source:
  type: regulation
  id: va-m26-7-ch18-t06
  authority: VA Lenders Handbook M26-7, Chapter 18, Topic 6 — Servicer Quality Control System Requirements
  description: "VA Lenders Handbook M26-7 Chapter 18 Topic 6 (Servicer Quality Control System Requirements). Gap-fill\
    \ (verbatim). \n"
obligations:
- id: va-m26-7-ch18-t06-0
  canonical_id: va-m26-7-ch18-t06-0
  section: VA Lenders Handbook M26-7 Ch.18 Topic 6 — Servicer Quality Control System Requirements
  description: 'Ch.18 Topic 6 Servicer Quality Control System Requirements: 6. Servicer Quality Control System Requirements
    a. Introduction To qualify for Servicer Appraisal Processing Program (SAPP) authority, the servicer must have
    an effective quality control (QC) system that ensures the adequacy and quality of its staff appraisal reviews.
    This QC sys…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - va-m26-7
  - section-complete
  primary_source:
    tier: 1
    authority: VA Lenders Handbook M26-7, Chapter 18, Topic 6 — Servicer Quality Control System Requirements
    source_class: va-handbook-m26-7
    source_url: https://www.benefits.va.gov/warms/pam26_7.asp
    snapshot_id: 34112e99016b0680
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:1735e2e83fc5c6fe6d74455696b4598c88331cc488c987c8bf66437a97300d61
    paragraph_quote: '6. Servicer Quality Control System Requirements a. Introduction To qualify for Servicer Appraisal
      Processing Program (SAPP) authority, the servicer must have an effective quality control (QC) system that
      ensures the adequacy and quality of its staff appraisal reviews. This QC system must be independent of the
      servicer’s loan servicing operation. Upon request, the servicer must agree to furnish Department of Veterans
      Affairs (VA) with findings and information about the system. The senior officer must certify on each Staff
      Appraisal Reviewer (SAR) application that the QC system meets the requirements detailed in this section. b.
      QC Reviewers Reviews of the SAR’s work may be performed by an independent party or independent internal audit
      division that reports directly to the servicer’s chief executive officer. QC personnel should possess: • a
      basic familiarity with appraisal theory and techniques, and • the ability to prescribe appropriate corrective
      actions when problems in the appraisal review process are identified. c. Frequency and Scope of Reviews Perform
      desk reviews of each SAR’s appraisal reviews on a monthly basis. The sample size should be no less than: •
      five percent of the SAR’s SAPP cases processed monthly, or • a minimum number of cases per month (for example,
      five cases). There must be a procedure for expanding the scope of the reviews if a pattern of deficiencies
      is identified. d. QC Review Criteria QC reviews should consider: • the overall quality of the SAR’s appraisal
      review, and • the appropriateness of the reasonable value determination. e. Maintenance of VA Publications
      The QC system must provide assurance that all current VA regulations, directives, and other releases are maintained
      and immediately available to the QC personnel and SARs. Continued on next page VA Pamphlet 26-7, Revised'
    drafter_attestation: Verbatim from M26-7 Ch.18 Topic 6 body (max-gap occurrence), snapshot 34112e99016b0680;
      substring-verified.
  judgment: false
