No Appraisal Due to Sanction (continued)

When the sanctioned party is a builder, this restriction applies to any property still owned by the builder, including houses under construction and existing houses.  VA’s refusal to appraise will not be affected by either the fact that

·   a fee inspector approved the work on which the sanction was based, or

·   the builder changes the company’s name or organization or becomes a principal or officer in another organization.

Note:  Reference: See Section 17.01.  Lenders are responsible for identifying builders on the GSA list.  For sanctioned builders not on the GSA list, each VA office of jurisdiction will either

·   periodically provide lenders with a list of such builders to check or

·   assume responsibility for ensuring that those builders do not participate in the VA loan guaranty program. 

Building Code Enforcement

If there are local building authority requirements due to building code enforcement or urban renewal, either

·   provide evidence with the appraisal request that those requirement(s) are satisfied, or

·   the notice of value will be conditioned to require such evidence.

Reference: See Section 13.06.

Potential Restriction to Veterans Under Contract

During times of heavy VA workload or limited resources, a VA field station may notify lenders that it will temporarily accept only appraisal requests involving a veteran under contract.  In that situation, the appraisal request must either

·   be accompanied by a copy of the fully-executed purchase agreement, or otherwise clearly identify the transaction with a proposed VA loan, or

·   indicate that the appraisal is for a purpose not affected by this restriction (such as, proposed construction, refinancing, foreclosure, or a loan for alterations/improvements/repairs).