As they seek to implement appraisal modernization legislation passed by Congress, the most efficient approach for federal housing agencies would be to align their reconsideration of value processes with the collateral valuation standards already established by Fannie Mae and Freddie Mac, the American Bankers Association and 11 financial and real estate sector associations said today in a joint letter.
The 21st Century ROAD to Housing Act passed by lawmakers earlier this year included language to create a review and resolution procedure for a consumer-initiated reconsideration of value or a subsequent appraisal in connection with a consumer’s home loan. In their letter, the associations pointed to Fannie and Freddie as the model to follow.
“A single, uniform reconsideration of valuation process will facilitate compliance because lenders will perform the same process for all loan products and reinforce adherence to the new standards with common and enhanced quality control procedures,” they said.
The associations also urged the agencies to work collaboratively to develop the new requirements. “For example, we believe that a comprehensive ROV approach could reasonably include standardized educational resources from the covered agencies,” they said.
