Appraisers doing Veterans Administration appraisals should now insert “Any Qualified Veteran” in the borrower field on the appraisal report for all VA case assignments, according to a recent Loan Guaranty Information Bulletin (No. 26-07-09). There is no change to the requestor procedures for ordering an appraisal report or case number, according to the bulletin.
In the VA program, the appraisal report is used to document the appraiser’s value determination of real property for qualified veterans. According to the VA, it has received feedback that lenders sometimes need to delay loan closing to await a name change on an appraisal report. To help eliminate such unnecessary delays at loan closings, appraisers should input “Any Qualified Veteran,” rather than the veteran’s name, in the borrower field of the appraisal report. This change will also help to limit the disclosure of veterans’ personal identity information.
Historically, lenders have indicated that having the correct borrower’s name on the appraisal report was necessary to sell the loan on the secondary market. VA has conferred with major purchasers of VA guaranteed loans on the secondary market. These major purchasers have reported that they are only concerned with the name on the guaranty and the mortgage note. VA also conferred with The Appraisal Foundation regarding Uniform Standards of Professional Appraisal Practice requirements. The Foundation concurred that VA would not violate USPAP by replacing the veteran’s name with “Any Qualified Veteran.”
The bulletin, available at www.vba.va.gov/ro/phoenixlgy/LGIB/LGIB%2026-07-09.pdf, will be rescinded July 1, 2009.
Recent Comments