*Chapter 15- Lender Appraisal Processing Program (LAPP) VA Pamphlet
26-7, Revised*

*Change 3*

## Chapter 15

## Lender Appraisal Processing Program (LAPP)

#### Overview

+------------+---------------------------------------------------------+
| #          | > The purpose of the Lender Appraisal Program (LAPP) is |
| #### Purpo | > to speed the time to loan closing by allowing         |
| se of LAPP | > VA-authorized lenders to receive appraisal reports    |
|            | > directly from appraisers and process them without VA  |
|            | > involvement.                                          |
+------------+---------------------------------------------------------+

+------------+---+-----+-------------------------------------------------+---+
| ##### How  | > |     |                                                 |   |
| LAPP Works |   |     |                                                 |   |
|            | T |     |                                                 |   |
|            | h |     |                                                 |   |
|            | e |     |                                                 |   |
|            | r |     |                                                 |   |
|            | e |     |                                                 |   |
|            | > |     |                                                 |   |
|            |   |     |                                                 |   |
|            | a |     |                                                 |   |
|            | r |     |                                                 |   |
|            | e |     |                                                 |   |
|            | > |     |                                                 |   |
|            |   |     |                                                 |   |
|            | b |     |                                                 |   |
|            | a |     |                                                 |   |
|            | s |     |                                                 |   |
|            | i |     |                                                 |   |
|            | c |     |                                                 |   |
|            | a |     |                                                 |   |
|            | l |     |                                                 |   |
|            | l |     |                                                 |   |
|            | y |     |                                                 |   |
|            | > |     |                                                 |   |
|            |   |     |                                                 |   |
|            | f |     |                                                 |   |
|            | o |     |                                                 |   |
|            | u |     |                                                 |   |
|            | r |     |                                                 |   |
|            | > |     |                                                 |   |
|            |   |     |                                                 |   |
|            | s |     |                                                 |   |
|            | t |     |                                                 |   |
|            | e |     |                                                 |   |
|            | p |     |                                                 |   |
|            | s |     |                                                 |   |
|            | > |     |                                                 |   |
|            |   |     |                                                 |   |
|            | i |     |                                                 |   |
|            | n |     |                                                 |   |
|            | > |     |                                                 |   |
|            |   |     |                                                 |   |
|            | p |     |                                                 |   |
|            | r |     |                                                 |   |
|            | o |     |                                                 |   |
|            | c |     |                                                 |   |
|            | e |     |                                                 |   |
|            | s |     |                                                 |   |
|            | s |     |                                                 |   |
|            | i |     |                                                 |   |
|            | n |     |                                                 |   |
|            | g |     |                                                 |   |
|            | > |     |                                                 |   |
|            |   |     |                                                 |   |
|            | L |     |                                                 |   |
|            | A |     |                                                 |   |
|            | P |     |                                                 |   |
|            | P |     |                                                 |   |
|            | > |     |                                                 |   |
|            |   |     |                                                 |   |
|            | c |     |                                                 |   |
|            | a |     |                                                 |   |
|            | s |     |                                                 |   |
|            | e |     |                                                 |   |
|            | s |     |                                                 |   |
|            | . |     |                                                 |   |
+------------+---+-----+-------------------------------------------------+---+
|            |   | St  | Description                                     |   |
|            |   | age |                                                 |   |
+------------+---+-----+-------------------------------------------------+---+
|            |   | 1   | The LAPP lender requests VA assignment of a fee |   |
|            |   |     | appraiser and a VA loan number (same as any     |   |
|            |   |     | other case) and identifies the case as "LAPP."  |   |
+------------+---+-----+-------------------------------------------------+---+
|            |   | 2   | The VA-assigned appraiser sends the appraisal   |   |
|            |   |     | report directly to the LAPP lender's            |   |
|            |   |     | VA-approved staff appraisal reviewer (SAR).     |   |
+------------+---+-----+-------------------------------------------------+---+
|            |   | 3   | The LAPP lender's SAR                           | - |
|            |   |     |                                                 |   |
|            |   |     | -   reviews the appraisal report for            |   |
|            |   |     |     completeness and conformity with            |   |
|            |   |     |     industry-accepted appraisal practices and   |   |
|            |   |     |     techniques as well as other VA requirements |   |
|            |   |     |                                                 |   |
|            |   |     | -   determines the reasonable value of the      |   |
|            |   |     |     property and any conditions which must be   |   |
|            |   |     |     met prior to VA guaranty of the loan, and   |   |
|            |   |     |                                                 |   |
|            |   |     | -   sends the veteran buyer a written notice of |   |
|            |   |     |     the value which includes any conditions or  |   |
|            |   |     |     requirements upon which the VA loan         |   |
|            |   |     |     guaranty is contingent.                     |   |
+------------+---+-----+-------------------------------------------------+---+
|            |   | 4   | The LAPP lender then underwrites and closes the |   |
|            |   |     | loan on the automatic basis and requests VA     |   |
|            |   |     | guaranty.                                       |   |
+------------+---+-----+-------------------------------------------------+---+

Continued on next page

July 14, 2003 15-1

*Chapter 15- Lender Appraisal Processing Program (LAPP) VA Pamphlet
26-7, Revised*

*Change 3*

Overview, Continued

+------------+---------------------------------------------------------+
| #          | > This chapter contains the following topics.           |
| #### In th |                                                         |
| is Chapter |                                                         |
+------------+---------------------------------------------------------+

  ---------------------------------------------------------- ------------
  Topic                                                      See Page

