Mitchell6024/quickb · Datasets at Hugging Face

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75ab0d71-23ef-4330-a86e-70728bef42d5	Materials Following a natural disaster, shortages of materials could delay the completion Shortage of repairs. The RLC of jurisdiction should be contacted for consideration of Following a repair waivers on a case-by-case basis when a Veteran wishes to proceed with Natural purchasing or refinancing a home in need of repairs when needed materials are Disaster not readily available. e.	VA_Guidelines.txt
5b219881-6008-4dbe-9231-8be24f71d03c	Escrowed Depending on the nature of required repairs, it may be advantageous for the Funds for Veteran to have the MPR repairs completed after closing on the loan.	VA_Guidelines.txt
56ceeff4-bba5-453c-8fab-a7554feae21c	Lenders Completion of may hold funds in escrow for repairs to be completed after closing, however Repairs all repairs must be completed and escrowed funds distributed before the loan may be guaranteed by VA. 12-52 Chapter 13 Notices of Value Overview In this This chapter contains the following topics.	VA_Guidelines.txt
d720607c-5cec-4c5c-abaf-ef3d79544c70	Chapter Topic Topic Name See Page 1 Issuing the Notice of Value 13-2 2 Scope of Appraisal Review 13-3 3 Appraisal Review Process 13-4 4 Appraisal Management System 13-6 5 Notice of Value Timeliness Expectation 13-8 6 Appraisal Review Reference Materials 13-9 7 Notice of Value Validity Period 13-10 8 Notice of Value Conditions 13-11 Appendix A Notice of Value Sample Letter 13-16 VA Pamphlet 26-7,	VA_Guidelines.txt
86bc5b2d-de58-44c8-8577-8141a8d80a4f	of Value Sample Letter 13-16 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 1	VA_Guidelines.txt
9d4d36c0-ab7f-4a85-9e0f-f8af032b8fe7	.	VA_Guidelines.txt
69a53bcc-046e-4ee1-9175-832efff4d62c	Issuing the Notice of Value Change Date July 22, 2019 This chapter has been revised in its entirety. a. Appraisal When the fee appraiser uploads the completed appraisal report into WebLGY, Uploaded in a lender’s Staff Appraisal Reviewer (SAR) or VA staff must review the WebLGY appraisal and issue a Notice of Value (NOV) to the Veteran. b.	VA_Guidelines.txt
0c0a2cf1-b2e4-4457-909e-a2a6bd043533	Purpose of The NOV will inform the Veteran about the results of the appraisal report and NOV conditions that must be met for guaranty of the loan. The NOV explains how appraisal reports differ from home inspections and suggests that the Veteran may wish to obtain a home inspection. c.	VA_Guidelines.txt
1443a05c-76f6-47d2-97a3-8ecb4d78dee7	Processing Every property eligible for VA’s Lender Appraisal Processing Program under LAPP (LAPP) should be processed accordingly. If a LAPP-approved lender does not process an eligible property under LAPP, the request for VA staff to issue the NOV must include a detailed explanation. d.	VA_Guidelines.txt
aed916bd-6ffe-45c8-8d5a-270db9825870	NOV Since the NOV reflects the results of the appraisal review, lenders and Reflects servicers should refer to the NOV, not the appraisal, for the reasonable value, Conditions repair requirements, and all other appraisal-related conditions required for the Required for loan to be guaranteed by VA. the Loan to be Guaranteed 13-2 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 2.	VA_Guidelines.txt
540d6582-7e65-4fdb-ad75-2f9a55f0d181	Scope of Appraisal Review Change Date July 22, 2019 This chapter has been revised in its entirety. a.	VA_Guidelines.txt
d5b544ec-8738-4f9e-8144-4430e16292eb	SAR’s When issuing an NOV in WebLGY, the SAR must electronically certify the Certification of following: “I reviewed this appraisal report to determine the acceptability of Appraisal the property for VA Loan Guaranty purposes in light of VA minimum property Review requirements and the appropriateness, completeness, consistency, and accuracy of the fee appraiser’s reasonable value determination.	VA_Guidelines.txt
3e87c448-d7aa-4616-9dd3-9b5dab57f36d	In completing this administrative review, I am performing a due diligence function and not acting as, or taking the responsibility of, a cosigner of the report or supervisory appraiser.	VA_Guidelines.txt
ff548f09-8a59-4f0d-a650-b595eca4e7ec	Any disagreements or comments, etc., resulting from the administrative review of this appraisal are fully explained on the attachment to this report.” (WebLGY notes are considered “the attachment to this report” referenced in this certification). b.	VA_Guidelines.txt
f92a9b33-f010-4677-be2e-0c1099c8a4cb	SAR’s By making this certification together with the certifications already made Responsibilities when initially approved by VA, the SAR is certifying that he/she: personally reviewed the appraisal report (see Topic 3 of this Chapter), concurred with the fee appraiser’s recommendation, except as noted in WebLGY notes, did not exert pressure or undue influence on the appraiser to change	VA_Guidelines.txt
4eead1fd-1f8a-41bb-ab1a-e15b818c6a84	or undue influence on the appraiser to change information or to reach a predetermined value for the subject property in order to accommodate the sale price or mortgage transaction, and determined that the appraiser used methodologies that were appropriate and reasonable in light of industry-accepted appraisal techniques, made conclusions that were consistent, based upon the data in the report,	VA_Guidelines.txt
67779674-cb06-4d69-bd42-374235686ca6	consistent, based upon the data in the report, and complied with applicable VA requirements	VA_Guidelines.txt
4723b592-1011-4cd7-9f20-5937dbb51e7a	. 13-3 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 3.	VA_Guidelines.txt
85a2adf1-04b7-40ba-88c1-39fd4cb31b43	Appraisal Review Process Change Date April 12, 2019 This chapter has been revised in its entirety. a. Appraisal After the appraiser uploads the completed appraisal report, the SAR must Report and review the appraisal and the results of the electronic scoring of the appraisal Electronic by VA’s Appraisal Management System (see Topic 4 of this Chapter). Scoring b.	VA_Guidelines.txt
8c8501b3-52d5-4fc6-b394-cd7443568c2a	Scoring b. Property The SAR must ensure that: Eligibility and VA Appraisal the property is eligible, and Guidelines the appraisal report meets VA guidelines as outlined in Chapters 10, 11, and 12 of this Handbook. c. MPR Repairs The SAR must review the appraiser’s recommendations for any VA Minimum Property Requirement (MPR) repairs and ensure that the property meets or will meet VA’s MPRs.	VA_Guidelines.txt
543eab73-0a00-4299-a155-6f5702a9cb09	The SAR must limit repairs required on the NOV to only those repairs that are needed for the property to meet MPRs. SARs must place notes in WebLGY justifying any non-MPR repairs or inspections recommended by appraisers that the SAR has determined are not required on the NOV. d.	VA_Guidelines.txt
22545698-5281-4cb4-9688-4f033e64741b	During the review of an appraisal, in most cases, when a question arises, the Clarifications SAR should first contact the appraiser for any needed clarifications and on the corrections. The SAR must document any contact with the appraiser and Appraisal resolution of appraisal-related concerns in WebLGY notes. Customer service expectations are covered in Chapter 10, Topic 6 of this Handbook. e.	VA_Guidelines.txt
2278448b-f631-4f59-8bc0-dc0d6af2ad4e	Appraisal If the appraiser makes any changes to the appraisal report, the revised Revisions appraisal report must be uploaded into WebLGY. Continued on next page 13-4 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 3. Appraisal Review Process, continued f.	VA_Guidelines.txt
0c081540-48a7-4f79-9724-d357ece5f482	Appraisal Review Process, continued f. Questions not If the question is not resolved after contacting the appraiser, the SAR should Resolved by an email the RLC for assistance. VA staff will assist the SAR in resolving the Appraiser question concerning the appraisal. g.	VA_Guidelines.txt
1ae146a9-a314-4bbd-907b-0fc901370b8c	Property Not SARs must not issue an NOV for a property that cannot reasonably be Eligible expected to meet eligibility or VA MPRs prior to loan guaranty (see Chapters 10, 11, and 12 of this Handbook). h. NOV to Once the SAR has determined the appraisal report is acceptable to VA, the Reflect SAR must issue the NOV in WebLGY at the appraised value.	VA_Guidelines.txt
