VA Staff Appraisal Reviewer (SAR)

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For mortgage professionals, becoming a VA Staff Appraisal Reviewer (SAR) is a significant career milestone. It grants the authority to review appraisals and issue Notices of Value (NOV) on behalf of the Department of Veterans Affairs (VA). This guide provides a comprehensive breakdown of everything you need to know to achieve and maintain this prestigious designation.

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Section 1: Exam Identity & Authority (The Basics)

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The VA Staff Appraisal Reviewer (SAR) designation is a professional certification required for individuals who wish to participate in the Lender Appraisal Processing Program (LAPP). This program allows approved lenders to expedite the VA home loan process by reviewing appraisals in-house rather than waiting for the VA to perform the review.

  • Official Exam Name & Acronym: VA Staff Appraisal Reviewer (SAR) Training and Assessment.
  • Conducting Body/Authority: The Department of Veterans Affairs (VA), specifically the Loan Guaranty Service. The VA often partners with the Mortgage Bankers Association (MBA) to deliver the mandatory training and testing.
  • Purpose of Exam: Professional Certification. It authorizes an underwriter to review VA appraisals and determine the property’s value for government-backed loan purposes.
  • Geographic Validity: Valid throughout the United States and its territories for all VA-guaranteed home loans.
  • Level of Competence: Specialist/Advanced. This is not an entry-level role; it requires significant prior experience in mortgage underwriting and appraisal theory.
  • Brief History: The LAPP program and the SAR designation were established in the late 1980s and early 1990s to reduce the “turnaround time” for VA loans, moving the appraisal review responsibility from VA staff to qualified lender staff.
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Section 2: Who Can Take the VA Staff Appraisal Reviewer (SAR)? (Eligibility Requirements)

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The VA is very strict about who can hold the SAR designation. You cannot simply take the exam on your own; you must be nominated by a VA-approved lender.

Eligibility Checklist

  • Academic Requirements: No specific degree is required, but a high school diploma or equivalent is the baseline. Most candidates hold a Bachelor’s degree in Finance, Business, or a related field.
  • Experience Requirements: Candidates must have a minimum of three (3) years of full-time experience as a mortgage underwriter or a similar role involving appraisal review.
  • Employment Status: You must be a full-time, salaried employee of a VA-approved lender. Independent contractors are generally not eligible for SAR status.
  • Documentation Checklist:
    • VA Form 26-6681: The official Application for “Lender Appraisal Processing Program (LAPP) Privilege.”
    • Resume: Detailing exactly 3+ years of underwriting experience.
    • Lender Nomination Letter: A formal letter from your employer sponsoring your application.
    • Background Check: Verification of no prior debarment from federal programs (CAIVRS check).
  • Language Proficiency: Proficiency in English is required as all VA Handbooks and the assessment are in English. No specific TOEFL/IELTS score is mandated, but professional fluency is expected.

Summary of Eligibility Requirements

Requirement Details
Work Experience 3 Years full-time mortgage underwriting
Employment Full-time employee of a VA-approved lender
Application Form VA Form 26-6681
Authority Must be nominated by the lender’s Chief Executive Officer or Officer
Citizenship U.S. Citizenship or Legal Permanent Residency
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Section 3: How to Register for the VA Staff Appraisal Reviewer (SAR)

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Exam Schedule & Availability

  • Exam Frequency: Training sessions (which include the assessment) are held monthly or bi-monthly.
  • Registration Windows: Usually closes 2 weeks prior to the session date to allow for document verification.
  • Scheduling Flexibility: Sessions are typically fixed-date webinars or in-person seminars.

