RMV- Reconciled Market Value

[Herm M.]

What is reconciled market value, and how is it calculated?

Chase told me that after the BPO, they then do an RMV. I said "what the hell is an RMV, and how is it different from the BPO?"

The guy said something along the lines of "A BPO is what the property is worth, and RMV is what somebody is willing to pay for that property."

Anybody familiar with how RMV is calculated? How would the lender calculate "what someone is willing to pay" if they're not the ones patrolling the offers that are coming in?

[Bill Gulley]

Hi, I think you got a poor explanation there, since that's what the BPO is supposed to establish! LOL

Loss Mitigation/ they probably do a review appraisal of the information received. This is common in the secondary market and on other loans on a random "inspection" basis. I use to do reviews in examinations.

Basically, it's checking the comps to see if they are in line, if the adjustments were made properly and if the value assessed is reasonable for the data. Many times some adjustments will be made, thus, what you were told is, the value expected to be received or what the property will sell for. One thing to look at is that the BPO may be viewed at a retail level or value and the review will consider other market conditions which will reflect the nature of an REO sale. Hope you get an idea of what's going on with that. Bill