3b86e230590a	For each potential comparable sale submitted, the following information Comparable should be provided: Sales Data • street address, • sales price, • date of sale, • gross living area, • if the property was listed, a copy of the listing with details about the property, and • any other information to assist the appraiser in determining whether the sale could be used as a comparable property.	VA_Guidelines.txt
263a5870-4066-4b08-b813-17f56f0dbd33	It is the responsibility of the requester to provide sufficient information for the appraiser to analyze. c.	VA_Guidelines.txt
d69a60da-f0f1-42ed-b878-458d23afbde2	Notation in If market data is submitted, the appraiser will note in the appraisal that this the Appraisal procedure was followed and include the following information: • street address of each sale submitted, • whether or not each sale was considered and, if not, the reason, and • the effect of the data, if any, on the opinion of value.	VA_Guidelines.txt
ad632b8e-aff5-4e9d-9d45-07be1b6c90cb	Continued on next page 10-13 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 8. Market Data Submitted During the Appraisal Process Change Date March 11, 2019 • This chapter has been revised in its entirety. a.	VA_Guidelines.txt
9f66e4e0-e91b-4047-aa7e-f59c17b51748	Notification During the appraisal process, fee appraisers are required to notify the from the requester before completing the appraisal when it appears that the estimated Appraiser market value will be below the sales price.	VA_Guidelines.txt
3f7921e5-c892-446f-a356-f6578e8d0dee	The appraiser will allow 2-business days for the requester, or any parties to the transaction contacted by the requester, to submit any additional sales data that they wish to have considered. This process is known as the “Tidewater Procedure” as VA first piloted this procedure in the Tidewater area of Virginia. b.	VA_Guidelines.txt
e4ba8673-7429-4261-9266-f8c435fe8083	For each potential comparable sale submitted, the following information Comparable should be provided: Sales Data • street address, • sales price, • date of sale, • gross living area, • if the property was listed, a copy of the listing with details about the property, and • any other information to assist the appraiser in determining whether the sale could be used as a comparable property.	VA_Guidelines.txt
e0d104b7-36ab-435d-8783-a43c7118c28a	It is the responsibility of the requester to provide sufficient information for the appraiser to analyze. c.	VA_Guidelines.txt
ac3de432-daaf-49b6-9060-88017e591a98	Notation in If market data is submitted, the appraiser will note in the appraisal that this the Appraisal procedure was followed and include the following information: • street address of each sale submitted, • whether or not each sale was considered and, if not, the reason, and • the effect of the data, if any, on the opinion of value.	VA_Guidelines.txt
899ee7ea-2570-4f76-bb19-bd603a51f1de	Continued on next page 10-13 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 8. Market Data Submitted During the Appraisal Process, continued d. No Data If no market data is submitted, after 2-business days, the appraiser will note in Submitted the appraisal that the Tidewater Procedure was followed and complete the appraisal report. e.	VA_Guidelines.txt
255010fc-78ef-4d2d-956b-024ecb1ff0d7	Process is This process is in no way to be considered as instruction to the appraiser to for Sharing meet any preset value. Market Data Only 10-14 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 9. Properties Eligible for an Appraisal Change Date March 11, 2019 • This chapter has been revised in its entirety. a.	VA_Guidelines.txt
9f03d26f-c49d-4e7f-86e7-3e799e6f9c66	Lender’s While only an extremely small number of residential properties are not Responsibility eligible to be the security for a VA-guaranteed loan, it is the lenders responsibility to determine that the property is eligible. If the lender fails to exercise due diligence in determining eligibility, VA may deny or reduce payment on a future claim based on the ineligibility of the property.	VA_Guidelines.txt
6965cda4-faa7-4ce2-a808-b53f22acc444	This topic covers properties that are eligible for an appraisal. b. Existing Properties that have been complete for over 1 year based on the certificate of Construction occupancy date, and properties that are less than 1-year old that have been previously occupied, are eligible for an appraisal. c.	VA_Guidelines.txt
b509a430-223d-4d43-b0df-8f9ed8fb3ba9	New Properties that have not been previously occupied and are less than 1-year old Construction based on the certificate of occupancy date, and properties which are complete except for customer preference items (floor coverings, interior finishings, appliances, fixtures or other equipment) are eligible for an appraisal. d.	VA_Guidelines.txt
c37be413-355a-44ae-8f58-5209e75eb2c1	Proposed Proposed and under construction properties are processed under the same Construction procedures and include: • properties appraised from plans and specifications (see Topic 12 of this chapter), • properties appraised from a completed model home (see Topic 13 of this chapter), and • manufactured homes to be placed on a permanent foundation (see Chapter 12, Topic 42 of this Handbook).	VA_Guidelines.txt
5ef2f869-d047-4a5b-9b50-2993591500ed	Continued on next page 10-15 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 9. Properties Eligible for an Appraisal Change Date March 11, 2019 • This chapter has been revised in its entirety. a.	VA_Guidelines.txt
3869e7ed-af8b-47fd-8944-f9861eef18f6	Lender’s While only an extremely small number of residential properties are not Responsibility eligible to be the security for a VA-guaranteed loan, it is the lenders responsibility to determine that the property is eligible. If the lender fails to exercise due diligence in determining eligibility, VA may deny or reduce payment on a future claim based on the ineligibility of the property.	VA_Guidelines.txt
b2a051d4-6981-4ad3-8a54-fdf6d73f28b3	This topic covers properties that are eligible for an appraisal. b. Existing Properties that have been complete for over 1 year based on the certificate of Construction occupancy date, and properties that are less than 1-year old that have been previously occupied, are eligible for an appraisal. c.	VA_Guidelines.txt
0b24e146-d876-4563-9d74-2a34475c7321	New Properties that have not been previously occupied and are less than 1-year old Construction based on the certificate of occupancy date, and properties which are complete except for customer preference items (floor coverings, interior finishings, appliances, fixtures or other equipment) are eligible for an appraisal. d.	VA_Guidelines.txt
