
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 38USC3731]

 
                      TITLE 38--VETERANS' BENEFITS
 
               PART III--READJUSTMENT AND RELATED BENEFITS
 
              CHAPTER 37--HOUSING AND SMALL BUSINESS LOANS
 
                SUBCHAPTER III--ADMINISTRATIVE PROVISIONS
 
Sec. 3731. Appraisals

    (a) The Secretary shall--
        (1) subject to subsection (b)(2) and in consultation with 
    appropriate representatives of institutions which are regularly 
    engaged in making housing loans, prescribe uniform qualifications 
    for appraisers, 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;
        (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)(1) The Secretary 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.
    (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 Secretary may use no 
written test in determining the qualifications of appraisers other than 
the test prescribed to implement such uniform qualifications.
    (c) Except as provided in subsection (f) of this section, the 
appraiser shall forward an appraisal report to the Secretary for review. 
Upon receipt of such report, the Secretary 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 Secretary shall 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 (other than a lender authorized under subsection (f) 
of this section to determine reasonable value)--
        (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 Secretary, has 
    furnished to the Secretary 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 Secretary 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 
Secretary, has furnished to the Secretary 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 Secretary shall 
consider such appraisal, along with other appraisals furnished to the 
Secretary, and shall, if appropriate, issue a revised certificate of 
reasonable value of such property, construction, repairs, or 
alterations.
    (f)(1) Subject to the provisions of paragraphs (2) and (3) of this 
subsection, the Secretary may, in accordance with standards and 
procedures established in regulations prescribed by the Secretary, 
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 3702(d) of this title. In 
such a case, the appraiser selected by the Secretary 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 Secretary.
    (2) In exercising the authority provided in paragraph (1) of this 
subsection, the Secretary 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) Repealed. Pub. L. 104-110, title I, Sec. 101(g), Feb. 13, 1996, 
110 Stat. 768.]
    (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.

(Added Pub. L. 99-576, title IV, Sec. 407(a), Oct. 28, 1986, 100 Stat. 
3282, Sec. 1831; amended Pub. L. 100-198, Sec. 11(a), (b), Dec. 21, 
1987, 101 Stat. 1324; Pub. L. 101-237, title III, Sec. 313(b)(1), Dec. 
18, 1989, 103 Stat. 2077; Pub. L. 102-54, Sec. 3(b), (c), June 13, 1991, 
105 Stat. 267; renumbered Sec. 3731 and amended Pub. L. 102-83, 
Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-547, Sec. 7, 
Oct. 28, 1992, 106 Stat. 3636; Pub. L. 104-110, title I, Sec. 101(g), 
Feb. 13, 1996, 110 Stat. 768.)

                          Codification

    Another section 11(b) of Pub. L. 100-198 amended section 1810 [now 
3710] of this title.


                               Amendments

    1996--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.''
    1992--Subsec. (f)(3). Pub. L. 102-547 substituted ``1995'' for 
``1992''.
    1991--Pub. L. 102-83, Sec. 5(a), renumbered section 1831 of this 
title as this section.
    Subsec. (f)(1). Pub. L. 102-83, Sec. 5(c)(1), substituted 
``3702(d)'' for ``1802(d)''.
    Subsec. (f)(3). Pub. L. 102-54, Sec. 3(b), substituted ``December 
31, 1992'' for ``October 1, 1990''.
    Subsec. (f)(4), (5). Pub. L. 102-54, Sec. 3(c), added pars. (4) and 
(5).
    1989--Pub. L. 101-237 substituted ``Secretary'' for 
``Administrator'' wherever appearing.
    1987--Subsec. (a)(1). Pub. L. 100-198, Sec. 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.
    Subsec. (b). Pub. L. 100-198, Sec. 11(a)(2), designated existing 
provisions as par. (1) and added par. (2).
    Subsec. (c). Pub. L. 100-198, Sec. 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,''.
    Subsec. (d). Pub. L. 100-198, Sec. 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).
    Subsec. (f). Pub. L. 100-198, Sec. 11(b)(3), added subsec. (f).


       Ratification of Actions During Period of Expired Authority

    Any action taken by Secretary of Veterans Affairs before Feb. 13, 
1996, under provision of law amended by title I of Pub. L. 104-110 that 
was taken during period beginning on date on which authority of 
Secretary under such provision of law expired and ending on Feb. 13, 
1996, considered to have same force and effect as if such amendment had 
been in effect at time of that action, see section 103 of Pub. L. 104-
110, set out as a note under section 1710 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 3710, 3736, 3762 of this 
title.
