Borrower Initiated Reconsideration of Value (ROV) Overview
Please read the ROV overview page in full prior to submitting the Reconsideration of Value Request Form.
What is an Appraisal?
An appraisal is an estimate of how much a property is worth, determined by a licensed real estate appraiser. Lenders require an appraisal to make sure that the property you are offering as collateral for your loan has sufficient value to support the requested loan amount.
Legend Lending Corporation is committed to providing our customers with an easy method for raising concerns about property appraisals performed during the application process. We encourage customers to point out possible: errors or omissions in the appraisal report, use of incorrect comparable properties, and evidence that the appraisal was influenced by bias or discrimination.
Should you have concerns with your appraisal, please review the content below and submit these concerns to Legend Lending Corporation. It is important to let us know about your concerns as early as possible so they can be addressed quickly.
What is a Borrower Initiated Reconsideration of Value (ROV)?
It is a request made by the borrower to the appraiser to re-evaluate the analysis and conclusions of the initial appraisal using additional information provided by the borrower that they believe to be relevant to the appraiser’s value determination. Only one borrower can initiate the ROV process.
Appraisal Bias or Discrimination Concerns
Legend Lending Corporation is committed to fair lending. We do not tolerate bias or discrimination at any stage of the origination process. The Fair Housing Act prohibits discrimination on the basis of the applicant’s race, color, national origin, religion, sex (including gender identity or sexual orientation), marital status, military status, or disability. Additionally, the Equal Credit Opportunity Act protects applicants on the basis of their age, or receipt of public assistance.
If you believe your appraisal was affected by bias or discrimination, please reach out to us. Complete the ROV Request Form and email it to rov.fair@legendhomelending.com.
General Guidance
You must complete the Legend Lending Corporation ROV Request Form and submit it to the lender within 5 business days of receiving the appraisal. It must include:
- Identification and description of unsupported, inaccurate, or deficient areas in the appraisal report.
- Additional data, information, and comparable properties (minimum of two, not to exceed five), and the related data sources (for example, the MLS listing number).
- An explanation of why the new data supports the ROV.
Form Submission
- Complete the Legend Lending Corporation ROV Request Form on your own or consult with your real estate agent for their input as to which comparable sale or other relevant information may be beneficial to include with your request. Even if your real estate agent or loan officer does not believe that submitting an ROV request will result in a change in the value conclusion, you are still entitled to do so.
- You must complete and sign the ROV Request Form and Submit by email to ROV@legendhomelending.com within 5 business days of receiving the appraisal. The form must be submitted directly to Legend Lending Corporation to take action.
- The completed ROV Request Form will be reviewed to ensure it is completed correctly, provides sufficient information for the appraiser to consider, and does not contain prohibited information. If these requirements are met, Legend Lending Corporation will submit the ROV request to the appraiser. Note: we may ask you to resubmit the ROV request form if these guidelines are not followed.
- The appraiser will consider the ROV request and may agree or disagree that an adjustment or correction to the report is appropriate. The appraiser is an independent valuation professional who will determine whether or not the appraisal report warrants a change and cannot be directed by you or Legend Lending Corporation to change the appraisal.
- Your loan officer/loan processor will communicate in writing the outcome of the ROV request directly to you.
General Guidelines of Acceptable Comparable Sales
- Comparable sale must be for a closed purchase ONLY.
- The closed date must be no more than 12 months prior to the effective date of your appraisal and cannot be after the effective date on your appraisal.
- Comparable sales should have similar characteristics including the style of the home, size of the lot, gross living area, room/bedroom/bathroom count, age, condition, and quality of construction, it must be within a 20% size range.
- You must provide at least 2 additional comparable sales but no more than 5.
- The comparable sale must be proximate to your home. While proximity may vary based on the rural or urban location of your home, keep in mind that the closer (and more similar in characteristics) the comparable, the more likely it will be considered appropriate and acceptable.
- If you live in a subdivision, condominium project, or PUD, recent sales in your development of similar homes are the most influential.
- Borrower(s) may initiate only one reconsideration of value.
- The reconsideration of value will be provided at no cost to the borrower.
Appraiser Independence Requirements
Federal law prohibits anyone from influencing or trying to influence an appraiser’s value conclusion through coercion, collusion, compensation, or intimidation. To avoid any appearance of influence when submitting your ROV request form, please:
- Do not give your opinion as to the correct value or range of values you desire. However, you may list the contract purchase price or prior sale price of the property.
- Do not provide a prior appraisal report. However, you may include comparable sales from that report if they are no more than a year old.
- Be respectful in providing your narrative about your concerns with the appraisal.
Borrower Initiated ROV Form
ROV Contact Information
Legend Lending Corporation
NMLS 229421
17047 El Camino Real Suite 150
Houston, TX 77058