New FNMA ROV requirement

[Amy Perkins]

No, my work is solid, it stands on its own.

 

[alebrewer]

So this process has been in effect for over 5 weeks now. Has anyone received even one of these yet?

 

[Amy Perkins]

So this process has been in effect for over 5 weeks now. Has anyone received even one of these yet?

I havent gotten one for years

 

[Lil Rhody]

Since 1/1/2024, we have averaged just above 3 ROVs/month or 8% of the total appraisals completed. This includes requests for disputes for reconciliations of value, clarifications of data errors and market rent reconciliations. Last month we fielded 8 ROVs. Hopefully, last month was just an outlier and not the new norm...

 

[alebrewer]

Since 1/1/2024, we have averaged just above 3 ROVs/month or 8% of the total appraisals completed. This includes requests for disputes for reconciliations of value, clarifications of data errors and market rent reconciliations. Last month we fielded 8 ROVs. Hopefully, last month was just an outlier and not the new norm...

But the question is: were any of those 8 the result of the new ROV disclosure that goes out to borrowers? IOW - were any of those ROV's the result of the new borrower initiated ROV process? You'd know if they were, as the lender has to provide you with specific information regarding the fact that it's a borrower initiated ROV.

 

[azbassman21]

There is no strategy to cut an ROV off.

Appraisers need to charge more upfront—will we be able to? For all the BS being endlessly added, addressing all the post-appraisal stuff takes longer than the appraisal, including the inspection.

With all of the changes and old guard retiring in droves, if we're still even a thing in 5 years I bet fees go up considerably.

Trump unlatching Fannie and Freddy off the people's teet and taking away the golden parachute may just reinvigorate the need for appraisals and appraisers.

 

[azbassman21]

I agree - there will be more of them. I just think that spending a couple minutes up front might reduce that number a bit and (more importantly) greatly expedite the handling of the others. You're not writing a new explanation; you're clipping the original explanation and referring them back to your original report.

I kind of agree with J Grant, I just don't think it matters how detailed you are, lenders and AMCs are lazy and regardless of what you put in the report, they want you to explain it again.

I bet over half of the ROVs I've ever received I've already addressed the issue in the report, or had some of the comps presented already included. I still had to go in and address their concerns.

There is no common sense on behalf of the lenders.

 

[azbassman21]

I havent gotten one for years

We should all strive to be as great as you.

ROVs have very little to do with your quality of work. I assume you're rural Tennessee?

 

[djd09]

hahahahahha. A rov isn't additional work, it correcting your wrong value.

if you have a wrong value, it is a misleading report...intentionally or not

 

[Lil Rhody]

But the question is: were any of those 8 the result of the new ROV disclosure that goes out to borrowers? IOW - were any of those ROV's the result of the new borrower initiated ROV process? You'd know if they were, as the lender has to provide you with specific information regarding the fact that it's a borrower initiated ROV.

1 of the ROV's were for an appraisal with an effective date that preceded the new process. The rest were all initiated after the new process was put in place. To say that they were the result of the new process would be subjective. I think looking at the number of ROVs in the next few months will help us realize if the new process is the catalyst of this increase or it is just a coincidence.