FHA Rescinds Appraisal Mortgagee Letters

FHA issued Mortgagee Letter 2025-08, rescinding three prior Mortgagee Letters (MLs) enacted under the Biden Administration designed to address perceived bias in the appraisal process. 

The rescinded MLs are: ML 2024-07 Appraisal Review and Reconsideration of Value Updates; ML 2024-16 Extension to the Effective Date of Appraisal Review and Reconsideration of Value; and ML 2021-27 Appraisal Fair Housing Compliance and Updated General Appraiser Requirements.

The rescission of ML 2024-07 and ML 2021-16 effectively returns FHA published guidance on Reconsiderations of Value (ROVs) to that which existed prior to the implementation of a uniform process for borrower-initiated ROVs.  With this rescission, Borrowers may still request an ROV and must contact their lender to initiate such a request. 

Finally, FHA found rescission of ML 2021-27 appropriate based on the 2024 amendment of the Uniform Standards of Professional Appraisal Practice Ethics Rule, which clearly addresses an appraiser’s duty of compliance with fair housing laws.