Exam Fees (Detailed Breakdown)

Fee Type Estimated Cost (USD)
VA LAPP/SAR Training Course (MBA or similar) $500 – $750
Application Processing Fee Included in course or $100
Retake Fee $150 – $300
Annual SAR Renewal (Lender Fee) $200 – $500 (Paid by Lender)
Total Estimated Initial Cost $600 – $850

Booking Process

  1. Lender Approval: Your employer must first approve your nomination and ensure they have an active LAPP agreement with the VA.
  2. Submit Form 26-6681: Submit the application to the VA Regional Loan Center (RLC) with jurisdiction over the lender’s home office.
  3. Wait for VA Approval: The VA will review your experience. If approved, you will receive a “SAR ID” or authorization to attend training.
  4. Register for Training: Sign up for the mandatory VA SAR LAPP Course through the Mortgage Bankers Association (MBA) or an equivalent VA-approved provider.
  5. Payment: Pay fees via credit card or corporate billing through the training portal.

Retake Policy

  • Waiting Period: If you fail the assessment, you typically must wait 30 days before re-testing.
  • Maximum Attempts: Most providers allow 2 attempts per registration. Failing both may require re-attending the full training course.

Score Validity

The SAR designation is lifetime as long as you remain employed by a VA-approved lender and perform at least one appraisal review every 12 months. If you change employers, your new employer must “transfer” your SAR status via the VA portal.

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Section 4: VA Staff Appraisal Reviewer (SAR) Exam Format & Structure

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Exam Format

  • Delivery Method: Computer-Based Test (CBT), usually administered online at the conclusion of the training webinar.
  • Proctoring: Generally “open-book” but timed, or proctored via the training platform software.

Timing & Duration

Component Duration
Mandatory Training Session 1 to 2 Full Days (8-16 hours)
Final Assessment/Exam 90 – 120 Minutes
Breaks 15-min morning/afternoon, 1-hour lunch

Question Count & Types

  • Total Questions: Approximately 50 to 75 questions.
  • Question Types:
    • Multiple Choice: Primary format.
    • Case Studies: Reviewing a sample Uniform Residential Appraisal Report (URAR) and identifying errors.
    • True/False: Regarding VA policy and Minimum Property Requirements (MPR).

Syllabus & Content Domains

Domain Topics Covered Weightage (Approx)
VA Policies & Procedures LAPP guidelines, SAR responsibilities, NOV issuance 30%
Minimum Property Requirements (MPR) Safety, sanitation, structural integrity standards 35%
Appraisal Review Analysis Sales comparison approach, adjustments, URAR forms 25%
Administrative Duties WebLGY portal usage, record keeping 10%

Official Reference Materials

  • VA Pamphlet 26-7: The Lenders Handbook (Specifically Chapters 10-13).
  • VA Circulars: Recent policy updates issued by the Loan Guaranty Service.
  • Uniform Standards of Professional Appraisal Practice (USPAP): General appraisal standards.
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Section 5: How is the VA Staff Appraisal Reviewer (SAR) Scored?

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Passing Score

  • The Passing Threshold: Most VA SAR assessments require a minimum score of 80%.
  • Cut-off Method: Absolute score. You must demonstrate mastery of VA-specific property requirements.

Scoring Mechanics

  • Negative Marking: No. Points are not deducted for incorrect answers.
  • Partial Credit: Generally not available for multiple-choice questions.
  • Scaled Scoring: Not used. Results are based on the raw percentage of correct answers.

Score Reporting

  • Result Declaration: Typically instant or within 24 hours of completing the online assessment.
  • Score Report: Provides a pass/fail status and often a breakdown of performance by domain (e.g., “MPR Knowledge: 90%”).
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Section 6: How Difficult is the VA Staff Appraisal Reviewer (SAR)?

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Difficulty Assessment

Overall Difficulty Rating: Moderate. For an experienced underwriter, the concepts are familiar. However, the VA has very specific “Minimum Property Requirements” (MPRs) that differ from FHA or Conventional loans, which can be “tricky.”

