CFPB Reminds Lenders to Have a Clear Reconsideration of Value Process

CFPB Reminds Lenders to Have a Clear Reconsideration of Value Process

The Consumer Financial Protection Bureau (CFPB) recently posted an article to remind financial institutions that they must have a reconsideration of value process in place, and that the process should be clear and actionable. You can read the full post, “Mortgage Borrowers Can Challenge Inaccurate Appraisals Through the Reconsideration of Value Process,” on their blog. Plus, check out McKissock’s livestream CE course, Responding to a Reconsideration of Value (ROV).

Register for McKissock’s Live Webinar: Responding to a Reconsideration of Value (ROV) — with upcoming sessions on Nov. 10, Nov. 18,  Dec. 6, and Dec. 15.

What’s the scoop?

On October 6, 2022, the CFPB published a blog post with the headline, “Mortgage Borrowers Can Challenge Inaccurate Appraisals Through the Reconsideration of Value Process.” The article serves as a reminder that homebuyers and homeowners can ask lenders to reconsider a home valuation they believe to be inaccurate due to factual errors, inadequate comps, etc.

“Responsible lenders focused on serving their customers typically will provide borrowers with clear, actionable information about how to raise concerns about the accuracy of an appraisal,” writes the CFPB. “A lender’s reconsideration of value process must ensure that all borrowers have an opportunity to explain why they believe that a valuation is inaccurate and the benefit of a reconsideration to determine whether an adjustment is appropriate. While an individual lender’s reconsideration of valuation process may vary, lenders must make sure that their reconsideration of value process is nondiscriminatory and available and accessible to all.”

What does this mean for appraisers?

It is possible that this reminder from the CFPB could lead to an uptick in ROV requests. Thus, now may be a good time for appraisers to brush up on the reconsideration of value process, as well as how to best respond to such requests. Our livestream CE course, Responding to a Reconsideration of Value (ROV), is intended to assist appraisers in understanding the necessity for and best practices for responding to an ROV request in a sound and professional manner.

What will be covered in the course?

Special emphasis will be given on responding impartially, objectively, and without bias to the ROV, since there are proven methods for handling these requests while adhering to USPAP and applicable regulatory requirements—and maintaining a professional relationship with the client. The course starts with a brief discussion of how ROVs play a valuable role in the appraisal and mortgage lending process, and proceeds to numerous case studies to demonstrate effective research, analysis, and reporting strategies. Register here.

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