FDIC Advises Consumers to Inquire About a Reconsideration of Value for Appraisals

On June 2, 2023, the FDIC published an article to emphasize to consumers the significant role appraisals have in the home loan process in order to help enable consumers to better protect their interests in the event that an appraisal is or appears to be inaccurate.

The article explains that it is important for consumers to protect themselves from inaccurate appraisals because appraisals are not only used to assess the value of the property, but also to determine things like interest rates, required down payments, and whether a consumer will be approved for a loan.

The FDIC recommends that consumers inquire with their lender early in the loan process about whether the lender has a process for re-analyzing an appraisal – a process also known as a reconsideration of value (ROV) – and if so, what information they will need and how to request it.

Upon completion of the appraisal, consumers should review a copy of the appraisal, which a lender is required to promptly provide, for any errors, significant exclusions, or potentially biased information it may contain.  If it appears to be inaccurate, possibly discriminatory, or otherwise inadequate, consumers should request a ROV if the lender has a process to do so or file a complaint with HUD if they do not.

Consumers may also contact the lender’s primary federal regulator or the FDIC for assistance.