41e9f589-b2ac-431d-af79-56df3082960a	If contact with Appraiser’s the appraiser resulted in the appraiser uploading an amended appraisal report Estimate of with a changed value, the SAR must issue the NOV at the changed (current) Market Value value. i. Electronic The SAR is not required to sign the NOV in ink since the SAR’s name and Issuance of an VA-issued ID number are automatically included on the NOV.	VA_Guidelines.txt
d0ea51d3-a4e6-47b5-b762-37094244d24f	This NOV constitutes an electronic signature since SARs log into WebLGY with a unique user name and password. j. NOV The same day the NOV is issued, the SAR must send the Veteran a copy of Provided to the the NOV together with a copy of the appraisal report. Veteran k.	VA_Guidelines.txt
a9f94619-d1bf-47cf-96a8-1e8efc70e628	Actions after After the NOV has been issued: the NOV Issued employees of lenders associated with the case will be able to view and download copies of the appraisal and NOV from WebLGY, Veterans may request a waiver of a repair requirement (see Chapter 12, Topic 45 of this Handbook), and interested parties may request a reconsideration of value (see Chapter 10, Topic 22 of this Handbook)	VA_Guidelines.txt
b1fbd303-28c9-416c-a9d7-b2c5a9cb34a4	. 13-5 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 4.	VA_Guidelines.txt
a6ee47c3-7f5c-4ea5-a979-1cbc96e481a7	Appraisal Management System Change Date July 22, 2019 This chapter has been revised in its entirety. a.	VA_Guidelines.txt
96039f7e-d39a-49ea-bcfe-1db92fa49bb9	Electronic When the appraiser uploads the completed appraisal report into WebLGY, Scoring of the VA’s Appraisal Management System (AMS) will electronically read and Appraisal score the appraisal, assisting SARs in quickly assessing appraisal risk, determining property eligibility, ensuring VA policy compliance and identifying over/under-valuations, and appraisal quality issues.	VA_Guidelines.txt
2bde1327-ea9e-45ab-89dd-4c93611ce028	SARs must use AMS as a tool to help ensure appraisals are accurate, complete, and that the property is properly valued according to VA-accepted appraisal principles and practices. b.	VA_Guidelines.txt
8c62f73e-8834-469e-9570-f0308c03407b	Business As a rules-based system, AMS will assist SARs in finding inconsistencies by Rules in AMS flagging items as potentially problematic, and determining whether the appraisal is in compliance with VA appraisal requirements, industry-accepted appraisal principles, and Uniform Standards of Professional Appraisal Practice (USPAP). c.	VA_Guidelines.txt
86efa9e5-96a9-4a33-8a78-7d9bc9ed2d65	Alerts Alerts will be noted by the AMS based on VA’s business rules. All high Provided by alerts must be addressed in WebLGY notes. Medium and low alerts do not AMS require a comment, but should be carefully reviewed by the SAR. Often the alerts will reflect an NOV condition that must be required, with no clarification needed from the appraiser. d.	VA_Guidelines.txt
63f993b2-6f8c-4821-8000-9a279a27bf7a	VA Guidance VA will issue a circular periodically describing the AMS scores that will be on Specific considered low-risk and high-risk appraisals. SARs may perform a cursory AMS Scores review on low-risk appraisals. High-risk appraisals require a comprehensive review.	VA_Guidelines.txt
7d92a3c3-8f46-41d3-afbf-2b250e815ec8	Sometimes a score of “N/A” will be reported for complex, rural, or new/proposed construction properties due to a lack of market data. While this is not an indication of a high-risk appraisal, a comprehensive review must be performed since the AMS did not return a score within the acceptable range for a cursory review.	VA_Guidelines.txt
d0912d1f-ad32-4fe1-8275-341d1d6b5f63	SARs must indicate whether or not a cursory review was performed in WebLGY with the indicator on the screen where the NOV is issued. Continued on next page 13-6 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 5. Notice of Value Timeliness Expectation Change Date July 22, 2019 This chapter has been revised in its entirety. a.	VA_Guidelines.txt
40efe969-7d06-4aaf-bd7f-6f84d3ed8603	Importance VA is committed to providing expeditious service to Veterans. It is of Prompt advantageous to Veterans to receive the NOV well ahead of the scheduled Issuance of an loan closing. NOV b. Timeliness The SAR must issue the NOV within five business days from the time the Expectation completed appraisal is uploaded into WebLGY, unless there is a delay beyond the SAR’s control.	VA_Guidelines.txt
f3cf849b-c75c-410a-b8e3-c9425108b72b	Any delays should be explained in WebLGY notes. c. Lender LAPP lenders are responsible for resolving any timeliness problems involving Delays authorized agents and branch personnel. d. Notification The RLC should be notified when appraiser timeliness expectations are not to an RLC if being met. the Appraisal is Late 13-8 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 6.	VA_Guidelines.txt
f2021dc6-541c-480c-a644-dd7232364693	Appraisal Review Reference Materials Change Date July 22, 2019 This chapter has been revised in its entirety. a. Industry SARs should have access to articles published online by professional News and appraisal organizations and subject matter experts, as well as economic Resources forecasts, real estate market trends and appraisal industry news. b.	VA_Guidelines.txt
667bf7a7-a2e3-4eeb-9a22-30d85ad8ddcd	Reference The following reference materials should be available to the SAR: Materials the VA Lender’s Handbook, all valid VA-issued Circulars, VA’s “Local Requirements” at http://www.benefits.va.gov/HOMELOANS/appraiser_cv_local_req	VA_Guidelines.txt
40170669-1fdf-47a1-bddc-37ce21e423fc	.benefits.va.gov/HOMELOANS/appraiser_cv_local_req.asp, applicable Federal statutes and VA regulations, USPAP, and residential appraisal publications which include instructions for completing the Uniform Residential Appraisal Report (URAR) and other acceptable appraisal report forms. 13-9 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 7.	VA_Guidelines.txt
91f33a9a-ca89-4ff0-84a2-8e9c12a0c8e3	Notice of Value Validity Period Change Date July 22, 2019 This chapter has been revised in its entirety. a. Validity An NOV is valid for 6 months. Period b. Veteran If a Veteran is under contract during the validity period, processing may Under Contract continue until that transaction is either completed or terminated. c.	VA_Guidelines.txt
260a50d9-1697-4d32-b162-59087a6ca553	Extension of On a case-by-case basis, VA may extend validity periods when requests for the Validity such actions are reviewed and found to be appropriate under prevailing Period conditions. 13-10 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 8. Notice of Value Conditions Change Date July 22, 2019 This chapter has been revised in its entirety. a.	VA_Guidelines.txt
5c68ce81-2732-4b21-9841-4a6b16735811	NOV All conditions included on an NOV must be satisfied prior to guaranty of the Conditions loan by VA. b. Additional While lenders may require additional documentation over and above VA Lender requirements, often referred to as “lender overlays”, items that are not Requirements required by VA must not be included on the NOV. c.	VA_Guidelines.txt
dc2554b0-80f4-4719-90e0-9b4314402f53	Table of The following table lists the conditions that appear on the NOV form with NOV details about when each condition is required on the NOV. The NOV letter Conditions format is provided in Appendix A at the end of this chapter. Continued on next page 13-11 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 8. Notice of Value Conditions, continued c.	VA_Guidelines.txt
4b106b95-6fd2-4438-aabc-0aef4e3d31e3	Notice of Value Conditions, continued c. Table of NOV NOV Condition Details for including this condition on an NOV Conditions, 1. Energy Conservation Item 1a should be marked on NOVs for existing continued properties (over 1-year old or previously occupied) to allow lenders to increase the loan amount for Veterans wishing to make energy efficiency improvements (see Chapter 7 of this Handbook).	VA_Guidelines.txt
89fc34aa-66d9-41a2-aa2e-5cb9389238a7	Item 1b should be marked on NOVs for new or proposed construction excluding manufactured homes. For new and proposed manufactured homes, energy efficiency is already covered by the manufacturer’s guidelines (see Chapter 12, Topic 42 of this Handbook) so this item should not be marked. 2.	VA_Guidelines.txt
6a945156-b1cb-4b72-bfb3-170559b27d6d	Wood Destroying If the property is located in an area on the Termite Insect Information Infestation Probability Map where the probability of termite infestation is "very heavy" or "moderate to heavy," a wood destroying insect inspection report must be required on the Notice of Value (NOV). Mark 2a if the property is existing or new construction, or item 2b if the property is proposed.	VA_Guidelines.txt
