source:
  type: regulation
  id: va-m26-7-ch15
  authority: VA Lender Handbook M26-7 Chapter 15 — Lender Appraisal Processing Program (LAPP)
  description: 'VA Pamphlet 26-7 Chapter 15 governs the Lender Appraisal Processing

    Program (LAPP).

    '
obligations:
- id: va-m26-7-ch15-15-01
  canonical_id: va-m26-7-ch15-15-01
  section: VA Lender Handbook M26-7 Chapter 15 § 15.01
  description: "LAPP Eligibility: 15.01 LAPP Eligibility \n \n• This section has been updated to add subsection\
    \ lettering and to make minor \ngrammatical edits. \n \na. Lender \nVA may grant Lender Appraisal\
    \ Processing Program (LAPP) authority to any \nautomatic lender that requests it and meets the qualification\
    \ criteria outlined \nin this…"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - va
  - m26
  - '7'
  - ch15
  primary_source:
    tier: 1
    authority: VA Lender Handbook M26-7 Chapter 15 — Lender Appraisal Processing Program (LAPP)
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: 395d300ba1883750
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:499690010abf683546e83e02a2d275cd2155c27f69c6bac297e566d8274a74ba
    paragraph_quote: "15.01 LAPP Eligibility \n \n• This section has been updated to add subsection lettering\
      \ and to make minor \ngrammatical edits. \n \na. Lender \nVA may grant Lender Appraisal Processing\
      \ Program (LAPP) authority to any \nautomatic lender that requests it and meets the qualification\
      \ criteria outlined \nin this chapter, including the Lender Quality Control System Requirements.\
      \ \n \nb. Role of Staff \nAppraisal \nReviewer \nThe lender exercises its LAPP authority through\
      \ an employee who is a VAapproved staff appraisal reviewer (SAR). \n \nc. SAR \nA lender’s staff\
      \ appraisal SAR must: \n• be a full-time salaried employee of the lender, and \n• have at least\
      \ 3 years of work experience which qualifies him or her to \ncompetently perform administrative\
      \ appraisals reviews in conjunction with \nunderwriting loans for VA loan guaranty purposes. \n\
      \ \nd. SAR’s Work \nExperience \nThe SAR’s work experience must indicate that he or she has: \n\
      • general knowledge of the principles, methods, practices and techniques of \nappraising and the\
      \ ability to apply that knowledge, \n• the ability to review the work of others and recognize deviations\
      \ from \naccepted appraisal principles and practices, \n• the ability to detect errors in computations,\
      \ and \n• ability to detect conclusions which are not supported. \n• \nIt is also desirable for\
      \ the SAR to have: \n• knowledge of general realty practices and principles related to real property\
      \ \nvaluation, \n• skill in collecting and assembling data, and \n• ability to prepare clear and\
      \ concise reports. \n \nNote: Three years of experience related to the HUD Direct Endorsement \n\
      program satisfies the experience requirement provided all other application \nrequirements are satisfied."
    drafter_attestation: Verbatim §15.01 from snapshot 395d300ba1883750 via deletion-only reading projection
      (repeated headers/footers + page numbers stripped, line-wrap hyphens joined); substring-verified
      against the projection.
