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Topic 1. LAPP Eligibility
June 28, 2010, Change 14
This section has been updated to add subsection lettering and to make minor grammatical edits.
a. Lender Requirements
VA may grant Lender Appraisal Processing Program (LAPP) authority to any automatic lender that requests it and meets the qualification criteria outlined in this chapter, including the Lender Quality Control System Requirements.
b. Role of Staff Appraisal Reviewer
The lender exercises its LAPP authority through an employee who is a VA- approved staff appraisal reviewer (SAR).
c. SAR Requirements
A lender’s staff appraisal SAR must:
be a full-time salaried employee of the lender, and
have at least 3 years of work experience which qualifies him or her to competently perform administrative appraisals reviews in conjunction with underwriting loans for VA loan guaranty purposes.
d. SAR’s Work Experience Requirements
The SAR’s work experience must indicate that he or she has:
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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 of experience related to the HUD Direct Endorsement program satisfies the experience requirement provided all other application requirements are satisfied.
e. Location of SAR
There is no restriction on the location of a lender’s SAR.
f. Geographic Extent of LAPP
Once a SAR has satisfied the LAPP training and initial case review requirements (SAR Training and Initial Case Reviews in this chapter), their 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.
Note: 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.
g. SAR Conflicts of Interest
There must not be a conflict of interest between the SAR’s role as SAR and any other activities that he or she conducts. Examples of other activities which 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.