VA Lender Handbook M26-7 Chapter 18 — Servicer Appraisal Processing Program (SAPP)

va-m26-7-ch18

VA Pamphlet 26-7 Chapter 18 governs the Servicer Appraisal Processing Program (SAPP).

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source:
  type: regulation
  id: va-m26-7-ch18
  authority: VA Lender Handbook M26-7 Chapter 18 — Servicer Appraisal Processing Program (SAPP)
  description: |
    VA Pamphlet 26-7 Chapter 18 governs the Servicer Appraisal Processing
    Program (SAPP).
obligations:
  - id: va-m26-7-ch18-sapp-servicer-eligibility
    canonical_id: va-m26-7-ch18-sapp-servicer-eligibility
    section: VA M26-7 Ch. 18, Topic 1, Subsection b — Servicer Eligibility Requirements
    description: |
      To be granted SAPP authority, [SERVICER] must have a VA servicer
      identification number (ID), an association with a single lender
      having a VA lender ID, and an effective quality control (QC) system
      that ensures the adequacy and quality of its SARs. Under SAPP, a
      servicer may only have an association with a single lender.
    type: do
    audit_question: For [SERVICER]'s SAPP authority, can [SERVICER] evidence (i) issuance of a VA servicer ID, (ii) association with a single VA-lender-ID-holding lender, and (iii) an effective QC system covering SAR adequacy and quality?
    program_review: Does the program evidence SAPP eligibility — a VA servicer ID, association with a single VA-lender-ID-holding lender, and an effective QC system ensuring SAR adequacy and quality?
    file_review: 'Entity-level check: confirm the VA servicer ID, single-lender association, and an operating QC system over SAR quality. The officer judges whether the QC system is effective in operation.'
    judgment: true
    feeds: []
    workflow_phase: servicing
    owner_role: compliance_officer
    secondary_owner_role: ''
    cadence: continuous
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - va
      - m26-7
      - ch18
      - sapp
      - servicer-eligibility
      - promoted
    primary_source:
      tier: 1
      authority: VA Lender Handbook M26-7 Chapter 18 — Servicer Appraisal Processing Program (SAPP)
      source_class: va-handbook-m26-7
      source_url: https://benefits.va.gov/WARMS/M26_7.asp
      snapshot_id: 34112e99016b0680
      fetched_at: '2026-05-23T01:50:00Z'
      content_hash: sha256:1735e2e83fc5c6fe6d74455696b4598c88331cc488c987c8bf66437a97300d61
      paragraph_quote: 'To be granted SAPP authority, the servicer must have: '
      drafter_attestation: Copied verbatim from VA Handbook snapshot 34112e99016b0680 (M26-7 Ch. 18.1b — SAPP servicer eligibility) at 2026-05-23. Source PDF retrieved via Wayback Machine.
    promoted_at: '2026-05-23T02:20:34+00:00'
    promoted_from: va-m26-7-ch18-roundb-v1.yaml
  - id: va-m26-7-ch18-sapp-sar-full-time-3yr
    canonical_id: va-m26-7-ch18-sapp-sar-full-time-3yr
    section: VA M26-7 Ch. 18, Topic 1, Subsection c — SAR Eligibility Requirements
    description: |
      [SERVICER] exercises its SAPP authority through an employee who is a
      VA-approved Staff Appraisal Reviewer (SAR). A SAR must be a full-
      time salaried employee of the lender/servicer and have at least
      three years of work experience qualifying him or her to competently
      perform administrative appraisal reviews.
    type: do
    audit_question: For every individual [SERVICER] employs as a SAPP SAR, can [SERVICER] evidence that the SAR is a full-time salaried employee of the lender/servicer and has at least three years of qualifying appraisal-review work experience?
    program_review: Does the program ensure each SAPP SAR is a full-time salaried employee of the lender/servicer with at least three years of qualifying appraisal-review work experience?
    file_review: Review SAPP SAR personnel records; confirm full-time salaried status and 3+ years qualifying experience. The officer judges whether the experience qualifies the SAR.
    judgment: true
    feeds: []
    workflow_phase: servicing
    owner_role: compliance_officer
    secondary_owner_role: ''
    cadence: continuous
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - va
      - m26-7
      - ch18
      - sapp-sar
      - qualifications
