Chief Appraiser

Chief Appraiser Says

Reading the actual guideline text below — never a general AI guess

Here's what "reconsideration of value" means: it's a written request from a borrower asking the appraiser to take another look at the property value, usually because the borrower thinks the appraiser missed something, used wrong comparable properties, or should have considered additional information the borrower is providing. The process and requirements differ sharply by loan type—for conventional Fannie Mae loans, lenders must give borrowers a disclosure about ROV when delivering the appraisal report, and the appraiser has to document the outcome and whether the value changed; for FHA loans, HUD rescinded its mandatory ROV requirements in 2025, so borrower-initiated ROV is no longer formally required there. VA has its own process where the Veteran submits a written request to the Regional Loan Center within 5 business days and can provide market data (though it's not required), and VA staff will review and potentially issue an amended valuation if warranted. The key point: don't assume one standard applies everywhere—you have to know whether it's FHA, conventional, or VA before you know what the actual ROV rules are. Straight from UAD 3.6/URAR, VA Lenders Handbook (Pamphlet 26-7), Fair Housing Law & Appraisal Bias, Fannie Mae Selling Guide (SEL-2025-07), and FHFA Reconsideration of Value Policies — nothing added.

AI Search

General web information, outside Chief Appraiser’s vetted library — verify against the authoritative source before relying on it professionally

Searching the wider web…

© Copyright Notice: © Fannie Mae. UAD 3.6 / URAR reference materials shown for research and reference only. Full documents available at fanniemae.com/uad. Reproduction restricted per Fannie Mae copyright policy.

© Copyright Notice: © The Appraisal Foundation. Excerpts shown for research and reference only (fair use, 17 U.S.C. § 107) — every certified appraiser is required to have their own current copy under USPAP's own Record Keeping/Competency provisions; this tool helps you find the exact passage, it doesn't replace owning it. Full current edition available for purchase at appraisalfoundation.org. Reproduction restricted per The Appraisal Foundation's copyright policy.

Chief Appraiser Picks · Related Videos New Appraisal Reconsideration of Value (ROV) Rules Explained (2024 HUD interview) Appraisal and the Law! Real Estate Appraisal Reconsiderations (feat. Dave Radcliffe)

Was this helpful? 👍 Yes 👎 Not quite

Filter: All None

#1 UAD 3.6 / URAR (FNMA) Page 337

0.367 ▼

Revision History Appendix F-1: URAR Reference Guide Page 337 of 375 Version 1.3 Reconsideration of Value The Reconsideration of Value subsection displays when there was a…

UAD 3.6 / URAR (FNMA) · Appendix F-1 URAR Reference Guide v1.3.pdf · Page 337 · View at official source (fanniemae.com/uad) →

Revision History Appendix F-1: URAR Reference Guide Page 337 of 375 Version 1.3 Reconsideration of Value The Reconsideration of Value subsection displays when there was a Borrower-Initiated Reconsideration of Value (ROV) request submitted to the appraiser on the original report. Reference published guidelines by the GSEs, government agencies, or other identified secondary market participants for specific guidance. Reconsideration of Value Report Field ID Report Label When to Include Allowable Answers / Format Definition / Additional Guidance Not on Report This is an appraiser input that does not display Always required Yes | No Reconsideration of Value Indicator • Yes (There was a Borrower-Initiated ROV, and the Reconsideration of Value subsection is included in the URAR) • No (There has not been a Borrower-Initiated ROV, and the Reconsideration of Value subsection is not included in the URAR) Reconsideration of Value Report Field ID Report Label When to Include Allowable Answers / Format Definition / Additional Guidance 27.003 Type Required if Reconsideration of Value Indicator is Yes Borrower-Initiated Reconsideration of Value Type 27.004 Date Required if Reconsideration of Value Indicator is Yes mm/dd/yyyy Reconsideration of Value Result Date The date the appraiser completed the ROV. Note: When an ROV occurs, the Date of Signature and Report (29.066) must be updated to reflect the date of the changes. 27.005 Result Required if Reconsideration of Value Indicator is Yes Choose an allowable answer from the Definition / Additional Guidance column Reconsideration of Value Result Indicates whether the ROV request resulted in a change to the Opinion of Market Value (26.007). • No Value Change • Value Change 27.006 Reconsideration of Value Commentary Required if Reconsideration of Value Indicator is Yes Free-form Provide commentary summarizing the outcome of the ROV. Note: Specific changes to the URAR are detailed in the Revision History Table (27.000 – 27.002).

