Regulatory Alerts2024-07-26 | 2024-16200Interagency Guidance on Reconsiderations of Value of Residential Real Estate Valuations
The Board of Governors, CFPB, FDIC, NCUA, and OCC issued final interagency guidance establishing a flexible framework for residential real estate valuation Reconsiderations of Value (ROVs). The guidance highlights risks associated with deficient valuations and instructs financial institutions to integrate ROV processes into existing risk management functions while safeguarding appraiser independence and compliance with nondiscrimination laws. Clarifying that the rules apply to single 1-to-4 family residential transactions, it provides actionable policy examples and confirms the guidance operates as supervisory direction rather than binding law.
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