  judgment: false
- id: va-m26-7-ch15-15-02
  canonical_id: va-m26-7-ch15-15-02
  section: VA Lender Handbook M26-7 Chapter 15 § 15.02
  description: "Lender Quality Control System Requirements: 15.02 Lender Quality Control System Requirements\
    \ \n \n \na. Introduction \nTo qualify for LAPP authority, the lender must have an effective quality\
    \ \ncontrol (QC) system which ensures the adequacy and quality of its staff \nappraisal reviews. This\
    \ QC system must be independent of the lender’s loan \nproduc…"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - va
  - m26
  - '7'
  - ch15
  primary_source:
    tier: 1
    authority: VA Lender Handbook M26-7 Chapter 15 — Lender Appraisal Processing Program (LAPP)
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: 395d300ba1883750
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:499690010abf683546e83e02a2d275cd2155c27f69c6bac297e566d8274a74ba
    paragraph_quote: "15.02 Lender Quality Control System Requirements \n \n \na. Introduction \nTo qualify\
      \ for LAPP authority, the lender must have an effective quality \ncontrol (QC) system which ensures\
      \ the adequacy and quality of its staff \nappraisal reviews. This QC system must be independent\
      \ of the lender’s loan \nproduction operation. \n \nUpon request, the lender must agree to furnish\
      \ VA with findings and \ninformation about the system. The senior officer must certify on each SAR’s\
      \ \nLender's Staff Appraisal Reviewer Application (SAR) Application, VA Form \n26-0785, that the\
      \ QC system meets the requirements detailed in this section. \n \nb. QC \nReviewers \nReviews of\
      \ the SARs’ work may be performed by an independent party or \nindependent internal audit division\
      \ which reports directly to the lender’s chief \nexecutive officer. QC personnel should possess\
      \ a basic familiarity with \nappraisal theory and techniques and the ability to prescribe appropriate\
      \ \ncorrective actions when problems in the appraisal review process are \nidentified. \n \nc. Frequency\
      \ \nand Scope of \nPerform desk reviews of each SAR’s appraisal reviews on a routine basis \n(monthly\
      \ or quarterly). The sample size should be no less than 5 percent of \nthe SAR’s LAPP cases processed\
      \ monthly or a minimum number of cases \n(for example, five cases). \n \nThere must be a procedure\
      \ for expanding the scope of the reviews if a pattern \nof deficiencies is identified."
    drafter_attestation: Verbatim §15.02 from snapshot 395d300ba1883750 via deletion-only reading projection
      (repeated headers/footers + page numbers stripped, line-wrap hyphens joined); substring-verified
      against the projection.
  judgment: false
- id: va-m26-7-ch15-15-03
  canonical_id: va-m26-7-ch15-15-03
  section: VA Lender Handbook M26-7 Chapter 15 § 15.03
  description: "Applying for LAPP Authority: 15.03 Applying for LAPP Authority \n \n \na. Application\
    \ \nand Fees \nSubmit a separate Lender's Staff Appraisal Reviewer Application (SAR) \nApplication,\
    \ VA Form 26-0785, and fee for each SAR approval request to the \nVA regional office with jurisdiction\
    \ over the SAR’s physical location. \n \nLegitimate req…"
  type: reference
  tags:
  - regulator-direct
  - section-complete
  - va
  - m26
  - '7'
  - ch15
  primary_source:
    tier: 1
    authority: VA Lender Handbook M26-7 Chapter 15 — Lender Appraisal Processing Program (LAPP)
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: 395d300ba1883750
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:499690010abf683546e83e02a2d275cd2155c27f69c6bac297e566d8274a74ba
    paragraph_quote: "15.03 Applying for LAPP Authority \n \n \na. Application \nand Fees \nSubmit a separate\
      \ Lender's Staff Appraisal Reviewer Application (SAR) \nApplication, VA Form 26-0785, and fee for\
      \ each SAR approval request to the \nVA regional office with jurisdiction over the SAR’s physical\
      \ location. \n \nLegitimate requests to submit the application to a VA office more \nconveniently\
      \ located for training and other interactions between the SAR and \nVA will be considered. \n \n\
      For each SAR approval request, include a $100 processing fee plus the \ninformation, statements\
      \ and certifications exactly as detailed on the \napplication, either on lender letterhead or attached\
      \ to a statement on lender \nletterhead which references it. \n \nThe same procedure applies to\
      \ subsequent requests for VA approval of \nadditional SARs. \n \nb. Notification \nof VA Decision\
      \ \nThe VA regional office will review the application materials submitted and \nnotify the lender\
      \ of its decision as quickly as possible. \n \nIf VA determines that the SAR meets basic LAPP qualification\
      \ requirements, \nit will inform the lender that the SAR must fulfill the SAR Training and Initial\
      \ \nCase Review requirements detailed in this chapter. \n \nc. SAR ID \nNumber \nThe notice from\
      \ VA will provide a permanent ID number for each SAR \napproved. The SAR always retains the same\
      \ ID number, even if he or she \ngoes to work for another lender and is approved as a SAR for that\
      \ lender."
