WASHINGTON–The Department of Housing and Urban Development (HUD) has updated Federal Housing Administration (FHA) quality control requirements to allow greater flexibility and alternatives to appraisal field reviews in a change that had been requested earlier by a coalition of 10 trade groups, including America’s Credit Unions.
The new provisions took effect immediately when released in a Mortgagee Letter on June 23, America’s Credit Unions said.
According to ACU, the change removes the requirement for mortgage lenders, including credit unions, to obtain appraisal field reviews on at least 10% of origination and underwriting quality control reviews.
“The change will make field reviews optional for appraisal quality control, maintain FHA’s core appraisal compliance framework, and give lenders the ability to tailor their review methods on a case-by-case-specific risk,” America’s Credit Unions said. “The removal will also reduce appraisal costs for credit unions while encouraging participation in FHA programs.”
It follows the Promoting Access to Mortgage Credit Executive Order, aligning the FHA’s standards with those adopted by the Department of Veterans Affairs and the overall mortgage industry, the trade group noted.
Hearing Today on Payments
The House Financial Services Committee will hold a hearing today on “The Future of Payments.”
Ahead of the hearing, America’s Credit Unions sent a letter to the committee that it said:
- Highlights the impacts of fraud and scams on credit unions and their members, and the importance of addressing fraud in a way that does not shift liability to financial institutions
- Discusses the impact that legislation like Illinois’ Interchange Fee Prohibition Act has on payment systems used by financial institutions
- Emphasizes the need for caution regarding expanding access to master accounts, with a focus on maintaining safety and soundness of the entire financial system.
- Recommends “the NCUA consider flexible approaches to expand credit union participation in stablecoin markets by allowing federal credit unions (FCUs) to invest in PPSI subsidiaries that are distinct from credit union service organizations (CUSOs), consistent with Congress’s intent” in the GENIUS Act.
CU-Backed Candidate Wins in Utah Primary
Ben McAdams, who received significant support from Amercia’s Credit Unions PAC, has won the Democratic nomination in Utah’s new 1st Congressional district.
As of Tuesday night, McAdams had 60% of the vote. Nate Blouin followed with 24%, while Liban Mohamed had 12% and Michael Farrell trailed with 4%.
As the CU Daily reported earlier, McAdams was the beneficiary of an independent expenditure campaign by the PAC that included direct mail, digital video and radio advertisements, as well as a dedicated campaign website.
“McAdams is seeking to represent a district that is home to one of the most concentrated populations of credit unions in the nation, making the race especially significant for the credit union movement,” the organization said in a statement earlier this year.
