Mitchell6024/quickb · Datasets at Hugging Face

id stringlengths 36 36	text stringlengths 1 400	source stringclasses 1 value
d8c3ce66-4d73-4932-a260-c73abf08d526	Reference: Chapter 13, Section 3. Continued on next page 15-10 VA Pamphlet 26-7, Revised Chapter 15: Lender Appraisal Processing Program (LAPP) 15.04 SAR Training and Initial Case Reviews and Initial Case Reviews, Continued f. Case Refer to the following table when the initial case reviews are made by VA Reviews by VA staff.	VA_Guidelines.txt
3dae03e4-10f3-4421-ba03-6f3ceb32d682	Staff If the SAR’s appraisal review …then is … deficient in any respect VA will send a letter to the lender detailing the specific problems within 5 days of receipt of the package	VA_Guidelines.txt
7c4ba787-0a3b-4be5-be41-8c4a0bda2a01	. found to have substantive VA’s letter to the lender deficiencies such as failure to will state that the SAR must identify significant appraisal continue to submit LAPP cases for errors, or VA review and issuance of a VA correctly note minimum property NOV prior to closing, and requirements or other conditions or may direct the SAR to visit the VA requirements on the NOV office for counseling or	VA_Guidelines.txt
95c1cfc2-7572-4552-b0f8-6dfb53beb768	requirements on the NOV office for counseling or further training	VA_Guidelines.txt
db2e96da-68a2-4d86-962e-cd42e085ae4e	. fully acceptable VA will not provide feedback on the individual case. fully acceptable and the last item VA will notify the lender by letter necessary to satisfy all initial case that the SAR has satisfied all review (and training) requirements requirements and may process cases independently and issue the NOV	VA_Guidelines.txt
00754963-121b-44af-bf72-c7593e8a79a2	. 15-11 VA Pamphlet 26-7, Revised Chapter 15: Lender Appraisal Processing Program (LAPP) 15.05 Changes in SAR’s Employment of Lender’s Status Change Date June 28, 2010, Change 14 Subsection b has been changed to add language to the required statement lenders must submit.	VA_Guidelines.txt
c1c6a84c-be84-4c0e-b018-b482a622094a	This section has been updated to add subsection lettering, add hyperlinks, and to edit minor grammatical errors. a. SAR No The lender must promptly notify VA if the Staff Appraisal Reviewer is no Longer longer employed or is no longer functioning as an SAR for the lender.	VA_Guidelines.txt
7f9d00a8-578b-4f11-a195-ebf3326f1fa6	Employed or Performing If either of these two apply, the SAR’s LAPP authority automatically ceases SAR Work and the lender’s eligibility to participate in LAPP is terminated if that individual was the lender’s only SAR. b.	VA_Guidelines.txt
45d05a2f-07e1-4e50-89ea-9ede2bdb785f	SAR If the SAR begins work for a new lender, that lender must promptly submit to Employed By VA a new VA Form 26-0785, Lenders Staff Appraisal Reviewer Application, New Lender and $100 processing fee.	VA_Guidelines.txt
333ee1c2-e9bc-4ede-99a7-358b21d74d13	The lender may request a waiver of the training and case review requirements for that SAR by including a copy of VA’s notice that the SAR has satisfied those requirements and a statement that the SAR processed LAPP cases and issued NOVs within the last year. c. Lender The lender must notify VA any time there is a Changes change in ownership, merger, or acquisition.	VA_Guidelines.txt
8c4b84ec-3712-4d23-bb4c-a7ea854b75a1	Reference: See Chapter 1, Section 9 for a description of the information VA needs from the lender to continue its LAPP authority. 15-12 VA Pamphlet 26-7, Revised Chapter 15: Lender Appraisal Processing Program (LAPP) 15	VA_Guidelines.txt
2be5ae30-8cd1-4c3a-b8d2-55b0996e4b0f	.06 Lender Responsibilities Under LAPP Change Date June 28, 2010, Change 14 This section has been updated to add subsection lettering, add hyperlinks, and to edit minor grammatical errors. a.	VA_Guidelines.txt
f7f93792-1256-4482-bcf4-318a7555eb6d	Due Lenders are expected to exercise due diligence in processing LAPP cases and Diligence are responsible for complying with all applicable: VA policies and procedures, VA regulations, and statutory requirements.	VA_Guidelines.txt
376e5985-4116-43ea-b12b-2ea6bfa8a230	VA considers due diligence to be care which is properly expected from, and ordinarily exercised by, a reasonable and prudent lender who is entirely dependent on the subject property as a security to protect their investment. b.	VA_Guidelines.txt
90beabaa-6ef9-4420-a691-d183301c619d	What LAPP In assuming the responsibilities involved with processing an appraisal under Lenders Can LAPP and subsequently underwriting the VA loan on the automatic basis, the Expect lender has reasonable certainty that the VA Form 26-1899, Loan Guaranty Certificate, will be issued by VA, except in cases of fraud or willful material misrepresentation by the lender.	VA_Guidelines.txt
7a60eb3f-038b-4763-b96b-d5e39dcb3f02	Reference: See Chapter 17, Section 4. c. LAPP LAPP authority is a privilege delegated to lenders at VA’s discretion. Privilege Lenders maintain this privilege by complying with all applicable LAPP- related requirements. If VA finds proper cause, the privilege extended to lenders under LAPP may be: amended, suspended, or withdrawn.	VA_Guidelines.txt
ecda1e71-2b72-46a2-956b-9a0dadd3e9fd	Reference: For more information, refer to Chapter 17. 15-13 VA Pamphlet 26-7, Revised Chapter 15: Lender Appraisal Processing Program (LAPP) 15.07 LAPP Processing Procedures Change Date June 28, 2010, Change 14 This section has been updated to add subsection lettering, add hyperlinks, and to edit minor grammatical errors. a.	VA_Guidelines.txt
adc803c0-b3a6-4572-95d4-7416143fdb9e	Property The appraisal of any property eligible to be the security for a VA loan can be Eligibility and processed under LAPP except: Appraisal Requests master appraisals, foreclosure appraisals, those involving partial release of VA loan security, and those involving HUD value determinations.	VA_Guidelines.txt
91a870ee-0384-4cad-af70-f7908f9380ef	Reference: For details regarding the eligibility of property for appraisal for VA purposes, as well as VA appraisal request instructions, see Chapter 10. b. Appraisal For details about VA appraisal requirements, see Chapter 11. Requirements c. Appraisal For details about requirements for reviewing appraisals and issuing notices of Reviews value for VA purposes, see Chapter 13. d.	VA_Guidelines.txt
2607ae1f-1fb2-4473-8308-00309c5c6331	Submitting An appraisal which the lender chooses not to process under LAPP can be Cases to VA for submitted to the VA office of jurisdiction for VA staff to review and issue an Processing NOV. The submission must include the SAR’s draft NOV letter to the veteran and all of the appraisal documentation required per Appraisal Report Contents in Chapter 11.	VA_Guidelines.txt
38cde128-234c-4883-9c07-28e6a988f4b4	All other VA requirements for a case submitted on the prior approval basis by an automatic lender must also be met. Reference: See Chapter 5, Section 4. Note: Every property eligible for the LAPP should be processed under LAPP.	VA_Guidelines.txt
5f24a9c1-60c4-4135-acb7-9ff2b3279c4b	If a LAPP lender fails to process an eligible property under LAPP, the request for VA guaranty must include a detailed explanation. 15-14 VA Pamphlet 26-7, Revised Chapter 15: Lender Appraisal Processing Program (LAPP) 15.08 Affiliates and Agents Change Date June 28, 2010, Change 14 This section has been updated to add subsection lettering, add hyperlinks, and to edit minor grammatical errors. a.	VA_Guidelines.txt
7c941048-d0bc-404b-a117-85c2eaf61453	Affiliates Unless approved by VA, lenders are not authorized to use LAPP for any: builder, land developer, real estate broker, or other entity which they own or have a financial interest in or are otherwise affiliated with.	VA_Guidelines.txt
70048906-16a8-42d9-bda3-d8254edc9b83	This restriction may not apply if the only relationship between the lender and a builder is a construction loan, or the lender can provide a formal corporate agreement or other documentation which demonstrates to VA’s satisfaction that the lender and builder, or other affiliate, are essentially separate entities operating independently from one another, free of all cross-influences.	VA_Guidelines.txt
