Borrower Reconsideration of Value

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What is the borrower Reconsideration of Value (ROV) Process?

In a collaborative effort, Fannie Mae, Freddie Mac, and HUD have revamped the Reconsideration of Value (ROV) policy. The previous process did not grant borrowers the right to appeal an appraisal when they believed the opinion of value was unsupported, deficient due to unacceptable appraisal practices, or reflected prohibited discriminatory practices. 

What is the background and purpose of the new Reconsideration of Value (ROV) Process?

On June 1, 2021, President Biden announced the launch of an interagency initiative to combat bias in home appraisals. This initiative became the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE), which is composed of thirteen federal agencies, including the White House Domestic Policy Council. The Task Force is focused on addressing racial and ethnic bias that can lead to low valuations during the homebuying or refinance process.

As part of its efforts, PAVE has created an action plan outlining clear actions that federal agencies will take to eliminate appraisal bias. This plan is part of the Federal Government's ongoing commitment to increasing homeownership rates among families and communities of color. The Action Plan highlights the lack of consistent, industrywide policies and guidelines related to the Reconsideration of Value (ROV) process as a barrier for borrowers seeking an ROV when justified. It also emphasizes the need for greater consumer awareness of the ROV process.

For more information, visit the PAVE website.

What are the lender’s responsibilities for the borrower ROV Process?

To provide an Appraiser Independence Requirements (AIR) compliant process to allow the borrower to appeal the appraisal.  The process must include a ROV disclosure to inform borrowers about their right to request an ROV during the loan application process, a ROV form and instructions to navigate the process. Lenders are also required to facilitate a response from the appraiser that addresses all the borrower’s concerns while communicating clear timeline expectations.

For more information, download our free ROV Summary or purchase the Lender's Complete ROV Guide Package from our Global DMS Lender ROV Store. 

How can Global DMS and EVO Software help with the ROV Process?