8f0133bc-1863-4367-90c0-a30cbd9cf83d	For new construction, if a soil treatment guarantee is provided, this is preferable and will satisfy condition 2a. The pest control operator must meet all state requirements. State-required inspection forms are acceptable. Inspection reports are valid for 90 days. Soil treatment guarantees differ from an inspection and are consequently valid well beyond 90 days.	VA_Guidelines.txt
cb07ea7d-50b5-4ab4-a968-a2fcf3b061eb	A wood- destroying insect inspection is not required on units in low-rise or high-rise condominiums (units are stacked vertically) unless the appraiser notes a potential infestation problem.	VA_Guidelines.txt
d6ef9164-5f86-4fef-9539-7dab93ebda38	For site condominiums, and villa or townhome style condominiums where units are not vertically stacked, an inspection must be required on the NOV unless evidence of a treatment guarantee has been provided by the homeowners association. Continued on next page 13-12 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 8. Notice of Value Conditions, continued c.	VA_Guidelines.txt
5e70df8c-4f0b-4d45-9594-c41e2a0b3ed2	Notice of Value Conditions, continued c. Table of NOV NOV Condition Details for including this condition on an NOV Conditions, 3. Lien-Supported If the property is located in a planned unit continued Assessment development (PUD) or condominium, mandatory homeowners association fees must be shown on the NOV.	VA_Guidelines.txt
c6461940-57a8-4642-804e-8dc8ad6add91	Special assessments including local authorities collecting Community Development District (CDD) fees or other fees on the HOA’s behalf should be reported here as well. 4. Condominium If the condominium is conditionally accepted by VA, this item should be marked. This item is not required if the condominium is fully accepted by VA.	VA_Guidelines.txt
313cbd8b-5459-4413-a356-d9d377eedcc9	If the condominium has not been accepted by VA, the NOV must not be issued. (See Chapter 11, Topic 12 of this Handbook). 5. Private Road/Shared If access to the property is by a private road or shared Driveway driveway, this item should be marked, unless the property is in a PUD or condominium with private streets which are covered by the organizational documents.	VA_Guidelines.txt
84696e1f-7f20-4d5f-903b-4ea48b0e0602	If a state law establishes requirements for the maintenance of private roads, this condition is not needed on the NOV. 6. Flood Insurance If the property is located in a Special Flood Hazard Area, this item must be marked.	VA_Guidelines.txt
511b37a0-eb87-4334-ad71-d7c97a82699e	It is the lender's responsibility to ensure that flood insurance is obtained and maintained on properties located in SFHAs, whether or not the appraiser correctly identifies the property as being in an SFHA. If flood insurance is not available, a property in a SFHA is not eligible to be the security for a VA-guaranteed loan. 7.	VA_Guidelines.txt
8d9497ab-8fb7-4f88-a90b-3ffdb9014f1f	Water/Sewage If the property has an individual water supply, such as System Acceptability a well, this condition must be marked. For proposed construction cases, acceptance of an individual sewage system must be required.	VA_Guidelines.txt
5e83ceaf-dffa-4b5d-bb11-16f0a0a2b8b4	Acceptance of the sewage system is also required for existing or new construction cases in which there is an indication of a problem or the property is in an area known to have soil percolation problems. Certifications are valid for 90 days unless the local authority indicates otherwise.	VA_Guidelines.txt
baa0f9fc-825c-4a43-8d08-accc0fdfbfe3	Continued on next page 13-13 Continued on next page 13-13 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 8. Notice of Value Conditions, continued c. Table of NOV NOV Condition Details for including this condition on an NOV Conditions, 8.	VA_Guidelines.txt
888717f3-1617-4a49-84cd-fc97ac1745a2	Connection to Public This condition is required only if the property does not continued Water and/or Public have public water and/or sewer and the state or local Sewer authority has mandated connection to public utilities. 9. Repairs The repairs recommended on the appraisal should be reviewed and only those which are needed for the property to meet VA MPRs should be listed on the NOV.	VA_Guidelines.txt
cfbaffbf-914b-4200-ae4a-805b13c9017f	Any apparent defective conditions observed by the appraiser must be addressed by requiring correction, rather than an inspection. The completion of any repairs that could involve lead-based paint must be certified by the fee appraiser. 10.	VA_Guidelines.txt
043368d3-d9b1-4f60-a165-d377fbf742dc	Post Construction This condition must be marked on all proposed Inspection construction properties and properties appraised subject to alterations such as a room addition. 11. New Construction For new construction properties, either 11a or 11b Inspections/Warranty must be required based on whether or not local building inspections are performed.	VA_Guidelines.txt
65f2d438-d833-4923-9574-d967180fb8de	Since new construction must have either a 1 year or a 10-year warranty, either 11c or 11d must be marked. 12. Proposed For proposed construction properties, either 12a or Construction 12b must be required based on whether or not local Inspections/Warranty building inspections are performed. Warranty requirements are determined accordingly.	VA_Guidelines.txt
96ddd643-b024-403f-be36-6c4033a94b82	Warranty requirements are determined accordingly. Continued on next page 13-14 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 8. Notice of Value Conditions, continued c. Table of NOV NOV Condition Details for including this condition on an NOV Conditions, 13.	VA_Guidelines.txt
7098385a-1efc-4ef9-a4a8-2ea54dec5fcf	New or Proposed If the subject is a new or proposed manufactured continued Manufactured Home home, 13a or 13b must be required based on whether the local authority issues a certificate of occupancy. VA Form 26-8599, Manufactured Home Warranty, is provided by the manufacturer and the 1-year warranty is provided by the manufactured home installer who placed the home on the foundation. 14.	VA_Guidelines.txt
3ba401f1-3b36-413c-8a74-73478ecba446	Lead/Water This condition must be required on all new or Distribution System proposed construction properties, and on properties having repairs to the potable water distribution system. 15. Radon Gas This condition must be required on all new or proposed construction properties. 16.	VA_Guidelines.txt
ea32a727-740d-4325-994f-5ccf03a5c77a	Other Conditions Any additional requirements should be listed in Item 16, for example, an unvented space heater (see Chapter 12, Topic 24 of this handbook), an airport safety zone (see Chapter 12, Topic 41 of this handbook), requirements for cisterns (see Chapter 12, Topic 17 of this handbook), stationary storage tanks containing flammable material (see Chapter 12, Topic 37 of this handbook), or	VA_Guidelines.txt
62aa4fb7-1ef3-4eac-9802-f03b42494128	(see Chapter 12, Topic 37 of this handbook), or any local requirements (see Chapter 12, Topic 1, Item h of this Handbook)	VA_Guidelines.txt
cef679ad-6631-443d-a4c1-c853954e979b	. 13-15 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value Appendix A.	VA_Guidelines.txt
a6b4209a-3291-4929-a616-e7fd2813a03f	Notice of Value Sample Letter Change Date July 22, 2019 This chapter has been revised in its entirety. [Reminder: The NOV must be mailed or emailed to the Veteran on the date issued	VA_Guidelines.txt
516fb628-10a7-42ad-8bea-47de61bc4272	.] [on lender's letterhead] LENDER'S NOTICE OF VALUE [date NOV issued] [Veteran’s name] LENDER LOAN #: [Veteran’s current address] VA CASE #: [Veteran’s city, state, zip code] APPRAISAL REVIEWER: [SAR name, SAR id #] PROPERTY ADDRESS: [complete address] Dear [Mr. or Ms	VA_Guidelines.txt
b1ffc34c-5259-4965-9197-d7dfacca8dd2	. or Ms.] [Veteran’s last name]: The above property has been appraised by a fee appraiser assigned by the VA Regional Loan Center in [ RLC City and State].	VA_Guidelines.txt
02f7dc16-e46f-42e6-aac6-51c5cada205d	On [date NOV issued], the VA-authorized appraisal reviewer personally reviewed the fee appraiser's report and determined the property's estimated reasonable value to be $[ value ]. The maximum repayment period for a loan secured by this property is [30 years or estimated remaining economic life on appraisal, whichever is less].	VA_Guidelines.txt
