Requirement to Notify VA

Any title limitation or condition discovered after examination of the title but prior to loan closing must be submitted to the VA office of jurisdiction (along with a copy of the appraisal report in LAPP cases), unless it

·   was considered in the appraisal report, or

·   is listed in 38 CFR 36.4350 as not materially affecting the reasonable value of residential property.

[38 CFR 36.4350]

If VA Value Based on HUD Appraisal

If the VA notice of value was based on a HUD value determination per Chapter 10.11, and neither of the above two exclusions apply, the lender must

·   contact HUD to determine what effect, if any, the limitation or condition has on the value of the property, and

·   provide the VA office of jurisdiction with the results so that office can issue a VA Form 26-6363, Endorsement to Certificate of Reasonable Value.