  15.01 LAPP Eligibility                                     15-3

  15.02 Lender Quality Control System Requirements           15-6

  15.03 Applying for LAPP Authority                          15-8

  15.04 SAR Training and Initial Case Reviews                15-9

  15.05 Changes in SAR's Employment or Lender's Status       15-13

  15.06 Lender Responsibilities Under LAPP                   15-14

  15.07 LAPP Processing Procedures                           15-15

  15.08 Affiliates and Agents                                15-17

  Exhibit 1: LAPP Application                                15-20
  ---------------------------------------------------------- ------------

#### 

#### 

**July 14, 2003 15-2**

*Chapter 15: Lender Appraisal Processing Program (LAPP) VA Pamphlet 26-7
Revised*

#### 15.01 LAPP Eligibility

+------------+---------------------------------------------------------+
| #####      | > VA may grant Lender Appraisal Processing Program      |
|  Lender Re | > (LAPP) authority to any automatic lender that         |
| quirements | > requests it and meets the qualification criteria      |
|            | > outlined in this chapter, including the Lender        |
|            | > Quality Control System Requirements.                  |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > The lender exercises its LAPP authority through an    |
| # Role of  | > employee who is a VA-approved staff appraisal         |
| Staff Appr | > reviewer (SAR).                                       |
| aisal Revi |                                                         |
| ewer (SAR) |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > A lender's staff appraisal reviewer (SAR) must        |
| ### SAR Re |                                                         |
| quirements | -   be a full-time salaried employee of the lender, and |
|            |                                                         |
|            | -   have at least 3 years of work experience of a type  |
|            |     which qualifies him or her to competently perform   |
|            |     administrative appraisals reviews in conjunction    |
|            |     with underwriting loans for VA loan guaranty        |
|            |     purposes.                                           |
+------------+---------------------------------------------------------+

Continued on next page

January 1, 2001 15-3

*Chapter 15: Lender Appraisal Processing Program (LAPP) VA Pamphlet 26-7
Revised*

*Change 1*

15.01 LAPP Eligibility, Continued

+------------+---------------------------------------------------------+
| ##### SAR' | > The SAR's work experience must indicate that he or    |
| s Work Exp | > she has                                               |
| erience Re |                                                         |
| quirements | -   general knowledge of the principles, methods,       |
|            |     practices and techniques of appraising and the      |
|            |     ability to apply that knowledge                     |
|            |                                                         |
|            | -   the ability to review the work of others and        |
|            |     recognize deviations from accepted appraisal        |
|            |     principles and practices                            |
|            |                                                         |
|            | -   the ability to detect errors in computations, and   |
|            |                                                         |
|            | -   ability to detect conclusions which are not         |
|            |     supported.                                          |
|            |                                                         |
|            |     > It is also desirable for the SAR to have          |
|            |                                                         |
|            | -   knowledge of general realty practices and           |
|            |     principles related to real property valuation       |
|            |                                                         |
|            | -   skill in collecting and assembling data, and        |
|            |                                                         |
|            | -   ability to prepare clear and concise reports.       |
|            |                                                         |
|            |     > ***Note***: Three years' experience related to    |
|            |     > the HUD Direct Endorsement program satisfies the  |
|            |     > experience requirement, provided all other        |
|            |     > application requirements are satisfied.           |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | -   There is no restriction on the location of a        |
| #### Locat |     lender's SAR.                                       |
| ion of SAR |                                                         |
+------------+---------------------------------------------------------+

Continued on next page

January 1, 2001 15-4

*Chapter 15: Lender Appraisal Processing Program (LAPP) VA Pamphlet 26-7
Revised* 15.01 LAPP Eligibility, Continued

+------------+---------------------------------------------------------+
| #          | > Once a SAR has satisfied the LAPP training and        |
| #### Geogr | > initial case review requirements (SAR Training and    |
| aphic Exte | > Initial Case Reviews in this chapter), their LAPP     |
| nt of LAPP | > authority may be used for properties in any state in  |
|            | > which the lender has authority to close loans under   |
|            | > the automatic procedure.                              |
|            | >                                                       |
|            | > If a lender's automatic authority is extended into a  |
|            | > new state, their SAR's LAPP authority is immediately  |
|            | > extended as well.                                     |
|            | >                                                       |
|            | > ***Important***: It is the SAR's responsibility to    |
|            | > stay informed about any local VA processing           |
|            | > requirements unique to the VA jurisdiction in which a |
|            | > property is located.                                  |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > There must be no conflict of interest between the     |
| #### SAR C | > SAR's role as SAR and any other activities that he or |
| onflicts o | > she conducts. Examples of other activities which      |
| f Interest | > would be a conflict of interest include               |
|            |                                                         |
|            | -   SAR is on the VA fee appraisal panel, or            |
|            |                                                         |
|            | -   SAR is employed by or performs appraisal review     |
|            |     services for another lender.                        |
+------------+---------------------------------------------------------+

**January 1, 2001 15-5**

#### *Chapter 15: Lender Appraisal Processing Program (LAPP) VA Pamphlet 26-7 Revised* 15.02 Lender Quality Control System Requirements

