February 05, 2025

Reconsideration of Value Disclosure Process

Bulletin 2025-012 Reconsideration of Value Disclosure Process

Newrez LLC "Newrez" Approved Non-Delegated Correspondent Clients; Newrez would like to remind all Clients that Fannie Mae, Freddie Mac, FHA, Non-Agency Products (Smart Series) and Newrez have previously communicated the requirements for a borrower-initiated reconsideration of value (ROV) and Clients must be abiding by all requirements.

 

 

Key elements of the requirements are (not all inclusive)

 

  • Defines the requirements and timing of a disclosure to the borrower. Delivered at time of application and again upon delivery of the appraisal report.
  • Defines the requirements that the Client must have established processes for review and resolution procedures for a borrower-initiated reconsideration of value.
  • Defines a standardized format for responding and documenting communications to the borrower and/or appraisers.
  • Defines the need to establish reporting requirements for material deficiencies or unacceptable appraisal practices.
  • Defines the requirement to retain all documentation and communications related to the borrower initiated ROV in the loan file.
  • Defines the requirement to ensure valuation staff are trained to identify prohibited discrimination practices and appraisal deficiencies.

 

Notes

 

  • Newrez is reminding Clients that when submitting loans to Newrez for Non-Delegated Underwriting, the initial reconsideration of value disclosure provided to the borrower at application will be required at loan set up. The Underwriter will condition for the disclosure that is required to be delivered at time of the appraisal delivery.
  • Newrez is reminding all Clients that when submitting loans to Newrez, both the initial disclosure and the disclosure provided at the time of appraisal delivery are required. In addition, when an ROV is completed, the file must contain all supporting documentation for the ROV.