4117b41b-c00d-432b-b1f9-d4785b50eb9e	The lender’s quality control plan must specifically address the insulation of the fee appraiser, appraisal reviewer, and the underwriter from the influence of the affiliate. Reference: Chapter 1, Section 7. b.	VA_Guidelines.txt
394a5a81-93bd-41b5-aab9-9d25fb723ede	Reference: Chapter 1, Section 7. b. Lender/ Agents can be involved in LAPP processing only when the sponsoring Agent (funding) lender has an established ongoing agency relationship with the Relationship agent, as evidenced by a corporate resolution accepted by VA. Reference: Chapter 1, Section 8.	VA_Guidelines.txt
6e2aca95-f66b-4a53-ae51-574f916c746c	Reference: Chapter 1, Section 8. Corporate Resolution The corporate resolution must provide that the sponsoring lender accept full responsibility for the actions of its agents. Additionally, the sponsoring lender is responsible for assuring that the agent is appropriately trained and knowledgeable about VA appraisal assignment procedures and the restrictions on their role in LAPP.	VA_Guidelines.txt
fc661940-6d45-48b7-a3a9-d8d877efe8cd	Continued on next page 15-15 Continued from previous page 15-15 VA Pamphlet 26-7, Revised Chapter 15: Lender Appraisal Processing Program (LAPP) 15.08 Affiliates and Agents, Continued c. Agents and Refer to the following table for rules regarding agents and appraisals.	VA_Guidelines.txt
3abdc641-4790-4932-9ddb-fbfffafe0b80	Appraisals If the agent … …then is acting on behalf of an approved he or she may request VA appraisals, LAPP lender and is authorized by receive appraisal reports, and that lender forward them to the lender’s staff appraisal reviewer. requests an appraisal he or she may use either the sponsoring (funding) lender’s VA Assignment System logon or his or her own logon to request appraisals.	VA_Guidelines.txt
6c99e59a-f713-478d-af49-3414c1231d79	An appraisal cannot be requested unless the sponsoring lender is known at the time of the request. If the agent is to receive the appraisal report, the request must include the agent’s: address in item 5, signature in item 38, firm’s name in item 39, and telephone number in item 40.	VA_Guidelines.txt
f54929e0-f461-4391-994a-be01850e25c3	Note: In requesting an appraisal, the authorized agent is making the required certifications on behalf of the sponsoring lender. Continued on next page 15-16 VA Pamphlet 26-7, Revised Chapter 15: Lender Appraisal Processing Program (LAPP) 15.08 Affiliates and Agents, Continued c.	VA_Guidelines.txt
7e3f4f24-d355-45cb-a2fa-b2cc4f63227e	Agents and If the agent … …then Appraisals receives an appraisal report he or she must immediately forward (continued) it to the sponsoring lender who must issue a LAPP NOV within 5 business days of the agent’s receipt of the appraisal report	VA_Guidelines.txt
6429d7ee-2005-497b-9014-230ff1716e04	. contacts the fee appraiser that contact may only be about the timeliness of the appraisal, and not about the value or condition of the property which only the lender’s LAPP SAR is authorized to discuss with the fee appraiser	VA_Guidelines.txt
5265cd48-941d-463d-b680-d8ef2ef7a76c	. does not have LAPP authority but he or she will have violated a VA advertises or otherwise represents in prohibition against such advertising any way that he or she is “LAPP or representation. approved” has LAPP authority he or she cannot issue a LAPP NOV for any other lender.	VA_Guidelines.txt
347e5866-a4b2-4840-b595-14032f07664a	See Chapter 13, Section 10. 15-17 VA Pamphlet 26-7, Revised Chapter 16- Common Interest Communities, Change 3 Condominiums and Planned Unit Development Chapter 16 Common Interest Communities, Condominiums and Planned Unit Developments Overview What is a A common interest community is a subdivision containing common land, often including Common recreational amenities.	VA_Guidelines.txt
ab35c93c-abdf-42cd-a720-3e84189d1fef	That common property is typically owned by an association of the Interest homeowners (HOA), to which they all must belong and pay lien-supported assessments for a Community proportionate share of the expenses of the HOA. Condominiums and planned unit developments (PUDs) are common interest communities.	VA_Guidelines.txt
e7aac4db-9108-48d8-a370-c2bd5d9d017f	Basic VA There are VA requirements applicable to all properties located in either a PUD or Requirements condominium. Also, condominiums (but not PUDs) must be approved by VA before any lots or units in the project are eligible for VA loan guaranty. References: See Section 16-A Requirements Applicable to All Properties in Common Interest Communities, and Condominium Approval Procedures.	VA_Guidelines.txt
3c8d35d7-a079-447f-b4d9-2a5dec72e7bc	VA Approved A nationwide list of VA-approved condominiums, the Condominiums, Planned Unit Condominium Developments and Builders list, can be reached via The Appraisal System (TAS). List The internet address is http://condopudbuilder.vba.va.gov.	VA_Guidelines.txt
44430b15-de75-411c-bcb7-fb66e0d6aaa5	Continued on next page July 14, 2003 16-1 VA Pamphlet 26-7, Revised Chapter 16- Common Interest Communities, Change 3 Condominiums and Planned Unit Development Overview, Continued In This This chapter contains the following sections.	VA_Guidelines.txt
49a80b66-94bc-45ad-abb4-6f60bd83e9b9	Chapter Topic See Page Section A: Requirements for Properties in Common Interest Communities 16-A-1 Section B: Use of Attorney’s Opinion 16-B-1 July 14, 2003 16-2 VA Pamphlet 26-7, Revised Section A: Requirements for Properties in Common Interest Communities Section A Requirements for Properties in Common Interest Communities Overview Basic VA Policy VA’s goal is to help protect the interests of	VA_Guidelines.txt
8ec9bc32-d4dc-479b-b9ee-2f38af8b92f5	VA’s goal is to help protect the interests of veterans and the Government by ensuring that all properties located in a common interest community meet VA regulatory requirements	VA_Guidelines.txt
0060f63c-6d9e-4d77-91c0-37202370d428	.	VA_Guidelines.txt
eef933d8-cc5d-42e9-b631-d9b9a1ba0dc1	Meeting this goal as efficiently and cost effectively as possible serves the best interests of all program participants involved. In This Section This section contains the following topics.	VA_Guidelines.txt
a4dfdfbc-2a89-483d-bb9a-acdee3f6e2c5	Topic See Page 16-A.01 Requirements Applicable to All Properties in Common Interest 16-A-2 Communities 16-A.02 Condominium Approval Procedures 16-A-5 16-A	VA_Guidelines.txt
ecf7bf42-8a0a-45f2-882c-f8d023bb486d	.03 Table of Required Documents 16-A-9 January 1, 2001 16-A-1 VA Pamphlet 26-7, Revised Section A: Requirements for Properties in Common Interest Communities Section A Requirements for Properties in Common Interest Communities Overview Basic VA Policy VA’s goal is to help protect the interests of veterans and the Government by ensuring that all properties located in a common interest community	VA_Guidelines.txt
dce075ab-39ad-46d3-9c07-08b12b950071	properties located in a common interest community meet VA regulatory requirements	VA_Guidelines.txt
0c3efa5d-d289-4abb-8bda-9e3ea40aa661	.	VA_Guidelines.txt
be68b0d7-a11d-43ba-bc39-7a0d2e632211	Meeting this goal as efficiently and cost effectively as possible serves the best interests of all program participants involved. In This Section This section contains the following topics.	VA_Guidelines.txt
99f12355-7ca7-449f-ae71-7e516f4fd7d2	Topic See Page 16-A.01 Requirements Applicable to All Properties in Common Interest 16-A-2 Communities 16-A.02 Condominium Approval Procedures 16-A-5 16-A.03 Table of Required Documents 16-A-9 January 1, 2001 16-A-1 VA Pamphlet 26-7, Revised Section A: Requirements for Properties in Change 1 Common Interest Communities 16-A	VA_Guidelines.txt
5f498423-4212-4e4d-85ce-68a1af51bf30	.01 Requirements Applicable to All Properties in Common Interest Communities Introduction While only condominiums must be approved by VA, lots or units securing VA loans in condominiums and other planned unit developments must meet both title and lien-related VA regulatory requirements.	VA_Guidelines.txt
