§ 302.2. Property Appraisal.

(a) Before the purchase of any property by the Department, there shall be filed with the Department an appraisal of the market value of the property according to established appraisal principles and pursuant to Department procedures as stated in the Farm and Home Purchases Division Operations Manual, Chapter 4, dated February, 2001, which are incorporated by reference.

(b) The appraisal will be performed by an employee or authorized agent of the Department on a panel of fee appraisers who have been interviewed by Department staff and trained through the Department in Cal-Vet appraisal procedures. All appraisers other than Department employees must be licensed to perform residential appraisals by the California Office of Real Estate Appraisers (OREA). However, appraisals by authorized appraisers of a banking corporation formed under the laws of this state or of a national banking association having a place of business in this state may be accepted and USDVA and FHA appraisals may also be accepted if: (1) the appraisals were performed within 60 days of application; and (2) the appraisals must be reviewed by a Cal-Vet representative for accuracy and completeness. Any questionable reports will be returned to the appraiser for correction or explanation. All appraisals shall be certified by the maker thereof. The certification shall state that it is made in good faith, and that the valuation is honestly determined and represents the bona fide opinion of the maker.

(c) On those applications that will not be receiving a USDVA guaranty, the Department shall select the method of appraisal (Department agent, fee panel, or other form of appraisal). The applicant may elect to have the appraisal ordered prior to a credit and/or eligibility review with the understanding that they are still responsible for the appraisal fee even if their application is declined.

(d) On existing homes, appraisals shall be ordered upon initial eligibility and credit approval unless the purchaser elects to have an appraisal performed earlier. On new construction, appraisals shall be ordered no more than 45 days prior to the estimated completion date.

(e) The Department shall assure that there are sufficient state-licensed real estate appraisers on its fee panels to process application volume in a timely fashion. The Department shall recruit panel members through its application process and by providing notice of its recruitment efforts to professional appraisal associations.

(f) In the case of loans receiving guarantees through the USDVA, appraisals shall be assigned by the USDVA in accordance with USDVA requirements.

(g) All appraisals are for the benefit of the Department only, to determine the adequacy of the subject real property as sufficient security for the loan. Such appraisals are not intended to warrant the condition or value of the property to any other purchaser or prospective Cal-Vet contract holder. Such appraisals are not a representation to the veteran as to the desirability, suitability, condition or actual value of the subject real property, such determinations being entirely the responsibility of the veteran purchaser.

HISTORY

1. New section filed 10-30-2000 as an emergency; operative 10-30-2000 (Register 2000, No. 44). A Certificate of Compliance must be transmitted to OAL by 2-27-2001 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 10-30-2000 order, including further amendment of subsection (a) and new subsection (g), transmitted to OAL 2-23-2001 and filed 4-6-2001 (Register 2001, No. 14).

Note

Note: Authority cited: Section 700, Military and Veterans Code. Reference: Sections 987.59 and 987.67, Military and Veterans Code.