§ 3731. Appraisals

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1986

   Pub. L. 99–576 title IV § 407(a) · 100 Stat. 3248

   Enacted · 38 U.S.C. § 3731

   Added Pub. L. 99–576, title IV, § 407(a), Oct. 28, 1986, 100 Stat. 3282, § 1831

   Source evidence

   Code source credit
   Added Pub. L. 99–576, title IV, § 407(a), Oct. 28, 1986, 100 Stat. 3282, § 1831

   Enacted provision · exact public law section
   (a) In General.— Subchapter III of chapter 37 is amended by adding at the end the following new section 1831: “§ 1831. Appraisals “(a) Loans.Real property.38 USC 1834. The Administrator shall— “(1) in consultation with appropriate representatives of institutions which are regularly engaged in making housing loans, prescribe uniform qualifications for appraisers; “(2) use such qualifications in determining whether to approve an appraiser to make appraisals of the reasonable value of any property, construction, repairs, or alterations for the purposes of this chapter; and “(3) in consultation with local representatives of institutions described in clause (1) of this subsection, develop and maintain lists of appraisers who are approved under clause (2) of this subsection to make appraisals for the purposes of this chapter. “(b) The Administrator shall select appraisers from a list required by subsection (a)(3) of this section on a rotating basis to make appraisals for the purposes of this chapter. “(c) The Administrator shall, upon request, furnish a copy of the appraisal made of property for the purposes of this chapter to the lender proposing to make the loan which is to be secured by such property and is to be guaranteed under this chapter. “(d) If a lender— “(1) has proposed to make a loan to be guaranteed under this chapter, “(2) has been furnished a certificate of reasonable value of any property or of any construction, repairs, or alterations of property which is to be the security for such loan, and “(3) within a reasonable period prescribed by the Administrator, has furnished to the Administrator an additional appraisal of the reasonable value of such property, construction, repairs, or alterations which was made by an appraiser selected by the lender from the list required by subsection (a)(3) of this section, the Administrator shall consider both the initial appraisal and the additional appraisal and shall, if appropriate, issue a revised certificate of reasonable value of such property, construction, repairs, or alterations. “(e) (1) In no case may a veteran be required to pay all or any portion of the cost of the additional appraisal described in subsection (d)(3) of this section. “(2) If a veteran, within a reasonable period prescribed by the Administrator, has furnished to the Administrator an additional appraisal of the reasonable value of such property, construction, repairs, or alterations which was made by an appraiser selected by the veteran from the list required by subsection (a)(3) of this section, the Administrator shall consider such appraisal, along with other appraisals furnished to the Administrator, and shall, if appropriate, issue a revised certificate of reasonable value of such property, construction, repairs, or alterations.”.

2. 1987

   Veterans’ Home Loan Program Improvements and Property Rehabilitation Act of 1987

   Pub. L. 100–198 § 11(a)(1) · 101 Stat. 1315

   Inserted · 38 U.S.C. § 3731(a)(1)

   Pub. L. 100–198, § 11(a)(1), inserted “subject to subsection (b)(2) and” at beginning and “, including the successful completion of a written test, submission of a sample appraisal, certification of an appropriate number of years of experience as an appraiser, and submission of recommendations from other appraisers” before semicolon at end

   Source evidence

   Code amendment note
   Subsec. (a)(1). Pub. L. 100–198, § 11(a)(1), inserted “subject to subsection (b)(2) and” at beginning and “, including the successful completion of a written test, submission of a sample appraisal, certification of an appropriate number of years of experience as an appraiser, and submission of recommendations from other appraisers” before semicolon at end.

   Enacted provision · exact public law section
   (1) Section 1831(a)(1) is amended— (A) by striking out “(1)” and inserting in lieu thereof “(1) subject to subsection (b)(2) and”; and (B) by inserting before the semicolon at the end the following: “, including the successful completion of a written test, submission of a sample appraisal, certification of an appropriate number of years of experience as an appraiser, and submission of recommendations from other appraisers”.