e6367220-3101-48da-8a6b-05101ee8a7c3	The VA appraisal was made to determine the reasonable value of the property for loan purposes. The appraisal must not be considered a building inspection. Neither VA nor the lender can guarantee that the home will be satisfactory to you in all respects or that all equipment will operate properly.	VA_Guidelines.txt
fbce76a0-08da-44f9-94a5-b9d972a96ded	A thorough inspection of the property by you or a reputable inspection firm may help minimize any problems that could arise after loan closing. In an existing home, particular attention should be given to plumbing, heating, electrical and roofing components. VA recommends testing for radon, which the government has determined can cause lung cancer.	VA_Guidelines.txt
97f6afbc-7067-490f-8f86-4f388fbcd5ac	REMEMBER: VA GUARANTEES THE LOAN, NOT THE CONDITION OF THE PROPERTY Continued on next page 13-16 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value Appendix A, continued The following marked conditions apply to this property: 1. ENERGY CONSERVATION. ( ) a. Existing property.	VA_Guidelines.txt
a9f22e8e-1dfd-4704-9a22-393dbba7edb1	ENERGY CONSERVATION. ( ) a. Existing property. You may wish to contact a qualified person/firm for a home energy audit to identify needed energy efficiency improvements to the property. In some localities, the utility company may perform this service.	VA_Guidelines.txt
093067d1-29ed-410a-b7bd-3ab02c087732	The mortgage amount may be increased as a result of making energy efficiency improvements such as: Solar or conventional heating/cooling systems, water heaters, insulation, weather-stripping/caulking, and storm windows/doors. Other energy related improvements may also be considered. ( ) b. New or proposed construction property.	VA_Guidelines.txt
2b916436-e35d-4ac1-b919-f59071763446	New or proposed construction property. Builder's certification that this new dwelling was constructed to meet the energy conservation standards of the International Residential Code (IRC). 2. WOOD-DESTROYING INSECT INFORMATION. ( ) a. Inspection Report (Existing or New Construction).	VA_Guidelines.txt
d85c499d-caa0-47fc-822a-2cea794b72b0	Inspection Report (Existing or New Construction). The property must be inspected by a qualified pest control operator using Form NPMA-33, or other VA-approved collection method. Any reported infestation or structural damage affecting the value of the property must be corrected to VA's satisfaction prior to loan settlement.	VA_Guidelines.txt
dc5beada-ed10-4b78-b801-0b822a696872	You must acknowledge receipt of a copy of the inspection report in the space provided on the form. ( ) b. Soil Treatment Guarantee (Proposed Construction). Properly completed NPMA-99a and NPMA- 99b forms are required. The lender will provide you with a copy of these forms. 3. LIEN-SUPPORTED ASSESSMENT. ( ) a. Homeowner Association Fee. Estimated fee of $[0.00] per [period of time]. ( ) b.	VA_Guidelines.txt
a5c2d57c-3ec2-4645-98c0-8eb4df490545	Other (Special Assessments, Assessments by local taxing authorities) 4. ( ) CONDOMINIUM. Evidence that the condominium project meets VA requirements. 5. ( ) PRIVATE ROAD/SHARED DRIVEWAY.	VA_Guidelines.txt
8909d511-6a40-4611-bbe1-36ad7af6b2e8	Evidence that use of the private road/shared driveway is protected by a recorded permanent easement or recorded right-of-way from the property to a public road, and that a provision exists for its continued maintenance. Continued on next page 13-17 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value Appendix A, continued 6. ( ) FLOOD INSURANCE.	VA_Guidelines.txt
3791f808-8925-45aa-8240-7fb0bfa7045b	If improvements on this property are located in a FEMA Special Flood Hazard Area, flood insurance is required. The lender must verify flood zone information provided on an appraisal report. 7. WATER/SEWAGE SYSTEM ACCEPTABILITY. Evidence from the local health authority or other source authorized by VA that the individual ( ) water supply, and/or ( ) sewage disposal system(s) is/are acceptable. 8.	VA_Guidelines.txt
5142781e-2ca1-4b5e-8035-6649d10c81c0	CONNECTION TO ( ) PUBLIC WATER and/or ( ) PUBLIC SEWER. Required only when connection is mandated by a local authority. 9. ( ) REPAIRS.	VA_Guidelines.txt
fd64ccbd-2ba3-4ab1-9bcb-ea1e37d4dbe2	The ( ) lender ( ) fee appraiser (_________[insert name]__________) is to certify that the following repairs have been satisfactorily completed	VA_Guidelines.txt
5a729ec8-d990-430d-b95d-aeb4646a0441	. ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________	VA_Guidelines.txt
108662f1-c259-4612-bda3-20077eb593f4	_______________________________________________________________ Important – please see the above second paragraph about your responsibility concerning the condition of the property	VA_Guidelines.txt
0a446ee4-43f7-4e2a-bfe9-af60af8f2257	. 10. ( ) POST CONSTRUCTION INSPECTION.	VA_Guidelines.txt
d41085ea-f18d-4dc2-8dbb-28a3e7ae6e0c	The fee appraiser (_________[insert name]__________) must visit the property and certify that construction substantially complies with the certified construction exhibits on which the appraisal was based, or that the construction is in accordance with the model home and related information on which the appraisal was based, and that improvements comply with any conditions in the sales contract. 11	VA_Guidelines.txt
fb685cfc-1f00-40fd-bcec-99ba2b493fc7	. 11.	VA_Guidelines.txt
7fd462bc-935a-4d47-8a2b-c294d456a086	NEW CONSTRUCTION INSPECTIONS/WARRANTY. ( ) a. Provide copy of the Certificate of Occupancy (CO), or equivalent document, issued by a local building authority. or ( ) b. The local authority does not perform construction inspections. The lender is to certify that the property is complete (both on-site and off-site improvements) and that it meets VA MPRs for existing construction.	VA_Guidelines.txt
224ffd1a-de78-463a-b0c5-ceb430e47ebe	The lender must obtain the Veteran’s written acknowledgement that the property was not inspected during construction. Continued on next page 13-18 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value Appendix A, continued ( ) c. The builder must provide a 1-year VA builder’s warranty completed on VA Form 26-1859, Warranty of Completion of Construction.	VA_Guidelines.txt
8101e225-3334-4f9d-a870-4231da38c668	VA will provide assistance with construction complaints limited to defects in equipment, material, and workmanship reported during the 1-year builder's warranty period. or ( ) d. Provide evidence of enrollment in a 10-year insurance backed protection plan. VA will not assist with any construction complaints. 12. PROPOSED CONSTRUCTION INSPECTIONS/WARRANTY. ( ) a.	VA_Guidelines.txt
d8fc58b9-20e4-4dd4-8a15-4fe12f5b8015	Provide a copy of the Certificate of Occupancy (CO), or equivalent document, issued by the local building authority. The builder must provide a 1-year VA builder’s warranty completed on VA Form 26-1859, Warranty of Completion of Construction.	VA_Guidelines.txt
725ef04b-6db8-45e4-9747-daa408ea101e	VA will provide assistance with construction complaints limited to defects in equipment, material and workmanship reported during the one-year builder's warranty period. or ( ) b.	VA_Guidelines.txt
bc9ff4f2-94d2-4556-b204-2be55206b616	The local authority does not perform construction inspections, therefore the property must be covered by both a 10-year insurance backed protection plan and a 1-year VA builder's warranty on VA Form 26-1859, Warranty of Completion of Construction. The lender is to certify that the property is complete (both on-site and off-site improvements) and that it meets VA MPRs for existing construction.	VA_Guidelines.txt
0c4ce214-bf60-4d3b-b5bd-9d049548b98c	VA will provide assistance with construction complaints limited to defects in equipment, material, and workmanship reported during the 1-year builder's warranty period only. The lender must obtain the Veteran’s written acknowledgement that the property was not inspected during construction. 13. NEW OR PROPOSED MANUFACTURED HOME. ( ) a.	VA_Guidelines.txt
db8b16a2-0924-4824-bae6-c4ea4343437a	NEW OR PROPOSED MANUFACTURED HOME. ( ) a. Provide a copy of the Certificate of Occupancy (CO), or equivalent document, issued by the local building authority. Provide the warranty on VA Form 26-8599, Manufactured Home Warranty, and a 1-year VA builder’s warranty on VA Form 26-1859, Warranty of Completion of Construction.	VA_Guidelines.txt