30c4652a-96fa-4005-9990-d56609791fcd	The lender is responsible for ensuring that these requirements are met for each VA loan. Although there is no specific VA requirement that lenders maintain evidence in the loan file that these requirements are met, they may wish to be guided by the advice of their legal counsel in this regard.	VA_Guidelines.txt
e76a55a3-7739-40bd-86a1-e3127c4a6507	Acceptable The title requirements for every VA loan, whether or not the property is located in a common Title interest communities, are stated in VA regulations (38 CFR 36.4350).	VA_Guidelines.txt
9b5340d1-2e00-47a4-ac43-327277f54f0d	These requirements indicate the estate must not be less than fee simple, except under certain circumstances (38 CFR 36.4350(a)) title must to be subject to unreasonable restrictions o use and occupancy, except under certain circumstances (38 CFR 36	VA_Guidelines.txt
6a610b20-8853-47b7-9645-7b2fdb8737ce	.4350(b)), and certain minor title limitations will not be considered by VA, to the extent described, as materially affecting the value of the property (38 CFR 36.4350 (c)). [38 CFR 36.4350] [38 CFR 36.4350 (a)] [38 CFR 36.4350 (b)] [38 CFR 36.4350 (c)] Superior VA VA regulations require that every VA loan be secured by a first lien on the property, except Lien under certain circumstances	VA_Guidelines.txt
323c4646-adfd-4a43-b04b-60a80a9b7e52	. (38 CFR 36.4351 and 38 CFR 36.4352) When a property is located in a condominium or planned unit development, the lender must ensure that any mandatory homeowner association assessment is subordinate to the VA- guaranteed mortgage. [38 CFR 36.4351] [38 CFR 36	VA_Guidelines.txt
9d4c03f9-c49c-4b25-95f6-cef41009bd6c	. [38 CFR 36.4351] [38 CFR 36.4352] Continued on next page February 5, 2001 16-A-2 VA Pamphlet 26-7, Revised Section A: Requirements for Properties in Change 1 Common Interest Communities 16-A	VA_Guidelines.txt
ac5758b3-c65b-48e1-9794-47f446dff48a	.01 Requirements Applicable to All Properties in Common Interest Communities Introduction While only condominiums must be approved by VA, lots or units securing VA loans in condominiums and other planned unit developments must meet both title and lien-related VA regulatory requirements.	VA_Guidelines.txt
717ad3d4-9996-417d-9b74-8b1c03dc5b5f	The lender is responsible for ensuring that these requirements are met for each VA loan. Although there is no specific VA requirement that lenders maintain evidence in the loan file that these requirements are met, they may wish to be guided by the advice of their legal counsel in this regard.	VA_Guidelines.txt
ecab02e7-7762-4c83-a83b-d22020206b47	Acceptable The title requirements for every VA loan, whether or not the property is located in a common Title interest communities, are stated in VA regulations (38 CFR 36.4350).	VA_Guidelines.txt
f587ec50-118c-4139-aa84-5653613f6aef	These requirements indicate the estate must not be less than fee simple, except under certain circumstances (38 CFR 36.4350(a)) title must to be subject to unreasonable restrictions o use and occupancy, except under certain circumstances (38 CFR 36	VA_Guidelines.txt
db968b7b-6d31-4be5-9254-de108083d97e	.4350(b)), and certain minor title limitations will not be considered by VA, to the extent described, as materially affecting the value of the property (38 CFR 36.4350 (c)). [38 CFR 36.4350] [38 CFR 36.4350 (a)] [38 CFR 36.4350 (b)] [38 CFR 36.4350 (c)] Superior VA VA regulations require that every VA loan be secured by a first lien on the property, except Lien under certain circumstances	VA_Guidelines.txt
855ebe92-df43-4554-b51e-f622a9a7640b	. (38 CFR 36.4351 and 38 CFR 36.4352) When a property is located in a condominium or planned unit development, the lender must ensure that any mandatory homeowner association assessment is subordinate to the VA- guaranteed mortgage. [38 CFR 36.4351] [38 CFR 36	VA_Guidelines.txt
033d8770-4a7b-4293-95a4-21c1a8a63c9c	. [38 CFR 36.4351] [38 CFR 36.4352] Continued on next page February 5, 2001 16-A-2 VA Pamphlet 26-7, Revised Section A: Requirements for Properties in Common Interest Communities 16-A	VA_Guidelines.txt
953bb1d6-45e1-4122-a00b-dd86e22de1c9	.01 Requirements Applicable to All Properties in Common Interest Communities, Continued Appraisal Fee appraisers will use Related Freddie Mac Form 70/FannieMae Form 1004, Uniform Residential Appraisal Report, for properties located in a planned unit development, or Fannie Mae Form 1073, Individual Condominium Unit Appraisal Report, for properties located in a condominium. .	VA_Guidelines.txt
c8c4d785-3226-4ac6-bf64-2fef7618bc69	Requirements specific to properties located in a condominium are outlined in 38 CFR 36.4360a, Appraisal Requirements. If there are any commercial or other non-residential ownership interests in the condominium, the appraisal report must include them and their impact on the value of the residential units.	VA_Guidelines.txt
0a6aaa40-7453-47e9-9652-b2405b69359e	In declarant/developer controlled condominium conversions, the appraiser must ascertain the degree to which the converted structure and unit(s) has been or will be rehabilitated for condominium use.	VA_Guidelines.txt
36420ba4-8732-4e25-95d9-6548f5ecc747	The structure may have been, or is proposed to be, remodeled, renovated, rehabilitated, modernized, or “cosmetically’ refurbished, and provide a description of the type of work completed or proposed to be completed in the conversion being appraised for declarant/developer sales.	VA_Guidelines.txt
b39b41f3-e825-4647-ac1a-78a6d9f119ec	This information is not required in spot resales by sellers other than the declarant/developer. [38 CFR 36.4360a] Continued on next page January 1, 2001 16-A-3 VA Pamphlet 26-7, Revised Section A: Requirements for Properties in Common Interest Communities 16-A	VA_Guidelines.txt
c70d0d4d-c42f-4e0e-9e85-4915e4dddd8d	.01 Requirements Applicable to All Properties in Common Interest Communities, Continued Notice of The notice of value for all properties in a PUD or condominium will be conditioned: “This Value-Related property is located in a development with mandatory membership in a homeowners’ association.	VA_Guidelines.txt
e72deed9-29a3-4099-b086-9ace0fed14b9	The lender is responsible for ensuring that title meets VA requirements for such property and that homeowner association assessments are subordinate to the VA-guaranteed mortgage	VA_Guidelines.txt
2ac00d7d-9702-4f4e-929d-02f1b7a21875	.” In addition, the notice of value for a property in a condominium which has not been approved by VA or for which VA approval-related requirements remain to be satisfied, will be conditioned “The lender is responsible for ensuring that this condominium is acceptable to VA and that any condominium-related special conditions or requirements have been met.	VA_Guidelines.txt
a6bda21f-ff39-4345-809b-4fa849feb384	There may be additional information in ‘Other Conditions/Requirements’, below.” Reference: See “Acceptable Title” and :Superior VA Lien,” in this section; Section 16-A.02, and Chapter 13, Exhibit 1, “LAPP Lender’s Notice of Value”, Items 3 and 4. Note: There are other regulatory-related requirements for a property in a condominium.	VA_Guidelines.txt
7e4a71a9-aa7f-4392-922c-048f82cf57cf	For example: pre-sale requirement per 38 CFR 36.4360a(c) warranty requirements for the unit and common elements per 38 CFR 36.4360a(d), and a wood-destroying insect inspection is required in low rise and high rise units only when the fee appraiser observes a potential problem. [38 CFR 36.4350] [38 CFR 36.4352] [38 CFR 36.4360a(c)] [38 CFR 36	VA_Guidelines.txt
7af82e27-9352-4188-b2aa-4c6be8abf968	.4352] [38 CFR 36.4360a(c)] [38 CFR 36.4360a(d)] January 1, 2001 16-A-4 VA Pamphlet 26-7, Revised Section A: Requirements for Properties in Common Interest Communities 16-A	VA_Guidelines.txt
e91fe2ee-81e0-4a10-a22e-4a2a9b43034a	.01 Requirements Applicable to All Properties in Common Interest Communities, Continued Notice of The notice of value for all properties in a PUD or condominium will be conditioned: “This Value-Related property is located in a development with mandatory membership in a homeowners’ association.	VA_Guidelines.txt
