Announcement 2019-038: VA Handbook Updates – Chapters 7 and 10

VA Handbook Updates

Chapter 7, Special Handling
VA has updated and renamed Chapter 7, Loans Requiring Special Underwriting, Guaranty and Other Considerations. It is now titled Special Handling and has been revised to facilitate processing of loans when special attention is required and to incorporate all applicable Circulars.

Chapter 10, Appraisal Process
VA has updated and renamed Chapter 10, Property Eligibility and Appraisal Requests. It is now titled Appraisal Process. This chapter has been revised to emphasize customer service, promote appraisal timeliness and reflect updates to VA systems. 


Key changes include:

  • Topic 1 requires the Certificate of Eligibility (COE) be requested before the appraisal is ordered. This was previously announced by the VA in Circular 26-19-12, released on May 16, 2019.
  • Topic 7 requires that appraisers make contact to schedule an appointment within two business days of receiving an assignment and place notes in WebLGY to inform the lender of any delays beyond the appraiser’s control.
  • Topic 8 provides information about the opportunity the fee appraiser will give the requester to provide additional market data for consideration before completing the appraisal when it appears that the estimated market value will be below the sales price. 
  • Topic 17 requires that a post construction inspection be performed by the appraiser on proposed construction cases.
  • Topic 27 provides information about appraisal processing in the event of a natural disaster.


Please reference the Lender’s Handbook for full details.