      - promoted
    primary_source:
      tier: 1
      authority: VA Lender Handbook M26-7 Chapter 18 — Servicer Appraisal Processing Program (SAPP)
      source_class: va-handbook-m26-7
      source_url: https://benefits.va.gov/WARMS/M26_7.asp
      snapshot_id: 34112e99016b0680
      fetched_at: '2026-05-23T01:50:00Z'
      content_hash: sha256:1735e2e83fc5c6fe6d74455696b4598c88331cc488c987c8bf66437a97300d61
      paragraph_quote: The servicer exercises its SAPP authority through an employee who is a VA-
      drafter_attestation: Copied verbatim from VA Handbook snapshot 34112e99016b0680 (M26-7 Ch. 18.1c — SAPP SAR eligibility) at 2026-05-23. Source PDF retrieved via Wayback Machine.
    promoted_at: '2026-05-23T02:20:34+00:00'
    promoted_from: va-m26-7-ch18-roundb-v1.yaml
  - id: va-m26-7-ch18-sapp-sar-new-employer-reapply
    canonical_id: va-m26-7-ch18-sapp-sar-new-employer-reapply
    section: VA M26-7 Ch. 18, Topic 1, Subsection d — SAR Employed by New Servicer
    description: |
      If a SAR begins work for a new servicer, the SAR's SAPP authority
      automatically ceases and does not transfer. To reinstate the SAR's
      SAPP authority, the new servicer employer must promptly submit to
      VA a new SAPP application and a $100 processing fee.
    type: do
    audit_question: For every SAPP SAR [SERVICER] newly hires, can [SERVICER] evidence prompt submission to VA of (i) a new SAPP application and (ii) the $100 processing fee, with SAPP authority not exercised until reinstated by VA?
    program_review: Does the program account for the SAPP-non-transfer rule — when a SAR moves to a new servicer, authority ceases automatically, and the new employer must promptly submit a new SAPP application and $100 fee before the SAR exercises authority?
    file_review: Spot-check newly-hired SAPP SARs; confirm the new SAPP application and $100 fee were submitted and authority was not exercised until VA reinstated it.
    judgment: false
    feeds: []
    workflow_phase: servicing
    owner_role: compliance_officer
    secondary_owner_role: ''
    cadence: per_event
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - va
      - m26-7
      - ch18
      - sapp
      - sar-transfer
      - promoted
    primary_source:
      tier: 1
      authority: VA Lender Handbook M26-7 Chapter 18 — Servicer Appraisal Processing Program (SAPP)
      source_class: va-handbook-m26-7
      source_url: https://benefits.va.gov/WARMS/M26_7.asp
      snapshot_id: 34112e99016b0680
      fetched_at: '2026-05-23T01:50:00Z'
      content_hash: sha256:1735e2e83fc5c6fe6d74455696b4598c88331cc488c987c8bf66437a97300d61
      paragraph_quote: 'If a SAR begins work for a new servicer, the SAR’s SAPP authority '
      drafter_attestation: Copied verbatim from VA Handbook snapshot 34112e99016b0680 (M26-7 Ch. 18.1d — SAR new servicer) at 2026-05-23. Source PDF retrieved via Wayback Machine.
    promoted_at: '2026-05-23T02:20:34+00:00'
    promoted_from: va-m26-7-ch18-roundb-v1.yaml
_promotion_history:
  - promoted_at: '2026-05-23T02:20:34+00:00'
    candidate_path: obligations\_remediation\_round_b_drafts\va-m26-7-ch18-roundb-v1.yaml
    candidates_promoted: 3
    candidates_skipped_existing: 0

Verbatim regulatory text (3)

Verbatim provisions from VA Lender Handbook M26-7 Chapter 18 — Servicer Appraisal Processing Program (SAPP) — 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. 18, Topic 1, Subsection b — Servicer Eligibility Requirements

To be granted SAPP authority, the servicer must have:

Source: VA Lender Handbook M26-7 Chapter 18 — Servicer Appraisal Processing Program (SAPP) · source URL · snapshot 34112e99016b0680

VA M26-7 Ch. 18, Topic 1, Subsection c — SAR Eligibility Requirements

The servicer exercises its SAPP authority through an employee who is a VA-

Source: VA Lender Handbook M26-7 Chapter 18 — Servicer Appraisal Processing Program (SAPP) · source URL · snapshot 34112e99016b0680

VA M26-7 Ch. 18, Topic 1, Subsection d — SAR Employed by New Servicer

If a SAR begins work for a new servicer, the SAR’s SAPP authority

Source: VA Lender Handbook M26-7 Chapter 18 — Servicer Appraisal Processing Program (SAPP) · source URL · snapshot 34112e99016b0680