3. 1987

   Veterans’ Home Loan Program Improvements and Property Rehabilitation Act of 1987

   Pub. L. 100–198 § 11(a)(2) · 101 Stat. 1315

   1. Amended · 38 U.S.C. § 3731(b)

      Pub. L. 100–198, § 11(a)(2), designated existing provisions as par. (1)

   2. Added · 38 U.S.C. § 3731(b)

      Pub. L. 100–198, § 11(a)(2), added par. (2)

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 100–198, § 11(a)(2), designated existing provisions as par. (1) and added par. (2).

   Enacted provision · exact public law section
   (2) Section 1831(b) is amended— (A) by striking out “(b)” and inserting in lieu thereof “(b)(1)”; and (B) by adding at the end the following new paragraph: “(2) If uniform qualifications become applicable for appraisers who perform appraisals for or in connection with the Federal Government, the qualifications required by subsection (a)(1) of this section may be more stringent than such uniform qualifications, but the Administrator may use no written test in determining the qualifications of appraisers other than the test prescribed to implement such uniform qualifications.”.

4. 1987

   Veterans’ Home Loan Program Improvements and Property Rehabilitation Act of 1987

   Pub. L. 100–198 § 11(b)(1) · 101 Stat. 1315

   Substituted · 38 U.S.C. § 3731(c)

   Pub. L. 100–198, § 11(b)(1), substituted “Except as provided in subsection (f) of this section, the appraiser shall forward an appraisal report to the Administrator for review. Upon receipt of such report, the Administrator shall determine the reasonable value of the property, construction, repairs, or alterations for purposes of this chapter, and notify the veteran of such determination. Upon request, the Administrator shall” for “The Administrator shall, upon request,”

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 100–198, § 11(b)(1), substituted “Except as provided in subsection (f) of this section, the appraiser shall forward an appraisal report to the Administrator for review. Upon receipt of such report, the Administrator shall determine the reasonable value of the property, construction, repairs, or alterations for purposes of this chapter, and notify the veteran of such determination. Upon request, the Administrator shall” for “The Administrator shall, upon request,”.

   Enacted provision · exact public law section
   (1) in subsection (c), by striking out “The Administrator shall, Reports. upon request,” and inserting in lieu thereof “Except as provided in subsection (f) of this section, the appraiser shall forward an appraisal report to the Administrator for review. Upon receipt of such report, the Administrator shall determine the reasonable value of the property, construction, repairs, or alterations for purposes of this chapter, and notify the veteran of such determination. Upon request, the Administrator shall”;

5. 1987

   Veterans’ Home Loan Program Improvements and Property Rehabilitation Act of 1987

   Pub. L. 100–198 § 11(b)(2) · 101 Stat. 1315

   Changed · 38 U.S.C. § 3731(d)

   Pub. L. 100–198, § 11(b)(2), which directed insertion of “(other than a lender authorized under subsection (f) of this section to determine reasonable value)” after “lender” was executed by making the insertion after “lender” the first place it appears in subsec. (d), as the probable intent of Congress, notwithstanding appearance of “lender” in subsec. (d)(3)

   Source evidence

   Code amendment note
   Subsec. (d). Pub. L. 100–198, § 11(b)(2), which directed insertion of “(other than a lender authorized under subsection (f) of this section to determine reasonable value)” after “lender” was executed by making the insertion after “lender” the first place it appears in subsec. (d), as the probable intent of Congress, notwithstanding appearance of “lender” in subsec. (d)(3).

   Enacted provision · exact public law section
   (2) in subsection (d), by inserting “(other than a lender authorized under subsection (f) of this section to determine reasonable value)” after “lender”; and

6. 1987

   Veterans’ Home Loan Program Improvements and Property Rehabilitation Act of 1987

   Pub. L. 100–198 § 11(b)(3) · 101 Stat. 1315

   Added · 38 U.S.C. § 3731(f)

   Pub. L. 100–198, § 11(b)(3), added subsec. (f)

   Source evidence

   Code amendment note
   Subsec. (f). Pub. L. 100–198, § 11(b)(3), added subsec. (f).

