Regulatory AlertsSR 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 regarding residential real estate appraisals. The guidance outlines the risks associated with deficient collateral valuations and instructs institutions to integrate reconsideration of value procedures into existing risk management, appraisal review, and complaint management functions. It further provides examples for developing risk-based policies and control systems to identify, address, and mitigate valuation deficiencies across all supervised financial institutions.
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