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Appraisal Bias, Automated Valuation Models (AVMs), and Reconsiderations of Value (ROVs): How Should We Handle This?

Is the process of ascertaining whether an appraisal or AVM is valid still important in the current regulatory environment? The short answer is yes, for several reasons. We'll explore the requirements and best practices in this area, and recommend a best way forward for lenders.
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DATE

Thursday, October 15, 2026
11:00 am - 1:00 pm

INSTRUCTOR

Carl Pry

FORMAT

Webinar

CREDIT TYPE

2.5 CRCM Credits

$299.00 or 1 Token

Includes: Live Access, 30 Days OnDemand Playback, Presenter Materials and Handouts

  • Auditing
  • Commercial/Business Lending
  • Compliance
  • General Compliance
  • Lending
  • Lending Compliance
  • Mortgage Lending
  • Risk Management/Legal
  • Bank Legal Counsel
  • Commercial Lender
  • Compliance Officer
  • Internal Auditor
  • Loan Closer
  • Mortgage Lender
  • Private Banker
  • Risk Manager
  • Senior Management
  • Small Business Lender

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Even in this age of dynamic regulatory change and uncertainty, it is important to remember that property valuations not be influenced by bias on the part of the appraiser (or algorithm in the case of an automated model). This reality is no less important to regulators even with a seeming pullback in regulatory enforcement. The risk continues to be real.

There has been much written about bias in the property valuation industry, and it has become clear that mortgage lenders must take steps to ensure the appraisals (and AVMs) they use in lending decisions are not subject to bias.

The regulatory agencies, as well as HUD, FHFA, and Fannie Mae and Freddie Mac, issued their Final Interagency Guidance on ROVs, which creates clear expectations on mortgage lenders to formulate and execute programs to provide customers with access to ROV requests, as well as how to handle them once received. As well, final regulations were issued regarding AVMs to ensure they are not subject to conflict or bias.

There are a number of disclosure requirements that go along with this as well, as a means to notify customers that they have the ability contest an appraisal if they wish. Then, what do you do if the appraisal is in fact fatally flawed? Should (or can) you order a new one? What about charging the borrower a fee for that second one? Doesn’t that fly in the face of appraiser independence?

In this webinar we’ll address all these important questions, as well as provide practical advice on how to incorporate this critical new requirement into your lending program.

What You'll Learn

  • Explanation of appraisal bias – what is it and where can it be found?
  • Requirements to have valuation guidelines in place
  • Many links to regulatory guidance – there is help out there!
  • How do I handle the AVM requirement? What must we do?
  • What exactly is a Reconsideration of Value request? What do I do once I receive one?
  • Interplay with complaint management processes
  • What is a “deficiency” that should be addressed?
  • When can we get a second appraisal? Can/should we charge the borrower for it?
  • Communications and working with appraisers
  • Usage of third parties such as AMCs
  • Utilization of AVMs and other automated solutions
  • Interplay with appraiser independence
  • Policies, procedures, and controls, including examples
  • Disclosure to customers around their right/ability to request an ROV
  • Resolving the ROV – it’s not always about getting a second appraisal
  • Timelines – when should all this be done? Are there deadlines?
  • Additional requirements for FHA and Fannie/Freddie lenders

Who Should Attend

Mortgage lenders and those responsible for collateral valuations, including underwriters, managers, processors, and compliance, audit, and legal professionals will gain value through the concepts discussed in this webinar.
Carl Pry

Instructor Bio


Carl Pry is a Certified Regulatory Compliance Manager (CRCM) and Certified Risk Professional (CRP) who is a Senior Advisor for Asurity Advisors in Washington, DC. Through his more than 35-year working career, as well as through his experience as a banking attorney and officer, he has provided a variety of regulatory compliance and financial performance services to financial institutions and other clients throughout the country. He has written extensively regarding consumer and commercial compliance, tax, audit, and financial institution legal issues, and is a frequent contributor to and currently serves as the Chair of the Editorial Advisory Board for the ABA Bank Compliance magazine. He has spoken at scores of banking, compliance, and state bar associations, and has conducted training sessions for financial institutions across the country.


Continuing Education Credit Information

Appraisal Bias, Automated Valuation Models (AVMs), and Reconsiderations of Value (ROVs): How Should We Handle This? has been approved for 2.5 CRCM credits. This statement is not an endorsement of this program or its sponsor. Credits are redeemable for both Live and OnDemand viewing. For questions on certificates, please email support@oncourselearning.com. Certification holders must report these credits at https://aba.csod.com.

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