ROV Comps

The appraisal industry has faced significant criticism over the past several years, as many minority homeowners have alleged discrimination in their home valuations, leading to lawsuits, lender fines, and negative press. A 2021 Freddie Mac study found that Black and Latino homeowners are twice as likely as white homeowners to receive low appraisals. The study also found that 12.5% of properties in predominantly Black census tracts are appraised for less than their contract price, compared to 7.4% in majority white tracts. Fannie Mae, Freddie Mac, and FHA / HUD in collaboration with the PAVE have taken steps to promote equity in the appraisal process. The goal is to ensure appraisals for insured mortgages are performed in a competent, independent, impartial, and objective manner, free of discrimination and compliant with a federal regulation. Government agencies acknowledged that the absence of a way to appeal potentially biased appraisals created a significant obstacle for borrowers of color. The appeal or dispute process in the lending world, known as Reconsideration of Value (ROV), will become mandatory for most mortgages on August 29, 2024. On May 1, 2024, Fannie Mae, Freddie Mac, and HUD announced new policies for appraisal reconsiderations of value (ROV). These policies are intended to provide borrowers with the knowledge and opportunity to request an ROV and to establish a consistent process nationwide. As part of the new ROV process, the borrower is required to submit additional information, such as similar homes that sold for more money but were excluded from the appraiser's report. These comparable properties, or "comps," can make or break your case. We provide the best comparable property reports nationwide to help borrowers successfully navigate the ROV process and have an equitable mortgage experience.