How to request a reconsideration of value

What is a reconsideration of value?

A reconsideration of value is a request, sent through the lender, asking the appraiser to reassess the value because of a possible reporting error, a weak choice of comparables, or information the appraiser should consider. That is close to how FHFA described it in May 2024, when Fannie Mae and Freddie Mac announced updated ROV policies.

It is not a new appraisal, and it is not a negotiation. The appraiser reviews what you send and either revises the report or explains why the value stands.

Who do you send the request to?

You send it to your lender, not to the appraiser. The lender reviews it and passes it along. On July 18, 2024, five federal agencies, including the CFPB and the Federal Reserve Board, issued final guidance on how financial institutions can build ROV processes that let consumers raise information an appraisal may have missed.

For loans sold to Fannie Mae, the lender must give you a disclosure describing its ROV process when it provides the appraisal. Read that disclosure first, because it tells you the format and where to send the request.

What should the request include?

Fannie Mae lists the pieces a borrower initiated ROV must contain. In plain terms:

• Your name and the property address.
• The effective date of the appraisal and the appraiser's name.
• The date of your request.
• A description of what you believe is wrong or missing.
• Any additional data or comparable sales, no more than five, with their sources.
• An explanation of why the new information supports reconsidering the value.

What makes a request easy to act on?

Specific, checkable facts make a request easy to act on. A permit showing a finished addition. A floor plan showing the correct square footage. A closed sale, similar to your home, that closed before the effective date in the same market. Each item should say what it shows and where it came from.

Opinions are harder to act on. Asking prices, a tax assessment, or a sense that the street is worth more give the appraiser little to test. Listings can support a trend, but closed sales carry the analysis. A calm, organized package is simply easier to review.

How many times can you ask?

Under Fannie Mae requirements, only one borrower initiated ROV is allowed per appraisal, and none can be submitted once the loan has closed. That is the main reason to gather everything before sending. Other loan programs have their own rules, so the lender's disclosure is the place to confirm what applies to your loan.

What happens after you submit?

The lender reviews the request and then sends it to the appraiser. FHFA noted that the 2024 policies standardize how lenders communicate ROVs to appraisers. The appraiser responds with either a revised report or a written explanation of why the value did not change. Fannie Mae requires lenders to set their own expectations for how quickly results are communicated.

If you believe the appraisal reflects discrimination, say so in the request. FHFA also noted that lenders must refer appraisers to the proper agencies for violations of laws against discrimination.