Complete Appraisal Blog

Reconsideration of Value
August 29th, 2024 3:52 PM
A Reconsideration of Value (ROV) is a procedure in which the appraiser is requested to re-evaluate the value opinion given in an appraisal. Fannie Mae and HUD have recently made this process standard.

Lender Responsibilities:

Verify that the borrower's request includes sufficient supporting evidence before sending the ROV to the appraiser.

The lender must dispatch a standardized message to the appraiser containing:

- Borrower(s) name, property address, effective date of the appraisal, appraiser's name, and the ROV date
- Identification and description of unsupported, inaccurate, or deficient areas in the appraisal report
- Additional data, information, or comparable properties, not exceeding five
- A definition of turn-time expectations for the communication of ROV results
- Instructions for submitting the ROV response within a revised appraisal report, including commentary on conclusions, regardless of the outcome
- Guidance for appraisers on addressing minor appraisal issues or nonmaterial errors not associated with the ROV process
- The lender is also required to report any unresolved significant discrepancies or signs of unacceptable appraisal practices to the relevant appraisal licensing agency or regulatory board and to report suspected clear violations of anti-discrimination laws to the appropriate authorities.

Borrower Responsibilities:

The borrower must supply supporting details that pinpoint and elucidate what they believe to be unsupported, inaccurate, or deficient items, along with additional data, information, and no more than five comparable sales (and the sources of the related data), demonstrating how the new data substantiates the ROV.

For any appraisal, only a single borrower-initiated ROV is permitted. It must be presented by the borrower to the lender prior to loan closing. After a loan has closed, the borrower may no longer request an ROV for that appraisal.
Appraiser responsibilities

After receiving the request from the lender, the appraiser must analyze the relevance of the information provided with the ROV. Regardless of whether the ROV request results in a change in value or not, a revised appraisal must be provided within the defined time frame with a description of the points in dispute and the outcome.




  
Posted in:General
Posted by Christopher Caccamo on August 29th, 2024 3:52 PMPost a Comment

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