Bloomberg Law, October 3, 2023, Banks, Realtors Push US Agencies to Cap Home Appraisal Do-Overs
Banks and realtors urged federal regulators to limit the number of times a potential homebuyer or seller can challenge an appraisal of the property’s value.
Five agencies proposed guidance in June seeking to make it easier for consumers to ask for so-called reconsiderations of value (ROV), particularly if they suspect racial biases affected the initial value placed on a home. The guidance is part of a broader Biden administration push to address racial disparities in home appraisals.
Consumer advocates largely approved of the proposal, but said regulators should more clearly state that the guidance applies to undervaluations as well as overvaluations.
“Homeowners are more likely to complain about undervaluation, and institutions must be willing to accept ROVs on that basis,” a Sept. 19 letter from the National Consumer Law Center, the National Community Reinvestment Coalition, the Consumer Federation of America, the National Fair Housing Alliance, the National Urban League, and other consumer groups said.