84293f51-f55b-4692-87da-c40bd7497de2	Proposed Proposed and under construction properties are processed under the same Construction procedures and include: • properties appraised from plans and specifications (see Topic 12 of this chapter), • properties appraised from a completed model home (see Topic 13 of this chapter), and • manufactured homes to be placed on a permanent foundation (see Chapter 12, Topic 42 of this Handbook).	VA_Guidelines.txt
89ca9b4f-ac15-497f-9485-9f6018247643	Continued on next page 10-15 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 9. Properties Eligible for an Appraisal, continued e. Properties Foreclosed or “Real Estate Owned” properties being sold by lenders may be Sold by eligible, however, properties must still meet VA MPRs.	VA_Guidelines.txt
432fdba0-c124-438b-9243-5381a7164a68	Lenders selling their Lenders own “Real Estate Owned” properties may not process these cases under the Lender Appraisal Processing Program (LAPP). These cases must be ordered and processed as Individual (IND) appraisals. A new construction property for which a lender acquired title due to a builder’s bankruptcy or cessation of business may be eligible (see Topic 20 of this chapter). f.	VA_Guidelines.txt
efd95929-65b6-415b-9d65-077b4c40196d	Veteran A fully completed home constructed by a Veteran acting as a general Building Own contractor for his/her own occupancy may be eligible (see Topic 18 of this Home chapter). g.	VA_Guidelines.txt
26be3921-ff66-4a79-9eb1-3afad12b565e	New Home A special exception may be granted by VA at the request of a Veteran who is Without a purchasing a newly constructed home from a builder who is unwilling to Warranty provide the required construction warranty (see Topic 19 of this chapter). h. Manufactured homes that are classified as real estate may be eligible (see Manufactured Chapter 12, Topic 41 of this Handbook).	VA_Guidelines.txt
f060a370-dd4f-461b-af21-c636e8d4b702	Home Classified as Real Estate i. Modular Modular homes, including modular on-frame housing, may be eligible (see Homes Chapter 12, Topic 42 of this Handbook). j. Condominium units are eligible for appraisal. The development must be Condominium accepted by VA before the loan is guaranteed (see Chapter 11, Topic 12 of Units this Handbook).	VA_Guidelines.txt
4745d94a-6a28-42b5-b389-efd0f5be82a7	Continued on next page 10-16 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 9. Properties Eligible for an Appraisal, continued k. Leaseholds A leasehold estate or any other property involving less than fee simple ownership is eligible for appraisal, but must be approved by VA before the NOV is issued.	VA_Guidelines.txt
5675c142-14d9-4f81-b9a8-100d95126fb5	VA’s legal staff will review the leasehold documents and the RLC will notify the requester of the results of the review.	VA_Guidelines.txt
11703f18-f2b8-4712-89f9-3b0041905f48	Copies of the following documents must be sent to the RLC in order for the leasehold to be reviewed for acceptability: • lease identifying the property to be leased, the lessor, the lease term, and the rent, • all preceding assignments that may have occurred prior to the current assignment, • sales contract, and • in cases of age or income restricted leasehold communities, the Veteran-lessee	VA_Guidelines.txt
aaf4f672-94d4-4934-9442-074ef4268e07	leasehold communities, the Veteran-lessee consent statement	VA_Guidelines.txt
0072a247-eaa4-4385-8e4b-544e3503a5dc	. l.	VA_Guidelines.txt
9159c80c-af01-496f-8dc9-838e71d4929d	Properties Properties located in a Planned Unit Development (PUD) are eligible for an in PUDs appraisal if the lender determines that the title meets the requirements specified in Chapter 16 of this Handbook. VA does not maintain a list of accepted PUDs. m.	VA_Guidelines.txt
fcd5d34e-f1a1-4f8b-a96f-aefae17f632a	VA does not maintain a list of accepted PUDs. m. Property to A property to be altered, improved or repaired is eligible for an appraisal with be Improved the appraisal prepared “subject to” the satisfactory completion of the work.	VA_Guidelines.txt
c0a305cc-4120-4da5-abaa-b2ed6405cecb	The appraiser must be provided with construction exhibits, or depending on the nature of the work involved, documentation clearly describing the full extent of all work to be completed. The appraiser will provide an “as repaired” value. Any work that must be inspected upon completion must be approved by the local building authority.	VA_Guidelines.txt
85ae4cd7-0c83-48d4-b956-43f1541f7e69	Continued on next page 10-17 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 9. Properties Eligible for an Appraisal, continued n.	VA_Guidelines.txt
510b45fb-e908-45d0-ae71-2acb4ecd604d	Special Properties located in a Federal Emergency Management Agency (FEMA) Flood Hazard Special Flood Hazard Area (SFHA) are eligible for an appraisal if a flood Areas insurance policy will be issued unless the area is subject to regular flooding (see Chapter 12, Topic 8 of this Handbook). o.	VA_Guidelines.txt
d188bed7-35eb-4a73-98a8-170fba407db5	Security for Properties that are the security for an existing VA-guaranteed loan are eligible an Existing for an appraisal for the following purposes: VA- Guaranteed • An appraisal may be requested for refinancing (see Chapter 6 of Loan this Handbook). • If the VA-guaranteed loan is in foreclosure, a liquidation appraisal should be requested at least 30 days prior to the estimated sale date.	VA_Guidelines.txt
253afdaa-3a3d-4276-9b1a-a2ff14010ea4	The servicer should confirm arrangements for interior access to the property before ordering the appraisal and provide contact information for the person who will provide access to the property on the appraisal request (see Chapter 11, Topic 20 of this Handbook)	VA_Guidelines.txt
34b61675-2108-453d-9d47-e46c73ab4847	. • A partial release of security may be needed if the borrower requests to have some of the property released from the VA-guaranteed loan.	VA_Guidelines.txt
f43ced2f-d65e-4f3a-89af-f797a6a7d376	VA will assign the appraisal as described in Chapter 11, Topic 21 of this Handbook. 10-18 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 10. Properties Not Eligible for an Appraisal Change Date March 11, 2019 • This chapter has been revised in its entirety. a. Lenders must determine that a property is not eligible for an appraisal at the Determination earliest possible opportunity.	VA_Guidelines.txt
a254e8aa-7b8f-472f-a39b-be1d0782c3c4	If an appraisal is requested and the appraiser at Earliest finds that the property is not eligible, the appraiser should stop working on the Opportunity appraisal and immediately notify the lender. b.	VA_Guidelines.txt
dcd2d199-a8d8-4641-ae06-dce9e6dab756	Properties Properties in the following locations are not eligible for an appraisal: Not Eligible for an • Airport Clear Zone (also known as a Runway Protection Zone), if the Appraisal Due property is proposed construction (see Chapter 12, Topic 41 of this to Location Handbook), • Lava Flow Zones 1 and 2 (see Chapter 12, Topic 10 of this Handbook), • Coastal Barrier Resources System (CBRS) area	VA_Guidelines.txt