+------------+---------------------------------------------------------+
| ##### In   | > To qualify for LAPP authority, the lender must have   |
| troduction | > an effective quality control (QC) system which        |
|            | > ensures the adequacy and quality of its staff         |
|            | > appraisal reviews. This QC system must be independent |
|            | > of the lender's loan production operation.            |
|            | >                                                       |
|            | > Upon request, the lender must agree to furnish VA     |
|            | > with findings and information about the system. The   |
|            | > senior officer must certify on each SAR's LAPP        |
|            | > application that the QC system meets the requirements |
|            | > detailed in this section.                             |
|            | >                                                       |
|            | > ***Reference***: See Exhibit 1 in this chapter.       |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### QC   | > Reviews of the SARs' work may be performed by an      |
|  Reviewers | > independent party or independent internal audit       |
|            | > division which reports directly to the lender's chief |
|            | > executive officer. QC personnel should possess        |
|            |                                                         |
|            | -   a basic familiarity with appraisal theory and       |
|            |     techniques, and                                     |
|            |                                                         |
|            | -   the ability to prescribe appropriate corrective     |
|            |     actions when problems in the appraisal review       |
|            |     process are identified.                             |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | Perform desk reviews of each SAR's appraisal reviews on |
| Frequency  | a routine basis (monthly or quarterly). The sample size |
| and Scope  | should be no less than                                  |
| of Reviews |                                                         |
|            | -   5 percent of the SAR's LAPP cases processed         |
|            |     monthly, or                                         |
|            |                                                         |
|            | -   a minimum number of cases (for example, five        |
|            |     cases).                                             |
|            |                                                         |
|            |     > There must be a procedure for expanding the scope |
|            |     > of the reviews if a pattern of deficiencies is    |
|            |     > identified.                                       |
+------------+---------------------------------------------------------+

Continued on next page

January 1, 2001 15-6

*Chapter 15: Lender Appraisal Processing Program (LAPP) VA Pamphlet 26-7
Revised*

Chapter 15: Lender Appraisal Processing Program (LAPP) VA Pamphlet 26-7
Revised 15.02 Lender Quality Control System Requirements, Continued

+------------+---------------------------------------------------------+
| ####       | > QC reviews should consider the                        |
| # QC Revie |                                                         |
| w Criteria | -   overall quality of the SAR's appraisal review       |
|            |                                                         |
|            | -   acceptability of the property in light of VA        |
|            |     minimum property requirements, and                  |
|            |                                                         |
|            | -   appropriateness of the reasonable value             |
|            |     determination.                                      |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > The QC system must provide assurance that all current |
| Maintenanc | > pertinent VA regulations, directives, and other       |
| e of VA Pu | > releases are maintained and immediately available to  |
| blications | > the quality control personnel and SARs.               |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > The QC system must provide for written notification   |
| #### Manag | > of deficiencies cited as a result of audits or        |
| ement Noti | > reviews at least quarterly to the                     |
| fication a |                                                         |
| nd Correct | -   lender\'s senior management, or                     |
| ive Action |                                                         |
|            | -   chief executive officer.                            |
|            |                                                         |
|            |     The QC system must require senior management to     |
|            |                                                         |
|            | -   promptly initiate and document actions to correct   |
|            |     deficiencies, and                                   |
|            |                                                         |
|            | -   provide SARs with corrective instructions.          |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### Rev  | > In addition to reviews of the SARs' work, random      |
| iew of VA  | > field reviews of VA fee panel appraisals should be    |
| Fee Panel  | > performed. These reviews can be done by the           |
| Appraisals |                                                         |
|            | -   SAR, or                                             |
|            |                                                         |
|            | -   an independent appraiser on a contract basis.       |
|            |                                                         |
|            |     > ***Note***: Formally report any substantive       |
|            |     > negative findings to the VA regional office where |
|            |     > the appraiser is a member of the fee panel.       |
+------------+---------------------------------------------------------+

#### January 1, 2001 15-7 

#### *Chapter 15: Lender Appraisal Processing Program (LAPP) VA Pamphlet 26-7 Revised* 15.03 Applying for LAPP Authority

+------------+---------------------------------------------------------+
| #####      | > Submit a separate application and fee for each SAR    |
| Applicatio | > approval request to the VA regional office with       |
| n and Fees | > jurisdiction over the SAR's physical location.        |
|            | >                                                       |
|            | > Legitimate requests to submit the application to a VA |
|            | > office more conveniently located for training and     |
|            | > other interactions between the SAR and VA will be     |
|            | > considered.                                           |
|            | >                                                       |
|            | > For each SAR, include a \$100 processing fee plus the |
|            | > information, statements and certifications exactly as |
|            | > detailed in the Exhibits (at the end of this          |
|            | > chapter), either on                                   |
|            |                                                         |
|            | -   lender letterhead, or                               |
|            |                                                         |
|            | -   attached to a statement on lender letterhead which  |
|            |     references it.                                      |
|            |                                                         |
|            |     > The same procedure applies to subsequent requests |
|            |     > for VA approval of additional SARs.               |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ###        | > The VA regional office will review the application    |
| ## Notific | > materials submitted and notify the lender of its      |
| ation of V | > decision as quickly as possible.                      |
| A Decision | >                                                       |
|            | > If VA determines that the SAR meets basic LAPP        |
|            | > qualification requirements, it will inform the lender |
|            | > that the SAR must fulfill the *SAR Training and       |
|            | > Initial Case Review* requirements detailed in this    |
|            | > chapter.                                              |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### SAR  | > The notice from VA will provide a permanent ID number |
|  ID Number | > for each SAR approved. The SAR always retains the     |
|            | > same ID number, even if he or she goes to work for    |
|            | > another lender and is approved as an SAR for that     |
|            | > other lender.                                         |
+------------+---------------------------------------------------------+

