WASHINGTON — America’s Credit Unions joined a coalition of mortgage, real estate and financial services trade organizations in urging the Federal Housing Finance Agency to use a recent White House executive order as a catalyst for broad appraisal modernization, arguing the changes could lower costs, speed mortgage transactions and expand access to credit.
In a letter to Federal Housing Finance Agency Director William Pulte, the groups expressed support for President Donald Trump’s March 2026 executive order, “Promoting Access to Mortgage Credit,” and called on the agency to pursue several appraisal-related reforms involving Fannie Mae and Freddie Mac.
In addition to America’s Credit Unions, others joining in the letter included the American Bankers Association, Broker Action Coalition, Community Home Lenders of America, Housing Policy Council, Independent Community Bankers of America, Mortgage Bankers Association and the National Association of Mortgage Brokers.
Opportunity for ‘Improvements’
The coalition said the executive order presents an opportunity to improve the quality, efficiency and integrity of residential property valuations while making mortgage credit more affordable and accessible. The organizations noted that the government-sponsored enterprises play a dominant role in the mortgage market and are well positioned to lead modernization efforts.
Among the recommendations, the groups:
- Urged the FHFA to expand the use of alternative valuation methods, including desktop appraisals, hybrid appraisals and artificial intelligence-powered valuation tools.
- Recommended allowing borrowers, real estate agents and loan officers to submit authenticated interior and exterior property photographs through secure portals as part of the valuation process. The letter said a similar approach was used successfully during the COVID-19 pandemic and improved appraisal efficiency.
- Called for expanded use of appraisal waivers, known as value acceptance, for low-risk mortgage transactions.
Additional Arguments
The letter noted current GSE policies generally limit value acceptance to properties valued at $1 million or less and argued that the threshold has not kept pace with rising home prices and increasing conforming loan limits. They recommended raising the cap to $2 million and reviewing it annually when loan limits are updated.
The groups also asked FHFA and the GSEs to provide appraisers with limited access to property and appraisal data maintained through the Uniform Collateral Data Portal. The organizations said greater access to market data could improve appraisal accuracy, reduce turnaround times and lower costs for borrowers.
Transparency Urged
While cautioning against providing appraisers unrestricted access to proprietary analytics tools that could influence valuation judgments, the coalition said carefully structured access to market information would improve appraisal reliability without compromising appraiser independence.
The letter emphasized that modernization efforts should be accompanied by clear standards, oversight and transparency measures. The groups said a broader range of valuation options tailored to transaction risk could improve the borrower experience while maintaining safety and soundness standards.
In DC This Week
Also in Washington this week:
- Congress has returned to session.
- NCUA Chairman Kyle Hauptman will testify before the House Financial Services Committee on Thursday as part of the semiannual testimony from federal financial regulators.
- America’s Credit Unions said its PAC will be supporting 55 candidates in primary elections in California, Iowa, Montana, New Jersey, New Mexico, and South Dakota Tuesday. This includes support for incumbent credit union champions Reps. Young Kim (R-CA) and Brad Sherman (D-CA), both facing primary challenges in newly drawn districts, America’s Credit Unions said. The trade group said it has launched ad campaigns in support of both Kim and Sherman.
- On Wednesday, House Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade will conduct a hearing on establishing a comprehensive federal data privacy and security law
- Treasury Secretary Scott Bessent will testify on Treasury’s FY27 budget before the Senate Finance Committee Wednesday and the House Ways and Means Committee Thursday.
