With the recent passage of HR 7735, better known as *Improving Access to the VA Home Loan Benefit Act of 2022*, the VA will be starting the process of updating its guidelines on appraisals. Specifically, they will be looking at alternative appraising methods and potentially even allowing inspection waivers - all things that are currently accepted on most other loan programs. As anyone who has ever worked on a VA loan can tell you, the appraisal process is an area that is both time-consuming and costly for borrowers, making this a rather significant change for the industry.
Through this bill, the VA is required to update its regulations, policies, and guidance on appraisals. More specifically, it encourages the agency to reform current requirements on when an appraisal is necessary, how they are provided, and who is eligible to perform the inspection.
Some in the VA world have made the argument that the lengthy appraisal process and extra hurdles give these loans a bad reputation, and may even be steering borrowers away from products that are specifically meant to help veterans and their families. Hopefully, the passage of this bill reduces the stigma around VA loans and helps more veterans access this benefit.
While the details have yet to be ironed out on how exactly this will change the VA appraisal process, as we head into the new year, we here at the Knowledge Coop are excited to see what this new development brings to the industry. Be sure to check back as we continue to provide updates on this evolving conversation.
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