#### 

#### 

#### 

#### January 1, 2001 15-8 

#### *Chapter 15: Lender Appraisal Processing Program (LAPP) VA Pamphlet 26-7 Revised* 15.04 SAR Training 

+------------+---------------------------------------------------------+
| ###        | > The SAR may not begin performing appraisal reviews    |
| ## Trainin | > independently after VA's notification of approval     |
| g and Case | > until he or she fulfills                              |
|  Review Re |                                                         |
| quirements | -   VA training requirements, and                       |
|            |                                                         |
|            | -   VA initial case review requirements.                |
|            |                                                         |
|            |     > Generally, VA staff will train the SAR and then   |
|            |     > conduct the initial case reviews.                 |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### E    | > The following are the three exceptions to the SAR     |
| xceptions  | > training and initial case review requirements:        |
| to Trainin | >                                                       |
| g and Case | > ***SAR Training During or After Case Reviews***       |
|  Review Re | >                                                       |
| quirements | > The lender may request that the training be conducted |
|            | > during or after the case review requirement.          |
|            | >                                                       |
|            | > ***SAR With Prior LAPP Experience***                  |
|            | >                                                       |
|            | > The lender may request a waiver of the training and   |
|            | > case review requirements for an SAR who               |
|            |                                                         |
|            | -   previously satisfied those requirements while       |
|            |     employed by another LAPP lender, and                |
|            |                                                         |
|            | -   has satisfactorily processed LAPP cases within the  |
|            |     last year.                                          |
|            |                                                         |
|            |     > ***Experienced SAR to Train and Supervise New     |
|            |     > SAR***                                            |
|            |                                                         |
|            |     > The lender may request that one of its            |
|            |     > experienced SARs train and review the initial     |
|            |     > cases of a new SAR. The experienced SAR must      |
|            |                                                         |
|            | -   have full LAPP authority and be performing          |
|            |     acceptably                                          |
|            |                                                         |
|            | -   provide adequate training to the new SAR, and       |
|            |                                                         |
|            | -   review and ensure the acceptability of the new      |
|            |     SAR's initial LAPP cases.                           |
+------------+---------------------------------------------------------+

Continued on next page

January 1, 2001 15-9

*Chapter 15: Lender Appraisal Processing Program (LAPP) VA Pamphlet 26-7
Revised* January 1, 2001 15-8 Chapter 15: Lender Appraisal Processing
Program (LAPP) VA Pamphlet 26-7 Revised 15.04 SAR Training and Initial
Case Reviews, Continued

+------------+---------------------------------------------------------+
| ##### Trai | > Once the training and case reviews are acceptably     |
| ning and C | > completed, the lender's senior officer must send the  |
| ase Review | > VA office a signed and dated notice which includes    |
| s Complete |                                                         |
| d by Exper | -   the name and SAR ID number of both the trainee and  |
| ienced SAR |     trainer, and                                        |
|            |                                                         |
|            | -   a letter stating that                               |
|            |                                                         |
|            | -   the training covered all VA LAPP requirements, and  |
|            |                                                         |
|            | -   the trainer reviewed at least five cases            |
|            |     successfully completed by the trainee.              |
|            |                                                         |
|            | > ***Note***: The letter must include the VA case       |
|            | > number for at least five cases.                       |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > If the training and case review requirements are not  |
| Training b | > waived by VA or completed by an experienced SAR upon  |
| y VA Staff | > receipt of VA's notification that the SAR meets the   |
|            | > basic LAPP qualification requirements, the lender     |
|            | > must call that VA office to arrange for SAR training. |
|            | > VA will normally provide the training                 |
|            |                                                         |
|            | -   at the VA office (but may provide it in meetings or |
|            |     seminars at other locations in conjunction with     |
|            |     scheduled VA field travel), and                     |
|            |                                                         |
|            | -   within 30 days.                                     |
|            |                                                         |
|            |     > At a minimum, the training by VA staff should     |
|            |     > consist of a one day session to discuss           |
|            |                                                         |
|            | -   LAPP processing procedures and guidelines, and      |
|            |                                                         |
|            | -   any local VA office requirements and conditions.    |
|            |                                                         |
|            |     > ***Note***: Due to the need for consistency       |
|            |     > between VA offices nationwide, each office is     |
|            |     > expected to limit local requirements and          |
|            |     > conditions to only those that are essential.      |
+------------+---------------------------------------------------------+

Continued on next page

January 1, 2001 15-10

*Chapter 15: Lender Appraisal Processing Program (LAPP) VA Pamphlet 26-7
Revised* January 1, 2001 15-8 Chapter 15: Lender Appraisal Processing
Program (LAPP) VA Pamphlet 26-7 Revised 15.04 SAR Training and Initial
Case Reviews, Continued