8886c02c-6375-4ef6-ba32-7a072225a71f

Otherwise the Veteran must pay the difference of price over value from his or her own funds without borrowing. HAPs often require buyers to occupy the property for a specified period of time. The lender must, at closing, obtain the borrower’s acknowledgement of this requirement, and provide a copy of the signed acknowledgement if VA requests the loan file for review. c.

VA_Guidelines.txt

f9a9ac4b-8575-4ea6-8c6d-df7543608406

HAP Fees Chapter 8 of this handbook lists closing charges that Veteran-borrowers are not allowed to pay when a one-percent loan origination fee is charged.

VA_Guidelines.txt

b718cf33-b914-4e8a-92b1-7ab868c2f6f9

Since HAPs are designed to assist low to moderate income buyers, lenders may not charge Veteran-borrowers unallowable fees and use HAP funds to offset these charges since this practice dilutes the assistance that the HAP was intended to provide. 9-23 Chapter 10 Appraisal Process Overview In this This chapter contains the following topics.

VA_Guidelines.txt

74fdd93a-4147-48d8-914c-ccfc831ebf06

Chapter Topic Topic Name See Page 1 Appraisal Process Summary 10-3 2 Ordering an Appraisal 10-4 3 Sales Contract 10-6 4 Duplicate Appraisal Requests 10-8 5 Canceling Appraisal Requests 10-9 6 Customer Service Expectations 10-10 7 Appraisal Timeliness 10-12 8 Market Data Submitted During the Appraisal Process 10-13 9 Properties Eligible for an Appraisal 10-15 10 Properties Not Eligible for an

VA_Guidelines.txt

8d48e383-5a1c-4c52-b88a-824578a33d71

Appraisal 10-15 10 Properties Not Eligible for an Appraisal 10-19 11 Builder Identification Numbers 10-21 12 Proposed Construction Appraisal from Plans and 10-22 Specifications 13 Proposed Construction Appraisal from a Model Home 10-23 14 Construction Inspections 10-25 15 Warranty Requirements for New Construction 10-26 16 Warranty Requirements for Proposed Construction 10-27 17 Post Construction

VA_Guidelines.txt

acef8477-d0ff-4009-9dad-330feceb15d4

Proposed Construction 10-27 17 Post Construction Inspection by an Appraiser 10-28 18 Veteran Building His/Her Own Home 10-29 Continued on next page VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process Overview, continued In this Chapter, Topic Topic Name See continued Page 19 Special Exception for a Veteran Purchasing a New 10-30 Construction Property without a Warranty 20 New Construction

VA_Guidelines.txt

88376595-c3ec-479e-b1c8-7cd03e5f1677

Property without a Warranty 20 New Construction Sold by the Lender 10-31 21 Completed Appraisal Uploaded to WebLGY 10-32 22 Reconsideration of Value 10-33 23 Repair Inspections 10-34 24 Appraisal and Repair Inspection Fees 10-36 25 Appraisal Fee Collection Issues 10-38 26 Request from the Veteran to Change Lenders 10-39 27 Natural Disaster during the Appraisal Process 10-40 28 Title Limitations

VA_Guidelines.txt

3df1aae4-e715-4e3e-93e6-d4836fd5987f

the Appraisal Process 10-40 28 Title Limitations 10-41 App

VA_Guidelines.txt

9e84eeb1-abf5-42ba-9588-966e8db5ef14

.

VA_Guidelines.txt

eca7dd55-d14c-466f-b044-36b4dc89277b

Steps for Requesting an Appraisal 10-42 1 10-2 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 1. Appraisal Process Summary Change Date March 11, 2019 • This chapter has been revised in its entirety. a. Purpose Appraisals are performed to protect the interests of Veterans, lenders, servicers and VA. b.

VA_Guidelines.txt

35a85652-100d-4fb4-b16c-3e8b7807325f

Appraisals Authorized requesters may order appraisals online in WebLGY only after a Requested Certificate of Eligibility (COE) has been requested. In most cases, VA will Online automatically assign an appraiser on VA’s fee appraiser panel to perform the appraisal. c.

