On July 18, 2024, five federal regulatory agencies issued final guidance on reconsiderations of value (ROVs) for residential real estate transactions. The guidance advises financial institutions on policies and procedures to allow consumers to provide information that may not have been considered during an appraisal or if deficiencies are identified in the original appraisal.
ROVs are requests from a financial institution to an appraiser or other preparer of a valuation report to reassess the value of residential real estate. Deficiencies identified in valuations, either through an institution’s valuation review processes or consumer-provided information, may prompt financial institutions to question the credibility of the appraisal or valuation report.
The guidance provides examples of ROV policies and procedures that financial institutions may implement to help identify, address, and mitigate discrimination risk. It describes the risks associated with deficient residential real estate valuations and explains how financial institutions can incorporate ROV processes into their risk management functions. The agencies finalized the guidance largely as proposed, with clarifying edits based on public comments received on the proposed guidance published in July 2023.
Attachment: Federal Register Notice (PDF)
Media Contacts:
- CFPB: Mike Robinson - 202.597.4022
- FDIC: Julianne Fisher Breitbeil - 202.340.2043
- FRB: Chelsea Grate - 202.452.2955
- NCUA: Joe Adamoli - 703.518.6572
- OCC: Anne Edgecomb - 202.649.6870
The NCUA is an independent federal agency created by Congress to regulate, charter, and supervise federal credit unions. With backing from the full faith and credit of the United States, it operates and manages the National Credit Union Share Insurance Fund, insuring deposits for more than 135 million account holders in all federal credit unions and most state-chartered credit unions. The NCUA also protects consumers and educates the public on consumer protection and financial literacy issues.
For media inquiries:
Joe Adamoli
JAdamoli@ncua.gov
703.518.6572