75ab0d71-23ef-4330-a86e-70728bef42d5

Materials Following a natural disaster, shortages of materials could delay the completion Shortage of repairs. The RLC of jurisdiction should be contacted for consideration of Following a repair waivers on a case-by-case basis when a Veteran wishes to proceed with Natural purchasing or refinancing a home in need of repairs when needed materials are Disaster not readily available. e.

VA_Guidelines.txt

5b219881-6008-4dbe-9231-8be24f71d03c

Escrowed Depending on the nature of required repairs, it may be advantageous for the Funds for Veteran to have the MPR repairs completed after closing on the loan.

VA_Guidelines.txt

56ceeff4-bba5-453c-8fab-a7554feae21c

Lenders Completion of may hold funds in escrow for repairs to be completed after closing, however Repairs all repairs must be completed and escrowed funds distributed before the loan may be guaranteed by VA. 12-52 Chapter 13 Notices of Value Overview In this This chapter contains the following topics.

VA_Guidelines.txt

d720607c-5cec-4c5c-abaf-ef3d79544c70

Chapter Topic Topic Name See Page 1 Issuing the Notice of Value 13-2 2 Scope of Appraisal Review 13-3 3 Appraisal Review Process 13-4 4 Appraisal Management System 13-6 5 Notice of Value Timeliness Expectation 13-8 6 Appraisal Review Reference Materials 13-9 7 Notice of Value Validity Period 13-10 8 Notice of Value Conditions 13-11 Appendix A Notice of Value Sample Letter 13-16 VA Pamphlet 26-7,

VA_Guidelines.txt

86bc5b2d-de58-44c8-8577-8141a8d80a4f

of Value Sample Letter 13-16 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 1

VA_Guidelines.txt

9d4d36c0-ab7f-4a85-9e0f-f8af032b8fe7

.

VA_Guidelines.txt

69a53bcc-046e-4ee1-9175-832efff4d62c

Issuing the Notice of Value Change Date July 22, 2019 This chapter has been revised in its entirety. a. Appraisal When the fee appraiser uploads the completed appraisal report into WebLGY, Uploaded in a lender’s Staff Appraisal Reviewer (SAR) or VA staff must review the WebLGY appraisal and issue a Notice of Value (NOV) to the Veteran. b.

VA_Guidelines.txt

0c0a2cf1-b2e4-4457-909e-a2a6bd043533

Purpose of The NOV will inform the Veteran about the results of the appraisal report and NOV conditions that must be met for guaranty of the loan. The NOV explains how appraisal reports differ from home inspections and suggests that the Veteran may wish to obtain a home inspection. c.

VA_Guidelines.txt

1443a05c-76f6-47d2-97a3-8ecb4d78dee7

Processing Every property eligible for VA’s Lender Appraisal Processing Program under LAPP (LAPP) should be processed accordingly. If a LAPP-approved lender does not process an eligible property under LAPP, the request for VA staff to issue the NOV must include a detailed explanation. d.

VA_Guidelines.txt

aed916bd-6ffe-45c8-8d5a-270db9825870

NOV Since the NOV reflects the results of the appraisal review, lenders and Reflects servicers should refer to the NOV, not the appraisal, for the reasonable value, Conditions repair requirements, and all other appraisal-related conditions required for the Required for loan to be guaranteed by VA. the Loan to be Guaranteed 13-2 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 2.

VA_Guidelines.txt

540d6582-7e65-4fdb-ad75-2f9a55f0d181

Scope of Appraisal Review Change Date July 22, 2019 This chapter has been revised in its entirety. a.

VA_Guidelines.txt

d5b544ec-8738-4f9e-8144-4430e16292eb

SAR’s When issuing an NOV in WebLGY, the SAR must electronically certify the Certification of following: “I reviewed this appraisal report to determine the acceptability of Appraisal the property for VA Loan Guaranty purposes in light of VA minimum property Review requirements and the appropriateness, completeness, consistency, and accuracy of the fee appraiser’s reasonable value determination.

VA_Guidelines.txt

3e87c448-d7aa-4616-9dd3-9b5dab57f36d

In completing this administrative review, I am performing a due diligence function and not acting as, or taking the responsibility of, a cosigner of the report or supervisory appraiser.

VA_Guidelines.txt

ff548f09-8a59-4f0d-a650-b595eca4e7ec

Any disagreements or comments, etc., resulting from the administrative review of this appraisal are fully explained on the attachment to this report.” (WebLGY notes are considered “the attachment to this report” referenced in this certification). b.

VA_Guidelines.txt

f92a9b33-f010-4677-be2e-0c1099c8a4cb

SAR’s By making this certification together with the certifications already made Responsibilities when initially approved by VA, the SAR is certifying that he/she: personally reviewed the appraisal report (see Topic 3 of this Chapter), concurred with the fee appraiser’s recommendation, except as noted in WebLGY notes, did not exert pressure or undue influence on the appraiser to change

VA_Guidelines.txt

4eead1fd-1f8a-41bb-ab1a-e15b818c6a84

or undue influence on the appraiser to change information or to reach a predetermined value for the subject property in order to accommodate the sale price or mortgage transaction, and determined that the appraiser used methodologies that were appropriate and reasonable in light of industry-accepted appraisal techniques, made conclusions that were consistent, based upon the data in the report,

VA_Guidelines.txt

67779674-cb06-4d69-bd42-374235686ca6

consistent, based upon the data in the report, and complied with applicable VA requirements

VA_Guidelines.txt

4723b592-1011-4cd7-9f20-5937dbb51e7a

. 13-3 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 3.

VA_Guidelines.txt

85a2adf1-04b7-40ba-88c1-39fd4cb31b43

Appraisal Review Process Change Date April 12, 2019 This chapter has been revised in its entirety. a. Appraisal After the appraiser uploads the completed appraisal report, the SAR must Report and review the appraisal and the results of the electronic scoring of the appraisal Electronic by VA’s Appraisal Management System (see Topic 4 of this Chapter). Scoring b.

VA_Guidelines.txt

8c8501b3-52d5-4fc6-b394-cd7443568c2a

Scoring b. Property The SAR must ensure that: Eligibility and VA Appraisal the property is eligible, and Guidelines the appraisal report meets VA guidelines as outlined in Chapters 10, 11, and 12 of this Handbook. c. MPR Repairs The SAR must review the appraiser’s recommendations for any VA Minimum Property Requirement (MPR) repairs and ensure that the property meets or will meet VA’s MPRs.

