Instructions for Requesting a Reconsideration of Value (ROV)

Please carefully read this document before completing a ROV Request Form

 

If after reviewing your appraisal, you believe that there are errors, bias or discrimination, or unsuitable comparable sales relied upon that has affected the appraisal, you may request a Reconsideration of Value or “ROV”.  An ROV request made to the appraiser is a request to reassess the report based upon deficiencies or information that may affect the value conclusion.  First Federal Savings Bank requires the borrower to complete a ROV Request Form which includes the information, data, or comparables the consumer believes will impact the overall value.

Keep in mind that just because your appraised value came in lower than expected, this doesn’t necessarily mean your appraisal is flawed or that another appraisal would result in a higher appraised value.  If the appraiser does not adjust the value, it doesn’t necessarily mean the appraiser is wrong.  The appraiser is required to meet certain standards which may limit their ability to consider certain facts or information you provide.

If you believe your appraisal is deficient, we encourage you to submit an ROV request to help ensure that your appraisal report accurately reflects the value of the property.

 

How the Process Works

  • You must complete a ROV Request Form and include relevant information that would be beneficial to your request. You are entitled to submit a request even if your loan officer does not believe that submitting an ROV request will result in a change in the value.
  • The purpose of the ROV Request Form is to:
    • Provide additional comparable sales that you believe to be better than those used in the appraisal;
    • Correct factual errors found in the appraisal; and/or
    • Report appraiser bias or discrimination.
  • You must complete and sign the ROV Request Form and include any supporting documentation. Simply requesting a form does not constitute an ROV request.  The form must be completed and submitted to the bank for action to be taken.  You should contact your loan officer to obtain the form.
  • The Form will be reviewed by bank employees to ensure that it is completed correctly, provides sufficient information, and does not violate Appraiser Independence Requirements.
  • If the form is acceptable, the Bank will submit the ROV request to the appraiser, who will then have 10 business days to respond.
  • The appraiser will consider each item in the request and will agree or disagree that an adjustment or correction to the report is appropriate. The appraiser will determine if the report warrants a change and cannot be directed by you in accordance with the Appraisal Independence Requirements.
  • Your loan officer will communicate the outcome of your ROV request to you.
  • Only one borrower-initiated ROV is permitted per appraisal.

 

Comparable Selection Guidance

Below are a few guidelines that an appraiser considers when selecting comparable sales.  Please review and understand the guidelines before completing the ROV Request:

  • The comparable must be a closed sale and cannot be a pending sale or property listing. The closed date of the comparable sale must be prior to the appraisal report completion date.
  • Comparable sales must represent recent sales in the market. Generally, the sales must have closed within the last 6 to 12 months.
  • Comparable sales should be proximate to the subject property and ideally located in the same geographic neighborhood.
  • Comparable sales should have similar characteristics (i.e. similar room count, gross living area, style and condition).

 

Appraisal Independence Requirements

The Appraiser Independence Requirements prohibit anyone from influencing an appraiser’s value conclusion through coercion, collusion, compensation or intimidation.  To avoid any appearance of influence:

  • Do not give your value conclusion or mention the final market value or range of values you desire;
  • Do not provide a prior appraisal report;
  • Be respectful in providing your narrative about your concerns with the appraisal;
  • We may ask you to resubmit the ROV Request Form if these guidelines are not followed, or if the form is incomplete.