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.