As previously announced, the Federal Housing Finance Agency released an announcement on May 1, 2024 regarding Enterprise Reconsideration of Value policies. ROV policies and disclosures must be in effect by August 29, 2024 for Fannie Mae and Freddie Mac, and by September 2, 2024 for HUD.
As such, Docutech has created a new generic document entitled “Notice of Right to Request a Reconsideration of Value (ROV)” (Cx27674). This is a customizable document, but Docutech has included generic default language in compliance with Fannie Mae Single Family Selling Guide B4-1.3-12, Freddie Mac Single Family Seller Servicer Guide 5604.4, and FHA Single Family Housing Policy Handbook 4000.1 II.A.3.a.ix.A & II.B.4.a.ii.H.1.
The Notice of Right to ROV needs to be disclosed to the borrower twice: once at the time of loan application and once again when the appraisal report is provided to the borrower. Cx27674 will print identically both times. The only difference will be when Cx27674 is disclosed after appraisal, the additional fields for Date of Appraisal and Name of Appraiser will print below the Date, Lender Name, Borrower Name(s), and Property Address.
There are six text sections in Cx27674: 1) Introduction; 2) Instructions for Requesting an ROV; 3) ROV Request Requirements; 4) ROV Process; 5) Process for Requesting Clarification or Corrections Unrelated to Property Value; and 6) Communications. Each of these sections may require customization to accurately disclose each lender’s ROV process. If the standard language is used there will be no dependencies with loan origination systems to utilize this form. A new field can control when the form will print. New Print Reconsideration of Value Disclosure (FI 187942) defaults to “Yes” for Initial Disclosure and Appraisal document packages if Appraisal Valuation Method (FI 52005) is not set to “None”.
Clients may also utilize a custom document and request to have Cx27674 not print or be overridden by their form.
If you are interested in customizing Cx27674 or creating your own custom version of this form, please submit your request as soon as possible to allow for completion before the effective date of August 29, 2024
These changes are available for testing on Stage & Stage 2 servers and will take effect on August 29, 2024. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
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