VA_Guidelines.txt

4a0fe878-9718-4187-be8d-1dcf1c13113b

Appraisal The fee appraiser will estimate the market value of the property in accordance Guidelines with the Uniform Standards of Professional Appraisal Practice (USPAP) and VA appraisal guidelines. The appraiser will note any readily apparent repairs needed for the property to meet VA’s Minimum Property Requirements (MPRs). d.

VA_Guidelines.txt

54bd7851-0fb7-473b-ada7-9d40622def8b

Appraisal The completed appraisal report will be uploaded into WebLGY and Review electronically scored by VA’s Appraisal Management System (AMS). A Staff Appraisal Reviewer (SAR) employed by a lender or servicer, or VA staff, will review the appraisal and issue a Notice of Value (NOV) to the Veteran. e.

VA_Guidelines.txt

a3bd395f-6682-48f0-8ea9-8e2b06e01273

Oversight VA staff performs oversight by conducting desk and field reviews of completed appraisals and NOVs. 10-3 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 2. Ordering an Appraisal Change Date March 11, 2019 • This chapter has been revised in its entirety. a.

VA_Guidelines.txt

da60a40c-13a0-4955-a17f-6597c476df6e

Appraisals Lenders and servicers, as well as their authorized agents, may request Requested in appraisals in WebLGY, through the Veterans Information Portal (VIP). WebLGY Detailed steps for placing an appraisal order are listed in Exhibit 1 at the end of this chapter. Lenders must ensure that agents requesting appraisals on their behalf are familiar with the requirements in this chapter. b.

VA_Guidelines.txt

7a914243-4a6e-4109-b328-81dac311f9ca

Access to Requesters must obtain a “User Name” and “Password” for VIP at: WebLGY https://vip.vba.va.gov. Users who are already registered may use the “Lost User Name” and “Lost Password” links on this page. Users must never share their password. c. Privacy and All users of VIP must protect the sensitive information contained in this Security system from unauthorized access.

VA_Guidelines.txt

8ae881ff-1eb8-45c2-9fb1-3e2fc918dbe8

All VIP users must abide by the Privacy Procedures and Security procedures listed at: https://vip.vba.va.gov/portal/userprofiling/html/registration/privacy_security. html. d.

VA_Guidelines.txt

d91c1d04-6750-4e01-9c89-5063ca60ffcb

Appraisal When an appraisal is ordered, the requester must certify that: On receipt of Fee Payment "Notice of Value" or upon advice from the Department of Veterans Certification Affairs that a "Notice of Value" will not be issued, we agree to forward to the appraiser the approved fee which we are holding for this purpose.

VA_Guidelines.txt

bfafa0d1-51d0-45a8-b6c5-d9c11d372fdb

Continued on next page 10-4 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 2. Ordering an Appraisal, continued e. Legal For all appraisal types, if the legal description is lengthy and does not fit in Description the legal description block on the appraisal request, a copy of the complete legal description should be uploaded into WebLGY the same day the request is made.

VA_Guidelines.txt

c831827c-2a71-4da8-9bda-923779da1930

In order to avoid delays on appraisals, the appraiser may determine if sufficient information is provided to identify the property and proceed with the appraisal. f. Sales If the Veteran is purchasing a home, the requester must upload a copy of the Contract and executed sales contract into WebLGY (see Topic 3 of this chapter).

VA_Guidelines.txt

d688a395-4af9-43c3-8452-796795089143

In Exhibits addition, for proposed and under construction properties, construction exhibits must also be uploaded into WebLGY. These documents should be uploaded the same day the request is made. If these exhibits are of a size that is too large for uploading, the exhibits must be sent to the appraiser by overnight delivery. g.

VA_Guidelines.txt

f2b06e3e-7072-40bd-ad6f-d8551cfb99e6

Appraiser For questions related to the assignment of a fee appraiser, the Regional Loan Assignment Center (RLC) of jurisdiction should be contacted. RLC contact information is Questions available at http://www.benefits.va.gov/HOMELOANS/contact_rlc_info.asp or http://www.benefits.va.gov/HOMELOANS/contact_cv.asp. h.

VA_Guidelines.txt

47c2efc3-93d8-44be-b22f-1310c9dc4c47

Technical For technical questions concerning VIP or WebLGY, the VIP Help Desk may Questions be contacted by email at vip@vba.va.gov. 10-5 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 3. Sales Contract Change Date March 11, 2019 • This chapter has been revised in its entirety. a.

VA_Guidelines.txt

76fdaa94-b709-403e-8a87-b24419f6d614

Upload of If the Veteran is purchasing a property, the requester must upload a copy of Sales Contract the executed sales contract into WebLGY the same day the request is made. into WebLGY If the requester does not upload the sales contract, the appraiser must place the appraisal assignment on hold, notify the requester, and document the delay in WebLGY notes. b.

VA_Guidelines.txt

962329d5-eb64-46ef-94da-6ca30ae6596b

Appraiser’s The appraiser must analyze all sales contracts, options, or listings of the Analysis of the subject property as of the effective date of the appraisal, if such information is Contract available to the appraiser in the normal course of business.

VA_Guidelines.txt

969ac419-927e-4520-87b0-34db147e40d0

The appraiser will analyze the sales contract in estimating the reasonable value of the property and will also consider any effect on VA MPR repairs. c. Appraiser’s The appraiser must have access to the sales contract in order to consider Access to the financing data, sales concessions or other information included in the contract Contract when estimating the reasonable value of the property. d.

VA_Guidelines.txt

1f888b51-bf25-45ff-990c-8a32dabf4566

If the sales contract is amended during the appraisal process (prior to the Amendment effective date of the appraisal), the lender must provide the updated contract to the to the appraiser to ensure the appraiser considers the potential impact on value Contract of any changes. before the Appraisal is Completed Continued on next page 10-6 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 3.