    drafter_attestation: Verbatim §15.03 from snapshot 395d300ba1883750 via deletion-only reading projection
      (repeated headers/footers + page numbers stripped, line-wrap hyphens joined); substring-verified
      against the projection.
  judgment: false
- id: va-m26-7-ch15-15-05
  canonical_id: va-m26-7-ch15-15-05
  section: VA Lender Handbook M26-7 Chapter 15 § 15.05
  description: "Changes in SAR’s Employment of Lender’s Status: 15.05 Changes in SAR’s Employment of Lender’s\
    \ Status \n \n• Subsection b has been changed to add language to the required statement \nlenders\
    \ must submit. \n \na. SAR No \nLonger \nEmployed or \nPerforming \nSAR Work \nThe lender must promptly\
    \ notify VA if the Staff Appraisal Reviewer is no \nlonger employed o…"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - va
  - m26
  - '7'
  - ch15
  primary_source:
    tier: 1
    authority: VA Lender Handbook M26-7 Chapter 15 — Lender Appraisal Processing Program (LAPP)
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: 395d300ba1883750
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:499690010abf683546e83e02a2d275cd2155c27f69c6bac297e566d8274a74ba
    paragraph_quote: "15.05 Changes in SAR’s Employment of Lender’s Status \n \n• Subsection b has been\
      \ changed to add language to the required statement \nlenders must submit. \n \na. SAR No \nLonger\
      \ \nEmployed or \nPerforming \nSAR Work \nThe lender must promptly notify VA if the Staff Appraisal\
      \ Reviewer is no \nlonger employed or is no longer functioning as an SAR for the lender. \n \nIf\
      \ either of these two apply, the SAR’s LAPP authority automatically ceases \nand the lender’s eligibility\
      \ to participate in LAPP is terminated if that \nindividual was the lender’s only SAR. \n \nb. SAR\
      \ \nEmployed By \nNew Lender \nIf the SAR begins work for a new lender, that lender must promptly\
      \ submit to \nVA a new VA Form 26-0785, Lenders Staff Appraisal Reviewer Application, \nand $100\
      \ processing fee. \n \nThe lender may request a waiver of the training and case review requirements\
      \ \nfor that SAR by including a copy of VA’s notice that the SAR has satisfied \nthose requirements\
      \ and a statement that the SAR processed LAPP cases and \nissued NOVs within the last year. \n \n\
      c. Lender \nChanges \nThe lender must notify VA any time there is a \n \n• change in ownership,\
      \ \n• merger, or \n• acquisition. \n \nReference: See Chapter 1, Section 9 for a description of\
      \ the information VA \nneeds from the lender to continue its LAPP authority."
    drafter_attestation: Verbatim §15.05 from snapshot 395d300ba1883750 via deletion-only reading projection
      (repeated headers/footers + page numbers stripped, line-wrap hyphens joined); substring-verified
      against the projection.
