When you think about USPAP and ROVs (Reconsiderations of Value), gentle and peaceful thoughts are not what come to mind.  Somebody wants you to reconsider your value conclusion.  That is a gentle way to say, “I think you’ve made a mistake!”  But let’s face facts – we all make mistakes.  And given the state of the appraisal art – with our dependence on 90-year-old protocols and techniques – that we do not make more is a surprise.

In the context of USPAP and ROVs, if a borrower initiates one, they think we have made a mistake.  Maybe we did.  But maybe not.  The point is that now there is a protocol, for ROVs, where in the past there was one but far less formal.  Not surprisingly, it favors the borrower, but is not entirely anti-appraiser.  For example, the ROV can contain only five (-5-) “comps” to analyze.  And only the borrower or the lender (or its underwriter) can initiate an ROV, not the seller, the broker(s) in the transaction, etc.  To make all this even clearer, there can be only one ROV request from the borrower. Plus, the lender pays for the ROV, not the borrower, even if the borrower initiates the request.

On the other hand, if we appraisers can’t or won’t co-operate with the ROV, there will be sanctions.  If it is necessary to get a second appraisal, the lender (or its underwriter) will remove the appraiser from its approved appraiser panel, thus the appraiser will never work for that lender again.  In addition, the lender (or its underwriter) will refer the appraisal and the appraiser to the state appraisal authorities.

Is there a secret?  USPAP and ROVs means the appraiser must have a killer workfile and be willing to co-operate fully when that ROV comes in.