Issuer of Notice of Value (NOV)

The issuer’s primary responsibility is to ensure the property meets Minimum Property Requirements (MPRs) for security purposes, but they do not guarantee the physical condition. The NOV contains a standard advisory stating that the VA appraisal is not a building inspection and that the Department guarantees only the loan, not the house itself. The issuer uses the NOV to recommend that the Veteran hire a professional home inspector to identify potential hidden defects. Ultimately, the NOV serves as the official record of the reasonable value, not a physical warranty.

If a Veteran changes lenders, an NOV issued by the previous lender’s SAR is not transferable to the new institution. While the appraisal report and case number can be transferred in WebLGY, the new lender’s SAR is required to conduct their own independent administrative review. This reviewer must then issue a fresh NOV to the Veteran under their own authority. If the new lender is not approved for the Lender Appraisal Processing Program (LAPP), the file must be sent to the Regional Loan Center, where VA staff will review the report and issue the document.

Under the Servicer Appraisal Processing Program (SAPP), specific SARs are authorized to review liquidation appraisals. When a VA-guaranteed loan is in default, the SAPP SAR reviews the appraiser’s “as-is” valuation and issues a liquidation NOV without direct VA staff involvement. The goal of this program is to expedite the default process by reducing administrative wait times. The SAPP SAR must have the same level of experience as a LAPP SAR and must complete five initial test cases to demonstrate their competency to VA staff.

When issuing an NOV in the WebLGY system, the Staff Appraisal Reviewer (SAR) must provide a mandatory electronic certification. This certification states that they have personally reviewed the appraisal report to determine property eligibility for VA purposes. They must also certify that they concur with the appraiser’s value, unless otherwise explained in the processing notes, and that they have not exerted undue influence on the appraiser to meet a specific sales price. This process confirms the issuer has exercised due diligence and complied with all statutory and regulatory guidelines.

The Appraisal Management System (AMS) is a rules-based tool that electronically scores appraisal reports as soon as they are uploaded. It assists the issuer by flagging inconsistencies, identifying potential risks, and checking for compliance with Uniform Standards of Professional Appraisal Practice (USPAP). Based on the AMS score, a SAR may perform a cursory review for low-risk properties or must conduct a comprehensive review for high-risk or complex cases. This system helps the issuer maintain consistency, ensuring the final Notice of Value reflects a logical, supportable, and high-quality valuation.

No, the issuer of the NOV—whether a SAR or VA staff member—does not typically visit the property in person. Their role is to perform an administrative review of the data, commentary, and photographs provided by the VA-assigned fee appraiser. The appraiser is the party responsible for the physical site visit and reporting the property’s condition. The SAR uses this report, along with electronic scoring from the Appraisal Management System (AMS), to determine if the property is adequate security for a loan and to establish its reasonable market value.

The Department of Veterans Affairs expects the timely issuance of the NOV to facilitate efficient loan closings for Veterans. Once the fee appraiser successfully uploads the completed appraisal report into the WebLGY system, the Staff Appraisal Reviewer (SAR) is expected to issue the NOV within five business days. If the SAR cannot meet this timeframe due to factors beyond their control, they must document the specific reason for the delay in the system’s processing notes. This strict expectation ensures that the Veteran receives valuation data and repair requirements well before the settlement.

Yes, VA staff can issue an NOV in several circumstances. If a lender lacks Lender Appraisal Processing Program (LAPP) authority, they must submit the appraisal to the Regional Loan Center for VA staff to review and process. Additionally, if a lender’s SAR encounters a case that is exceptionally difficult or complex, they may refer the file to VA staff for a formal determination. However, the VA strongly encourages authorized lenders to process eligible cases independently; if they do not, they must provide a detailed explanation as to why staff intervention is required.

The SAR performs a vital due diligence function by conducting a formal administrative review of the fee appraiser’s report. They ensure the property meets Minimum Property Requirements (MPRs) and that the appraiser’s value determination is appropriate, consistent, and accurate. The SAR is not a cosigner of the appraisal but is responsible for issuing the NOV in WebLGY at the appraised value once the report is deemed acceptable. They also communicate the final estimate of reasonable value and any repair conditions to the Veteran, ensuring the loan meets standards.

Generally, the Staff Appraisal Reviewer (SAR) is the primary issuer of the NOV. These individuals are typically experienced professionals employed by VA-authorized lenders or mortgage servicers. In specific scenarios where a lender does not have processing authority or chooses not to use it for complex cases, VA staff at the Regional Loan Center will perform the administrative review and issue the document. Regardless of the specific individual, the issuer must determine the reasonable value of the property and establish any necessary conditions based on the appraiser’s findings.