On March 19, 2025, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2025-08, Rescinding Multiple Appraisal Policy Related Mortgagee Letters, to immediately rescind the policy guidance published in the following MLs:

  • 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.

For the first two items, on Reconsiderations of Value (ROVs), FHA has reverted to published language prior to implementation of a uniform process for borrower initiated ROVs that aligns with published Fannie Mae and Freddie Mac policies. However, borrowers are still entitled to request an ROV if they have concerns about the appraisal and should contact their lender to obtain information on initiating a request.

The Appraisal Fair Housing Compliance ML was rescinded because the Uniform Standards of Professional Appraisal Practice (USPAP), which appraisers are required to adhere to per FHA policy, was updated in 2024, resolving the concerns the ML intended to address.

Mortgagee Letter (ML) 2025-08