Four agencies must require a way for a borrower to challenge a valuation
What the document says“shall each implement and maintain requirements that creditors of a federally backed mortgage loan have a review and resolution procedure for a consumer-initiated reconsideration of value or subsequent appraisal in connection with a consumer credit transaction secured by a consumer's principal dwelling.”
The section requires the Secretary of Agriculture, the Secretary of Veterans Affairs, the Commissioner of the Federal Housing Administration, and the Director of the Federal Housing Finance Agency each to put in place and keep requirements that creditors of a federally backed mortgage loan have a procedure for reviewing and resolving a reconsideration of value or later appraisal that a consumer starts, on a loan secured by the consumer's principal dwelling.
What the document actually says“shall each implement and maintain requirements that creditors of a federally backed mortgage loan have a review and resolution procedure for a consumer-initiated reconsideration of value or subsequent appraisal in connection with a consumer credit transaction secured by a consumer's principal dwelling.”
Four bodies must set rules for lenders. A lender must have a way to look at a value again when the buyer asks. That covers a loan on the home the person lives in.
An appraisal sets what a home is worth for a loan. A low one can sink a sale. This gives the buyer a way to ask for a second look.
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