VA_Guidelines.txt

543eab73-0a00-4299-a155-6f5702a9cb09

The SAR must limit repairs required on the NOV to only those repairs that are needed for the property to meet MPRs. SARs must place notes in WebLGY justifying any non-MPR repairs or inspections recommended by appraisers that the SAR has determined are not required on the NOV. d.

VA_Guidelines.txt

22545698-5281-4cb4-9688-4f033e64741b

During the review of an appraisal, in most cases, when a question arises, the Clarifications SAR should first contact the appraiser for any needed clarifications and on the corrections. The SAR must document any contact with the appraiser and Appraisal resolution of appraisal-related concerns in WebLGY notes. Customer service expectations are covered in Chapter 10, Topic 6 of this Handbook. e.

VA_Guidelines.txt

2278448b-f631-4f59-8bc0-dc0d6af2ad4e

Appraisal If the appraiser makes any changes to the appraisal report, the revised Revisions appraisal report must be uploaded into WebLGY. Continued on next page 13-4 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 3. Appraisal Review Process, continued f.

VA_Guidelines.txt

0c081540-48a7-4f79-9724-d357ece5f482

Appraisal Review Process, continued f. Questions not If the question is not resolved after contacting the appraiser, the SAR should Resolved by an email the RLC for assistance. VA staff will assist the SAR in resolving the Appraiser question concerning the appraisal. g.

VA_Guidelines.txt

1ae146a9-a314-4bbd-907b-0fc901370b8c

Property Not SARs must not issue an NOV for a property that cannot reasonably be Eligible expected to meet eligibility or VA MPRs prior to loan guaranty (see Chapters 10, 11, and 12 of this Handbook). h. NOV to Once the SAR has determined the appraisal report is acceptable to VA, the Reflect SAR must issue the NOV in WebLGY at the appraised value.

VA_Guidelines.txt

41e9f589-b2ac-431d-af79-56df3082960a

If contact with Appraiser’s the appraiser resulted in the appraiser uploading an amended appraisal report Estimate of with a changed value, the SAR must issue the NOV at the changed (current) Market Value value. i. Electronic The SAR is not required to sign the NOV in ink since the SAR’s name and Issuance of an VA-issued ID number are automatically included on the NOV.

VA_Guidelines.txt

d0ea51d3-a4e6-47b5-b762-37094244d24f

This NOV constitutes an electronic signature since SARs log into WebLGY with a unique user name and password. j. NOV The same day the NOV is issued, the SAR must send the Veteran a copy of Provided to the the NOV together with a copy of the appraisal report. Veteran k.

VA_Guidelines.txt

a9f94619-d1bf-47cf-96a8-1e8efc70e628

Actions after After the NOV has been issued: the NOV Issued employees of lenders associated with the case will be able to view and download copies of the appraisal and NOV from WebLGY, Veterans may request a waiver of a repair requirement (see Chapter 12, Topic 45 of this Handbook), and interested parties may request a reconsideration of value (see Chapter 10, Topic 22 of this Handbook)

VA_Guidelines.txt

b1fbd303-28c9-416c-a9d7-b2c5a9cb34a4

. 13-5 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 4.

VA_Guidelines.txt

a6ee47c3-7f5c-4ea5-a979-1cbc96e481a7

Appraisal Management System Change Date July 22, 2019 This chapter has been revised in its entirety. a.

VA_Guidelines.txt

96039f7e-d39a-49ea-bcfe-1db92fa49bb9

Electronic When the appraiser uploads the completed appraisal report into WebLGY, Scoring of the VA’s Appraisal Management System (AMS) will electronically read and Appraisal score the appraisal, assisting SARs in quickly assessing appraisal risk, determining property eligibility, ensuring VA policy compliance and identifying over/under-valuations, and appraisal quality issues.

VA_Guidelines.txt

2bde1327-ea9e-45ab-89dd-4c93611ce028

SARs must use AMS as a tool to help ensure appraisals are accurate, complete, and that the property is properly valued according to VA-accepted appraisal principles and practices. b.

VA_Guidelines.txt

8c62f73e-8834-469e-9570-f0308c03407b

Business As a rules-based system, AMS will assist SARs in finding inconsistencies by Rules in AMS flagging items as potentially problematic, and determining whether the appraisal is in compliance with VA appraisal requirements, industry-accepted appraisal principles, and Uniform Standards of Professional Appraisal Practice (USPAP). c.

VA_Guidelines.txt

86efa9e5-96a9-4a33-8a78-7d9bc9ed2d65

Alerts Alerts will be noted by the AMS based on VA’s business rules. All high Provided by alerts must be addressed in WebLGY notes. Medium and low alerts do not AMS require a comment, but should be carefully reviewed by the SAR. Often the alerts will reflect an NOV condition that must be required, with no clarification needed from the appraiser. d.

VA_Guidelines.txt

63f993b2-6f8c-4821-8000-9a279a27bf7a

VA Guidance VA will issue a circular periodically describing the AMS scores that will be on Specific considered low-risk and high-risk appraisals. SARs may perform a cursory AMS Scores review on low-risk appraisals. High-risk appraisals require a comprehensive review.

VA_Guidelines.txt

7d92a3c3-8f46-41d3-afbf-2b250e815ec8

Sometimes a score of “N/A” will be reported for complex, rural, or new/proposed construction properties due to a lack of market data. While this is not an indication of a high-risk appraisal, a comprehensive review must be performed since the AMS did not return a score within the acceptable range for a cursory review.

VA_Guidelines.txt

d0912d1f-ad32-4fe1-8275-341d1d6b5f63

SARs must indicate whether or not a cursory review was performed in WebLGY with the indicator on the screen where the NOV is issued. Continued on next page 13-6 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 5. Notice of Value Timeliness Expectation Change Date July 22, 2019 This chapter has been revised in its entirety. a.

VA_Guidelines.txt

40efe969-7d06-4aaf-bd7f-6f84d3ed8603

Importance VA is committed to providing expeditious service to Veterans. It is of Prompt advantageous to Veterans to receive the NOV well ahead of the scheduled Issuance of an loan closing. NOV b. Timeliness The SAR must issue the NOV within five business days from the time the Expectation completed appraisal is uploaded into WebLGY, unless there is a delay beyond the SAR’s control.

VA_Guidelines.txt

f3cf849b-c75c-410a-b8e3-c9425108b72b

Any delays should be explained in WebLGY notes. c. Lender LAPP lenders are responsible for resolving any timeliness problems involving Delays authorized agents and branch personnel. d. Notification The RLC should be notified when appraiser timeliness expectations are not to an RLC if being met. the Appraisal is Late 13-8 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 6.

VA_Guidelines.txt

f2021dc6-541c-480c-a644-dd7232364693

Appraisal Review Reference Materials Change Date July 22, 2019 This chapter has been revised in its entirety. a. Industry SARs should have access to articles published online by professional News and appraisal organizations and subject matter experts, as well as economic Resources forecasts, real estate market trends and appraisal industry news. b.

VA_Guidelines.txt

667bf7a7-a2e3-4eeb-9a22-30d85ad8ddcd

Reference The following reference materials should be available to the SAR: Materials the VA Lender’s Handbook, all valid VA-issued Circulars, VA’s “Local Requirements” at http://www.benefits.va.gov/HOMELOANS/appraiser_cv_local_req

VA_Guidelines.txt

40170669-1fdf-47a1-bddc-37ce21e423fc

.benefits.va.gov/HOMELOANS/appraiser_cv_local_req.asp, applicable Federal statutes and VA regulations, USPAP, and residential appraisal publications which include instructions for completing the Uniform Residential Appraisal Report (URAR) and other acceptable appraisal report forms. 13-9 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 7.

