Dear Valued Lending Partners,
We wish to inform you of a significant policy update from the Federal Housing Administration (FHA) that directly impacts our appraisal processes and compliance requirements.
Rescinding Prior Mortgagee Letters
On March 19, 2025, the FHA issued Mortgagee Letter 2025-08, which rescinds the following previous guidance:
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Mortgagee Letter 2024-07: Appraisal Review and Reconsideration of Value Updates (May 1, 2024)
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Mortgagee Letter 2024-16: Extension to the Effective Date of Appraisal Review and Reconsideration of Value (ROV) Updates (August 6, 2024)
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Mortgagee Letter 2021-27: Appraisal Fair Housing Compliance and Updated General Appraiser Requirements (November 17, 2021)
This action effectively restores the appraisal policies and procedures that were in place prior to these letters.
The provisions of Mortgagee Letter 2025-08 are effective immediately as of March 19, 2025. All updates will be incorporated into a forthcoming revision of the HUD Handbook 4000.1, FHA Single Family Housing Policy Handbook.
If you have any questions, please contact Brian Hunt, bhunt@ahfa.com.
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