VA_Guidelines.txt

95ac6723-2001-47c2-a3c1-ad44e42eefa2

Sales Contract, continued e. Amendment If the sales contract is amended after the effective date of the appraisal, but to the Sales prior to loan closing, the lender must use due diligence to determine whether Contract after the amendment(s) could reasonably be thought to affect the estimated value of the Appraisal the property.

VA_Guidelines.txt

d45210db-9531-4151-a26f-1020a6116f3c

If so, the lender must forward the amended sales contract to the is Completed VA fee appraiser for consideration. The appraiser will be responsible for determining the impact of the amended sales contract and compliance with all provisions of USPAP in developing and reporting credible assignment results.

VA_Guidelines.txt

70d0aa71-10ca-496a-95fc-b472ef936c29

Depending on the extent of any change to the originally considered sales contract, the appraiser may consider the change to constitute a new assignment under USPAP, warranting an additional fee, chargeable to the Veteran, up to the full amount of a new appraisal. f.

VA_Guidelines.txt

d95ca30d-b77b-4b70-96ce-bbfd3d9634e7

Due If the lender fails to perform due diligence in reviewing any subsequent Diligence contract amendment(s), and/or fails to forward the contract amendment appropriately, the loan may be subject to review for indemnification, or any claim against the guaranty may be subject to adjustment. 10-7 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 4.

VA_Guidelines.txt

be7fcdc2-1adb-4b3d-aee9-71bfef8635cb

Duplicate Appraisal Requests Change Date March 11, 2019 • This chapter has been revised in its entirety. a. Cancelation Once an appraisal has been requested, no duplicate appraisal requests are of a Duplicate authorized.

VA_Guidelines.txt

6af81ed4-1a22-4296-af97-5830ecd3696f

If a lender requests more than one appraisal for the same Veteran Request on the same property, the lender must immediately cancel the additional request(s), following the procedures in Topic 5 of this chapter. b.

VA_Guidelines.txt

ce32194b-e5c2-4293-8c77-44d02fcc4978

Fees for If a lender fails to cancel duplicate appraisal requests and multiple appraisals Duplicate are completed for the same Veteran on the same property, the lender will be Appraisals responsible for the fees for all duplicate appraisals. The NOV will be issued based on the first appraisal requested. c.

VA_Guidelines.txt

cb48bf19-e02d-4a8b-a637-ff1b621286cb

No After the NOV has been issued, no duplicate appraisals may be requested for Duplicates the same Veteran on the same property during the validity period of the NOV. during the NOV Validity Period 10-8 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 5. Canceling Appraisal Requests Change Date March 11, 2019 • This chapter has been revised in its entirety. a.

VA_Guidelines.txt

717e1887-7ccf-4945-a950-1a35bc2971a2

Cancelation An appraisal request may be canceled before the appraisal is completed for a Before the valid reason, for example, if the lender finds that the borrower will not qualify Appraisal is for the loan. The following steps must be followed to cancel an appraisal: Completed • Immediately notify the appraiser of the cancellation.

VA_Guidelines.txt

5ca603d6-cc46-4d41-8e7f-2e3178f650e6

The appraiser may charge a fee for any work performed prior to this notification which is chargeable to the Veteran. • E-mail a request to the RLC to cancel the appraisal in WebLGY. The request should include the VA case number, the property address, the reason for the cancellation and confirmation that the appraisal fee, if charged for any work performed, will be paid. b.

VA_Guidelines.txt

0cad825f-85ea-4783-97ca-ddb7836850fa

Cancelation A case may be canceled after the appraisal has been completed, but before the After the NOV is issued for a valid reason, for example, if the sale falls through, by Appraisal is following the same steps.

VA_Guidelines.txt

3d9bbcc2-f50c-4c45-8d26-859a5f3ea1f3

In this situation, the lender is not required to issue Completed the NOV and upon cancellation, the case will be removed from the lender’s list of appraisals pending review in WebLGY. c. No An appraisal request may not be cancelled after the NOV has been issued. Cancelations After the NOV is Issued 10-9 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 6.

VA_Guidelines.txt

8880d689-b34a-47fd-9afe-2daba963fdc5

Customer Service Expectations Change Date March 11, 2019 • This chapter has been revised in its entirety. a. Appraiser Appraisers who are appointed to VA’s fee appraiser panel are well qualified, Expectations experienced appraisers. Fee panel appraisers are entrusted with the responsibility of performing accurate and timely appraisals for VA’s Home Loan Guaranty program.

VA_Guidelines.txt

877da5b4-8559-47bf-a4fa-93086f331b78

While VA fee panel appraisers are not VA employees, they are among the most visible participants in VA’s Home Loan Guaranty program. Appraisers serving on VA’s fee appraiser panel are expected to serve Veterans and their mortgage lenders in a professional manner at all times. VA is committed to providing the highest level of customer service to all Veterans. b.

VA_Guidelines.txt

011185ca-39d6-4b58-a35a-8c0b88fb24d1

If the VA fee appraiser finds that the appraisal request must be reassigned due Reassignments to a conflict of interest or other valid reason, the appraiser must immediately without Delay notify the RLC to assign another appraiser. c. Appraisal Fee appraisers may be contacted by lender and servicer employees other than Status SARs inquiring about the status of the appraisal.

VA_Guidelines.txt

d29ff0d3-6aea-4539-b5ab-a1333b661e7e

Fee appraisers are expected to respond promptly, by the next business day at the latest, providing an update on when the appraisal report is expected to be completed. d. Email When communicating by email, place the VA Loan Identification Number Subject Line (LIN) in the subject line. Do not include any other information such as the Timesaver borrower’s name or address due to privacy concerns.

