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Topic 7. LAPP Processing Procedures
June 28, 2010, Change 14
This section has been updated to add subsection lettering and to make minor grammatical edits.
a. Property Eligibility and Appraisal Requests
The appraisal of any property eligible to be the security for a VA loan can be processed under LAPP except:
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.
b. Appraisal Requirements
For details about VA appraisal requirements, see Chapter 11.
c. Appraisal Reviews
For details about requirements for reviewing appraisals and issuing notices of value for VA purposes, see Chapter 13.
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d. Submitting Cases to VA for Processing
An appraisal which the lender chooses not to process under LAPP can be submitted to the VA office of jurisdiction for VA staff to review and issue an 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. 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. If a LAPP lender fails to process an eligible property under LAPP, the request for VA guaranty must include a detailed explanation.