Reconsideration of Value anyone?

[J Grant]

The change that I am aware of is that the lender is now inducing a form for a borrower to submit an ROV ,with their loan package or when they get the appraisal

 

[Sadie]

I think it will be a struggle for the lender to adequately fill out the form.

 

[alebrewer]

Are you sure you and Fern aren't related?

 

[J Grant]

I think it will be a struggle for the lender to adequately fill out the form.

I have not seen the form - I assumed the borrower fills it out and sends it to the lender if the borrower wants an ROV done -?

 

[alebrewer]

I have not seen the form - I assumed the borrower fills it out and sends it to the lender if the borrower wants an ROV done -?

There is no one 'form'. The format of the form isn't the requirement - the requirement is the two disclosures - one at the time of initial disclosure and one at time of appraisal delivery.

 

[Sadie]

I have not seen the form - I assumed the borrower fills it out and sends it to the lender if the borrower wants an ROV done -?

Each lender has their own form or procedure, as far as I know. F/F guidance:
The ROV process must include a review and resolution procedure for the ROV request, and steps for the borrower(s) to appeal an appraisal when it is believed the opinion of value is unsupported, may be deficient due to unacceptable appraisal practices, or reflects prohibited discriminatory practices.

Regardless of the outcome of the ROV, the lender is responsible for ensuring the appraisal report and opinion of market value are reliable and adequately supported. The ROV needs to have:

	Borrower(s) name, Property address, Effective date of the appraisal, Appraiser name, and Date of the ROV request.
	Identification and description of unsupported, inaccurate, or deficient areas in the appraisal report.
	Additional data, information, or comparable properties (not to exceed five), and the related data sources (for example, the MLS listing number).
	An explanation of why the new data supports the ROV.

[th][/th]

 

[TerryRohrer]

I wonder how many buyers will be requesting reconsiderations trying to increase the appraised value? In my experience, the lender and agents do the ROVing and I always wonder if the borrower is aware.

 

[alebrewer]

I think you're right most of the time. Which, if that's the case, makes you wonder about any fiduciary relationship breeches between borrower and LO.

 

[Sadie]

I think you're right most of the time. Which, if that's the case, makes you wonder about any fiduciary relationship breeches between borrower and LO.

• Mortgage loan originators (MLOs) employed by mortgage brokers
  These MLOs are usually considered fiduciaries, meaning they are legally required to act in the best interests of their clients.
  
  
• MLOs working for lending institutions
  These MLOs may not have a fiduciary duty to borrowers, as their primary obligation is to their employer. However, they are still required to provide accurate information and follow regulations.

 

[Tom4value]

Just wondering if anybody has partaken in the new ROV protocol yet?

Yes. It is great. The protocol is the borrower (not realtor or uncle who knows the area, etc.) can ask the LENDER for a ROV. The form allows for up to 5 properties for the appraiser to a look at as well as any FACTUAL errors they see. No opinions are allowed (my house nicer than comp 1). The lender reviews it and submits it to the appraiser.

The appraiser is to comment IN DETAIL on all sales (we say if they are comps) as well as any factual issues. Then, decide if any changes are needed and why/why not.

Once the ROV reply is submitted, that’s it! Gone are the days of, “ok, how about these comps, then?” Gone are the days of a borrower/lender/broker all having their own way of browbeating the appraiser. There is a standard way with all rules being the same.

Funny, I first heard about this at the Appraisal Expo in Vegas in September. Most appraisers were worried about having a forum to force the appraiser to change value. I saw the opposite as it gave the appraiser a level playing field to defend their appraisal.