NOVs (Notice of Value)

1.  Are there any guidelines as to how long the Lender needs to keep their copy of the NOV package?  If so what are they?  (Prior to TAS, we were keeping them for a year)

The VA Lender's Handbook (VA Pamphlet 26-7), Section 1.12, Page 1-45, states that "Lenders must maintain copies of all loan origination records on VA guaranteed home loans for at least two years from the date of loan closing."  Since appraisals are specified as part of the loan record, the NOV, which documents the appraised value, would also be considered a part of the loan record.

2.  Will the certificate of occupancy issued by the county clear the condition for lead/water distribution on NOV?  It should clear Energy Efficient construction, as this is a code requirement.  I do not know if lead requirement is code.

The certificate of occupancy is the county's approval of the construction.  The VA requirements are separate.  The builder must still provide a certification that the energy conservation standards are met and another certification on the lead in the plumbing system, as required.

3.  Are NOVs required on IRRRL (Interest Rate Reduction Refinancing Loan) loans or only on purchase loans?

A NOV is only issued when an appraisal is performed.  Since an IRRRL doesn't require an appraisal, no NOV is issued.  A cash-out re-finance does require an appraisal and thus a NOV is issued.

4.  What if I don't agree with the value on the appraisal or NOV?

Any party of interest to the transaction can submit a request (written) through the lender to the fee appraiser on whose appraisal the current VA valuation is based, for a reconsideration of value.  Requests other than to change value will be submitted through the lender to the VA office of jurisdiction.  Although there is no requirement that comparable sales or other real estate market information be submitted with a request for a change in value, such supporting information will greatly assist VA in reviewing the request.  LAPP cases should also include a recommendation by the SAR.