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Topic 8. Affiliates and Agents
June 28, 2010, Change 14
This section has been updated to add subsection lettering and to make minor grammatical edits.
a. 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.
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.
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. Lender/ Agent Relationship
Agents can be involved in LAPP processing only when the sponsoring (funding) lender has an established ongoing agency relationship with the agent, as evidenced by a corporate resolution accepted by VA.
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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.
c. Agents and Appraisals
Refer to the following table for rules regarding agents and appraisals.
If the agent... ...then
is acting on behalf of an approved LAPP lender and is authorized by that lender
he or she may request VA appraisals, receive appraisal 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.
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.
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does not have LAPP authority but advertises or otherwise represents in any way that he or she is “LAPP approved”
he or she will have violated a VA prohibition against such advertising or representation.
has LAPP authority he or she cannot issue a LAPP NOV for any other lender. See Chapter 13, Section 10.
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Article ID: 554400000314755 VA Pamphlet VAP26-7 Chapter 16 Common Interest Communities, Condominiums and Planned Unit Developments