Due Diligence (SAPP Context)

Updated 2026-05-17

In the context of the Servicer Appraisal Processing Program (SAPP), "due diligence" refers to the care properly expected from, and ordinarily exercised by, a reasonable and prudent servicer. This level of care is specifically defined as that which a servicer would exercise if it were entirely dependent on the subject property as security to protect its investment.

Servicers are expected to exercise due diligence in processing SAPP cases to maintain their SAPP privilege. Failure to do so, or to comply with other applicable SAPP-related requirements, VA policies, procedures, regulations, and statutory requirements, can lead to the amendment, suspension, or withdrawal of their SAPP authority by the Department of Veterans Affairs (VA).

Examples of Due Diligence in SAPP

• Ensuring accurate information is provided when requesting appraisals.
• Timely responses to appraiser inquiries regarding property access to prevent delays in appraisal completion and potential curtailment of interest on the loan.
• Maintaining an effective Quality Control System (SAPP) to ensure the adequacy and quality of Staff Appraisal Reviews (SARs).

References

• VA Pamphlet 26-7, Revised Chapter 18: Servicer Appraisal Processing Program (SAPP)