In recent years, concerns about appraisal biases and inaccuracies have gained significant attention, prompting regulatory bodies to implement new policies to ensure more accurate and fair property valuations. The FHA and GSEs have responded by introducing a unified Reconsideration of Value (ROV) Policy designed to address the challenges of accurate and fair property valuations and how lenders handle appraisal reviews and borrower appeals.

Accurate Group understands navigating changes in the appraisal industry can be challenging along with the complexities faced to ensure accurate and fair property valuations. As your trusted partner, we’re here to educate and help you navigate the new ROV Policy. We’ll explain what these changes mean for you and how we can help you adapt seamlessly.

Why ROV Policies Matter – Benefits to Lenders

Strengthen Borrower Trust
The new ROV Policy aims to promote fairness and transparency by enhancing awareness that borrowers have the option to request a reevaluation of their property’s appraised value if they believe it is inaccurate or biased. By clearly communicating the availability of this option, the policy helps build and boost borrower satisfaction and confidence in your services through a transparent process for reconsidering appraisals.

Mitigate Risk
Addressing potential appraisal inaccuracies early in the process helps reduce the risk of disputes and legal issues. By having a structured process for ROV requests, you can identify and rectify problems before they escalate, protecting your loan portfolio.

Market Competitiveness
Lenders who adopt and effectively implement the new ROV policies can differentiate themselves by demonstrating a commitment to fairness and transparency leading to a better borrower experience. Additionally, these positive borrower experiences with the ROV process can lead to an increase in referrals and repeat business, further enhancing the lender’s position in a competitive market.

The Process: How ROV Works

1. Borrower Request: Borrowers submit a request for reconsideration to their lender if they believe their appraisal is inaccurate.
2. Documentation Submission: Borrowers provide supporting evidence, such as recent comparable sales.
3. Submission Review: The lender reviews and validates the request and supporting documents before sending on to the Appraisal Management Company (AMC).
4. Decision: A decision is made by the appraiser to either uphold the original appraisal or adjust the value based on the new information.

Implementation Strategies for Lenders

• Educate Your Borrower(s): Communicate the ROV process to the borrower(s) – their right to one (1) ROV request per appraisal, steps to initiate a request, and the expected timeline and outcomes during and after the review process.
• Train Your Staff: Ensure your team is equipped to handle ROV requests effectively and understands the new policy. Lenders should invest in comprehensive training programs for their underwriters and appraisal review staff. These programs should focus on identifying appraisal deficiencies, understanding the nuances of the new ROV policies, and handling ROV requests in a fair and timely manner.
• Develop Clear Procedures: Establish standardized procedures for managing ROV requests, including documentation protocols, setting turnaround time expectations, and ensuring consistent communication with borrowers throughout the process.
• Utilize Technology: Leverage technology that enhances the efficiency and effectiveness of the ROV process. Lenders should consider implementing software solutions that facilitate the management of ROV requests, track communication, and ensure compliance with regulatory standards.

Benefits of Partnering with Accurate Group

As your trusted partner, Accurate Group offers comprehensive support to help you navigate and implement these new ROV policies. Here’s how Accurate Group can assist:

• Training: Our staff are well-versed in the new ROV guidelines and can offer guidance along with handling requests efficiently.
• Process Development for Enhanced Compliance and Quality Control: The new ROV policies necessitate quality control measures to ensure compliance. Accurate Group can advise you on developing standardized procedures for managing ROV requests, ensuring consistency and compliance. Our services include providing a compliant submission form and reviewing all submission requests for completeness before they are forwarded to appraisers, minimizing delays and ensuring efficient turnaround times.
• Operational Efficiency: By utilizing Accurate Group for handling ROV requests, lenders can streamline operations, reducing the time and resources required to address appraisal disputes effectively, leading to quicker resolutions and faster loan approvals. Accurate Group requires an appraiser response within 48 hours or less for ROV requests. If not met, we begin our escalation process, and our coordinators keep the lender in the loop throughout the course.
• Technology Solutions: Leverage advanced appraisal management technology to streamline the ROV process. Accurate Group is an active AMC on the AppraisalWorks appraisal management technology platform, making it easier for your team to manage requests and track communication.
• Competitive Advantage: Effectively adopting and implementing ROV policies can set your business apart in the market. By showing a commitment to fairness and transparency, you can attract more borrowers and stand out from the competition, leading to increased market share and long-term growth.

Are You Ready?

The new ROV policies introduced by the FHA and GSEs take effect on August 29, 2024. These policies represent a significant step forward in ensuring fair and accurate property appraisals. They also present an opportunity for lenders to enhance their operations, mitigate risk, build borrower trust, and improve the quality of their loan portfolios, positioning themselves as leaders in a fairer, more transparent mortgage industry.

To ensure a smooth transition for you and your borrowers, proactively implementing these changes is key. By partnering with Accurate Group, we will guide you in updating your internal processes to effectively navigate the new ROV policy.

We are here to support you every step of the way. Contact us to learn how we can help enhance your appraisal process and build stronger borrower relationships to gain a competitive advantage in today’s market. And don’t forget to request a copy of Accurate Group’s internal ROV guidelines and submission form.

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