bdade84e-08ed-4f5c-a2e7-88a9a5a932f4	The lender is responsible for ensuring that title meets VA requirements for such property and that homeowner association assessments are subordinate to the VA-guaranteed mortgage	VA_Guidelines.txt
f8eeac64-7f14-421b-bb2a-e76431d5cbc5	.” In addition, the notice of value for a property in a condominium which has not been approved by VA or for which VA approval-related requirements remain to be satisfied, will be conditioned “The lender is responsible for ensuring that this condominium is acceptable to VA and that any condominium-related special conditions or requirements have been met.	VA_Guidelines.txt
a3af8be0-2399-4d3a-beb3-947f833a54fa	There may be additional information in ‘Other Conditions/Requirements’, below.” Reference: See “Acceptable Title” and :Superior VA Lien,” in this section; Section 16-A.02, and Chapter 13, Exhibit 1, “LAPP Lender’s Notice of Value”, Items 3 and 4. Note: There are other regulatory-related requirements for a property in a condominium.	VA_Guidelines.txt
d9b89050-5aa0-48b8-818f-32468179a1e5	For example: pre-sale requirement per 38 CFR 36.4360a(c) warranty requirements for the unit and common elements per 38 CFR 36.4360a(d), and a wood-destroying insect inspection is required in low rise and high rise units only when the fee appraiser observes a potential problem. [38 CFR 36.4350] [38 CFR 36.4352] [38 CFR 36.4360a(c)] [38 CFR 36	VA_Guidelines.txt
21413331-516f-4a13-90c4-a0e6fc2de2a9	.4352] [38 CFR 36.4360a(c)] [38 CFR 36.4360a(d)] January 1, 2001 16-A-4 VA Pamphlet 26-7, Revised Section A: Requirements for Properties in Common Interest Communities 16-A	VA_Guidelines.txt
5cb5cef8-9180-448d-805b-07902a7f1397	.02 Condominium Approval Procedures Request for VA For condominium projects, the lender/sponsor must provide the following to the VA Office Approval of Jurisdiction: a written request for VA-approval, and a copy of the condominium’s organizational documents.	VA_Guidelines.txt
4760a41f-dd19-466c-82f0-63a14914e267	Note: These documents must be reviewed for compliance with VA regulations, and approved by VA before any lots or units in the project are eligible for VA loan guaranty. Reference: See Section 16-A.03. VA Processing VA will of Approval review the condominium’s organizational documents for compliance with VA regulations, Requests and notify the requesting lender/sponsor.	VA_Guidelines.txt
f93aa7da-b96d-4eb1-b99c-7345da471b05	Note: The condominium must be approved by VA before any lots or units in the project are eligible for VA loan guaranty.	VA_Guidelines.txt
b3d5e798-9155-4016-8e46-48c3d87532db	Continued on next page January 1, 2001 16-A-5 VA Pamphlet 26-7, Revised Section A: Requirements for Properties in Common Interest Communities 16-A	VA_Guidelines.txt
068cdaf0-b0e7-4340-849e-38fcbbb63017	.02 Condominium Approval Procedures, Continued How to HUD/USDA Approval Expedite VA Generally, projects already approved by the Department of Housing and Urban Development Approval (HUD) or the United States Department of Agriculture (USDA) do not need further VA review.	VA_Guidelines.txt
136a4eee-54ba-4c4c-9a11-d4165828dda4	Upon receipt of evidence of HUD/USDA approval, such as a copy of the HUD/USDA approved project list or the project approval letter, the VA office of jurisdiction adds the project to the nationwide VA list without issuing a formal VA approval letter. In rare cases, HUD or USDA may approve a project that VA discovers does not comply with VA regulations.	VA_Guidelines.txt
f870e871-ce95-4f99-a950-11db0a306946	In those cases, VA notifies the lender as soon as practicable that it will not guarantee loans in the project. Use of Attorney’s Opinion This is a highly recommended options for condominiums that have not been approved by HUD or USDA. Reference: See Section 16-B.	VA_Guidelines.txt
7140541b-0538-46dc-9e10-838969e2eb61	Reference: See Section 16-B. Use of Previously Approved Documents When the organizational documents being submitted are essentially the same as a set previously approved by VA, the lender/sponsor should include a certification from the declarant or declarant’s attorney which states the fact specifically identifies the previous set, and describes any variation to the previous set.	VA_Guidelines.txt
58986ec0-0ded-43b6-8437-e485e8fc3cb6	State Agency Certification of a Condominium If a state agency certifies that the condominium has been created in compliance with the laws of the state in which it is located, include the certification.	VA_Guidelines.txt
cb427be8-3038-41f9-99ac-b9874c4d34c9	Continued on next page January 1, 2001 16-A-6 VA Pamphlet 26-7, Revised Section A: Requirements for Properties in Common Interest Communities 16-A.02 Condominium Approval Procedures, Continued VA Decision After completing its review of the material submitted with the request for project approval, the VA office of jurisdiction sends a written notice of its decision to the lender/sponsor.	VA_Guidelines.txt
356df982-7657-4e57-8113-49e3f84327a0	When … Then the notice will … the project is approved indicate any special conditions/requirements which must be met prior to VA guaranty of an individual loan in the project, such as recording of documents pre-sale requirement, or completing of common areas.	VA_Guidelines.txt
072a8c15-911a-46f4-9026-661a1f08b5db	Note: There is no formal VA approval letter for projects accepted by VA based on their approval by HUD or USDA. there were explain what further documentation is needed. missing/incomplete documents Note: VA will then suspend processing pending receipt inaccurate/inconsistent of the needed information or material	VA_Guidelines.txt
597092fa-3beb-4ada-8479-017f878a31f7	. information, or correctable deviations from VA requirements the project is unacceptable state the reason.	VA_Guidelines.txt
ff3ba719-9f4e-4a25-950a-06516e45f55d	Note: When there are objectionable provisions related to unreasonably retained controls or rights of the declarant/developer, and it is difficult to amend the documents, VA may consider a separate recorded agreement from the declarant/developer relinquishing the objectionable provisions.	VA_Guidelines.txt
3c494971-11e1-4280-9fd4-65b4fe48f43e	Continued on next page January 1, 2001 16-A-7 VA Pamphlet 26-7, Revised Section A: Requirements for Properties in Common Interest Communities 16-A	VA_Guidelines.txt
a6e29366-bd24-4968-8af3-858af7cb60c0	.02 Condominium Approval Procedures, Continued Document VA recommends that declarants have amendment procedures for the declaration or Amendments equivalent document, amendable by an instrument approved by not less than 67 percent of After Project unit owners.	VA_Guidelines.txt
869cbe98-cbca-4d43-bb12-b241a412c770	The association must request VA approval of proposed amendments prior to Approval recordation. VA approval of any amendments to the declaration, bylaws, or other enabling documentation is required while the declarant is in control of the homeowner’s association.	VA_Guidelines.txt
eb8c4447-393d-4e09-b526-ce836d8f2ea6	A written statement signed by an officer of the Association’s Board of Directors and submitted with VA Form 26-1844, is required as evidence of approval. Changes made by the declarant prior to the first sale in a condominium project may require amendment of the organizational documents.	VA_Guidelines.txt
aec2721a-6bae-4fc1-875d-5e52f12ef62d	Note: VA approval is not required for amendments which annex additional phases to the condominium in accordance with a development plan previously accepted by VA.	VA_Guidelines.txt
3ee74571-4dca-44db-94fb-7f5feab67a7f	Mortgagee The condominium documents may specify the following rights for the holders of first Rights mortgages, provided the lender makes a written request to the Association for the right, and includes prior approval by first lienholders before the Association can abandon condominium status or partition or subdivide a unit or the common elements change the percentage interest of unit owners, or	VA_Guidelines.txt