+------------+---+-----+-------------------------------------------------+---+
| ##         | > |     |                                                 |   |
| ### Proced |   |     |                                                 |   |
| ure for Ca | E |     |                                                 |   |
| se Reviews | a |     |                                                 |   |
|            | c |     |                                                 |   |
|            | h |     |                                                 |   |
|            | > |     |                                                 |   |
|            |   |     |                                                 |   |
|            | S |     |                                                 |   |
|            | A |     |                                                 |   |
|            | R |     |                                                 |   |
|            | ' |     |                                                 |   |
|            | s |     |                                                 |   |
|            | > |     |                                                 |   |
|            |   |     |                                                 |   |
|            | f |     |                                                 |   |
|            | i |     |                                                 |   |
|            | r |     |                                                 |   |
|            | s |     |                                                 |   |
|            | t |     |                                                 |   |
|            | > |     |                                                 |   |
|            |   |     |                                                 |   |
|            | f |     |                                                 |   |
|            | i |     |                                                 |   |
|            | v |     |                                                 |   |
|            | e |     |                                                 |   |
|            | > |     |                                                 |   |
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|            | c |     |                                                 |   |
|            | a |     |                                                 |   |
|            | s |     |                                                 |   |
|            | e |     |                                                 |   |
|            | s |     |                                                 |   |
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|            |   |     |                                                 |   |
|            | m |     |                                                 |   |
|            | u |     |                                                 |   |
|            | s |     |                                                 |   |
|            | t |     |                                                 |   |
|            | > |     |                                                 |   |
|            |   |     |                                                 |   |
|            | b |     |                                                 |   |
|            | e |     |                                                 |   |
|            | > |     |                                                 |   |
|            |   |     |                                                 |   |
|            | p |     |                                                 |   |
|            | r |     |                                                 |   |
|            | o |     |                                                 |   |
|            | c |     |                                                 |   |
|            | e |     |                                                 |   |
|            | s |     |                                                 |   |
|            | s |     |                                                 |   |
|            | e |     |                                                 |   |
|            | d |     |                                                 |   |
|            | > |     |                                                 |   |
|            |   |     |                                                 |   |
|            | a |     |                                                 |   |
|            | s |     |                                                 |   |
|            | > |     |                                                 |   |
|            |   |     |                                                 |   |
|            | d |     |                                                 |   |
|            | e |     |                                                 |   |
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|            | r |     |                                                 |   |
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|            | e |     |                                                 |   |
|            | d |     |                                                 |   |
|            | > |     |                                                 |   |
|            |   |     |                                                 |   |
|            | i |     |                                                 |   |
|            | n |     |                                                 |   |
|            | > |     |                                                 |   |
|            |   |     |                                                 |   |
|            | t |     |                                                 |   |
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|            | a |     |                                                 |   |
|            | b |     |                                                 |   |
|            | l |     |                                                 |   |
|            | e |     |                                                 |   |
|            | > |     |                                                 |   |
|            |   |     |                                                 |   |
|            | b |     |                                                 |   |
|            | e |     |                                                 |   |
|            | l |     |                                                 |   |
|            | o |     |                                                 |   |
|            | w |     |                                                 |   |
|            | . |     |                                                 |   |
+------------+---+-----+-------------------------------------------------+---+
|            |   | St  | Description                                     |   |
|            |   | age |                                                 |   |
+------------+---+-----+-------------------------------------------------+---+
|            |   | 1   | SAR fully reviews the fee appraiser's report.   |   |
+------------+---+-----+-------------------------------------------------+---+
|            |   | 2   | SAR determines the reasonable value of the      |   |
|            |   |     | property.                                       |   |
+------------+---+-----+-------------------------------------------------+---+
|            |   | 3   | SAR drafts a notice of value (NOV) to the       |   |
|            |   |     | veteran purchaser.                              |   |
|            |   |     |                                                 |   |
|            |   |     | > ***Note***: SAR should not send it to the     |   |
|            |   |     | > veteran purchaser.                            |   |
+------------+---+-----+-------------------------------------------------+---+
|            |   | 4   | VA staff or an experienced SAR with VA          | - |
|            |   |     | permission reviews the following items:         |   |
|            |   |     |                                                 |   |
|            |   |     | -   the NOV                                     |   |
|            |   |     |                                                 |   |
|            |   |     | -   the appraisal request                       |   |
|            |   |     |                                                 |   |
|            |   |     | -   the appraisal report, and                   |   |
|            |   |     |                                                 |   |
|            |   |     | -   any related documents.                      |   |
+------------+---+-----+-------------------------------------------------+---+
|            |   | 5   | If the SAR's work on the case is acceptable     | - |
|            |   |     |                                                 |   |
|            |   |     | -   VA staff will issue a Certificate of        |   |
|            |   |     |     Reasonable Value (CRV) to the lender within |   |
|            |   |     |     five work days of receipt of the package,   |   |
|            |   |     |     or                                          |   |
|            |   |     |                                                 |   |
|            |   |     | -   The experienced SAR reviewer will also      |   |
|            |   |     |     update and sign the SAR certification and   |   |
|            |   |     |     mail the NOV to the veteran purchaser.      |   |
|            |   |     |                                                 |   |
|            |   |     | -                                               |   |
|            |   |     |                                                 |   |
|            |   |     | -   ***Reference***: See Section 13.03.         |   |
+------------+---+-----+-------------------------------------------------+---+

Continued on next page

January 1, 2001 15-11

*Chapter 15: Lender Appraisal Processing Program (LAPP) VA Pamphlet 26-7
Revised* January 1, 2001 15-8 Chapter 15: Lender Appraisal Processing
Program (LAPP) VA Pamphlet 26-7 Revised 15.04 SAR Training and Initial
Case Reviews, Continued

+------------+---------------------------------------------------------+
| ##### Case | > Refer to the following table when the initial case    |
|  Reviews b | > reviews are made by VA staff.                         |
| y VA 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 five days of      |
|                                  | receipt of the package.           |
+----------------------------------+-----------------------------------+
| > found to have substantive      | > VA's letter to the lender       |
| > deficiencies such as failure   |                                   |
| > to                             | -   will state that the SAR must  |
|                                  |     continue to submit LAPP cases |
| -   identify significant         |     for VA review and issuance of |
|     appraisal errors, or         |     a VA CRV prior to closing,    |
|                                  |     and                           |
| -   correctly note minimum       |                                   |
|     property requirements or     | -   may direct the SAR to visit   |
|     other conditions or          |     the VA office for counseling  |
|     requirements on the NOV      |     or further training.          |
+----------------------------------+-----------------------------------+
| -   fully acceptable             | > VA will not provide feedback on |
|                                  | > the individual case.            |
+----------------------------------+-----------------------------------+
| > fully acceptable and the last  | > VA will notify the lender by    |
| > item necessary to satisfy all  | > letter that the SAR has         |
| > initial case review (and       | > satisfied all requirements and  |
| > training) requirements         | > may process cases independently |
|                                  | > and issue the NOV.              |
+----------------------------------+-----------------------------------+