#2 VA Lenders Handbook (Pamphlet 26-7) Page 368

0.160 ▼

Appraisal Process 10-33 22. Reconsideration of Value Change Date March 11, 2019 • This chapter has been revised in its entirety. a. Written Request After the NOV has been issued,…

VA Lenders Handbook (Pamphlet 26-7) · VA-Lender-Handbook.pdf · Page 368 · View at official source (VA.gov — Appraisers/Staff Appraisal Reviewer) →

Appraisal Process 10-33 22. Reconsideration of Value Change Date March 11, 2019 • This chapter has been revised in its entirety. a. Written Request After the NOV has been issued, the Veteran may request reconsideration of value in writing by contacting the RLC of jurisdiction. If the request is submitted to the RLC through the lender, the SAR is encouraged to research market data and provide a recommendation to the RLC with the Veteran’s request. b. Market Data Providing market data in support of the request, as described in Chapter 10, Topic 8, of this Handbook, is encouraged, but not required. A market data grid is not required. c. Review by VA staff Within 5 business days, VA staff will review the appraisal report, additional submitted data, as well as the market data available through VA’s AMS. In some cases, VA staff may conduct a field review which will be completed within 20 business days. If VA staff determines that an increase in value is appropriate, VA will issue an amended NOV.

#3 UAD 3.6 / URAR (FNMA) Page 38

0.209 ▼

Reference ID AMC Reference ID Uniform Residential Appraisal Report Page [Page] of [Pages] Appraisal Version # Fannie Mae | Freddie Mac September 2024 Revision History Revision…

UAD 3.6 / URAR (FNMA) · Appendix C-1 URAR with Report Field IDs v1.3.pdf · Page 38 · View at official source (fanniemae.com/uad) →

Reference ID AMC Reference ID Uniform Residential Appraisal Report Page [Page] of [Pages] Appraisal Version # Fannie Mae | Freddie Mac September 2024 Revision History Revision Date URAR Section Description Reconsideration of Value Type Date Result Reconsideration of Value Commentary HF.005 HF.006 HF.007 HF.008 HF.001 HF.003 HF.004 HF.002 27.005 27.003 27.004 27.006 27.000 27.001 27.002

#4 Fair Housing Law & Appraisal Bias (Fair Housing Act, ECOA, USPAP AO-39/40) Page 3

0.218 ▼

should confirm with their state licensing board how this seven-hour requirement maps onto that state's specific continuing education hour requirements at renewal. Reconsideration…

Fair Housing Law & Appraisal Bias (Fair Housing Act, ECOA, USPAP AO-39/40) · Fair_Housing_and_Appraisal_Bias_Requirements.txt · Page 3 · View at official source (The Appraisal Foundation — USPAP) →

should confirm with their state licensing board how this seven-hour requirement maps onto that state's specific continuing education hour requirements at renewal. Reconsideration of value: status is split by loan type. This is the area that has changed the most and is the most likely source of confusion for both appraisers and the real estate agents and lenders they work with. The rule to remember is that reconsideration of value, or ROV, requirements are no longer uniform across FHA and conventional, meaning GSE-backed, loans, so the loan type must be tracked before advising anyone on procedure. The Interagency Task Force on Property Appraisal and Valuation Equity, known as PAVE, was created in June 2021 and released an action plan in March 2022 aimed at addressing racial and ethnic bias in home valuations. It led to HUD mortgagee letters requiring borrower-initiated reconsideration of value processes and appraisal fair-housing-compliance requirements. As of mid-2026, the status of those programs has diverged by loan type. For FHA loans administered by HUD, the borrower-initiated reconsideration of value requirements have been rescinded: a 2025 HUD mortgagee letter rolled back the earlier appraisal fair housing compliance and reconsideration of value update requirements. FHA borrowers may still ask their lender to request a reconsideration of value, but the formal borrower-initiated disclosure and timeline requirements are no longer mandated by HUD. For conventional loans backed by Fannie Mae or Freddie Mac, the reconsideration of value policy is still in effect. FHFA-directed reconsideration of value policies published by the enterprises remain active, and a 2025 Fannie Mae Selling Guide update amended, but did not eliminate, the reconsideration of value disclosure requirement: lenders must still provide the disclosure when the appraisal copy is delivered to the borrower, though the requirement to also disclose at initial application was dropped. The PAVE Task Force itself has been effectively disbanded; HUD and the Office of Management and Budget stated in mid-2025 that the task force's associated policies were being terminated or rolled back. The practical guidance is straightforward: do not assume a single reconsideration of value standard applies to every file. Check whether the loan is FHA or conventional before advising a lender, borrower, or real estate agent on reconsideration of value procedure, and confirm current requirements with the AMC or lender at the time of assignment, since this is an area still being actively revised. Nevada state law on fair housing. Nevada Revised

