The Federal Housing Administration rescinded three mortgagee letters that had sought to reduce discrimination in the appraisal process but which the Trump administration argued had created barriers and increased regulatory and financial burdens.
Effective immediately, Mortgagee Letter 2025-08 rescinded:
- ML 2024-16, Extension to the Effective Date of Appraisal Review and Reconsideration of Value (ROV) Updates, dated August 6, 2024;
- ML 2024-07, Appraisal Review and Reconsideration of Value, dated May 1, 2024; and
- ML 2021-27, Appraisal Fair Housing Compliance and Updated General Appraiser Requirements, dated November 17, 2021.
The big picture: ML 2025-08 specifically mentions that the collateral risk assessment will remain in place noting, “A second appraisal may be ordered if FHA’s collateral risk assessment determines a second appraisal is required. The cost of the second appraisal may be financed as part of the closing costs.”
Yes, but: Although collateral risk assessment was not rescinded, this ML does open the door for NRMLA to propose refinements to that process.