d8c3ce66-4d73-4932-a260-c73abf08d526

Reference: Chapter 13, Section 3. Continued on next page 15-10 VA Pamphlet 26-7, Revised Chapter 15: Lender Appraisal Processing Program (LAPP) 15.04 SAR Training and Initial Case Reviews and Initial Case Reviews, Continued f. Case Refer to the following table when the initial case reviews are made by VA Reviews by VA staff.

VA_Guidelines.txt

3dae03e4-10f3-4421-ba03-6f3ceb32d682

Staff If the SAR’s appraisal review …then is … deficient in any respect VA will send a letter to the lender detailing the specific problems within 5 days of receipt of the package

VA_Guidelines.txt

7c4ba787-0a3b-4be5-be41-8c4a0bda2a01

. found to have substantive VA’s letter to the lender deficiencies such as failure to will state that the SAR must identify significant appraisal continue to submit LAPP cases for errors, or VA review and issuance of a VA correctly note minimum property NOV prior to closing, and requirements or other conditions or may direct the SAR to visit the VA requirements on the NOV office for counseling or

VA_Guidelines.txt

95c1cfc2-7572-4552-b0f8-6dfb53beb768

requirements on the NOV office for counseling or further training

VA_Guidelines.txt

db2e96da-68a2-4d86-962e-cd42e085ae4e

. fully acceptable VA will not provide feedback on the individual case. fully acceptable and the last item VA will notify the lender by letter necessary to satisfy all initial case that the SAR has satisfied all review (and training) requirements requirements and may process cases independently and issue the NOV

VA_Guidelines.txt

00754963-121b-44af-bf72-c7593e8a79a2

. 15-11 VA Pamphlet 26-7, Revised Chapter 15: Lender Appraisal Processing Program (LAPP) 15.05 Changes in SAR’s Employment of Lender’s Status Change Date June 28, 2010, Change 14 Subsection b has been changed to add language to the required statement lenders must submit.

VA_Guidelines.txt

c1c6a84c-be84-4c0e-b018-b482a622094a

This section has been updated to add subsection lettering, add hyperlinks, and to edit minor grammatical errors. a. SAR No The lender must promptly notify VA if the Staff Appraisal Reviewer is no Longer longer employed or is no longer functioning as an SAR for the lender.

VA_Guidelines.txt

7f9d00a8-578b-4f11-a195-ebf3326f1fa6

Employed or Performing If either of these two apply, the SAR’s LAPP authority automatically ceases SAR Work and the lender’s eligibility to participate in LAPP is terminated if that individual was the lender’s only SAR. b.

VA_Guidelines.txt

45d05a2f-07e1-4e50-89ea-9ede2bdb785f

SAR If the SAR begins work for a new lender, that lender must promptly submit to Employed By VA a new VA Form 26-0785, Lenders Staff Appraisal Reviewer Application, New Lender and $100 processing fee.

VA_Guidelines.txt

333ee1c2-e9bc-4ede-99a7-358b21d74d13

The lender may request a waiver of the training and case review requirements for that SAR by including a copy of VA’s notice that the SAR has satisfied those requirements and a statement that the SAR processed LAPP cases and issued NOVs within the last year. c. Lender The lender must notify VA any time there is a Changes change in ownership, merger, or acquisition.

VA_Guidelines.txt

8c4b84ec-3712-4d23-bb4c-a7ea854b75a1

Reference: See Chapter 1, Section 9 for a description of the information VA needs from the lender to continue its LAPP authority. 15-12 VA Pamphlet 26-7, Revised Chapter 15: Lender Appraisal Processing Program (LAPP) 15

VA_Guidelines.txt

2be5ae30-8cd1-4c3a-b8d2-55b0996e4b0f

.06 Lender Responsibilities Under LAPP Change Date June 28, 2010, Change 14 This section has been updated to add subsection lettering, add hyperlinks, and to edit minor grammatical errors. a.

VA_Guidelines.txt

f7f93792-1256-4482-bcf4-318a7555eb6d

Due Lenders are expected to exercise due diligence in processing LAPP cases and Diligence are responsible for complying with all applicable: VA policies and procedures, VA regulations, and statutory requirements.

VA_Guidelines.txt

376e5985-4116-43ea-b12b-2ea6bfa8a230

VA considers due diligence to be care which is properly expected from, and ordinarily exercised by, a reasonable and prudent lender who is entirely dependent on the subject property as a security to protect their investment. b.

VA_Guidelines.txt

90beabaa-6ef9-4420-a691-d183301c619d

What LAPP In assuming the responsibilities involved with processing an appraisal under Lenders Can LAPP and subsequently underwriting the VA loan on the automatic basis, the Expect lender has reasonable certainty that the VA Form 26-1899, Loan Guaranty Certificate, will be issued by VA, except in cases of fraud or willful material misrepresentation by the lender.

VA_Guidelines.txt

7a60eb3f-038b-4763-b96b-d5e39dcb3f02

Reference: See Chapter 17, Section 4. c. LAPP LAPP authority is a privilege delegated to lenders at VA’s discretion. Privilege Lenders maintain this privilege by complying with all applicable LAPP- related requirements. If VA finds proper cause, the privilege extended to lenders under LAPP may be: amended, suspended, or withdrawn.

VA_Guidelines.txt

ecda1e71-2b72-46a2-956b-9a0dadd3e9fd

Reference: For more information, refer to Chapter 17. 15-13 VA Pamphlet 26-7, Revised Chapter 15: Lender Appraisal Processing Program (LAPP) 15.07 LAPP Processing Procedures Change Date June 28, 2010, Change 14 This section has been updated to add subsection lettering, add hyperlinks, and to edit minor grammatical errors. a.

VA_Guidelines.txt

adc803c0-b3a6-4572-95d4-7416143fdb9e

Property The appraisal of any property eligible to be the security for a VA loan can be Eligibility and processed under LAPP except: Appraisal Requests master appraisals, foreclosure appraisals, those involving partial release of VA loan security, and those involving HUD value determinations.

VA_Guidelines.txt

91a870ee-0384-4cad-af70-f7908f9380ef

Reference: For details regarding the eligibility of property for appraisal for VA purposes, as well as VA appraisal request instructions, see Chapter 10. b. Appraisal For details about VA appraisal requirements, see Chapter 11. Requirements c. Appraisal For details about requirements for reviewing appraisals and issuing notices of Reviews value for VA purposes, see Chapter 13. d.

VA_Guidelines.txt

2607ae1f-1fb2-4473-8308-00309c5c6331

Submitting An appraisal which the lender chooses not to process under LAPP can be Cases to VA for submitted to the VA office of jurisdiction for VA staff to review and issue an Processing NOV. The submission must include the SAR’s draft NOV letter to the veteran and all of the appraisal documentation required per Appraisal Report Contents in Chapter 11.

VA_Guidelines.txt

38cde128-234c-4883-9c07-28e6a988f4b4

All other VA requirements for a case submitted on the prior approval basis by an automatic lender must also be met. Reference: See Chapter 5, Section 4. Note: Every property eligible for the LAPP should be processed under LAPP.

VA_Guidelines.txt

5f24a9c1-60c4-4135-acb7-9ff2b3279c4b

If a LAPP lender fails to process an eligible property under LAPP, the request for VA guaranty must include a detailed explanation. 15-14 VA Pamphlet 26-7, Revised Chapter 15: Lender Appraisal Processing Program (LAPP) 15.08 Affiliates and Agents Change Date June 28, 2010, Change 14 This section has been updated to add subsection lettering, add hyperlinks, and to edit minor grammatical errors. a.

VA_Guidelines.txt

7c941048-d0bc-404b-a117-85c2eaf61453

Affiliates Unless approved by VA, lenders are not authorized to use LAPP for any: builder, land developer, real estate broker, or other entity which they own or have a financial interest in or are otherwise affiliated with.

VA_Guidelines.txt

70048906-16a8-42d9-bda3-d8254edc9b83

This restriction may not apply if the only relationship between the lender and a builder is a construction loan, or the lender can provide a formal corporate agreement or other documentation which demonstrates to VA’s satisfaction that the lender and builder, or other affiliate, are essentially separate entities operating independently from one another, free of all cross-influences.