   Enacted provision · exact public law section
   (3) by adding at the end the following new subsection: “(f) (1) Subject to the provisions of paragraphs (2) and (3) of this subsection, the Administrator may, in accordance with standards and procedures established in regulations prescribed by the Administrator, authorize a lender to determine the reasonable value of property for the purposes of this chapter if the lender is authorized to make loans which are automatically guaranteed under section 1802(d) of this title. In such a case, the appraiser selected by Reports. the Administrator pursuant to subsection (b) of this section shall submit the appraisal report directly to the lender for review, and the lender shall, as soon as possible thereafter, furnish a copy of the appraisal to the veteran who is applying for the loan concerned and to the Administrator. “(2) In exercising the authority provided in paragraph (1) of this subsection, the Administrator shall assign a sufficient number of personnel to carry out an appraisal-review system to monitor, on at least a random-sampling basis, the making of appraisals by appraisers and the effectiveness and the efficiency of the determination of reasonable value of property by lenders. “(3) The authority provided in this subsection shall terminate on Termination date. October 1, 1990.”.

7. 1989

   Veterans Home Loan Indemnity and Restructuring Act of 1989

   Pub. L. 101–237 title III § 313(b)(1) · 103 Stat. 2062

   Substituted · 38 U.S.C. § 3731

   Pub. L. 101–237 substituted “Secretary” for “Administrator” wherever appearing

   Source evidence

   Code amendment note
   Pub. L. 101–237 substituted “Secretary” for “Administrator” wherever appearing.

   Enacted provision · exact public law section
   (1) Chapters 23, 24, and 37 are amended by striking out “Administrator” and “Administrator’s” each place such terms appear (other than in sections 906(e)(2) and 1812(h)(2)(B) and in section 1845(a) the third place “Administrator” appears) and inserting in lieu thereof “Secretary” and “Secretary’s”, respectively.

8. 1991

   Pub. L. 102–54 § 3(b) · 105 Stat. 267

   Substituted · 38 U.S.C. § 3731(f)(3)

   Pub. L. 102–54, § 3(b), substituted “December 31, 1992” for “October 1, 1990”

   Source evidence

   Code amendment note
   Subsec. (f)(3). Pub. L. 102–54, § 3(b), substituted “December 31, 1992” for “October 1, 1990”.

   Enacted provision · exact public law section
   (b) Appraisals.— Section 1831(f)(3) of such title is amended by striking out “October 1, 1990” and inserting in lieu thereof “December 31, 1992”.

9. 1991

   Pub. L. 102–54 § 3(c) · 105 Stat. 267

   Added · 38 U.S.C. § 3731(f)(4); 38 U.S.C. § 3731(f)(5)

   Pub. L. 102–54, § 3(c), added pars. (4) and (5)

   Source evidence

   Code amendment note
   Subsec. (f)(4), (5). Pub. L. 102–54, § 3(c), added pars. (4) and (5).

   Enacted provision · exact public law section
   (c) Report Relating to Appraisal Review.— Section 1831(f) of such title is further amended by adding at the end the following new paragraphs: “(4) Not later than April 30 of each year following a year in which the Secretary authorizes lenders to determine reasonable value of property under this subsection, the Secretary shall submit to the Committees on Veterans’ Affairs of the Senate and the House of Representatives a report relating to the exercise of that authority during the year in which the authority was exercised. “(5) A report submitted pursuant to paragraph (4) of this subsection shall include, for the period covered by each report— “(A) the number and value of loans made by lenders exercising the authority of this subsection; “(B) the number and value of such loans reviewed by the appraisal-review monitors referred to in paragraph (2) of this subsection; “(C) the number and value of loans made under this subsection of which the Secretary received notification of default; “(D) the amount of guaranty paid by the Secretary to such lenders by reason of defaults on loans as to which reasonable value was determined under this subsection; and “(E) such recommendations as the Secretary considers appropriate to improve the exercise of the authority provided for in this subsection and to protect the interests of the United States.”.

