On November 26, 2018, the Appraisal Foundation released a White Paper entitled Requests for Reconsideration. The purpose of the White Paper is to examine best practices for requests to appraisers for a reconsideration of a completed appraisal.
The paper stresses that given the absence of federal guidelines or standards on how to approach a reconsideration of value, it is in the best interest for all parties to develop a solid understanding of what is and is not allowed under Dodd-Frank in terms of appraiser independence. Some appraisers and some users and/or benefactors of appraisal services do not follow the appropriate methods for handling reconsiderations of value. Better understanding and education on those rules will enable better communication.
The Appraisal Foundation also puts forth a series of potential best practices that could aid in the process of reconsiderations. This includes instituting a standard timeframe in which a request of reconsideration could be made and a timeframe for the response to the request. It also suggests limits on the number of additional sales that could be provided for the appraiser to consider and giving an appropriate rational for those sales.