Agencies propose guidance on reconsiderations of value

Federal regulators requested public comment on proposed guidance addressing reconsiderations of value, or ROVs, for residential real estate transactions.

Background: ROVs are requests from financial institutions to appraisers or other preparers of valuation reports to reassess the value of residential real estate.

Details: The proposed guidance:

• Advises on policies that allow consumers to provide information that may not have been considered during an appraisal.

• Shows how ROVs intersect with appraisal independence requirements.

• Describes how financial institutions may create or enhance their existing ROV processes.

• Discusses the risks of deficient residential real estate valuations and how financial institutions may incorporate ROV processes into established risk management functions.

Deadline: Comments on the proposal are due within 60 days of publication in the Federal Register. ICBA plans to comment.