Banks, Realtors Push US Agencies to Cap Home Appraisal Do-Overs

Banks and realtors urged federal regulators to limit the number of times a potential homebuyer or seller can challenge an appraisal of the property’s value.

Five agencies proposed guidance in June seeking to make it easier for consumers to ask for so-called reconsiderations of value (ROV), particularly if they suspect racial biases affected the initial value placed on a home. The guidance is part of a broader Biden administration push to address racial disparities in home appraisals.

But allowing consumers to seek an unlimited number of new appraisals could gum up the homebuying process, according to comment letters from the ...