Please fully read and understand this document before completing a Reconsideration of Value Request Form. Only 1 submission will be entertained and allowed per transaction.
What is an appraisal of your property?
An appraisal is an opinion of value determined by a licensed real estate appraiser. It provides your lender with an opinion of how much your property is worth in your market (fair market value). Lenders require an appraisal to confirm that the property offered as collateral for your loan has sufficient value to support the requested loan amount. Appraisers must follow systematic procedures defined by the Uniform Standards of Professional Appraisal Practice (USPAP). These rules govern things like the selection of comparable properties, acceptable methods for making adjustments, and standards of professionalism and ethics.
What is a Reconsideration of Value?
A Reconsideration of Value (ROV) (also known as an Appraisal Appeal) is a request made by a consumer for the appraiser to reevaluate the analysis and conclusions set forth in the initial appraisal using additional information provided by the consumer that the consumer believes to be relevant to the valuation.
Borrowers have the right to ask their lender to reconsider a home valuation the consumer believes to be unsupported or defective. You may, for example, call attention to factual errors or omissions in the appraisal report, produce supplementary information (including up to 5 potentially comparable sales), or provide evidence that the appraisal was adversely influenced on a prohibited basis.
To initiate an ROV, United Mortgage Corp. requires the consumer to complete a Reconsideration of Value Request Form (the Form”) which asks for information or comparables that the consumer believes will impact the value conclusion.
The fact that your appraised value was lower than you expected doesn’t necessarily mean your appraisal is defective or that another appraisal would yield a higher value. Appraisal reports capture the appraiser’s opinion of value in a snapshot in time, meaning an appraisal performed six months ago or six months in the future may very well produce a different opinion of value.
Keep in mind that the appraiser is required to meet the standards provided under USPAP — which may limit their ability to consider some or all of the information you provide with your request for an ROV.
In all instances, if you believe your appraisal is deficient, we strongly encourage you to submit an ROV request.
Time to request an ROV:
When the initial appraisal is completed, the loan processor assigned to your file will deliver a copy to you by email. You have five (5) days from the send date of that email to initiate an ROV request with United. After 5 days, the option is no longer available so be sure to review the appraisal report immediately upon receipt. (Requests for an extension of the 5-day period may be considered at the sole discretion of the United’s senior management team.)
Please be aware, however, that your lender may refuse to consider a timely request for ROV for any reason, including, but not limited to, time constraints and the proximity of a scheduled closing date. Moreover, as set forth in detail below, we will reject the submission if the Form is completed incorrectly.
Concerns About Appraisal Bias or Discrimination
United Mortgage Corp. takes its role in ensuring fair and responsible lending very seriously and does not tolerate bias or discrimination in any aspect of the origination process – including the appraisal process. The Fair Housing Act prohibits any form of discrimination based on the applicant’s race, color, national origin, religion, sex (including gender identity or sexual orientation), marital status, military status, or disability. In addition, the Equal Credit Opportunity Act prohibits lenders from discriminating against applicants based on age or receipt of public assistance. Should you have any concerns that the value conclusion in your appraisal was in any way impacted by bias or discrimination, please provide those details in the applicable section of your ROV Request Form.
How the ROV Process Works
To download a fillable ROV Request Form, Click Here. After downloading, completing and signing the Form, submit it to United either by email at ROV@unitedmortgage.com or by fax to (631) 201-8426. You may also submit it online by clicking here.
Merely obtaining the Form does not constitute an ROV request. The Company will take no action unless it receives the completed form in a timely manner.
You may complete the Form by yourself or ask your real estate agent or loan officer for their input. You are entitled to submit an ROV request even if your real estate agent or loan officer advises you not to do so.
You may use the Form to indicate the purpose of the ROV which may include:
The information you provide for the appraiser to consider should be as specific and comprehensive as possible. If you are working with a real estate agent, they may be able to provide you with comparable sales in the market. If this is a refinance transaction, you may use tools like Redfin and Zillow to find recent sales activity. (Listings, however, cannot be used. For factual errors, identify the precise data points that are inaccurate (e.g., number of bedrooms, number of bathrooms, gross living area, age of home, presence or absence of a fireplace, parking garage, swimming pool).
Upon submission, the Form will be reviewed by the Company’s Appraisal Desk to ensure it is completed correctly, provides sufficient information for the appraiser to consider, and does not violate Appraiser Independence Requirements.
If the Form is acceptable, the Company’s Appraisal Desk will submit the ROV request to the appraiser.
The appraiser will consider each element of the request and may agree or disagree that an adjustment or correction to the report is appropriate. The appraiser is an independent valuation professional who will determine – in their sole discretion — whether the appraisal report warrants a change. Pursuant to Appraisal Independence Requirements, they cannot be directed by you or United Mortgage.
Your loan officer will communicate the outcome of the ROV to you.
General Guidance on Comparables
Comparable sales usually play a significant role in determining the appraised value. The appraiser is responsible for identifying the most appropriate comparables based upon a variety of factors. The appraisal must consider the following general guidelines. These should guide you in the Reconsideration of Value process:
Appraiser Independence Requirements
Appraiser Independence Requirements prohibit anyone from influencing or trying to influence an appraiser’s value conclusion through coercion, collusion, compensation or intimidation. To avoid any appearance of influence please:
Do not state the valuation you desire;
Do not provide an earlier appraisal report; however, you may include comparables from that report should they still be timely;
Please be respectful in your statement of concerns with the appraisal;
If these guidelines are not followed, we may ask you to revise and resubmit your request.
