VA Lender Handbook M26-7 Chapter 15 — Lender Appraisal Processing Program (LAPP)

va-m26-7-ch15

VA Pamphlet 26-7 Chapter 15 governs the Lender Appraisal Processing Program (LAPP).

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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-sar-full-time-3yr-experience
    canonical_id: va-m26-7-ch15-sar-full-time-3yr-experience
    section: VA M26-7 Ch. 15, Topic 15.01, Subsection c — SAR Requirements
    description: |
      [LENDER]'s staff appraisal SAR must be a full-time salaried employee
      of the lender, and must have at least 3 years of work experience
      qualifying him or her to competently perform administrative
      appraisal reviews in conjunction with underwriting loans for VA
      loan guaranty purposes.
    type: do
    audit_question: For every individual [LENDER] employs as a Staff Appraisal Reviewer under LAPP, can [LENDER] evidence (i) that the SAR is a full-time salaried employee and (ii) that the SAR has at least 3 years of qualifying appraisal-review work experience?
    program_review: Does the program ensure each LAPP SAR is a full-time salaried employee with at least 3 years of qualifying appraisal-review work experience?
    file_review: Review SAR personnel records; confirm full-time salaried status and 3+ years qualifying experience. The officer judges whether the experience qualifies the SAR to competently perform reviews.
    judgment: true
    feeds: []
    workflow_phase: origination
    owner_role: compliance_officer
    secondary_owner_role: underwriter
    cadence: continuous
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - va
      - m26-7
      - ch15
      - lapp
      - sar-qualifications
      - promoted
    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: 'A lender’s staff appraisal SAR must: '
      drafter_attestation: Copied verbatim from VA Handbook snapshot 395d300ba1883750 (M26-7 Ch. 15.01c — SAR requirements) at 2026-05-23. Source PDF retrieved via Wayback Machine.
    promoted_at: '2026-05-23T02:15:35+00:00'
    promoted_from: va-m26-7-ch15-roundb-v1.yaml
  - id: va-m26-7-ch15-notify-va-sar-employment-change
    canonical_id: va-m26-7-ch15-notify-va-sar-employment-change
    section: VA M26-7 Ch. 15, Topic 15.05 — Notification When SAR No Longer Employed or Performing SAR Work
    description: |
      [LENDER] must promptly notify VA if the Staff Appraisal Reviewer is
      no longer employed by or no longer functioning as an SAR for the
      lender. If either applies, the SAR's LAPP authority automatically
      ceases and the lender's eligibility to participate in LAPP is
      terminated if that individual was the lender's only SAR.
    type: notify
    audit_question: For every event in which [LENDER]'s SAR ceases employment with the lender or ceases performing SAR work, can [LENDER] evidence prompt written notification to VA, and — if that was the only SAR — recognition that the lender's LAPP eligibility is terminated until a new qualified SAR is approved?
    program_review: Does the program account for the SAR-change trigger — prompt written VA notification when a SAR ceases employment or SAR work, and recognition that LAPP eligibility terminates if that was the only SAR?
    file_review: Spot-check SAR-departure events; confirm prompt written VA notification and, where the only SAR, that LAPP authority was treated as terminated.
    judgment: false
    feeds: []
    workflow_phase: origination
    owner_role: compliance_officer
    secondary_owner_role: ''
    cadence: per_event
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - va
      - m26-7
      - ch15
      - lapp
      - sar-status-change
      - promoted
    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: 'The lender must promptly notify VA if the Staff Appraisal Reviewer is no '
      drafter_attestation: Copied verbatim from VA Handbook snapshot 395d300ba1883750 (M26-7 Ch. 15.05a — SAR employment change) at 2026-05-23. Source PDF retrieved via Wayback Machine.
    promoted_at: '2026-05-23T02:15:35+00:00'
    promoted_from: va-m26-7-ch15-roundb-v1.yaml
  - id: va-m26-7-ch15-notify-va-lender-ownership-changes
    canonical_id: va-m26-7-ch15-notify-va-lender-ownership-changes
    section: VA M26-7 Ch. 15, Topic 15.05, Subsection c — Lender Changes
    description: |
      [LENDER] must notify VA any time there is a change in ownership,
      merger, or acquisition. (See Chapter 1, Section 9 for the
      information VA needs to continue the lender's LAPP authority.)
    type: notify
    audit_question: For every ownership change, merger, or acquisition affecting [LENDER], can [LENDER] evidence written notification to VA, along with the corporate-structure documentation required by M26-7 Chapter 1, Section 9 to maintain LAPP authority?
    program_review: Does the program account for the ownership-change trigger — written VA notification of any change in ownership, merger, or acquisition, with the Chapter 1, Section 9 corporate documentation needed to continue LAPP authority?
    file_review: 'Entity-level check: where an ownership change/merger/acquisition occurred, confirm written VA notification with the required corporate documentation.'
    judgment: false
    feeds: []
    workflow_phase: origination
    owner_role: compliance_officer
    secondary_owner_role: ''
    cadence: per_event
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - va
      - m26-7
      - ch15
      - lapp
      - corporate-change
      - promoted
    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: 'The lender must notify VA any time there is a '
      drafter_attestation: Copied verbatim from VA Handbook snapshot 395d300ba1883750 (M26-7 Ch. 15.05c — Lender changes) at 2026-05-23. Source PDF retrieved via Wayback Machine.
    promoted_at: '2026-05-23T02:15:35+00:00'
    promoted_from: va-m26-7-ch15-roundb-v1.yaml
_promotion_history:
  - promoted_at: '2026-05-23T02:15:35+00:00'
    candidate_path: obligations\_remediation\_round_b_drafts\va-m26-7-ch15-roundb-v1.yaml
    candidates_promoted: 3
    candidates_skipped_existing: 0

Verbatim regulatory text (3)

Verbatim provisions from VA Lender Handbook M26-7 Chapter 15 — Lender Appraisal Processing Program (LAPP) — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

VA M26-7 Ch. 15, Topic 15.01, Subsection c — SAR Requirements

A lender’s staff appraisal SAR must:

Source: VA Lender Handbook M26-7 Chapter 15 — Lender Appraisal Processing Program (LAPP) · source URL · snapshot 395d300ba1883750

VA M26-7 Ch. 15, Topic 15.05 — Notification When SAR No Longer Employed or Performing SAR Work

The lender must promptly notify VA if the Staff Appraisal Reviewer is no

Source: VA Lender Handbook M26-7 Chapter 15 — Lender Appraisal Processing Program (LAPP) · source URL · snapshot 395d300ba1883750

VA M26-7 Ch. 15, Topic 15.05, Subsection c — Lender Changes

The lender must notify VA any time there is a

Source: VA Lender Handbook M26-7 Chapter 15 — Lender Appraisal Processing Program (LAPP) · source URL · snapshot 395d300ba1883750