VA_Guidelines.txt

4117b41b-c00d-432b-b1f9-d4785b50eb9e

The lender’s quality control plan must specifically address the insulation of the fee appraiser, appraisal reviewer, and the underwriter from the influence of the affiliate. Reference: Chapter 1, Section 7. b.

VA_Guidelines.txt

394a5a81-93bd-41b5-aab9-9d25fb723ede

Reference: Chapter 1, Section 7. b. Lender/ Agents can be involved in LAPP processing only when the sponsoring Agent (funding) lender has an established ongoing agency relationship with the Relationship agent, as evidenced by a corporate resolution accepted by VA. Reference: Chapter 1, Section 8.

VA_Guidelines.txt

6e2aca95-f66b-4a53-ae51-574f916c746c

Reference: Chapter 1, Section 8. Corporate Resolution The corporate resolution must provide that the sponsoring lender accept full responsibility for the actions of its agents. Additionally, the sponsoring lender is responsible for assuring that the agent is appropriately trained and knowledgeable about VA appraisal assignment procedures and the restrictions on their role in LAPP.

VA_Guidelines.txt

fc661940-6d45-48b7-a3a9-d8d877efe8cd

Continued on next page 15-15 Continued from previous page 15-15 VA Pamphlet 26-7, Revised Chapter 15: Lender Appraisal Processing Program (LAPP) 15.08 Affiliates and Agents, Continued c. Agents and Refer to the following table for rules regarding agents and appraisals.

VA_Guidelines.txt

3abdc641-4790-4932-9ddb-fbfffafe0b80

Appraisals If the agent … …then is acting on behalf of an approved he or she may request VA appraisals, LAPP lender and is authorized by receive appraisal reports, and that lender forward them to the lender’s staff appraisal reviewer. requests an appraisal he or she may use either the sponsoring (funding) lender’s VA Assignment System logon or his or her own logon to request appraisals.

VA_Guidelines.txt

6c99e59a-f713-478d-af49-3414c1231d79

An appraisal cannot be requested unless the sponsoring lender is known at the time of the request. If the agent is to receive the appraisal report, the request must include the agent’s: address in item 5, signature in item 38, firm’s name in item 39, and telephone number in item 40.

VA_Guidelines.txt

f54929e0-f461-4391-994a-be01850e25c3

Note: In requesting an appraisal, the authorized agent is making the required certifications on behalf of the sponsoring lender. Continued on next page 15-16 VA Pamphlet 26-7, Revised Chapter 15: Lender Appraisal Processing Program (LAPP) 15.08 Affiliates and Agents, Continued c.

VA_Guidelines.txt

7e3f4f24-d355-45cb-a2fa-b2cc4f63227e

Agents and If the agent … …then Appraisals receives an appraisal report he or she must immediately forward (continued) it to the sponsoring lender who must issue a LAPP NOV within 5 business days of the agent’s receipt of the appraisal report

VA_Guidelines.txt

6429d7ee-2005-497b-9014-230ff1716e04

. contacts the fee appraiser that contact may only be about the timeliness of the appraisal, and not about the value or condition of the property which only the lender’s LAPP SAR is authorized to discuss with the fee appraiser

VA_Guidelines.txt

5265cd48-941d-463d-b680-d8ef2ef7a76c

. does not have LAPP authority but he or she will have violated a VA advertises or otherwise represents in prohibition against such advertising any way that he or she is “LAPP or representation. approved” has LAPP authority he or she cannot issue a LAPP NOV for any other lender.

VA_Guidelines.txt

347e5866-a4b2-4840-b595-14032f07664a

See Chapter 13, Section 10. 15-17 VA Pamphlet 26-7, Revised Chapter 16- Common Interest Communities, Change 3 Condominiums and Planned Unit Development Chapter 16 Common Interest Communities, Condominiums and Planned Unit Developments Overview What is a A common interest community is a subdivision containing common land, often including Common recreational amenities.

VA_Guidelines.txt

ab35c93c-abdf-42cd-a720-3e84189d1fef

That common property is typically owned by an association of the Interest homeowners (HOA), to which they all must belong and pay lien-supported assessments for a Community proportionate share of the expenses of the HOA. Condominiums and planned unit developments (PUDs) are common interest communities.

VA_Guidelines.txt

e7aac4db-9108-48d8-a370-c2bd5d9d017f

Basic VA There are VA requirements applicable to all properties located in either a PUD or Requirements condominium. Also, condominiums (but not PUDs) must be approved by VA before any lots or units in the project are eligible for VA loan guaranty. References: See Section 16-A Requirements Applicable to All Properties in Common Interest Communities, and Condominium Approval Procedures.

VA_Guidelines.txt

3c8d35d7-a079-447f-b4d9-2a5dec72e7bc

VA Approved A nationwide list of VA-approved condominiums, the Condominiums, Planned Unit Condominium Developments and Builders list, can be reached via The Appraisal System (TAS). List The internet address is http://condopudbuilder.vba.va.gov.

VA_Guidelines.txt

44430b15-de75-411c-bcb7-fb66e0d6aaa5

Continued on next page July 14, 2003 16-1 VA Pamphlet 26-7, Revised Chapter 16- Common Interest Communities, Change 3 Condominiums and Planned Unit Development Overview, Continued In This This chapter contains the following sections.

VA_Guidelines.txt

49a80b66-94bc-45ad-abb4-6f60bd83e9b9

Chapter Topic See Page Section A: Requirements for Properties in Common Interest Communities 16-A-1 Section B: Use of Attorney’s Opinion 16-B-1 July 14, 2003 16-2 VA Pamphlet 26-7, Revised Section A: Requirements for Properties in Common Interest Communities Section A Requirements for Properties in Common Interest Communities Overview Basic VA Policy VA’s goal is to help protect the interests of

VA_Guidelines.txt

8ec9bc32-d4dc-479b-b9ee-2f38af8b92f5

VA’s goal is to help protect the interests of veterans and the Government by ensuring that all properties located in a common interest community meet VA regulatory requirements

VA_Guidelines.txt

0060f63c-6d9e-4d77-91c0-37202370d428

.

VA_Guidelines.txt

eef933d8-cc5d-42e9-b631-d9b9a1ba0dc1

Meeting this goal as efficiently and cost effectively as possible serves the best interests of all program participants involved. In This Section This section contains the following topics.

VA_Guidelines.txt

a4dfdfbc-2a89-483d-bb9a-acdee3f6e2c5

Topic See Page 16-A.01 Requirements Applicable to All Properties in Common Interest 16-A-2 Communities 16-A.02 Condominium Approval Procedures 16-A-5 16-A

VA_Guidelines.txt

ecf7bf42-8a0a-45f2-882c-f8d023bb486d

.03 Table of Required Documents 16-A-9 January 1, 2001 16-A-1 VA Pamphlet 26-7, Revised Section A: Requirements for Properties in Common Interest Communities Section A Requirements for Properties in Common Interest Communities Overview Basic VA Policy VA’s goal is to help protect the interests of veterans and the Government by ensuring that all properties located in a common interest community

VA_Guidelines.txt

dce075ab-39ad-46d3-9c07-08b12b950071

properties located in a common interest community meet VA regulatory requirements

VA_Guidelines.txt

0c3efa5d-d289-4abb-8bda-9e3ea40aa661

.

VA_Guidelines.txt

be68b0d7-a11d-43ba-bc39-7a0d2e632211

Meeting this goal as efficiently and cost effectively as possible serves the best interests of all program participants involved. In This Section This section contains the following topics.

VA_Guidelines.txt

99f12355-7ca7-449f-ae71-7e516f4fd7d2

Topic See Page 16-A.01 Requirements Applicable to All Properties in Common Interest 16-A-2 Communities 16-A.02 Condominium Approval Procedures 16-A-5 16-A.03 Table of Required Documents 16-A-9 January 1, 2001 16-A-1 VA Pamphlet 26-7, Revised Section A: Requirements for Properties in Change 1 Common Interest Communities 16-A

VA_Guidelines.txt

5f498423-4212-4e4d-85ce-68a1af51bf30

.01 Requirements Applicable to All Properties in Common Interest Communities Introduction While only condominiums must be approved by VA, lots or units securing VA loans in condominiums and other planned unit developments must meet both title and lien-related VA regulatory requirements.

