Regulatory Alerts2024-07-18 | SR 24-3SR 24-3: Interagency Guidance on Reconsiderations of Value of Residential Real Estate Valuations
The Board of Governors of the Federal Reserve System, CFPB, FDIC, NCUA, and OCC issued interagency guidance requiring financial institutions to implement robust processes for reconsiderations of value (ROV) to address deficient residential real estate valuations. The guidance outlines applicable laws and regulations while explaining how institutions can integrate ROV procedures into existing risk management functions like appraisal review and complaint management. It provides examples for developing risk-based policies and control systems to identify, address, and mitigate the risks associated with valuation deficiencies.
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