12 CCR s 302.2

Cal. Admin. Code tit. 12, s 302.2

CALIFORNIA CODE OF REGULATIONS
TITLE 12. MILITARY AND VETERANS AFFAIRS
DIVISION 2. DEPARTMENT OF VETERANS' AFFAIRS
CHAPTER 2. VETERANS' FARM AND HOME PURCHASES
SUBCHAPTER 1. ELIGIBILITY AND QUALIFICATIONS
This database is current through 12/22/06, Register 2006, No. 51.
s 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.

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

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).

12 CCR s 302.2, 12 CA ADC s 302.2
1CAC

12 CA ADC s 302.2

END OF DOCUMENT