NRMLA Commenting On Appraisal Reconsideration Proposal

NRMLA Commenting On Appraisal Reconsideration Proposal

The Federal Housing Administration is seeking public feedback on a proposed policy change that’s intended to strengthen requirements for processing and documenting Reconsideration of Valuation (ROV) requests, especially when initiated by borrowers who want their appraisal results reviewed. The announcement was made in FHA Info 2023-01.  

On behalf of its members, NRMLA will be submitting comments before the February 2 deadline.

FHA says the purpose of the policy change is to improve the process when prospective borrowers applying for FHA-insured Title II forward or HECMs request an ROV on a property if the initial valuation is lower than expected, there is an indication of illegal bias, Fair Housing regulations have been violated or unlawful discrimination has been identified.

FHA also proposes updated appraisal review standards intended to provide mortgagees and appraisers with clarifying guidance regarding the quality of an appraisal report and the ROV process and responsibilities.