Reconsiderations of Value
Saint Paul Regional Office
Regional Loan Center
Reconsiderations of Value
After a notice of value is issued, the value estimate may be changed, if the change is clearly warranted and fully supported by real estate market or other valid information which would be considered adequate and reasonable by professional appraisal standards.
Any party of interest may request a change to a notice of value. For documentation purposes, every such request must be in writing and should be submitted through the lender. Although there is no requirement that additional data be submitted with such a request, any information which supports your claim will be helpful in reaching a decision on the validity of the request.
Generally, a reconsideration of the value estimate will proceed as follows. The lender will provide any information that supports an increase in value to the appraiser. This information may include, but is not limited to, additional comparable sales and non-VA appraisal reports (please note that the veteran borrower cannot be required to pay for any additional appraisal reports). The appraiser must respond in writing within five days if additional comparable sales are provided in a grid format similar to that on the Uniform Residential Appraisal Report.
If the appraiser finds that a value increase of no more than five percent is justified and the case is being processed under LAPP, the Staff Appraisal Reviewer (SAR) may grant an increase in value pursuant to the requirements outlined in section 13.04 of the Lender's Handbook. Acceptable value increases not processed under LAPP or increases over five percent should be forwarded to the Saint Paul RLC for processing.
If the appraiser does not find an increase in value to be appropriate, it is necessary to proceed to the next step of the process. If the case is being processed under LAPP, the SAR will review the appraiserxs findings and make a value decision. If the SAR feels the value increase is acceptable despite the appraisers findings and the value increase is no more than five percent, the SAR may reissue the NOV pursuant to the requirements outlined in section 13.04 of the Lender's Handbook. If the SAR does not support an increase in value or the case is not being processed under LAPP, VA will review the case and make a final value decision.
For more information regarding the VA reconsideration process, please see section 13.09 of the Lender's Handbook.