#5 Fannie Mae Selling Guide Page 1

0.237 ▼

Fannie Mae Selling Guide · Selling Guide Announcement SEL-2025-07.pdf · Page 1 · View at official source (selling-guide.fanniemae.com) →

© 2025 Fannie Mae SEL-2025-07 Page 1 of 3 Selling Guide Announcement (SEL-2025-07) Sept. 3, 2025 The Selling Guide has been updated to include changes to the following: • Retirement of “appraisal waiver”: removing the term “appraisal waiver” from use alongside “value acceptance” in the Selling Guide • Rescission of reconsideration of value components: revises two requirements of the framework for a borrower- initiated reconsideration of value • Expansion of MH Advantage®: expanding eligibility requirements for manufactured homes • Establishing borrower ownership interest – life estates: clarifying borrower ownership interest in life estates View the list of impacted topics. Retirement of “Appraisal Waiver” To more accurately reflect the evolving role of our valuation solutions, the term “appraisal waiver” will no longer be used in conjunction with “value acceptance” in the Selling Guide. The legacy terminology no longer aligns with the product’s current function within the valuation spectrum. Furthermore, the continued use of dual terms creates confusion, undermines product promotion, and delays industry alignment around a unified term. As a result, the following updates were implemented: • instances where “appraisal waiver” appeared independently were revised to “value acceptance.” • where the term “value acceptance (appraisal waiver)” was used, the parenthetical reference was removed. These changes promote a more consistent and accurate message across the industry and reinforce our commitment to modernizing the valuation process. Effective: These changes will be implemented immediately. Rescission of reconsideration of value components We revised reconsideration of value (ROV) policy as follows: • We removed the requirement to provide an initial ROV disclosure at the time of loan application. The disclosure must be provided to the borrower along with delivery of the appraisal report. • We simplified documentation requirements to require only documentation related to the outcome (not initiation) of the ROV to be retained in the loan file. Selling Guide Supplement UAD 3.6 has also been updated to reflect these changes. Effective: Lenders may take advantage of these policy changes immediately.

#6 Reconsideration of Value (ROV) Guidance Page 1

0.266 ▼

SOURCE: Federal Housing Finance Agency (FHFA) — News Release "FHFA Announces Enterprise Reconsideration of Value Policies" Published: May 1, 2024 URL:…

Reconsideration of Value (ROV) Guidance · FHFA_Enterprise_ROV_Policy_Announcement_2024.txt · Page 1 · View at official source (FHFA — Reconsideration of Value) →

SOURCE: Federal Housing Finance Agency (FHFA) — News Release "FHFA Announces Enterprise Reconsideration of Value Policies" Published: May 1, 2024 URL: https://www.fhfa.gov/news/news-release/fhfa-announces-enterprise-reconsideration-of-value-policies ===================================================================== FHFA Announces Enterprise Reconsideration of Value Policies Washington, D.C. — The Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) published new Reconsideration of Value (ROV) policies after months of collaboration with FHFA and the U.S. Department of Housing and Urban Development's (HUD) Federal Housing Administration. A Reconsideration of Value is a request to an appraiser to re-assess the appraised value of a property due to potential appraisal reporting deficiencies or inappropriate selection of comparable properties, or based upon additional information the appraiser should consider. "Consistent standards for lenders and appraisers, coupled with a well-understood process for consumers to challenge appraisal findings, will help ensure that consumers are treated fairly," said then-FHFA Director Sandra L. Thompson. "These updates represent a powerful tool in combating racial bias in property appraisals and promoting valuation accuracy." In June 2023, as part of the Interagency Task Force on Property Appraisal and Valuation Equity, FHFA and HUD established a working group to develop consistent ROV standards. The Enterprises' new policies provide clear requirements for lenders to disclose and outline the ROV process for consumers, standardize communication to appraisers, and establish ROV response expectations. Lenders are also required to refer appraisers to local, state, and federal agencies for violations of anti-discrimination laws. Related policy sources: - Fannie Mae Selling Guide Announcement SEL-2024-03, Selling Guide Updates - Freddie Mac Bulletin 2024-6 - FHA ROV Mortgagee Letter (HUD) ===================================================================== NOTE: This is the original 2024 policy announcement establishing consistent ROV standards across Fannie Mae and Freddie Mac. See also the 21st Century ROAD to Housing Act (2026), indexed separately, which directs HUD, FHFA, USDA, and VA to standardize ROV procedures across the entire mortgage industry -- and note that FHA rescinded its own 2024 ROV policy in March 2025, so the FHA-specific ROV process is currently unsettled pending the new legislation's implementation.