VA_Guidelines.txt

4aae6e0f-d199-44a5-85d6-4f60a0b6213e

Also state the reason for the request. e. Appraiser’s When preparing an origination appraisal for a purchase, if the estimated Notification to market value appears to be below the sales price, the appraiser must notify the a Lender lender regarding additional market data (see Topic 8 of this chapter). Continued on next page 10-10 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 6.

VA_Guidelines.txt

364adbbd-ae51-4bb6-bd2a-759679007769

Customer Service Expectations, continued f. Appraisal The appraiser may be contacted by the appraisal reviewer, either a lender’s or Clarifications servicer’s SAR or VA staff, to discuss the appraisal report. Appraisers are required to respond by the next business day.

VA_Guidelines.txt

d11d86ca-8191-42f7-8ef8-268ee59fc19b

If a correction or clarification is needed on the appraisal report, a complete, revised appraisal report must be uploaded into WebLGY. g. Oversight The work of each fee appraiser is subject to quality review. Every appraisal report is desk reviewed by a SAR or VA staff.

VA_Guidelines.txt

167c766d-7738-41bf-bfe7-6825f48ccf79

VA takes appropriate action, up to removal from VA’s fee appraiser panel, when appraisers fail to meet VA’s expectations for customer service, accuracy, and timeliness. 10-11 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 6. Customer Service Expectations, continued f.

VA_Guidelines.txt

f40c3a8f-554b-4273-a277-6a101faa58b5

Customer Service Expectations, continued f. Appraisal The appraiser may be contacted by the appraisal reviewer, either a lender’s or Clarifications servicer’s SAR or VA staff, to discuss the appraisal report. Appraisers are required to respond by the next business day.

VA_Guidelines.txt

cd679a62-ef3a-4f68-8b7b-c36dd90e090e

If a correction or clarification is needed on the appraisal report, a complete, revised appraisal report must be uploaded into WebLGY. g. Oversight The work of each fee appraiser is subject to quality review. Every appraisal report is desk reviewed by a SAR or VA staff.

VA_Guidelines.txt

dcccc995-72d2-4f1b-9d4b-705fc0cfab11

VA takes appropriate action, up to removal from VA’s fee appraiser panel, when appraisers fail to meet VA’s expectations for customer service, accuracy, and timeliness. 10-11 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 7. Appraisal Timeliness Change Date March 11, 2019 • This chapter has been revised in its entirety. a.

VA_Guidelines.txt

203618dd-d35a-40d8-a843-623349acf8aa

Timeliness VA establishes appraisal timeliness requirements based on customary Expectations timeframes for comparable conventional appraisals in the geographic area. VA monitors timeliness closely in order to provide service to Veterans that is as fast as or faster than conventional appraisals. b.

VA_Guidelines.txt

bec4ce11-02a1-4b6f-be07-2fe8e14fa4c6

Access to When ordering appraisals, lenders should provide contact information for the Property individual who will provide the appraiser with access to the property without having to make any additional calls. c. Website for Timeliness standards are developed by reviewing appraisal completion times Timeliness in the market area for similar conventional appraisal products.

VA_Guidelines.txt

69622edf-24e6-4c53-a8d0-d1364ac70155

Timeliness Standards standards are available at http://www.benefits.va.gov/HOMELOANS/appraiser_fee_schedule.asp d.

VA_Guidelines.txt

4855cdcf-0c25-49e9-947d-76ea58907a48

Prompt Appraisers must make contact to schedule an appointment within two Scheduling of business days of receiving an assignment, documenting the activity in Appointment WebLGY to help ensure that a mutually convenient appointment is scheduled and the appraisal is completed on time. e.

VA_Guidelines.txt

e7c9ee0a-b69d-418b-afe9-fcbe78d09e34

Any Delays The appraiser must place notes in WebLGY to inform the lender of any delays Noted in beyond the appraiser’s control in obtaining access to view the interior of the WebLGY property. A timeliness exception may be allowed when valid extenuating circumstances are documented in WebLGY. Lenders should check WebLGY for updates before contacting appraisers. f.

VA_Guidelines.txt

7aa229f0-463a-4f4a-81d9-b7df455fcf30

Appraisal If a delay noted in WebLGY extends the completion of the appraisal beyond Report the timeliness standard, the appraisal report must be uploaded no later than 3 Completion business day after the appointment. g.

VA_Guidelines.txt

474373ba-49a6-4e2b-a079-2ab6d3205f64

Additions to RLCs will add appraisers to the fee panel in areas where it frequently takes Fee Panel longer to obtain a VA appraisal versus a comparable conventional appraisal. 10-12 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 8. Market Data Submitted During the Appraisal Process Change Date March 11, 2019 • This chapter has been revised in its entirety. a.

VA_Guidelines.txt

74041432-4551-467f-a23e-f88b758453e4

Notification During the appraisal process, fee appraisers are required to notify the from the requester before completing the appraisal when it appears that the estimated Appraiser market value will be below the sales price.

VA_Guidelines.txt

6d56ef22-50be-484a-8866-6b3218f09008

The appraiser will allow 2-business days for the requester, or any parties to the transaction contacted by the requester, to submit any additional sales data that they wish to have considered. This process is known as the “Tidewater Procedure” as VA first piloted this procedure in the Tidewater area of Virginia. b.

VA_Guidelines.txt

b7ff88d5-80c8-4a1a-a24b-3b86e230590a

For each potential comparable sale submitted, the following information Comparable should be provided: Sales Data • street address, • sales price, • date of sale, • gross living area, • if the property was listed, a copy of the listing with details about the property, and • any other information to assist the appraiser in determining whether the sale could be used as a comparable property.

VA_Guidelines.txt

263a5870-4066-4b08-b813-17f56f0dbd33

It is the responsibility of the requester to provide sufficient information for the appraiser to analyze. c.