Historical Pass Rates

Metric Percentage
First-time Pass Rate ~85%
Overall Pass Rate ~95% (after retakes)

Most Challenging Topics

  • MPR vs. Cosmetic Issues: Distinguishing between a “Required Repair” and a “Suggested Repair.”
  • Tidewater Policy: Proper procedure when the appraisal is coming in below the sales price.
  • Remaining Economic Life: VA-specific requirements for property longevity.
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Section 6B: VA Staff Appraisal Reviewer (SAR) vs. Similar Certifications

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Feature VA SAR FHA DE Underwriter Conventional (Fannie/Freddie)
Authority Dept. of Veterans Affairs HUD/FHA Lender/GSE Guidelines
Primary Focus Veteran Home Loans Low-down payment/FHA Standard Market Loans
Experience Req. 3 Years Underwriting 3 Years Underwriting Varies by Lender
Exam Required? Yes (Mandatory Training) No (Test Proctored by Lender) Rarely
Best Suited For Government Loan Specialists Retail Underwriters General Underwriters
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Section 7: How to Prepare for the VA Staff Appraisal Reviewer (SAR)

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Recommended Study Timeline

  • Total Preparation Time: 20-30 hours (including the mandatory course).
  • Phase 1 (Week 1): Read VA Pamphlet 26-7, Chapters 10, 11, and 12.
  • Phase 2 (Week 2): Review recent VA Circulars and the “Tidewater” process.
  • Phase 3 (During Course): Take exhaustive notes during the MBA/VA training session.

Best Study Resources

  • Official: VA Lenders Handbook (26-7).
  • Training: Mortgage Bankers Association (MBA) “VA SAR/LAPP Training” course.
  • Practice: Review your own company’s previous VA appraisal files and their corresponding NOVs.
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Section 8: What to Expect on VA Staff Appraisal Reviewer (SAR) Exam Day

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Since most SAR exams are now conducted online following a webinar:

  • Setup: Ensure a stable internet connection and a quiet environment.
  • Materials: Have a digital or physical copy of the VA Lenders Handbook (26-7) ready for reference.
  • Check-in: You will log in with the credentials provided by the training organization (e.g., MBA).
  • Prohibited Items: While open-book, you are usually prohibited from communicating with other candidates or using unauthorized third-party “cheat sheets.”
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Section 9: After Passing the VA Staff Appraisal Reviewer (SAR)

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Passing the exam is only the first step. To become an active SAR:

  1. VA Notification: The training provider notifies the VA of your successful completion.
  2. SAR ID Activation: The VA will issue you a unique SAR ID number.
  3. Initial Review Period: Many lenders require a “probationary” period where your first 5-10 NOVs are second-signed by a Senior SAR.
  4. Continuing Education: You must attend VA-sponsored “SAR Update” webinars (usually annually or bi-annually) to stay current on policy changes.
  5. Career Impact: SARs often command salaries 15-25% higher than standard underwriters due to their specialized authority.
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Section 10: Frequently Asked Questions (FAQ)

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  1. Can I be a SAR if I am a licensed appraiser? Yes, but you cannot review appraisals for loans where you were the originating appraiser.
  2. Does the SAR designation expire? No, but it becomes “inactive” if you don’t perform a review for 12 months.
  3. What is an NOV? A Notice of Value. It is the official document a SAR issues that states the VA’s opinion of the property’s value.
  4. What is the “Tidewater” initiative? A process where a SAR allows a realtor to provide comparable sales before the final appraisal is completed if the value is coming in low.
  5. Can I work as a freelance SAR? Generally, no. The VA requires SARs to be full-time employees of the lender.
  6. How long does it take to get the SAR ID after the exam? Usually 5 to 10 business days.
  7. Is there a background check? Yes, the VA checks for any federal debts or previous debarment from government programs.
  8. Can I transfer my SAR status to a new company? Yes, your new employer must submit a request to the VA to link your SAR ID to their institution.
  9. What happens if I make a mistake on an NOV? The VA performs post-closing reviews. Frequent errors can lead to the suspension or revocation of your SAR privileges.
  10. Is the exam math-heavy? It involves basic appraisal math (adjustments, square footage calculations), but is mostly focused on policy.

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