#7 2024 USPAP Page 153

0.037 ▼

Opinion of Value 182 The following are examples of language that signify a value opinion (Le, elther by concurrence or by indication of 189 numeric point, a range, or a…

2024 USPAP · 2024_USPAP_text.txt · Page 153 · View at official source (The Appraisal Foundation — USPAP) →

Opinion of Value 182 The following are examples of language that signify a value opinion (Le, elther by concurrence or by indication of 189 numeric point, a range, or a relationship to a numeric benchmark). These examples DO constitute evidence of a value 1% opinion (.e., appraisal by the reviewer, thereby making the appraisal review one that includes an appraisal. 185 “Iconcur (or do not concur) with the value” 18 + “Lagree (or disagree) with the value” 197 + “nmy opinion, the value is the same)" 188+ “Inmyopinion, the value is incorrect and should be $00" 18 + “Inmyopinion, the value is too high (or too low)" 10 Such language, or language that conveys similar meanings to the intended users of the report, represents that the 101 reviewer has completed the steps required to develop his or her own value opinion. Such language indicates the 192 reviewer has ether concurred with the appraiser's value opinion in the underlying work, and thus has adopted that 193 value opinion as his or her own, or has developed a different opinion of value. Its important that this language be 19% consistent with the scope of work described in the appraisal review report. 195 Note that fa reviewer rejects the value, he or she should use care in how that result is stated. Ifthe language of such 196. rejection is based on errors or inconsistencies in the original work and does not include any qualifiers that would relate 197 toa direction in value, it does not imply an appraisal by the reviewer. 198 However, if such rejection Is stated in relation to a value or value range, such as indicating a direction in value (Le., more 199 than, less than) or to an established benchmark, that language indicates the appraisal review has taken on the “opinion 200. of value” characteristic of an appraisal. Ths is an important distinction that must be kept in mind by the reviewer when 201 composing any language regarding the original appraiser's opinions or conclusions. In addition, whichever category 202 such language may fall under, it must also be consistent with the purpose, scope of work, and intended use of the 203 appraisal review assignment results. 20% The following list summarizes the requirements in a real property appraisal review assignment with the reviewer's 205 opinion of value. The sequence of steps completed in this type of assignment is presented in

#8 2024 USPAP Page 148

0.036 ▼

applicable in the assignment that generated the original work; or 1 USPAP Guidance: Advisory Opinions co 45 © The Appraisal Foundation sac --- Page 134 --- Sb < ADVISORY OPINION…

2024 USPAP · 2024_USPAP_text.txt · Page 148 · View at official source (The Appraisal Foundation — USPAP) →

applicable in the assignment that generated the original work; or 1 USPAP Guidance: Advisory Opinions co 45 © The Appraisal Foundation sac --- Page 134 --- Sb < ADVISORY OPINION 20 22 5, make corrections to cure a deficiency, expressing the result as the reviewer's own opinion of value, which is, 62 to be developed using a different scope of work than was applicable in the assignment that generated the 8% original work: or 85 6, regardless of the appraisal review result, develop his or her own opinion of value using the same scope of 26 work as was applicable in the assignment that generated the original work; or @7 7. regardless of the appraisal review result, develop his or her own opinion of value using a different scope of 22 work than was applicable in the assignment that generated the original work. 29 In Examples 1, 2, and 3 the reviewer has not taken any steps to offer his or her own opinion of value, and therefore, 90 has not bridged over into the appraisal stage. 91 In Examples 4, 5, 6, and 7, the appraisal review assignment is actually a two stage assignment—an appraisal review 02 plus a value opinion by the reviewer. Itis also important to note that this second stage occurs even ifthe reviewer 92 concurs with the value opinion in the original work. This is because a reviewer's concurrence in a value opinion 9% developed by another appraiser converts it to the reviewer's own opinion of value—in effect, the reviewer is taking 95 ownership of that value by concurring with it. As such, it constitutes a value opinion (Le., appraisal) by the reviewer. 96 In Examples 6 and 7, the client might, alternatively, engage the reviewer (as an appraiser) in a separate assignment 97 to perform an appraisal outside the context of the appraisal review assignment. oe Inany case, the reviewer must carefully develop the scope of work as required by Standards Rule 3-2(g) and 99 state the scope of work in the report as required by Standards Rule 4-2(g). The concluding language used (see 100 Illustrations to follow) should also be consistent with the scope of work decision. 101 €. Scope of work and the reviewer's opinion of value 102 An appraisal review assignment that includes a requirement for the reviewer to develop his or her own opinion of 103 value Imposes on the

Chief Appraiser

Welcome to Chief Appraiser

Still Being Built — And That's Where You Come In

Why not just use AI?

Help Us Improve Chief Appraiser