VA: Circular 26-20-14: Appraisal Review Requirements and Instructions

VA: Circular 26-20-14: Appraisal Review Requirements and Instructions

VA: Circular 26-20-14: Appraisal Review Requirements and Instructions

Investor Update
April 14, 2020

Source: VA

New Appraisal Review Requirements and Instructions Regarding Department of Veterans Affairs Appraisal Management Service for the Lender Appraisal Processing Program and the Servicer Appraisal Processing Program Staff Appraisal Reviewers

1. Purpose. The purpose of this Circular is to announce the Department of Veterans Affairs (VA) new automated Appraisal Management Service (AMS) for use in enhancing the appraisal review process prior to issuance of the Notice of Value (NOV). AMS will provide Lender Appraisal Processing Program (LAPP) and Servicer Appraisal Processing Program (SAPP) Staff Appraisal Reviewers (SARs) assistance in quickly assessing appraisal risk for property eligibility, VA policy compliance violation, over/under-valuation, and appraisal quality issues.

2. VA awarded the new AMS contract to Veros. Currently, CoreLogic is providing the AMS for purchases, refinances, Lender Appraisal Processing Program (LAPP) and Servicer Appraisal Processing Program (SAPP) appraisal orders. CoreLogic currently provides a scoring of all appraisals through an in-depth evaluation of the appraisal report by a robust analytic process. This process will be transitioned to Veros, with the same level of appraisal scoring and evaluation.

a. To continue oversight, standardize the appraisal review process, and increase efficiency through access to market data, VA’s new contractor, Veros, provided VA with an AMS that includes the VeroSCORE product.

b. On March 2, 2020, VA and Veros launched internal usage of VeroSCORE for VA Staff to use in the appraisal review process. The initial phase was instituted to better understand the integration between Veros and VA systems while providing VA staff an opportunity to view and comment on VeroSCORE before it is implemented for the LAPP/SAPP SARs on May 4, 2020.

c. Since VeroSCORE’s implementation, VA staff have been using it in the review process for VA-issued NOVs. As a VA risk management tool, VeroSCORE will be made available to LAPP/SAPP SARs on May 4, 2020.

To access full circular, please click the source link above.