On October 6, 2022, the CFPB published an article highlighting that mortgage borrowers can challenge inaccurate appraisals through the reconsideration of value (ROV) process. According to the article, homebuyers and homeowners can ask for a lender to reconsider a home valuation the consumer believes to be inaccurate. ROV may be requested when borrowers observe factual or other errors or omissions, inadequate comparable properties, or prohibited bias during appraisal.
Some of the best practices that the CFPB recommend include providing information about how to request a reconsideration of value in the copies of appraisals and other home valuations required under the Equal Credit Opportunity Act Valuations Rule; and providing information about the reconsideration of value process and a borrower’s ability to provide relevant information before an appraisal is conducted. These practices help ensure that their reconsideration of value process is nondiscriminatory and lower the risk of violating federal law.
Read the CFPB’s blog post here.