Updated ROV Requirements
FHA, Fannie Mae and Freddie Mac Announce Delay in Implementation of Reconsideration of Value Guidance Requirements
Written by: Rob Ellis, Senior Compliance Consultant
*Update to SCA Blog post from May 16, 2024 (link)
On Tuesday, August 6, 2024, the Federal Housing Finance Agency (FHA) and Fannie Mae and Freddie Mac in response to industry concerns about meeting the original compliance date, announced that they will delay the implementation date for their new Reconsideration of Value (ROV) policy.
Originally scheduled for August 29 and September 2, the new implementation date is now October 31, 2024, providing lenders an additional 60 days.
Originally the FHA/HUD ROV guidance could be implemented immediately and had to be implemented for FHA case numbers assigned on or after September 2, 2024. In Mortgage Letter 2024-16, HUD provides that the guidance still may be implemented immediately but must be implemented for FHA case numbers assigned on or after October 31, 2024.
Originally, the Fannie Mae and Freddie Mac guidance could be implemented immediately and had to be implemented for loans with applications dated on or after August 29, 2024. In a Selling Notice and a Bulletin 2024-F, Fannie Mae and Freddie Mac, respectively, provide that lenders now must implement the ROV policy for loans with applications dated on or after October 31, 2024, and Fannie Mae specifically notes that the guidance still may be implemented immediately.
Fannie Mae also stated that frequently asked questions (FAQs) will be available later in August 2024.
Links to the announcements issued by HUD, Fannie Mae and Freddie Mac, are included below.
HUD: Appraisal Review and Reconsideration of Value Updates Mortgage Letter 2024-16
Freddie Mac: Guide Bulletin 2024-F https://guide.freddiemac.com/ci/okcsFattach/get/1009339_7
Fannie Mae: https://singlefamily.fanniemae.com/media/39716/display
If you would like to discuss assistance in implementing these guidelines, please contact our Director, Bill Dolan, at WDolan@scapartnering.com or by phone at (617) 694-2617 and schedule a time to speak with us today.
