VA Form 26-0785 is the one-page application a VA-approved lender uses to nominate one of its employees as a Staff Appraisal Reviewer (SAR) under the Lender Appraisal Processing Program. Once the VA approves the nominee, that reviewer can evaluate appraisals and issue Notices of Value on VA-guaranteed loans without routing each case through a VA regional office. The completed form, a resume, and a $100 non-refundable Fedwire fee go by email to the VA’s Austin processing center.
Who Can Be Nominated
The nominee has to be a full-time, salaried member of the lender’s permanent staff and cannot perform appraisal services for any other mortgage company. The lender itself must already hold automatic loan-processing authority under 38 U.S.C. ยง 3702(d), which covers federally or state-supervised institutions such as banks, credit unions, and VA-approved mortgage companies.1Office of the Law Revision Counsel. 38 USC 3702 – Basic Entitlement The nominee cannot sit on the VA fee appraiser panel or hold any outside interest that would conflict with SAR duties.2Department of Veterans Affairs. VA Form 26-0785 SAR Application
Three years of appraisal or appraisal-review experience is required. That experience must show working knowledge of accepted valuation principles, the ability to determine property value in a defined geographic area, and the skill to catch errors or unsupported conclusions in other appraisers’ work.3Government Publishing Office. 38 CFR 36.4344 – Lender Appraisal Processing Program Three years as a HUD/FHA Direct Endorsement underwriter also satisfies the requirement.4Department of Veterans Affairs. SAR Frequently Asked Questions
What the Form Asks For
The form has three sections, and each one is signed by a different person.
Section I: The SAR Nominee
This section collects the nominee’s identifying and workplace information:
- Full name and Social Security number
- Residential address
- Business name and address where the SAR will be located
- Business phone, fax, and email
- The 10-digit VA Lender ID for the specific office where the reviewer works
- Any prior SAR ID number, if the nominee was previously approved under LAPP
The nominee then signs certifications acknowledging that all appraisal reviews will follow Chapter 13 of the VA Lender’s Handbook, that no pressure will be placed on appraisers to reach a predetermined value, and that the nominee has not been suspended or debarred by any federal, state, or professional body. Any unresolved investigation must be disclosed and accompanied by a VA clearance letter.2Department of Veterans Affairs. VA Form 26-0785 SAR Application
Section II: Quality Oversight Officer
Enter the full name, title, business address, and phone number of the officer inside the company who will be directly responsible for the quality of the SAR’s appraisal reviews.
Section III: Senior Lending Officer Certification
A senior officer of the company signs and dates the nomination, certifying that the lender interviewed the nominee, reviewed their appraisal credentials, and finds them qualified under Chapter 15 of the VA Lender’s Handbook. The company also accepts that any improper actions by the SAR will be imputed to the employer.5Department of Veterans Affairs. VA Form 26-0785 Lender’s Staff Appraisal Reviewer (SAR) Application
What to Attach
The form itself is short. The package around it matters:
- A resume or statement of work experience covering the three-year requirement. Be specific about job titles, employers, dates, and duties showing hands-on valuation or review work. HUD Direct Endorsement participation can stand in for a traditional appraisal resume.2Department of Veterans Affairs. VA Form 26-0785 SAR Application
- A VA disclosure clearance letter if the nominee has any past sanctions or investigations that were later resolved.
- Fedwire payment confirmation for the $100 non-refundable processing fee.6U.S. Department of Veterans Affairs. Lender Appraisal Processing Program (LAPP) – VA Home Loans
Where To Send It and What the Fee Covers
Save the form, resume, and Fedwire receipt as PDFs and email them to VBAALAC_LAPPSAPP@VA.GOV.6U.S. Department of Veterans Affairs. Lender Appraisal Processing Program (LAPP) – VA Home Loans The VA will not process the application without the Fedwire confirmation. Verify that the 10-digit Lender ID matches the office where the nominee actually sits; a mismatch there is a common cause of delay.
The $100 fee is a one-time charge per nominee. It is non-refundable, even if the VA ultimately finds the nominee unacceptable.6U.S. Department of Veterans Affairs. Lender Appraisal Processing Program (LAPP) – VA Home Loans
What Happens After You Submit
The VA reviews the nominee’s credentials and the lender’s standing. If anything is missing or the nominee falls short of the qualifications, the VA notifies both the nominee and the company.4Department of Veterans Affairs. SAR Frequently Asked Questions
When the credentials pass, the VA issues a preliminary approval letter. The nominee then completes mandatory LAPP SAR training online and emails the certificate of completion to SARSupport.vbaco@va.gov.7Department of Veterans Affairs. 2023 Loan Guaranty Conference – SAR Training A Veroscore webinar training module is also required.
Approval carries a one-year probationary period. The new SAR’s first five cases in their VA regional office jurisdiction must be fully worked up (appraisal reviewed, reasonable value determined, draft notification letter prepared) but not issued to the veteran. The VA reviews all five test cases. Once those clear, the SAR can process appraisals and issue Notices of Value without prior VA review.3Government Publishing Office. 38 CFR 36.4344 – Lender Appraisal Processing Program
What the Lender Takes On
Approving a SAR shifts real responsibility onto the company. The lender certifies on the form that it maintains an effective quality-control system covering all SAR appraisal reviews. Several restrictions apply once the reviewer is active: LAPP cannot be used for properties tied to any builder, developer, or broker the lender owns or has a financial interest in; the lender cannot make VA value determinations for other lenders, or rely on another lender’s determination; and the VA office must be notified promptly if the lender changes, limits, or terminates its relationship with the SAR.5Department of Veterans Affairs. VA Form 26-0785 Lender’s Staff Appraisal Reviewer (SAR) Application
Any improper action by the SAR is treated as the lender’s own action, and that can lead to loss of LAPP authority or broader sanctions on the company’s VA lending privileges.
Keeping the Designation Active
SAR status is reviewed each year. The VA runs an annual renewal and validation covering agents, underwriters, and SARs, during which the lender confirms its active SARs and updates their contact information. Skipping validation can deactivate an active SAR by accident.8Department of Veterans Affairs. Annual Renewal – Veterans Benefits Administration A lender must keep at least one active SAR at all times to hold on to its LAPP authority.
If a SAR moves to a new employer, the designation does not travel. The new lender has to submit a fresh VA Form 26-0785.