10. 1991

    Pub. L. 102–83 § 5(a) · 105 Stat. 378

    Changed · 38 U.S.C. § 3731

    Pub. L. 102–83, § 5(a), renumbered section 1831 of this title as this section

    Source evidence

    Code amendment note
    Pub. L. 102–83, § 5(a), renumbered section 1831 of this title as this section.

    Enacted provision · exact public law section
    (a) Redesignation of Sections to Conform to Chapter Numbers.— Each section contained in any of chapters 11 through 23 is redesignated by replacing the first digit of the section number with the number of the chapter containing that section. Each section contained in any of chapters 24 through 42 is redesignated so that the first two digits of the section number of that section are the same as the chapter number of the chapter containing that section.

11. 1991

    Pub. L. 102–83 § 5(c)(1) · 105 Stat. 378

    Substituted · 38 U.S.C. § 3731(f)(1)

    Pub. L. 102–83, § 5(c)(1), substituted “3702(d)” for “1802(d)”

    Source evidence

    Code amendment note
    Subsec. (f)(1). Pub. L. 102–83, § 5(c)(1), substituted “3702(d)” for “1802(d)”.

    Enacted provision · exact public law section
    (1) Each provision of title 38, United States Code, that contains a reference to a section redesignated by subsection (a) is amended so that the reference refers to the section as redesignated.

12. 1992

    Veterans Home Loan Program Amendments of 1992

    Pub. L. 102–547 § 7 · 106 Stat. 3633

    Substituted · 38 U.S.C. § 3731(f)(3)

    Pub. L. 102–547 substituted “1995” for “1992”

    Source evidence

    Code amendment note
    Subsec. (f)(3). Pub. L. 102–547 substituted “1995” for “1992”.

    Enacted provision · exact public law section
    SEC. 7. EXTENSION OF LENDER APPRAISAL PROGRAM. Section 3731(f)(3) of title 38, United States Code, is amended by striking out “1992” and inserting in lieu thereof “1995”.

13. 1996

    Pub. L. 104–110 title I § 101(g) · 110 Stat. 768

    Struck · 38 U.S.C. § 3731(f)(3)

    Pub. L. 104–110 struck out par. (3) which read as follows: “The authority provided in this subsection shall terminate on December 31, 1995.”

    Source evidence

    Code amendment note
    Subsec. (f)(3). Pub. L. 104–110 struck out par. (3) which read as follows: “The authority provided in this subsection shall terminate on December 31, 1995.”

    Enacted provision · exact public law section
    (g) Authority of Lenders of Automatically Guaranteed Loans To Review Appraisals.— Section 3731(f) of such title is amended by striking out paragraph (3).

14. 2019

    Blue Water Navy Vietnam Veterans Act of 2019

    Pub. L. 116–23 § 7(a) · 133 Stat. 966

    Added · 38 U.S.C. § 3731(b)(3)

    Pub. L. 116–23 added par. (3)

    Source evidence

    Code amendment note
    Subsec. (b)(3). Pub. L. 116–23 added par. (3).

    Enacted provision · exact public law section
    (a) In General.— Section 3731(b) of title 38, United States Code, is amended by adding at the end the following new paragraph: “(3) The Secretary shall permit an appraiser on a list developed and maintained under subsection (a)(3) to make an appraisal for the purposes of this chapter based solely on information gathered by a person with whom the appraiser has entered into an agreement for such services.” .

    Effective date note
    Pub. L. 116–23, § 7(b), June 25, 2019, 133 Stat. 976, provided that: “The amendments made by this section [amending this section] shall apply with respect to an appraisal under section 3731 of such title [meaning title 38, United States Code], on or after January 1, 2020.”

15 of 15 references resolved to an enrolled provision