Regulatory Alerts2024-07-18 | FIL-41-2024Agencies Finalize Interagency Guidance on Reconsiderations of Value for Residential Real Estate Valuations
The FDIC, Federal Reserve Board, NCUA, OCC, and CFPB issued final interagency guidance requiring financial institutions to implement or enhance reconsideration of value (ROV) processes for residential real estate appraisals. The guidance mandates that institutions identify and correct deficient valuations caused by errors, omissions, or prohibited discrimination while preserving appraiser independence and maintaining robust third-party oversight. Institutions must align these ROV procedures with safety and soundness standards, applicable consumer protection laws, and nondiscrimination requirements through targeted policies, control systems, and resolution mechanisms.
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