  judgment: false
- id: va-m26-7-ch15-15-06
  canonical_id: va-m26-7-ch15-15-06
  section: VA Lender Handbook M26-7 Chapter 15 § 15.06
  description: "Lender Responsibilities Under LAPP: 15.06 Lender Responsibilities Under LAPP \n \n \n\
    a. Due \nDiligence \nLenders are expected to exercise due diligence in processing LAPP cases and \n\
    are responsible for complying with all applicable: \n \n• VA policies and procedures, \n• VA regulations,\
    \ and \n• statutory requirements. \n \nVA considers due dili…"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - va
  - m26
  - '7'
  - ch15
  primary_source:
    tier: 1
    authority: VA Lender Handbook M26-7 Chapter 15 — Lender Appraisal Processing Program (LAPP)
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: 395d300ba1883750
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:499690010abf683546e83e02a2d275cd2155c27f69c6bac297e566d8274a74ba
    paragraph_quote: "15.06 Lender Responsibilities Under LAPP \n \n \na. Due \nDiligence \nLenders are\
      \ expected to exercise due diligence in processing LAPP cases and \nare responsible for complying\
      \ with all applicable: \n \n• VA policies and procedures, \n• VA regulations, and \n• statutory\
      \ requirements. \n \nVA considers due diligence to be care which is properly expected from, and\
      \ \nordinarily exercised by, a reasonable and prudent lender who is entirely \ndependent on the\
      \ subject property as a security to protect their investment. \n \nb. What LAPP \nLenders Can \n\
      Expect \nIn assuming the responsibilities involved with processing an appraisal under \nLAPP and\
      \ subsequently underwriting the VA loan on the automatic basis, the \nlender has reasonable certainty\
      \ that the VA Form 26-1899, Loan Guaranty \nCertificate, will be issued by VA, except in cases of\
      \ fraud or willful material \nmisrepresentation by the lender. \n \nReference: See Chapter 17, Section\
      \ 4. \n \nc. LAPP \nPrivilege \nLAPP authority is a privilege delegated to lenders at VA’s discretion.\
      \ \nLenders maintain this privilege by complying with all applicable LAPPrelated requirements. \n\
      \ \nIf VA finds proper cause, the privilege extended to lenders under LAPP may \nbe: \n• amended,\
      \ \n• suspended, or \n• withdrawn. \n \nReference: For more information, refer to Chapter 17."
    drafter_attestation: Verbatim §15.06 from snapshot 395d300ba1883750 via deletion-only reading projection
      (repeated headers/footers + page numbers stripped, line-wrap hyphens joined); substring-verified
      against the projection.
  judgment: false
- id: va-m26-7-ch15-15-07
  canonical_id: va-m26-7-ch15-15-07
  section: VA Lender Handbook M26-7 Chapter 15 § 15.07
  description: "LAPP Processing Procedures: 15.07 LAPP Processing Procedures \n \n \na. Property \nEligibility\
    \ and \nAppraisal \nRequests \nThe appraisal of any property eligible to be the security for a VA\
    \ loan can be \nprocessed under LAPP except: \n \n• master appraisals, \n• foreclosure appraisals,\
    \ \n• those involving partial release of VA loan secur…"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - va
  - m26
  - '7'
  - ch15
  primary_source:
    tier: 1
    authority: VA Lender Handbook M26-7 Chapter 15 — Lender Appraisal Processing Program (LAPP)
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: 395d300ba1883750
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:499690010abf683546e83e02a2d275cd2155c27f69c6bac297e566d8274a74ba
    paragraph_quote: "15.07 LAPP Processing Procedures \n \n \na. Property \nEligibility and \nAppraisal\
      \ \nRequests \nThe appraisal of any property eligible to be the security for a VA loan can be \n\
      processed under LAPP except: \n \n• master appraisals, \n• foreclosure appraisals, \n• those involving\
      \ partial release of VA loan security, and \n• those involving HUD value determinations. \n \nReference:\
      \ For details regarding the eligibility of property for appraisal for \nVA purposes, as well as\
      \ VA appraisal request instructions, see Chapter 10. \n \nb. Appraisal \nFor details about VA appraisal\
      \ requirements, see Chapter 11. \n \nc. Appraisal \nFor details about requirements for reviewing\
      \ appraisals and issuing notices of \nvalue for VA purposes, see Chapter 13. \n \nd. Submitting\
      \ \nCases to VA for \nProcessing \nAn appraisal which the lender chooses not to process under LAPP\
      \ can be \nsubmitted to the VA office of jurisdiction for VA staff to review and issue an \nNOV.\
      \ The submission must include the SAR’s draft NOV letter to the \nveteran and all of the appraisal\
      \ documentation required per Appraisal Report \nContents in Chapter 11. All other VA requirements\
      \ for a case submitted on \nthe prior approval basis by an automatic lender must also be met. \n\
      \ \nReference: See Chapter 5, Section 4. \n \nNote: Every property eligible for the LAPP should\
      \ be processed under \nLAPP. If a LAPP lender fails to process an eligible property under LAPP,\
      \ the \nrequest for VA guaranty must include a detailed explanation."
