Recent CFPB Blog Posts Offers Mortgage lenders should have a non-discriminatory reconsideration (ROV) process in case the borrower has concerns about the accuracy of the assessment. While an individual lender’s ROV process may vary, the CFPB explained that responsible lenders provide all borrowers with clear, actionable information on how to raise concerns about the accuracy of their valuations. I’m here.
This blog post states that an accurate valuation is essential to homeownership. Similarly, undervaluation can prevent homeowners from accessing assets accumulated through a sale or a home equity loan. CFPB says every lender’s ROV process must explain the benefits of reconsideration to determine if a reconsideration is appropriate and all borrowers explain why they believe the valuation is inaccurate “We need to secure the opportunity to do so,” he said. In addition, lenders help ensure that the ROV process is non-discriminatory by notifying borrowers of ROV opportunities in clear and plain language. Lenders who lack a clear and consistent ROV process for her risk violating federal law, according to the CFPB.
Finally, the blog post said the CFPB and other federal regulators are taking steps to ensure fair and accurate evaluations. Aside from his CFPB actions to limit bias in algorithmic valuations, the CFPB and other regulators are members of the Interagency Task Force on Property Valuations and Valuation Equity (PAVE). More information on PAVE is available hereWhile this blog post does not have the same legal effect as a rule that went through notice and comment rulemaking, it does indicate an area of focus for the CFPB in the future.