VA_Guidelines.txt

30c4652a-96fa-4005-9990-d56609791fcd

The lender is responsible for ensuring that these requirements are met for each VA loan. Although there is no specific VA requirement that lenders maintain evidence in the loan file that these requirements are met, they may wish to be guided by the advice of their legal counsel in this regard.

VA_Guidelines.txt

e76a55a3-7739-40bd-86a1-e3127c4a6507

Acceptable The title requirements for every VA loan, whether or not the property is located in a common Title interest communities, are stated in VA regulations (38 CFR 36.4350).

VA_Guidelines.txt

9b5340d1-2e00-47a4-ac43-327277f54f0d

These requirements indicate the estate must not be less than fee simple, except under certain circumstances (38 CFR 36.4350(a)) title must to be subject to unreasonable restrictions o use and occupancy, except under certain circumstances (38 CFR 36

VA_Guidelines.txt

6a610b20-8853-47b7-9645-7b2fdb8737ce

.4350(b)), and certain minor title limitations will not be considered by VA, to the extent described, as materially affecting the value of the property (38 CFR 36.4350 (c)). [38 CFR 36.4350] [38 CFR 36.4350 (a)] [38 CFR 36.4350 (b)] [38 CFR 36.4350 (c)] Superior VA VA regulations require that every VA loan be secured by a first lien on the property, except Lien under certain circumstances

VA_Guidelines.txt

323c4646-adfd-4a43-b04b-60a80a9b7e52

. (38 CFR 36.4351 and 38 CFR 36.4352) When a property is located in a condominium or planned unit development, the lender must ensure that any mandatory homeowner association assessment is subordinate to the VA- guaranteed mortgage. [38 CFR 36.4351] [38 CFR 36

VA_Guidelines.txt

9d4c03f9-c49c-4b25-95f6-cef41009bd6c

. [38 CFR 36.4351] [38 CFR 36.4352] Continued on next page February 5, 2001 16-A-2 VA Pamphlet 26-7, Revised Section A: Requirements for Properties in Change 1 Common Interest Communities 16-A

VA_Guidelines.txt

ac5758b3-c65b-48e1-9794-47f446dff48a

.01 Requirements Applicable to All Properties in Common Interest Communities Introduction While only condominiums must be approved by VA, lots or units securing VA loans in condominiums and other planned unit developments must meet both title and lien-related VA regulatory requirements.

VA_Guidelines.txt

717ad3d4-9996-417d-9b74-8b1c03dc5b5f

The lender is responsible for ensuring that these requirements are met for each VA loan. Although there is no specific VA requirement that lenders maintain evidence in the loan file that these requirements are met, they may wish to be guided by the advice of their legal counsel in this regard.

VA_Guidelines.txt

ecab02e7-7762-4c83-a83b-d22020206b47

Acceptable The title requirements for every VA loan, whether or not the property is located in a common Title interest communities, are stated in VA regulations (38 CFR 36.4350).

VA_Guidelines.txt

f587ec50-118c-4139-aa84-5653613f6aef

These requirements indicate the estate must not be less than fee simple, except under certain circumstances (38 CFR 36.4350(a)) title must to be subject to unreasonable restrictions o use and occupancy, except under certain circumstances (38 CFR 36

VA_Guidelines.txt

db968b7b-6d31-4be5-9254-de108083d97e

.4350(b)), and certain minor title limitations will not be considered by VA, to the extent described, as materially affecting the value of the property (38 CFR 36.4350 (c)). [38 CFR 36.4350] [38 CFR 36.4350 (a)] [38 CFR 36.4350 (b)] [38 CFR 36.4350 (c)] Superior VA VA regulations require that every VA loan be secured by a first lien on the property, except Lien under certain circumstances

VA_Guidelines.txt

855ebe92-df43-4554-b51e-f622a9a7640b

. (38 CFR 36.4351 and 38 CFR 36.4352) When a property is located in a condominium or planned unit development, the lender must ensure that any mandatory homeowner association assessment is subordinate to the VA- guaranteed mortgage. [38 CFR 36.4351] [38 CFR 36

VA_Guidelines.txt

033d8770-4a7b-4293-95a4-21c1a8a63c9c

. [38 CFR 36.4351] [38 CFR 36.4352] Continued on next page February 5, 2001 16-A-2 VA Pamphlet 26-7, Revised Section A: Requirements for Properties in Common Interest Communities 16-A

VA_Guidelines.txt

953bb1d6-45e1-4122-a00b-dd86e22de1c9

.01 Requirements Applicable to All Properties in Common Interest Communities, Continued Appraisal Fee appraisers will use Related Freddie Mac Form 70/FannieMae Form 1004, Uniform Residential Appraisal Report, for properties located in a planned unit development, or Fannie Mae Form 1073, Individual Condominium Unit Appraisal Report, for properties located in a condominium. .

VA_Guidelines.txt

c8c4d785-3226-4ac6-bf64-2fef7618bc69

Requirements specific to properties located in a condominium are outlined in 38 CFR 36.4360a, Appraisal Requirements. If there are any commercial or other non-residential ownership interests in the condominium, the appraisal report must include them and their impact on the value of the residential units.

VA_Guidelines.txt

0a6aaa40-7453-47e9-9652-b2405b69359e

In declarant/developer controlled condominium conversions, the appraiser must ascertain the degree to which the converted structure and unit(s) has been or will be rehabilitated for condominium use.

VA_Guidelines.txt

36420ba4-8732-4e25-95d9-6548f5ecc747

The structure may have been, or is proposed to be, remodeled, renovated, rehabilitated, modernized, or “cosmetically’ refurbished, and provide a description of the type of work completed or proposed to be completed in the conversion being appraised for declarant/developer sales.

VA_Guidelines.txt

b39b41f3-e825-4647-ac1a-78a6d9f119ec

This information is not required in spot resales by sellers other than the declarant/developer. [38 CFR 36.4360a] Continued on next page January 1, 2001 16-A-3 VA Pamphlet 26-7, Revised Section A: Requirements for Properties in Common Interest Communities 16-A

VA_Guidelines.txt

c70d0d4d-c42f-4e0e-9e85-4915e4dddd8d

.01 Requirements Applicable to All Properties in Common Interest Communities, Continued Notice of The notice of value for all properties in a PUD or condominium will be conditioned: “This Value-Related property is located in a development with mandatory membership in a homeowners’ association.

VA_Guidelines.txt

e72deed9-29a3-4099-b086-9ace0fed14b9

The lender is responsible for ensuring that title meets VA requirements for such property and that homeowner association assessments are subordinate to the VA-guaranteed mortgage

VA_Guidelines.txt

2ac00d7d-9702-4f4e-929d-02f1b7a21875

.” In addition, the notice of value for a property in a condominium which has not been approved by VA or for which VA approval-related requirements remain to be satisfied, will be conditioned “The lender is responsible for ensuring that this condominium is acceptable to VA and that any condominium-related special conditions or requirements have been met.

VA_Guidelines.txt

a6bda21f-ff39-4345-809b-4fa849feb384

There may be additional information in ‘Other Conditions/Requirements’, below.” Reference: See “Acceptable Title” and :Superior VA Lien,” in this section; Section 16-A.02, and Chapter 13, Exhibit 1, “LAPP Lender’s Notice of Value”, Items 3 and 4. Note: There are other regulatory-related requirements for a property in a condominium.

VA_Guidelines.txt

7e4a71a9-aa7f-4392-922c-048f82cf57cf

For example: pre-sale requirement per 38 CFR 36.4360a(c) warranty requirements for the unit and common elements per 38 CFR 36.4360a(d), and a wood-destroying insect inspection is required in low rise and high rise units only when the fee appraiser observes a potential problem. [38 CFR 36.4350] [38 CFR 36.4352] [38 CFR 36.4360a(c)] [38 CFR 36

VA_Guidelines.txt

7af82e27-9352-4188-b2aa-4c6be8abf968

.4352] [38 CFR 36.4360a(c)] [38 CFR 36.4360a(d)] January 1, 2001 16-A-4 VA Pamphlet 26-7, Revised Section A: Requirements for Properties in Common Interest Communities 16-A

VA_Guidelines.txt

e91fe2ee-81e0-4a10-a22e-4a2a9b43034a

.01 Requirements Applicable to All Properties in Common Interest Communities, Continued Notice of The notice of value for all properties in a PUD or condominium will be conditioned: “This Value-Related property is located in a development with mandatory membership in a homeowners’ association.