    drafter_attestation: Verbatim §15.07 from snapshot 395d300ba1883750 via deletion-only reading projection
      (repeated headers/footers + page numbers stripped, line-wrap hyphens joined); substring-verified
      against the projection.
  judgment: false
- id: va-m26-7-ch15-15-08
  canonical_id: va-m26-7-ch15-15-08
  section: VA Lender Handbook M26-7 Chapter 15 § 15.08
  description: "Affiliates and Agents: 15.08 Affiliates and Agents \n \n \na. Affiliates \nUnless approved\
    \ by VA, lenders are not authorized to use LAPP for any: \n \n• builder, \n• land developer, \n• real\
    \ estate broker, or \n• other entity which they own or have a financial interest in or are otherwise\
    \ \naffiliated with. \n \nThis restriction may …"
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - va
  - m26
  - '7'
  - ch15
  primary_source:
    tier: 1
    authority: VA Lender Handbook M26-7 Chapter 15 — Lender Appraisal Processing Program (LAPP)
    source_class: va-handbook-m26-7
    source_url: https://benefits.va.gov/WARMS/M26_7.asp
    snapshot_id: 395d300ba1883750
    fetched_at: '2026-05-23T01:50:00Z'
    content_hash: sha256:499690010abf683546e83e02a2d275cd2155c27f69c6bac297e566d8274a74ba
    paragraph_quote: "15.08 Affiliates and Agents \n \n \na. Affiliates \nUnless approved by VA, lenders\
      \ are not authorized to use LAPP for any: \n \n• builder, \n• land developer, \n• real estate broker,\
      \ or \n• other entity which they own or have a financial interest in or are otherwise \naffiliated\
      \ with. \n \nThis restriction may not apply if \n \n• the only relationship between the lender and\
      \ a builder is a construction loan, \nor \n• the lender can provide a formal corporate agreement\
      \ or other documentation \nwhich demonstrates to VA’s satisfaction that the lender and builder,\
      \ or \nother affiliate, are essentially separate entities operating independently from \none another,\
      \ free of all cross-influences. \n \nThe lender’s quality control plan must specifically address\
      \ the insulation of \nthe fee appraiser, appraisal reviewer, and the underwriter from the influence\
      \ \nof the affiliate. \n \nReference: Chapter 1, Section 7. \n \nb. Lender/ \nAgent \nRelationship\
      \ \nAgents can be involved in LAPP processing only when the sponsoring \n(funding) lender has an\
      \ established ongoing agency relationship with the \nagent, as evidenced by a corporate resolution\
      \ accepted by VA. \n \nReference: Chapter 1, Section 8. \n \nCorporate Resolution \nThe corporate\
      \ resolution must provide that the sponsoring lender accept full \nresponsibility for the actions\
      \ of its agents. Additionally, the sponsoring \nlender is responsible for assuring that the agent\
      \ is appropriately trained and \nknowledgeable about VA appraisal assignment procedures and the\
      \ restrictions \non their role in LAPP."
    drafter_attestation: Verbatim §15.08 from snapshot 395d300ba1883750 via deletion-only reading projection
      (repeated headers/footers + page numbers stripped, line-wrap hyphens joined); substring-verified
      against the projection.
  judgment: false