VA_Guidelines.txt

91f33a9a-ca89-4ff0-84a2-8e9c12a0c8e3

Notice of Value Validity Period Change Date July 22, 2019 This chapter has been revised in its entirety. a. Validity An NOV is valid for 6 months. Period b. Veteran If a Veteran is under contract during the validity period, processing may Under Contract continue until that transaction is either completed or terminated. c.

VA_Guidelines.txt

260a50d9-1697-4d32-b162-59087a6ca553

Extension of On a case-by-case basis, VA may extend validity periods when requests for the Validity such actions are reviewed and found to be appropriate under prevailing Period conditions. 13-10 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 8. Notice of Value Conditions Change Date July 22, 2019 This chapter has been revised in its entirety. a.

VA_Guidelines.txt

5c68ce81-2732-4b21-9841-4a6b16735811

NOV All conditions included on an NOV must be satisfied prior to guaranty of the Conditions loan by VA. b. Additional While lenders may require additional documentation over and above VA Lender requirements, often referred to as “lender overlays”, items that are not Requirements required by VA must not be included on the NOV. c.

VA_Guidelines.txt

dc2554b0-80f4-4719-90e0-9b4314402f53

Table of The following table lists the conditions that appear on the NOV form with NOV details about when each condition is required on the NOV. The NOV letter Conditions format is provided in Appendix A at the end of this chapter. Continued on next page 13-11 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 8. Notice of Value Conditions, continued c.

VA_Guidelines.txt

4b106b95-6fd2-4438-aabc-0aef4e3d31e3

Notice of Value Conditions, continued c. Table of NOV NOV Condition Details for including this condition on an NOV Conditions, 1. Energy Conservation Item 1a should be marked on NOVs for existing continued properties (over 1-year old or previously occupied) to allow lenders to increase the loan amount for Veterans wishing to make energy efficiency improvements (see Chapter 7 of this Handbook).

VA_Guidelines.txt

89fc34aa-66d9-41a2-aa2e-5cb9389238a7

Item 1b should be marked on NOVs for new or proposed construction excluding manufactured homes. For new and proposed manufactured homes, energy efficiency is already covered by the manufacturer’s guidelines (see Chapter 12, Topic 42 of this Handbook) so this item should not be marked. 2.

VA_Guidelines.txt

6a945156-b1cb-4b72-bfb3-170559b27d6d

Wood Destroying If the property is located in an area on the Termite Insect Information Infestation Probability Map where the probability of termite infestation is "very heavy" or "moderate to heavy," a wood destroying insect inspection report must be required on the Notice of Value (NOV). Mark 2a if the property is existing or new construction, or item 2b if the property is proposed.

VA_Guidelines.txt

8f0133bc-1863-4367-90c0-a30cbd9cf83d

For new construction, if a soil treatment guarantee is provided, this is preferable and will satisfy condition 2a. The pest control operator must meet all state requirements. State-required inspection forms are acceptable. Inspection reports are valid for 90 days. Soil treatment guarantees differ from an inspection and are consequently valid well beyond 90 days.

VA_Guidelines.txt

cb07ea7d-50b5-4ab4-a968-a2fcf3b061eb

A wood- destroying insect inspection is not required on units in low-rise or high-rise condominiums (units are stacked vertically) unless the appraiser notes a potential infestation problem.

VA_Guidelines.txt

d6ef9164-5f86-4fef-9539-7dab93ebda38

For site condominiums, and villa or townhome style condominiums where units are not vertically stacked, an inspection must be required on the NOV unless evidence of a treatment guarantee has been provided by the homeowners association. Continued on next page 13-12 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 8. Notice of Value Conditions, continued c.

VA_Guidelines.txt

5e70df8c-4f0b-4d45-9594-c41e2a0b3ed2

Notice of Value Conditions, continued c. Table of NOV NOV Condition Details for including this condition on an NOV Conditions, 3. Lien-Supported If the property is located in a planned unit continued Assessment development (PUD) or condominium, mandatory homeowners association fees must be shown on the NOV.

VA_Guidelines.txt

c6461940-57a8-4642-804e-8dc8ad6add91

Special assessments including local authorities collecting Community Development District (CDD) fees or other fees on the HOA’s behalf should be reported here as well. 4. Condominium If the condominium is conditionally accepted by VA, this item should be marked. This item is not required if the condominium is fully accepted by VA.

VA_Guidelines.txt

313cbd8b-5459-4413-a356-d9d377eedcc9

If the condominium has not been accepted by VA, the NOV must not be issued. (See Chapter 11, Topic 12 of this Handbook). 5. Private Road/Shared If access to the property is by a private road or shared Driveway driveway, this item should be marked, unless the property is in a PUD or condominium with private streets which are covered by the organizational documents.

VA_Guidelines.txt

84696e1f-7f20-4d5f-903b-4ea48b0e0602

If a state law establishes requirements for the maintenance of private roads, this condition is not needed on the NOV. 6. Flood Insurance If the property is located in a Special Flood Hazard Area, this item must be marked.

VA_Guidelines.txt

511b37a0-eb87-4334-ad71-d7c97a82699e

It is the lender's responsibility to ensure that flood insurance is obtained and maintained on properties located in SFHAs, whether or not the appraiser correctly identifies the property as being in an SFHA. If flood insurance is not available, a property in a SFHA is not eligible to be the security for a VA-guaranteed loan. 7.

VA_Guidelines.txt

8d9497ab-8fb7-4f88-a90b-3ffdb9014f1f

Water/Sewage If the property has an individual water supply, such as System Acceptability a well, this condition must be marked. For proposed construction cases, acceptance of an individual sewage system must be required.

VA_Guidelines.txt

5e83ceaf-dffa-4b5d-bb11-16f0a0a2b8b4

Acceptance of the sewage system is also required for existing or new construction cases in which there is an indication of a problem or the property is in an area known to have soil percolation problems. Certifications are valid for 90 days unless the local authority indicates otherwise.

VA_Guidelines.txt

baa0f9fc-825c-4a43-8d08-accc0fdfbfe3

Continued on next page 13-13 Continued on next page 13-13 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 8. Notice of Value Conditions, continued c. Table of NOV NOV Condition Details for including this condition on an NOV Conditions, 8.

VA_Guidelines.txt

888717f3-1617-4a49-84cd-fc97ac1745a2

Connection to Public This condition is required only if the property does not continued Water and/or Public have public water and/or sewer and the state or local Sewer authority has mandated connection to public utilities. 9. Repairs The repairs recommended on the appraisal should be reviewed and only those which are needed for the property to meet VA MPRs should be listed on the NOV.

VA_Guidelines.txt

cfbaffbf-914b-4200-ae4a-805b13c9017f

Any apparent defective conditions observed by the appraiser must be addressed by requiring correction, rather than an inspection. The completion of any repairs that could involve lead-based paint must be certified by the fee appraiser. 10.

VA_Guidelines.txt

043368d3-d9b1-4f60-a165-d377fbf742dc

Post Construction This condition must be marked on all proposed Inspection construction properties and properties appraised subject to alterations such as a room addition. 11. New Construction For new construction properties, either 11a or 11b Inspections/Warranty must be required based on whether or not local building inspections are performed.

VA_Guidelines.txt

65f2d438-d833-4923-9574-d967180fb8de

Since new construction must have either a 1 year or a 10-year warranty, either 11c or 11d must be marked. 12. Proposed For proposed construction properties, either 12a or Construction 12b must be required based on whether or not local Inspections/Warranty building inspections are performed. Warranty requirements are determined accordingly.

VA_Guidelines.txt

96ddd643-b024-403f-be36-6c4033a94b82

Warranty requirements are determined accordingly. Continued on next page 13-14 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value 8. Notice of Value Conditions, continued c. Table of NOV NOV Condition Details for including this condition on an NOV Conditions, 13.

