SAR timeliness for NOV issuance

All prospective SARs must attend a one-day training session conducted by VA staff or an experienced supervisor before they can issue NOVs independently. This training focuses on administrative requirements, LAPP processing procedures, and local jurisdictional conditions. Following this, the SAR must successfully complete five initial test cases, which are reviewed by VA staff for accuracy and supportable logic. By ensuring that SARs are fully competent in using system tools like WebLGY and the Appraisal Management System, the Department ensures that the five-day issuance standard can be met consistently.

Under the Servicer Appraisal Processing Program (SAPP), SARs are granted authority to review liquidation appraisals and issue NOVs without direct VA involvement. The goal of SAPP is to significantly reduce the time required for loan servicers to receive the NOV during the default process. Similar to origination cases, SAPP SARs are expected to process these reports and issue the NOV within five business days. Timeliness is especially critical in liquidation scenarios to avoid curtailment of interest on the loan, which may occur if the foreclosure sale is postponed due to administrative delays in valuation.

When a Veteran decides to change lenders, the original lender is expected to cooperate by transferring the existing appraisal report and case number in the system upon written request. Critically, a Notice of Value (NOV) issued by one lender’s SAR is not transferable to another institution. Therefore, the new lender’s SAR must conduct their own independent administrative review and issue a fresh NOV to the Veteran. This second issuance must also adhere to the standard timeliness expectations, ensuring the Veteran is not penalized with further delays due to their choice of a new mortgage provider.

The Regional Loan Center (RLC) acts as an essential support and oversight body for SAR timeliness and appraisal quality. LAPP lenders are encouraged to notify the RLC if they encounter recurring delays from appraisers that are hindering the SAR’s ability to issue the NOV on time. Additionally, if a case is exceptionally complex or difficult, an SAR may choose to refer the file to the RLC for VA staff to review and issue the NOV. While this referral can help resolve technical disputes, lenders must provide a detailed explanation as to why they are not using their automatic LAPP authority.

VA’s Appraisal Management System (AMS) is designed to assist SARs by electronically scoring appraisals as soon as they are uploaded into the system. This system flags inconsistencies and potential risks, which can actually help an SAR process low-risk appraisals more quickly via a “cursory review”. However, if the AMS returns a high-risk score or an “N/A” result, the SAR must perform a comprehensive review, which is more time-consuming but must still be completed within the overall five-day window. The use of AMS is mandatory and serves as a tool to balance efficiency with required due diligence.

The five-business-day rule is a strict standard, but exceptions are permitted when extenuating circumstances beyond the SAR’s control prevent timely issuance. In such instances, the SAR is required to document the specific reasons for the delay within the WebLGY processing notes. These notes serve as an official record and justification for the delay during future VA quality control audits or performance reviews. Common justifiable delays might include waiting for clarifications from the appraiser regarding complex property features or resolving significant inconsistencies discovered during the electronic scoring process provided by the Appraisal Management System.

When a new SAR is undergoing training, their work is subject to initial test case reviews to demonstrate their competency in origination or liquidation appraisal analysis. For these specific cases, the SAR must first complete their review and then submit the package to the Regional Loan Center (RLC) or an experienced supervisor. VA staff members are then required to complete their secondary review and issue the final NOV within five workdays of receiving the full package from the trainee. This structured review process ensures that quality is maintained while the new SAR gains the necessary experience for independent authority.

The Department of Veterans Affairs closely monitors the timeliness of SARs to ensure high levels of customer service for Veterans and lenders. If an SAR repeatedly fails to meet the five-business-day requirement without valid justification, the lender’s Lender Appraisal Processing Program (LAPP) authority may be at risk. VA considers the continued disregard for timeliness requirements as proper cause for the amendment, suspension, or withdrawal of this special processing privilege. LAPP lenders are ultimately responsible for managing their internal workflows and resolving any persistent delays involving their authorized agents or branch personnel to maintain compliance.

While authorized agents of a lender may request appraisals and receive the final reports, they are strictly prohibited from issuing the Notice of Value themselves. Once an agent receives a completed appraisal report, they are required to immediately forward it to the sponsoring lender’s SAR for administrative review. The sponsoring lender then has a maximum of five business days from the time the agent received the report to issue the final NOV to the Veteran. This regulation prevents administrative bottlenecks and ensures that the lender remains responsible for the final determination of reasonable value and property eligibility.

The standard expectation for a Staff Appraisal Reviewer (SAR) to issue a Notice of Value (NOV) is five business days from the date the completed appraisal report is successfully uploaded into the WebLGY system. This strict timeframe ensures that Veterans receive critical information regarding the property’s reasonable value and necessary repairs well in advance of their scheduled loan closing. Timely issuance is a primary goal of the Department, as it facilitates a smoother and faster path to settlement for the borrower. If an SAR cannot meet this requirement due to factors beyond their control, they must provide a detailed explanation within the system’s notes to maintain program transparency.