WASHINGTON–The Federal Housing Administration has issued a mortgage letter that rescinds  three appraisal policies concerning fair housing considerations.

According to the FHA, the move is part of a Trump administration effort to reduce regulation.

The letter rescinds:

• A 2021 mortgagee letter clarifying the requirements for appraisers and mortgagees with fair housing laws in the appraisal process
• Two 2024 letters on the use of reconsiderations of value in appraisals. As the agency noted a  ROV is a request that a financial institution may make to the appraiser or other entity that developed a valuation report for a property being used as collateral for a loan to re-assess the report based on potential deficiencies or information that may affect the value.

Put in Place by Biden Administration

The policies being rescinded had been put in place by the earlier Biden Administration, which had alleged bias in the appraisal process. 

“Rescinding the policy announced in these [mortgagee letters] is a step in aligning with the administration’s broader goal to reduce unnecessary regulatory burden and foster long-term economic stability for all Americans,” the FHA said in its statement.

The letter can be found here.