Reconsideration of Value (ROV) Procedures
OAMCO is committed to maintaining the highest standards of appraisal integrity and Appraiser Independence Requirements (AIR). These procedures outline the formal process for requesting a Reconsideration of Value (ROV) in accordance with 2024 GSE (Fannie Mae/Freddie Mac) and HUD guidelines.
1. Submission Requirements
A Reconsideration of Value is a formal request for an appraiser to review their report based on potential factual errors, omissions, or additional market data.
- Authorized Initiators: Requests must be submitted by the Lender/Client. Borrowers and agents must coordinate through the lender’s professional underwriting or collateral team.
- Frequency: Only one borrower-initiated ROV is permitted per appraisal assignment.
- Required Documentation: All requests must be submitted via the OAMCO portal and include:
- Identification of specific factual errors (e.g., incorrect square footage, room count, or amenities).
- Up to but no more than five (5) alternative comparable sales that closed prior to the appraisal's effective date.
- Brief rationale as to why the submitted data is superior to the comps used in the original report.
2. Internal Review
Before a request is forwarded to the appraiser, OAMCO’s quality control team will:
- Compliance Check: Ensure the request does not violate Appraiser Independence Requirements (AIR). We will redact any "target values," "estimated values," or coercive language.
- Data Validation: Verify that the submitted comparables are closed sales and were available in the MLS/public records as of the effective date.
- Administrative Correction: If the request involves simple typos or non-value-impacting errors, OAMCO may handle these as "Standard Corrections" rather than a formal ROV.
3. Appraiser Communication
Once validated, the ROV is dispatched through the OAMCO Portal:
- Standardized Format: The appraiser receives a clear, professional summary of the dispute points.
- Independence: The appraiser is under no obligation to change the value. Their role is to objectively analyze the new data and determine if it alters their original conclusion.
- Turnaround Time: Appraisers are requested to respond within 1-3 business days to maintain loan file momentum.
4. Resolution & Delivery
The appraiser will provide a revised report or an addendum addressing each point of the ROV.
- Value Unchanged: If the appraiser maintains the original value, they must provide a written explanation addressing why the submitted comparables were not utilized or why the original data remains more representative of the market.
- Value Revised: If the appraiser determines the new data warrants a change, a revised report will be issued with an updated "Reconsideration of Value" comment section.
- Final Delivery: OAMCO delivers the final resolution to the lender, providing a full audit trail of the communication.
Note on Compliance: OAMCO strictly prohibits any attempt to influence the appraiser’s independent judgment. All ROV activity is logged for regulatory auditing purposes.
