FHFA, FHA announce Reconsideration of Value policies

The Federal Housing Finance Agency has announced that Fannie Mae and Freddie Mac (the Enterprises) published new Reconsideration of Value (ROV) policies after months of collaboration with FHFA and the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration. A Reconsideration of Value is a request to an appraiser to re-assess the appraised value of a property due to potential appraisal reporting deficiencies or inappropriate selection of comparable properties, or based upon additional information the appraiser should consider.

In June 2023, as part of the Interagency Task Force on Property Appraisal and Valuation Equity, FHFA and HUD established a working group to develop consistent ROV standards. The Enterprises’ new policies provide clear requirements for lenders to disclose and outline the ROV process for consumers, standardize communication to appraisers, and establish ROV response expectations. Lenders will also be required to refer appraisers to local, state, and federal agencies for violations of anti-discrimination laws.

The Department of Housing and Urban Development, through the FHA, announced a new FHA requirement for lenders participating in its Single Family program that will enable borrowers to request a re-assessment of the appraised value of their property if they believe that the appraisal was inaccurate or biased.

• Fannie Mae Selling Guide Announcement
• Freddie Mac Bulletin
• FHA ROV Mortgagee Letter