#### January 1, 2001 15-12 

#### *Chapter 15: Lender Appraisal Processing Program (LAPP) VA Pamphlet 26-7 Revised* 15.05 Changes in SAR's Employment or Lender's Status

+------------+---------------------------------------------------------+
| #          | > The lender must promptly notify VA if the SAR         |
| #### SAR N |                                                         |
| o Longer E | -   is no longer employed, or                           |
| mployed or |                                                         |
|  Performin | -   is no longer functioning as an SAR for the lender.  |
| g SAR Work |                                                         |
|            |     > If either of these two apply                      |
|            |                                                         |
|            | -   the SAR's LAPP authority automatically ceases, and  |
|            |                                                         |
|            | -   the lender's eligibility to participate in LAPP is  |
|            |     terminated if that individual was the lender's only |
|            |     SAR.                                                |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | If the SAR begins work for a new lender, that lender    |
| ### SAR Em | must promptly submit to VA a                            |
| ployed By  |                                                         |
| New Lender | -   new LAPP application (Exhibit 1 in this chapter),   |
|            |     and                                                 |
|            |                                                         |
|            | -   \$100 processing fee.                               |
|            |                                                         |
|            |     > 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       |
|            |     within the last year.                               |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### Lend | > The lender must notify VA any time there is a         |
| er Changes |                                                         |
|            | -   change in ownership                                 |
|            |                                                         |
|            | -   merger, or                                          |
|            |                                                         |
|            | -   acquisition.                                        |
|            |                                                         |
|            |     > ***Reference***: See Section 1.09 for a           |
|            |     > description of the information VA needs from the  |
|            |     > lender to continue its LAPP authority.            |
+------------+---------------------------------------------------------+

#### January 1, 2001 15-13

####  

#### *Chapter 15: Lender Appraisal Processing Program (LAPP) VA Pamphlet 26-7 Revised* 15.06 Lender Responsibilities Under LAPP

+------------+---------------------------------------------------------+
| ##### Due  | > Lenders are expected to exercise due diligence in     |
|  Diligence | > processing LAPP cases and are responsible for         |
|            | > complying with all applicable                         |
|            |                                                         |
|            | -   VA policies and procedures                          |
|            |                                                         |
|            | -   VA regulations, and                                 |
|            |                                                         |
|            | -   statutory requirements.                             |
|            |                                                         |
|            |     > VA considers due diligence to be that 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.           |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > In assuming the responsibilities involved with        |
| # What LAP | > processing an appraisal under LAPP and subsequently   |
| P Lenders  | > underwriting the VA loan on the automatic basis, the  |
| Can 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.   |
|            |                                                         |
|            |     > ***Reference***: See Section 17.04                |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### LAPP | > LAPP authority is a privilege delegated to lenders at |
|  Privilege | > VA's discretion. 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.                                          |
|            |                                                         |
|            |     > ***Reference***: For more information, refer to   |
|            |     > Chapter 17*.*                                     |
+------------+---------------------------------------------------------+

#### January 1, 2001 15-14 

*VA Pamphlet 26-7, Revised Chapter 15- Lender Appraisal Processing
Program (LAPP)*

*Change 3*

#### 15.07 LAPP Processing Procedures

+------------+---------------------------------------------------------+
| ##### Pro  | > The appraisal of any property eligible to be the      |
| perty Elig | > security for a VA loan can be processed under LAPP    |
| ibility an | > except                                                |
| d Appraisa |                                                         |
| l Requests | -   master appraisals                                   |
|            |                                                         |
|            | -   foreclosure appraisals                              |
|            |                                                         |
|            | -   those involving partial release of VA loan          |
|            |     security, and                                       |
|            |                                                         |
|            | -   those involving HUD value determinations.           |
|            |                                                         |
|            |     > ***Reference***: For details regarding the        |
|            |     > eligibility of property for appraisal for VA      |
|            |     > purposes, as well as VA appraisal request         |
|            |     > instructions, see Chapter 10.                     |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### Ap   | > For details about VA appraisal requirements, see      |
| praisal Re | > Chapter 11.                                           |
| quirements |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ###        | > For details about requirements for reviewing          |
| ## Apprais | > appraisals and issuing notices of value for VA        |
| al Reviews | > purposes, see Chapter 13. and Notices of Value        |
+------------+---------------------------------------------------------+

July 14, 2003 15-15

*VA Pamphlet 26-7, Revised Chapter 15- Lender Appraisal Processing
Program (LAPP)*

*Change 3*

#### 15.07 LAPP Processing Procedures

+------------+---------------------------------------------------------+
| ###        | > An appraisal which the lender chooses not to process  |
| ## Submitt | > under LAPP can be submitted to the VA office of       |
| ing Cases  | > jurisdiction for VA staff to review and issue a       |
| to VA for  | > Notice of Value (NOV).                                |
| Processing | >                                                       |
|            | > The submission must include the SAR's draft notice of |
|            | > value (NOV) letter to the veteran and all of the      |
|            | > appraisal documentation required per Appraisal Report |
|            | > Contents in Chapter 11. All other VA requirements for |
|            | > a case submitted on the prior approval basis by an    |
|            | > automatic lender must also be met.                    |
|            | >                                                       |
|            | > ***Reference***: See Section 5.04.                    |
|            | >                                                       |
|            | > ***Note:*** Every property eligible for the Lender    |
|            | > Appraisal Processing Program (LAPP) should be         |
|            | > processed under LAPP. If a LAPP lender fails to       |
|            | > process an eligible property under LAPP, the request  |
|            | > for VA guaranty must include a **detailed**           |
|            | > explanation.                                          |
+------------+---------------------------------------------------------+

