Borrower Initiated Reconsideration of Value (ROV) Procedures

Overview

This process is part of the Property Appraisal and Valuation Equity (PAVE) guidance from FHA, Fannie Mae, and Freddie Mac.  American Financial Resources (AFR) is committed to providing loan customers with an easy method for raising concerns about property appraisals performed during the application process.

We encourage customers to point out possible:

If there are concerns with the appraisal, please review the content below and submit these concerns. It is important to let AFR know about the concerns as early as possible so they can be addressed quickly.


Effective October 31, 2024:




Process

First Disclosure:


Second Lender Disclosure:


Appraisal review by Lender:


If the Borrower requests a ROV:


How to Request a ROV

If you believe any of the above circumstances have occurred, please follow these steps:


AFR Reviews Request:


AFR requests ROV from AMC:


Appraisal Revisions:


Final Step:






General Guidance

General guidance on errors or omissions:

Appraisal reports have detailed descriptions, measurements and other data for the subject home and comparable properties that are used to determine the value of the property. It is important that these descriptions, measurements, and other data are accurate and complete.   Here are some common examples of factual errors:


Here are some common examples of omissions:

 

Please provide as much information as possible for the AMC to consider in communicating with the appraiser.  For factual errors in the appraisal, specify what is inaccurate.  For omissions, specify the features or characteristics of the property that are missing.


General guidance on comparable property selections:

Comparable sales are recent sales of similar properties that appraisers use to help determine the fair market value of a subject property. The appraiser is responsible for selecting the best and most appropriate comparable sales based on a variety of factors. Here are some general guidelines that appraisers follow that should guide you in this ROV process:

Please provide specific addresses of comparable sales you think the appraiser should have selected (or not selected) and why. If you are working with a real estate agent, they may be able to help you find comparable sales in the area. You may use websites like Redfin® and Zillow® or public records to find recent sales activity – but keep in mind, you cannot use current listings.


General guidance on bias or discrimination:

It is improper for an appraiser to reach a conclusion of property value based on characteristics such as race, color, religion, national origin, gender, marital status, familial status, age, receipt of public assistance income, or handicap. Appraisal discrimination can result in a home being undervalued or overvalued. Some examples of possible bias or discrimination are:

Please explain the facts and circumstances that show the appraisal may have been impacted by bias or discrimination.

Appraiser independence requirements:

Federal law prohibits anyone from influencing or trying to influence an appraiser’s value conclusion through coercion, collusion, compensation, or intimidation. To avoid any appearance of influence when submitting your ROV Request Form, please:




Forms