VA_Guidelines.txt

d69a60da-f0f1-42ed-b878-458d23afbde2

Notation in If market data is submitted, the appraiser will note in the appraisal that this the Appraisal procedure was followed and include the following information: • street address of each sale submitted, • whether or not each sale was considered and, if not, the reason, and • the effect of the data, if any, on the opinion of value.

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ad632b8e-aff5-4e9d-9d45-07be1b6c90cb

Continued on next page 10-13 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 8. Market Data Submitted During the Appraisal Process Change Date March 11, 2019 • This chapter has been revised in its entirety. a.

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9f66e4e0-e91b-4047-aa7e-f59c17b51748

Notification During the appraisal process, fee appraisers are required to notify the from the requester before completing the appraisal when it appears that the estimated Appraiser market value will be below the sales price.

VA_Guidelines.txt

3f7921e5-c892-446f-a356-f6578e8d0dee

The appraiser will allow 2-business days for the requester, or any parties to the transaction contacted by the requester, to submit any additional sales data that they wish to have considered. This process is known as the “Tidewater Procedure” as VA first piloted this procedure in the Tidewater area of Virginia. b.

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e4ba8673-7429-4261-9266-f8c435fe8083

For each potential comparable sale submitted, the following information Comparable should be provided: Sales Data • street address, • sales price, • date of sale, • gross living area, • if the property was listed, a copy of the listing with details about the property, and • any other information to assist the appraiser in determining whether the sale could be used as a comparable property.

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e0d104b7-36ab-435d-8783-a43c7118c28a

It is the responsibility of the requester to provide sufficient information for the appraiser to analyze. c.

VA_Guidelines.txt

ac3de432-daaf-49b6-9060-88017e591a98

Notation in If market data is submitted, the appraiser will note in the appraisal that this the Appraisal procedure was followed and include the following information: • street address of each sale submitted, • whether or not each sale was considered and, if not, the reason, and • the effect of the data, if any, on the opinion of value.

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Continued on next page 10-13 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 8. Market Data Submitted During the Appraisal Process, continued d. No Data If no market data is submitted, after 2-business days, the appraiser will note in Submitted the appraisal that the Tidewater Procedure was followed and complete the appraisal report. e.

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255010fc-78ef-4d2d-956b-024ecb1ff0d7

Process is This process is in no way to be considered as instruction to the appraiser to for Sharing meet any preset value. Market Data Only 10-14 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 9. Properties Eligible for an Appraisal Change Date March 11, 2019 • This chapter has been revised in its entirety. a.

VA_Guidelines.txt

9f03d26f-c49d-4e7f-86e7-3e799e6f9c66

Lender’s While only an extremely small number of residential properties are not Responsibility eligible to be the security for a VA-guaranteed loan, it is the lenders responsibility to determine that the property is eligible. If the lender fails to exercise due diligence in determining eligibility, VA may deny or reduce payment on a future claim based on the ineligibility of the property.

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6965cda4-faa7-4ce2-a808-b53f22acc444

This topic covers properties that are eligible for an appraisal. b. Existing Properties that have been complete for over 1 year based on the certificate of Construction occupancy date, and properties that are less than 1-year old that have been previously occupied, are eligible for an appraisal. c.

VA_Guidelines.txt

b509a430-223d-4d43-b0df-8f9ed8fb3ba9

New Properties that have not been previously occupied and are less than 1-year old Construction based on the certificate of occupancy date, and properties which are complete except for customer preference items (floor coverings, interior finishings, appliances, fixtures or other equipment) are eligible for an appraisal. d.

VA_Guidelines.txt

c37be413-355a-44ae-8f58-5209e75eb2c1

Proposed Proposed and under construction properties are processed under the same Construction procedures and include: • properties appraised from plans and specifications (see Topic 12 of this chapter), • properties appraised from a completed model home (see Topic 13 of this chapter), and • manufactured homes to be placed on a permanent foundation (see Chapter 12, Topic 42 of this Handbook).

VA_Guidelines.txt

5ef2f869-d047-4a5b-9b50-2993591500ed

Continued on next page 10-15 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 9. Properties Eligible for an Appraisal Change Date March 11, 2019 • This chapter has been revised in its entirety. a.

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3869e7ed-af8b-47fd-8944-f9861eef18f6

Lender’s While only an extremely small number of residential properties are not Responsibility eligible to be the security for a VA-guaranteed loan, it is the lenders responsibility to determine that the property is eligible. If the lender fails to exercise due diligence in determining eligibility, VA may deny or reduce payment on a future claim based on the ineligibility of the property.

VA_Guidelines.txt

b2a051d4-6981-4ad3-8a54-fdf6d73f28b3

This topic covers properties that are eligible for an appraisal. b. Existing Properties that have been complete for over 1 year based on the certificate of Construction occupancy date, and properties that are less than 1-year old that have been previously occupied, are eligible for an appraisal. c.

VA_Guidelines.txt

0b24e146-d876-4563-9d74-2a34475c7321

New Properties that have not been previously occupied and are less than 1-year old Construction based on the certificate of occupancy date, and properties which are complete except for customer preference items (floor coverings, interior finishings, appliances, fixtures or other equipment) are eligible for an appraisal. d.

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84293f51-f55b-4692-87da-c40bd7497de2

Proposed Proposed and under construction properties are processed under the same Construction procedures and include: • properties appraised from plans and specifications (see Topic 12 of this chapter), • properties appraised from a completed model home (see Topic 13 of this chapter), and • manufactured homes to be placed on a permanent foundation (see Chapter 12, Topic 42 of this Handbook).