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New or Proposed If the subject is a new or proposed manufactured continued Manufactured Home home, 13a or 13b must be required based on whether the local authority issues a certificate of occupancy. VA Form 26-8599, Manufactured Home Warranty, is provided by the manufacturer and the 1-year warranty is provided by the manufactured home installer who placed the home on the foundation. 14.

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Lead/Water This condition must be required on all new or Distribution System proposed construction properties, and on properties having repairs to the potable water distribution system. 15. Radon Gas This condition must be required on all new or proposed construction properties. 16.

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Other Conditions Any additional requirements should be listed in Item 16, for example, an unvented space heater (see Chapter 12, Topic 24 of this handbook), an airport safety zone (see Chapter 12, Topic 41 of this handbook), requirements for cisterns (see Chapter 12, Topic 17 of this handbook), stationary storage tanks containing flammable material (see Chapter 12, Topic 37 of this handbook), or

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(see Chapter 12, Topic 37 of this handbook), or any local requirements (see Chapter 12, Topic 1, Item h of this Handbook)

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. 13-15 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value Appendix A.

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Notice of Value Sample Letter Change Date July 22, 2019 This chapter has been revised in its entirety. [Reminder: The NOV must be mailed or emailed to the Veteran on the date issued

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.] [on lender's letterhead] LENDER'S NOTICE OF VALUE [date NOV issued] [Veteran’s name] LENDER LOAN #: [Veteran’s current address] VA CASE #: [Veteran’s city, state, zip code] APPRAISAL REVIEWER: [SAR name, SAR id #] PROPERTY ADDRESS: [complete address] Dear [Mr. or Ms

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. or Ms.] [Veteran’s last name]: The above property has been appraised by a fee appraiser assigned by the VA Regional Loan Center in [ RLC City and State].

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On [date NOV issued], the VA-authorized appraisal reviewer personally reviewed the fee appraiser's report and determined the property's estimated reasonable value to be $[ value ]. The maximum repayment period for a loan secured by this property is [30 years or estimated remaining economic life on appraisal, whichever is less].

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The VA appraisal was made to determine the reasonable value of the property for loan purposes. The appraisal must not be considered a building inspection. Neither VA nor the lender can guarantee that the home will be satisfactory to you in all respects or that all equipment will operate properly.

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A thorough inspection of the property by you or a reputable inspection firm may help minimize any problems that could arise after loan closing. In an existing home, particular attention should be given to plumbing, heating, electrical and roofing components. VA recommends testing for radon, which the government has determined can cause lung cancer.

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REMEMBER: VA GUARANTEES THE LOAN, NOT THE CONDITION OF THE PROPERTY Continued on next page 13-16 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value Appendix A, continued The following marked conditions apply to this property: 1. ENERGY CONSERVATION. ( ) a. Existing property.

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ENERGY CONSERVATION. ( ) a. Existing property. You may wish to contact a qualified person/firm for a home energy audit to identify needed energy efficiency improvements to the property. In some localities, the utility company may perform this service.

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The mortgage amount may be increased as a result of making energy efficiency improvements such as: Solar or conventional heating/cooling systems, water heaters, insulation, weather-stripping/caulking, and storm windows/doors. Other energy related improvements may also be considered. ( ) b. New or proposed construction property.

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New or proposed construction property. Builder's certification that this new dwelling was constructed to meet the energy conservation standards of the International Residential Code (IRC). 2. WOOD-DESTROYING INSECT INFORMATION. ( ) a. Inspection Report (Existing or New Construction).

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Inspection Report (Existing or New Construction). The property must be inspected by a qualified pest control operator using Form NPMA-33, or other VA-approved collection method. Any reported infestation or structural damage affecting the value of the property must be corrected to VA's satisfaction prior to loan settlement.

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You must acknowledge receipt of a copy of the inspection report in the space provided on the form. ( ) b. Soil Treatment Guarantee (Proposed Construction). Properly completed NPMA-99a and NPMA- 99b forms are required. The lender will provide you with a copy of these forms. 3. LIEN-SUPPORTED ASSESSMENT. ( ) a. Homeowner Association Fee. Estimated fee of $[0.00] per [period of time]. ( ) b.

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Other (Special Assessments, Assessments by local taxing authorities) 4. ( ) CONDOMINIUM. Evidence that the condominium project meets VA requirements. 5. ( ) PRIVATE ROAD/SHARED DRIVEWAY.

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Evidence that use of the private road/shared driveway is protected by a recorded permanent easement or recorded right-of-way from the property to a public road, and that a provision exists for its continued maintenance. Continued on next page 13-17 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value Appendix A, continued 6. ( ) FLOOD INSURANCE.

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If improvements on this property are located in a FEMA Special Flood Hazard Area, flood insurance is required. The lender must verify flood zone information provided on an appraisal report. 7. WATER/SEWAGE SYSTEM ACCEPTABILITY. Evidence from the local health authority or other source authorized by VA that the individual ( ) water supply, and/or ( ) sewage disposal system(s) is/are acceptable. 8.

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CONNECTION TO ( ) PUBLIC WATER and/or ( ) PUBLIC SEWER. Required only when connection is mandated by a local authority. 9. ( ) REPAIRS.

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The ( ) lender ( ) fee appraiser (_________[insert name]__________) is to certify that the following repairs have been satisfactorily completed

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. ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________

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_______________________________________________________________ Important – please see the above second paragraph about your responsibility concerning the condition of the property

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. 10. ( ) POST CONSTRUCTION INSPECTION.

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The fee appraiser (_________[insert name]__________) must visit the property and certify that construction substantially complies with the certified construction exhibits on which the appraisal was based, or that the construction is in accordance with the model home and related information on which the appraisal was based, and that improvements comply with any conditions in the sales contract. 11

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. 11.

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NEW CONSTRUCTION INSPECTIONS/WARRANTY. ( ) a. Provide copy of the Certificate of Occupancy (CO), or equivalent document, issued by a local building authority. or ( ) b. The local authority does not perform construction inspections. The lender is to certify that the property is complete (both on-site and off-site improvements) and that it meets VA MPRs for existing construction.

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The lender must obtain the Veteran’s written acknowledgement that the property was not inspected during construction. Continued on next page 13-18 VA Pamphlet 26-7, Revised Chapter 13: Notices of Value Appendix A, continued ( ) c. The builder must provide a 1-year VA builder’s warranty completed on VA Form 26-1859, Warranty of Completion of Construction.

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VA will provide assistance with construction complaints limited to defects in equipment, material, and workmanship reported during the 1-year builder's warranty period. or ( ) d. Provide evidence of enrollment in a 10-year insurance backed protection plan. VA will not assist with any construction complaints. 12. PROPOSED CONSTRUCTION INSPECTIONS/WARRANTY. ( ) a.

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Provide a copy of the Certificate of Occupancy (CO), or equivalent document, issued by the local building authority. The builder must provide a 1-year VA builder’s warranty completed on VA Form 26-1859, Warranty of Completion of Construction.

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VA will provide assistance with construction complaints limited to defects in equipment, material and workmanship reported during the one-year builder's warranty period. or ( ) b.

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The local authority does not perform construction inspections, therefore the property must be covered by both a 10-year insurance backed protection plan and a 1-year VA builder's warranty on VA Form 26-1859, Warranty of Completion of Construction. The lender is to certify that the property is complete (both on-site and off-site improvements) and that it meets VA MPRs for existing construction.

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VA will provide assistance with construction complaints limited to defects in equipment, material, and workmanship reported during the 1-year builder's warranty period only. The lender must obtain the Veteran’s written acknowledgement that the property was not inspected during construction. 13. NEW OR PROPOSED MANUFACTURED HOME. ( ) a.

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NEW OR PROPOSED MANUFACTURED HOME. ( ) a. Provide a copy of the Certificate of Occupancy (CO), or equivalent document, issued by the local building authority. Provide the warranty on VA Form 26-8599, Manufactured Home Warranty, and a 1-year VA builder’s warranty on VA Form 26-1859, Warranty of Completion of Construction.

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