The Federal Housing Administration today issued a mortgagee letter rescinding three appraisal policies concerning fair housing considerations, part of what the agency said was a Trump administration effort to reduce regulation.
The letter rescinds a 2021 mortgagee letter clarifying the requirements for appraisers and mortgagees with fair housing laws in the appraisal process. It also rescinds two 2024 letters on the use of reconsiderations of value in appraisals. An ROV is a request that a financial institution may make to the appraiser or other entity that developed a valuation report for a property being used as collateral for a loan to re-assess the report based on potential deficiencies or information that may affect the value.
The rescinded policies were part of a larger push by the Biden administration to address what officials said was bias in the appraisal process. In the letter rescinding those earlier policies, the FHA pointed to an executive order by President Trump reversing policies that have adversely affected key sectors, including the housing market.
“Rescinding the policy announced in these [mortgagee letters] is a step in aligning with the administration’s broader goal to reduce unnecessary regulatory burden and foster long-term economic stability for all Americans,” FHA said.
