On July 10, HUD and the OMB announced two changes regarding federal housing policies: first, they terminated several FHA mortgagee letters regarding appraisals; and they disbanded the Property Appraisal and Valuation Equity (PAVE) task force. HUD’s press release stated that eliminating these policies would streamline the home appraisal process, reduce regulatory burdens for lenders and appraisers, and expand access to homeownership. As previously covered by InfoBytes, in March, HUD, through Mortgagee Letter 2025-08, rescinded three mortgagee letters related to appraisal policies in its Single Family Housing programs.
The agencies emphasized that the Fair Housing Act and ECOA continue to prohibit discrimination in housing and lending transactions. The agencies referenced research suggesting that factors other than race, such as educational attainment and credit scores, are more significant in appraisal outcomes.
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