July 14, 2003 15-16

*VA Pamphlet 26-7, Revised Chapter 15- Lender Appraisal Processing
Program (LAPP)*

*Change 3*

#### 15.08 Affiliates and Agents

+------------+---------------------------------------------------------+
| #####      | > Unless approved by VA, lenders are not authorized to  |
| Affiliates | > 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.       |
|            |                                                         |
|            |     > 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 of one another, free of all |
|            |     cross-influences.                                   |
|            |                                                         |
|            |     > 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.  |
|            |                                                         |
|            |     > ***See*** Section 1.07                            |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > Agents can be involved in LAPP processing only when   |
| #### Lende | > the sponsoring (funding) lender has an established    |
| r/Agent Re | > ongoing agency relationship with the agent, as        |
| lationship | > evidenced by a corporate resolution accepted by VA.   |
|            | >                                                       |
|            | > ***See*** Section 1.08.                               |
|            | >                                                       |
|            | > ***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.                                |
+------------+---------------------------------------------------------+

Continued on next page

July 14, 2003 15-17

*VA Pamphlet 26-7, Revised Chapter 15- Lender Appraisal Processing
Program (LAPP)*

*Change 3*

15.08 Affiliates and Agents, Continued

+------------+---------------------------------------------------------+
| ##### A    | > Refer to the following table for rules regarding      |
| gents and  | > agents and appraisals.                                |
| Appraisals |                                                         |
+------------+---------------------------------------------------------+

+----------------------------------+-----------------------------------+
| If the agent ...                 | Then ...                          |
+----------------------------------+-----------------------------------+
| > is acting on behalf of an      | he or she may request VA          |
| > approved LAPP lender and is    | appraisals, receive appraisal     |
| > authorized by that lender      | reports, and 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. 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.  |
|                                  |                                   |
|                                  | > ***Note***: In requesting an    |
|                                  | > appraisal, the authorized agent |
|                                  | > is making the required          |
|                                  | > certifications on behalf of the |
|                                  | > sponsoring lender.              |
+----------------------------------+-----------------------------------+

Continued on next page

July 14, 2003 15-18

*VA Pamphlet 26-7, Revised Chapter 15- Lender Appraisal Processing
Program (LAPP)*

*Change 3*

15.08 Affiliates and Agents, Continued

  -----------------------------------------------------------------------
  Agents and Appraisals (continued)

  -----------------------------------------------------------------------

+----------------------------------+-----------------------------------+
| If the agent ...                 | Then ...                          |
+----------------------------------+-----------------------------------+
| > receives an appraisal report   | he or she must immediately        |
|                                  | forward it to the sponsoring      |
|                                  | lender who must issue a LAPP NOV  |
|                                  | within 5 business days of the     |
|                                  | **agent's** receipt of the        |
|                                  | appraisal report.                 |
+----------------------------------+-----------------------------------+
| > 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.                    |
+----------------------------------+-----------------------------------+
| > does not have LAPP authority   | he or she will have violated a VA |
| > but advertises or otherwise    | prohibition against such          |
| > represents in any way that he  | advertising or representation.    |
| > or she is "LAPP approved"      |                                   |
+----------------------------------+-----------------------------------+
| > has LAPP authority             | he or she cannot issue a LAPP NOV |
|                                  | for any other lender. See Section |
|                                  | 13.10.                            |
+----------------------------------+-----------------------------------+

#### 

#### 

July 14, 2003 15-19

*VA Pamphlet 26-7, Revised Chapter 15- Lender Appraisal Processing
Program (LAPP)*

*Change 3*

#### 1: LAPP Application

####### VA LENDER APPRAISAL PROCESSING PROGRAM (LAPP) APPLICATION

**STAFF APPRAISAL REVIEWER
NOMINEE:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

(full name)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(residential address) (social security number)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(business address)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(business telephone) (10-digit VA lender ID for office where reviewer
located)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Fax) (e-mail address)

OFFICER RESPONSIBLE FOR QUALITY OF APPRAISAL REVIEWER\'S WORK:

(name and title)

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(business address) (business telephone)

Staff Appraisal Reviewer Nominee\'s Statements And Certifications:

> **Previous Lapp Approval -** If I was previously approved by VA as a
> LAPP Staff Appraisal Reviewer (SAR), the SAR ID number assigned was
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_.
>
> **Disclosure Of Sanctions -** I have not been suspended, debarred or
> had a similar sanction taken against me by any Federal or State entity
> or any professional organization. I am not aware of any unresolved
> investigation involving me. Any potential problem regarding this
> disclosure has been submitted to VA, and a letter from VA indicating
> that the problem is resolved is attached.
>
> **Conflicts Of Interest -** As a LAPP staff appraisal reviewer, I
> understand that I may not be employed by or perform appraisal review
> services for any other lender and may not be on the VA fee panel. I
> agree to report to VA any private interests or pursuits which might be
> considered by VA to be a conflict of interest.
>
> **Appraisal Review Experience -** As indicated in the attached resume,
> or statement of work experience or evidence of HUD Direct Endorsement
> participation, I have the requisite experience outlined in chapter 15
> of the VA Lender\'s Handbook.
>
> **Appraisal Report Reviews -** I understand that all staff appraisal
> reviews made for VA loan guaranty purposes must be completed in
> accordance with the requirements in chapter 13 of the VA Lender\'s
> Handbook. I also understand that no pressure or influence is to be
> exerted on the appraiser to remove or change valid appraisal report
> information, or to reach a predetermined value for a property.