VA_Guidelines.txt

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Continued on next page 10-15 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 9. Properties Eligible for an Appraisal, continued e. Properties Foreclosed or “Real Estate Owned” properties being sold by lenders may be Sold by eligible, however, properties must still meet VA MPRs.

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432fdba0-c124-438b-9243-5381a7164a68

Lenders selling their Lenders own “Real Estate Owned” properties may not process these cases under the Lender Appraisal Processing Program (LAPP). These cases must be ordered and processed as Individual (IND) appraisals. A new construction property for which a lender acquired title due to a builder’s bankruptcy or cessation of business may be eligible (see Topic 20 of this chapter). f.

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efd95929-65b6-415b-9d65-077b4c40196d

Veteran A fully completed home constructed by a Veteran acting as a general Building Own contractor for his/her own occupancy may be eligible (see Topic 18 of this Home chapter). g.

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26be3921-ff66-4a79-9eb1-3afad12b565e

New Home A special exception may be granted by VA at the request of a Veteran who is Without a purchasing a newly constructed home from a builder who is unwilling to Warranty provide the required construction warranty (see Topic 19 of this chapter). h. Manufactured homes that are classified as real estate may be eligible (see Manufactured Chapter 12, Topic 41 of this Handbook).

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f060a370-dd4f-461b-af21-c636e8d4b702

Home Classified as Real Estate i. Modular Modular homes, including modular on-frame housing, may be eligible (see Homes Chapter 12, Topic 42 of this Handbook). j. Condominium units are eligible for appraisal. The development must be Condominium accepted by VA before the loan is guaranteed (see Chapter 11, Topic 12 of Units this Handbook).

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Continued on next page 10-16 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 9. Properties Eligible for an Appraisal, continued k. Leaseholds A leasehold estate or any other property involving less than fee simple ownership is eligible for appraisal, but must be approved by VA before the NOV is issued.

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5675c142-14d9-4f81-b9a8-100d95126fb5

VA’s legal staff will review the leasehold documents and the RLC will notify the requester of the results of the review.

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11703f18-f2b8-4712-89f9-3b0041905f48

Copies of the following documents must be sent to the RLC in order for the leasehold to be reviewed for acceptability: • lease identifying the property to be leased, the lessor, the lease term, and the rent, • all preceding assignments that may have occurred prior to the current assignment, • sales contract, and • in cases of age or income restricted leasehold communities, the Veteran-lessee

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leasehold communities, the Veteran-lessee consent statement

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. l.

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9159c80c-af01-496f-8dc9-838e71d4929d

Properties Properties located in a Planned Unit Development (PUD) are eligible for an in PUDs appraisal if the lender determines that the title meets the requirements specified in Chapter 16 of this Handbook. VA does not maintain a list of accepted PUDs. m.

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fcd5d34e-f1a1-4f8b-a96f-aefae17f632a

VA does not maintain a list of accepted PUDs. m. Property to A property to be altered, improved or repaired is eligible for an appraisal with be Improved the appraisal prepared “subject to” the satisfactory completion of the work.

VA_Guidelines.txt

c0a305cc-4120-4da5-abaa-b2ed6405cecb

The appraiser must be provided with construction exhibits, or depending on the nature of the work involved, documentation clearly describing the full extent of all work to be completed. The appraiser will provide an “as repaired” value. Any work that must be inspected upon completion must be approved by the local building authority.

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Continued on next page 10-17 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 9. Properties Eligible for an Appraisal, continued n.

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510b45fb-e908-45d0-ae71-2acb4ecd604d

Special Properties located in a Federal Emergency Management Agency (FEMA) Flood Hazard Special Flood Hazard Area (SFHA) are eligible for an appraisal if a flood Areas insurance policy will be issued unless the area is subject to regular flooding (see Chapter 12, Topic 8 of this Handbook). o.

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d188bed7-35eb-4a73-98a8-170fba407db5

Security for Properties that are the security for an existing VA-guaranteed loan are eligible an Existing for an appraisal for the following purposes: VA- Guaranteed • An appraisal may be requested for refinancing (see Chapter 6 of Loan this Handbook). • If the VA-guaranteed loan is in foreclosure, a liquidation appraisal should be requested at least 30 days prior to the estimated sale date.

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253afdaa-3a3d-4276-9b1a-a2ff14010ea4

The servicer should confirm arrangements for interior access to the property before ordering the appraisal and provide contact information for the person who will provide access to the property on the appraisal request (see Chapter 11, Topic 20 of this Handbook)

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34b61675-2108-453d-9d47-e46c73ab4847

. • A partial release of security may be needed if the borrower requests to have some of the property released from the VA-guaranteed loan.

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f43ced2f-d65e-4f3a-89af-f797a6a7d376

VA will assign the appraisal as described in Chapter 11, Topic 21 of this Handbook. 10-18 VA Pamphlet 26-7, Revised Chapter 10: Appraisal Process 10. Properties Not Eligible for an Appraisal Change Date March 11, 2019 • This chapter has been revised in its entirety. a. Lenders must determine that a property is not eligible for an appraisal at the Determination earliest possible opportunity.

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a254e8aa-7b8f-472f-a39b-be1d0782c3c4

If an appraisal is requested and the appraiser at Earliest finds that the property is not eligible, the appraiser should stop working on the Opportunity appraisal and immediately notify the lender. b.

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dcd2d199-a8d8-4641-ae06-dce9e6dab756

Properties Properties in the following locations are not eligible for an appraisal: Not Eligible for an • Airport Clear Zone (also known as a Runway Protection Zone), if the Appraisal Due property is proposed construction (see Chapter 12, Topic 41 of this to Location Handbook), • Lava Flow Zones 1 and 2 (see Chapter 12, Topic 10 of this Handbook), • Coastal Barrier Resources System (CBRS) area

VA_Guidelines.txt