VA_Guidelines.txt

bdade84e-08ed-4f5c-a2e7-88a9a5a932f4

The lender is responsible for ensuring that title meets VA requirements for such property and that homeowner association assessments are subordinate to the VA-guaranteed mortgage

VA_Guidelines.txt

f8eeac64-7f14-421b-bb2a-e76431d5cbc5

.” In addition, the notice of value for a property in a condominium which has not been approved by VA or for which VA approval-related requirements remain to be satisfied, will be conditioned “The lender is responsible for ensuring that this condominium is acceptable to VA and that any condominium-related special conditions or requirements have been met.

VA_Guidelines.txt

a3af8be0-2399-4d3a-beb3-947f833a54fa

There may be additional information in ‘Other Conditions/Requirements’, below.” Reference: See “Acceptable Title” and :Superior VA Lien,” in this section; Section 16-A.02, and Chapter 13, Exhibit 1, “LAPP Lender’s Notice of Value”, Items 3 and 4. Note: There are other regulatory-related requirements for a property in a condominium.

VA_Guidelines.txt

d9b89050-5aa0-48b8-818f-32468179a1e5

For example: pre-sale requirement per 38 CFR 36.4360a(c) warranty requirements for the unit and common elements per 38 CFR 36.4360a(d), and a wood-destroying insect inspection is required in low rise and high rise units only when the fee appraiser observes a potential problem. [38 CFR 36.4350] [38 CFR 36.4352] [38 CFR 36.4360a(c)] [38 CFR 36

VA_Guidelines.txt

21413331-516f-4a13-90c4-a0e6fc2de2a9

.4352] [38 CFR 36.4360a(c)] [38 CFR 36.4360a(d)] January 1, 2001 16-A-4 VA Pamphlet 26-7, Revised Section A: Requirements for Properties in Common Interest Communities 16-A

VA_Guidelines.txt

5cb5cef8-9180-448d-805b-07902a7f1397

.02 Condominium Approval Procedures Request for VA For condominium projects, the lender/sponsor must provide the following to the VA Office Approval of Jurisdiction: a written request for VA-approval, and a copy of the condominium’s organizational documents.

VA_Guidelines.txt

4760a41f-dd19-466c-82f0-63a14914e267

Note: These documents must be reviewed for compliance with VA regulations, and approved by VA before any lots or units in the project are eligible for VA loan guaranty. Reference: See Section 16-A.03. VA Processing VA will of Approval review the condominium’s organizational documents for compliance with VA regulations, Requests and notify the requesting lender/sponsor.

VA_Guidelines.txt

f93aa7da-b96d-4eb1-b99c-7345da471b05

Note: The condominium must be approved by VA before any lots or units in the project are eligible for VA loan guaranty.

VA_Guidelines.txt

b3d5e798-9155-4016-8e46-48c3d87532db

Continued on next page January 1, 2001 16-A-5 VA Pamphlet 26-7, Revised Section A: Requirements for Properties in Common Interest Communities 16-A

VA_Guidelines.txt

068cdaf0-b0e7-4340-849e-38fcbbb63017

.02 Condominium Approval Procedures, Continued How to HUD/USDA Approval Expedite VA Generally, projects already approved by the Department of Housing and Urban Development Approval (HUD) or the United States Department of Agriculture (USDA) do not need further VA review.

VA_Guidelines.txt

136a4eee-54ba-4c4c-9a11-d4165828dda4

Upon receipt of evidence of HUD/USDA approval, such as a copy of the HUD/USDA approved project list or the project approval letter, the VA office of jurisdiction adds the project to the nationwide VA list without issuing a formal VA approval letter. In rare cases, HUD or USDA may approve a project that VA discovers does not comply with VA regulations.

VA_Guidelines.txt

f870e871-ce95-4f99-a950-11db0a306946

In those cases, VA notifies the lender as soon as practicable that it will not guarantee loans in the project. Use of Attorney’s Opinion This is a highly recommended options for condominiums that have not been approved by HUD or USDA. Reference: See Section 16-B.

VA_Guidelines.txt

7140541b-0538-46dc-9e10-838969e2eb61

Reference: See Section 16-B. Use of Previously Approved Documents When the organizational documents being submitted are essentially the same as a set previously approved by VA, the lender/sponsor should include a certification from the declarant or declarant’s attorney which states the fact specifically identifies the previous set, and describes any variation to the previous set.

VA_Guidelines.txt

58986ec0-0ded-43b6-8437-e485e8fc3cb6

State Agency Certification of a Condominium If a state agency certifies that the condominium has been created in compliance with the laws of the state in which it is located, include the certification.

VA_Guidelines.txt

cb427be8-3038-41f9-99ac-b9874c4d34c9

Continued on next page January 1, 2001 16-A-6 VA Pamphlet 26-7, Revised Section A: Requirements for Properties in Common Interest Communities 16-A.02 Condominium Approval Procedures, Continued VA Decision After completing its review of the material submitted with the request for project approval, the VA office of jurisdiction sends a written notice of its decision to the lender/sponsor.

VA_Guidelines.txt

356df982-7657-4e57-8113-49e3f84327a0

When … Then the notice will … the project is approved indicate any special conditions/requirements which must be met prior to VA guaranty of an individual loan in the project, such as recording of documents pre-sale requirement, or completing of common areas.

VA_Guidelines.txt

072a8c15-911a-46f4-9026-661a1f08b5db

Note: There is no formal VA approval letter for projects accepted by VA based on their approval by HUD or USDA. there were explain what further documentation is needed. missing/incomplete documents Note: VA will then suspend processing pending receipt inaccurate/inconsistent of the needed information or material

VA_Guidelines.txt

597092fa-3beb-4ada-8479-017f878a31f7

. information, or correctable deviations from VA requirements the project is unacceptable state the reason.

VA_Guidelines.txt

ff3ba719-9f4e-4a25-950a-06516e45f55d

Note: When there are objectionable provisions related to unreasonably retained controls or rights of the declarant/developer, and it is difficult to amend the documents, VA may consider a separate recorded agreement from the declarant/developer relinquishing the objectionable provisions.

VA_Guidelines.txt

3c494971-11e1-4280-9fd4-65b4fe48f43e

Continued on next page January 1, 2001 16-A-7 VA Pamphlet 26-7, Revised Section A: Requirements for Properties in Common Interest Communities 16-A

VA_Guidelines.txt

a6e29366-bd24-4968-8af3-858af7cb60c0

.02 Condominium Approval Procedures, Continued Document VA recommends that declarants have amendment procedures for the declaration or Amendments equivalent document, amendable by an instrument approved by not less than 67 percent of After Project unit owners.

VA_Guidelines.txt

869cbe98-cbca-4d43-bb12-b241a412c770

The association must request VA approval of proposed amendments prior to Approval recordation. VA approval of any amendments to the declaration, bylaws, or other enabling documentation is required while the declarant is in control of the homeowner’s association.

VA_Guidelines.txt

eb8c4447-393d-4e09-b526-ce836d8f2ea6

A written statement signed by an officer of the Association’s Board of Directors and submitted with VA Form 26-1844, is required as evidence of approval. Changes made by the declarant prior to the first sale in a condominium project may require amendment of the organizational documents.

VA_Guidelines.txt

aec2721a-6bae-4fc1-875d-5e52f12ef62d

Note: VA approval is not required for amendments which annex additional phases to the condominium in accordance with a development plan previously accepted by VA.

VA_Guidelines.txt

3ee74571-4dca-44db-94fb-7f5feab67a7f

Mortgagee The condominium documents may specify the following rights for the holders of first Rights mortgages, provided the lender makes a written request to the Association for the right, and includes prior approval by first lienholders before the Association can abandon condominium status or partition or subdivide a unit or the common elements change the percentage interest of unit owners, or

VA_Guidelines.txt