My signature below affirms that the information I am providing in all of
the above statements and certifications is accurate and true, to the
best of my knowledge.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (signature of staff appraisal reviewer)
(date)

Continued on next page

*VA Pamphlet 26-7, Revised Chapter 15- Lender Appraisal Processing
Program (LAPP)*

*Change 3*

1: LAPP Application, Continued

**SENIOR LENDING OFFICER\'S STATEMENTS AND CERTIFICATIONS**

> **STAFF APPRAISAL REVIEWER NOMINATION -** The nominee is a full-time
> salaried employee of this company and is authorized to act on our
> behalf as a staff appraisal reviewer. Based on our personal interview
> with the nominee and a thorough review of the nominee\'s
> appraisal-related capabilities and performance, we find the nominee to
> be qualified as a staff appraisal reviewer in accordance with the
> requirements in chapter 15 of the VA Lender\'s Handbook. We
> acknowledge the responsibility that any improper actions of the
> nominee as a staff appraisal reviewer shall be imputed to the
> employer. We agree to promptly notify the appropriate VA office(s) if
> we ever change or limit this recommendation, or terminate our
> relationship with the nominee.
>
> **PROCESSING FEE -** The \$100 processing fee for this nominee is
> attached.
>
> **PROPERTIES ALREADY VALUED -** Unless VA grants authorization for a
> specific case, this company will not knowingly request an appraisal
> for a property which already has a valid value determination for VA
> loan purposes.
>
> **NO APPRAISAL REVIEWS FOR AFFILIATES -** This company will not use
> LAPP for any builder, land developer, real estate broker or other
> entity which it owns or has a financial interest in, or with which it
> is otherwise affiliated. We realize that this restriction does not
> apply if our only relationship with a builder is a construction loan,
> or if VA agrees that the attached formal corporate agreement or other
> documentation demonstrates that we and our affiliate(s) are
> essentially separate entities operating independently of one another,
> free of all cross influences. In this latter situation, our quality
> control plan addresses the insulation of the fee appraiser, staff
> appraisal reviewer and the underwriter from the influence of the
> affiliate.
>
> **NO APPRAISAL REVIEWS FOR/FROM OTHER LENDERS -** Although [appraisal
> reports]{.underline} may be transferred from one lender to another,
> this company will not make VA [value determinations]{.underline} for
> other mortgage lenders, nor use a value determination for VA loan
> guaranty purposes which was made by another mortgage lender, under any
> circumstances.
>
> **NO PRESSURE/INFLUENCE ON FEE APPRAISER OR STAFF APPRAISAL REVIEWER
> -** This company will not exert pressure or influence on the fee
> appraiser or staff appraisal reviewer to remove or change valid
> appraisal report information, or to reach a predetermined value for a
> property.
>
> **QUALITY CONTROL SYSTEM -** This company has an effective quality
> control or other system to ensure the adequacy and quality of its
> staff appraisal reviews. That system contains all of the basic
> elements identified in chapter 15 of the VA Lender\'s Handbook.
>
> My signature below affirms that the information I am providing in all
> of the above statements and certifications is accurate and true, to
> the best of my knowledge.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(signature and title of senior officer) (date)

July 14, 2003 15-21

*Chapter 15: Lender Appraisal Processing Program (LAPP) VA Pamphlet 26-7
Revised*

Affiliates and Agents, 15-16

Agents and Appraisals. *See* Chapter 13, Transfer of Appraisals Between
Lenders

Application and Fees, 15-8

Applying for LAPP Authority, 15-8

Appraisal Requests, 15-15

Appraisal Requirements, 15-15

Appraisal Reviews, 15-15

Case Reviews by VA Staff, 15-12

Certificate of Reasonable Value (CRV), 15-15

Changes in SAR's Employment or Lender's Status, 15-13

Due Diligence, 15-14

Exceptions to Training, 15-9

Experienced SAR to Train and Supervise New SAR, 15-9

Frequency and Scope of Reviews, 15-6

Geographic Extent of LAPP, 15-5

How LAPP Works, 15-1

Initial Case Reviews, 15-9

LAPP application, 15-19. *See* 15-19, Exhibit 1

LAPP Eligibility, 15-3

LAPP Privilege, 15-14

LAPP Processing Procedures, 15-15

Lender Appraisal Processing Program, 15-1

Lender Changes, 15-13

Lender Quality Control System Requirements, 15-6

Lender Requirements, 15-3

Lender Responsibilities Under LAPP, 15-14

Lender/Agent Relationship. *See* Section 1.08, How a Supervised or
Nonsupervised Automatic Lender Requests VA Recognition of an Agent

Location of SAR, 15-4

Maintenance of VA Publications, 15-7

Management Notification and Corrective Action, 15-7

Notices of Value, 15-15

Notification of VA Decision, 15-8

Procedure for Case Reviews, 15-11

Property Eligibility, 15-15

Purpose of LAPP, 15-1

QC Review Criteria, 15-7

Role of Staff Appraisal Reviewer (SAR), 15-3

SAR Conflicts of Interest, 15-5

SAR Employed By New Lender, 15-13

SAR ID Number, 15-8

SAR No Longer Employed, 15-13

SAR Requirements, 15-3

SAR Training, 15-9

SAR Training During or After Case Reviews, 15-9

SAR With Prior LAPP Experience, 15-9

Submitting Cases for Processing, 15-15

Training and Case Review Requirements, 15-9

Training and Case Reviews Completed by Experienced SAR, 15-10

Training by VA Staff, 15-10

VA Fee Panel Appraisals, 15-7

What LAPP Lenders Can Expect, 15-14